Page 43 - Council Journal Winter 2019

FEATURE Poor Organisational Performance
dimensions, we grouped these lower performers in four diagnostic patterns (see Figure 2):
We have also surveyed more than 1,200 companies globally across industries. Our experience and the data from the survey both point to six organisational outcomes that together account for high performance (see Figure 1). These high-performing organisations are:
dimensions, the greater the odds that it will be a business performance leader—that is, performing in the top quintile relative to industry peers along revenue growth, profitability and total shareholder returns, over a five-year period. Companies that are top performers across these outcomes are about six times more likely than peers to be business performance leaders.
• Aimless runner. This 30% of the total group consists of capable executors that still cannot deliver on their strategy because the organisation has not aligned to the strategy, creating confusion and competing priorities. They work without orientation.
• Focused waddler. Comprising 40% of respondents in our analysis, these companies exhibit a strong sense of direction, but they typically have one of two major problems that weaken their execution. Some lack the requisite capabilities to operate efficiently and consistently. Others may have decent capabilities but have complex decision-making processes that slow things down.
• aligned with the company’s strategy;
• Happy statue. These companies, 10% of the total, often have good employee engagement and satisfaction, yet lack either clear orientation, strong execution or both.
• capable of executing strategy with the right talent, processes and tools;
For the vast majority of companies—the roughly 90% with lower business performance—it’s critical to make a careful assessment of their starting point.
• Stuck in a shambles. Another 10% of companies fall in the fourth or fifth quintile across all dimensions. They lack orientation, execute poorly and suffer from unhappy employees.
• effective at making and executing critical decisions;
• adaptable in the face of rapid change;
And while each company’s situation is unique, our analysis does reveal patterns that can be useful for executives trying to decide where to invest. Based on how companies perform on each of the six
• efficient in realising the benefits of scale and scope; and
• inspired to go the extra mile
Let’s look in more detail at each group, with options for attending to their distinct problems.
The better a company’s performance along these six
Figure 2
Council Journal 43