Page 41 - Council Journal Winter 2019

Figure 1
Poor Organisational Performance
Dealing with an organisational dysfunction starts with a diagnostic that uncovers the root causes of the symptoms. Once you uncover root causes, proven remedies usually exist.
Executives thus benefit from taking a step back to understand the true nature of the problem that needs repair, rather than jumping to an answer that focuses on areas where they feel most comfortable (and where they likely already perform reasonably well). A diagnostic
Connecting organisational performance to business performance
To oversimplify, if a organisationhas an orientation problem, the solution may reside in getting senior leadership better aligned, clarifying roles and accountabilities, or reducing organisation priorities down to the two to three priorities most critical to the stated strategy. An execution problem may require addressing major talent gaps, poorly performing systems, a lack of focus on cost and performance or all of the above.
approach that we call the “organisational Navigator” can help executives understand their starting point so they can set a practical course for better results. The organisational Navigator assesses where their organisation is strong, where it is weak and, critically, where it should focus to have the greatest effect in improving its business performance.
FEATURE Poor Organisational Performance
An industrial supplier struggles at the other end of the spectrum. Despite having a solid strategy that the organisation already orients around, senior executives insist on constantly having multiday strategy offsites and avoid more pressing concerns about weak execution against customer expectations. The senior team spends a lot of time discussing which acquisitions to make and which new technologies to invest in, and relatively little time on how to better deliver products on time and under budget.
Halting or misguided attempts to improve performance are not uncommon. For companies that feel stuck despite having sound strategies, it is often unclear whether the problem lies in how the organisation orients around the strategy, executes against the strategy or both. So companies flounder as they throw more energy and resources at remedies for the wrong problem. Instead of addressing what ails them, they focus on what they know and do best. This predicament can become even more pronounced when companies try to migrate their business model, or market conditions shift dramatically or upstart competitors begin taking share.
Over the past 18 years, Bain & Company has studied hundreds of companies around the world, and our research has uncovered what great organisations look like.
Council Journal 41