You owe it to yourself to understand how your company is set up. Internal optimization will lead to dramatic improvements in your business performance.
When is the last time that you sat down and really tried to understand what everyone in your organization does? How about every department?
I’m guessing that the large majority of you haven’t ever spent dedicated time doing this. If you are big enough and have an Organizational Effectiveness person, then they – presumably – have gone through the exercise. Other businesses, with, say, 100 employees or more, probably have HR people who should know these things because they write job descriptions.
My question for you is this: How are you able to leverage your internal resources to maximize your business performance if you don’t really know how things run? I appreciate that your COO or CAO takes care of the internal infrastructure that keeps your business moving. But that is exactly the point. We’re talking about how your infrastructure functions, how the pieces of your organization are interdependent, and ultimately how your business works.
Does the CEO really need to know the content of every job description or role profile? No, of course not. But in these times of efficiencies and effectiveness, of hiring stringencies and being strategic, you owe it to yourself to understand how you are set up, and to make sure that your corporate infrastructure fits with your overall business strategy.
There is a lot of talk in various publications and forums about strategic planning, and the importance of being able to implement and execute a strategic plan. Once again, you may be the visionary or the leader of the strategic plan, but are you doing your job if you don’t know how it will be executed and implemented?
Standard Business Operating Procedures vary between industries, but the essence remains the same: your business needs to operate in the most effective and efficient way, and in a way which always has the long term well being of your organization at its centre. As the workplace, technology and business have changed drastically over the past several decades, the inner workings of organizations have also become more complex.
We’re living in a time where the survival of our businesses often depends on business model innovation, or finding the white space or the ocean space or whatever you want to call potential markets. If your business needs to continue to evolve and grow and expand, the corporate infrastructure needs to do the same. Just as your consider some of your suppliers and corporate alliances to be strategic partners, your internal capabilities are strategic in delivering your service or product.
Here is a suggestion. Over the next couple of weeks, sit down with your management team or your executive peers, and discuss how the inside of your organization really works. Chart everyone’s input of what works well and what needs to be changed. Then just as you would map products, services, market opportunities, etc. to your strategic plan, create a map which includes your internal functions. You’ll quickly see how internal optimization will link to improved performance. The challenge, of course, is not in creating the alignment map; it is in executing the efficiencies and ensuring that they remain enablers of your products and services.
Upstart Business and Management for 20-40 Year Olds www.upstartnation.biz
Filed Under: Management
About the Author: Jessica Pelt is a Business Advisor and Organizational Consultant. She focuses on improving your organization through design, innovation, effectiveness and operational efficiencies. Jessica's value add is her multi-disciplinary approach to and understanding of organizations, combined with her unique ability to blend concepts and ideas with daily operational requirements.
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