Page 44 - Council Journal Winter 2019

FEATURE Poor Organisational Performance
Some companies have a clear strategy and successfully orient employees around the strategy with proper communication, resourcing and incentives—yet they seem unable to deliver on the strategy. The problem may stem from a lack of key capabilities or skills, especially when the strategy evolves. For instance, if an organisationdecides to ramp up cross-selling, it would need a strong account management capability. Founder-led companies that have grown rapidly often fall into this category.
they were closer to customers. Other companies that fit this
properly oriented the organisation around the company’s strategic direction. In these situations, objectives often shift from one quarter to the next, and the sterling execution of one team might not be consistent with, or even undermine, other teams.
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pattern suffer from unnecessary complexity in their processes, or confusion over who is accountable, making it difficult to operate efficiently. People may share the same goals, but when it comes time to instilling cost disciplines and improving operations, bloated or duplicative processes get in the way.
A mobility technology company found that in the process of growing quickly it had started many ad hoc processes and workarounds without first building the necessary infrastructure and capabilities. Complicating matters, while it was composed of two somewhat unrelated businesses, the corporate center had started integrating activities across the two out of concern that neither unit was recruiting the right talent. Executives reconsidered this approach. They realised that growth would depend on shoring up technology and operations infrastructure and undoing some of the shared services. They also shifted more accountability to the business units, which were better placed to make the right trade-offs because
For the problem of weak capabilities, the most useful response starts with an assessment of which capabilities matter most to delivering on the strategy, and what gaps exist in those capabilities. Then the organisationcan begin systematically addressing those gaps—bringing in new talent, upgrading systems and tools, revisiting processes or some combination of these. If the gap stems from overly complex processes the best answer is often a zero-based redesign—a onetime, blank-sheet approach to streamline work processes, simplify the organisation, unlock savings and unlock time and energy.
Such companies wind up being less than the sum of their parts, stemming from several possible causes. In some cases, senior leaders might not share a consistent view of success, or they issue vague communications about the strategy. In other cases, they hesitate when managing under uncertainty, changing priorities in haste. They might allow functions or business units to set objectives, but the objectives of one group conflict with those of others. And the organisational structure and accountabilities could hinder collaboration among functions.
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Well-oiled, lean execution machines can be wonderful to behold. Fast decisions, smooth processes, firm deadlines—all make for solid operations. But those virtues have limited value if leadership has not
A number of possible responses work well in these situations. If the strategy and positioning is fuzzy, invest first to clarify it—then make sure the senior team supports and commits to it. Evaluate the operating model for opportunities to align it more closely to the chosen priorities, through several means: restructuring accountabilities and reporting relationships, or updating ways of working within and across organisational units.
Aimless runner