By Judith M. Guido
I’ve never quite understood the term organized chaos. It is an oxymoron that makes me uncomfortable, and as I have observed over the years when working with clients, it creates significant inefficiencies and robs companies of profits.
One of the causes (or excuses) most owners and managers give for their organized chaos is that they wear too many hats and have too little time to be organized. So, how does a company design its organization to successfully execute its strategy and adjust to market changes when necessary? For this column, I will assume that you have a viable strategic plan in place. If not, email me and we’ll talk!
A company is a composition of individuals who perform tasks and make decisions every day that affect the overall health and brand of your company. Only when employee’s actions and decisions are aligned with one another, and with the company’s strategic intent, can you achieve real success. For starters, because these collective individual actions ultimately determine a company’s success, we need to identify dysfunctional activities and understand who is performing them and why. Is it because we have no standards, rules or training? Can it be a problem that was created at the top, and/or is it a lack of metrics and management?
There are four significant powers that make up a company’s organizational fabric:
Organizational structure
What does the hierarchy of your company look like? How many layers do you have, and who reports to whom? Quite often the problems begin here. I frequently observe too many layers of unskilled management, with too few direct reports, or conversely, a strong manager with too many direct reports and responsibilities. Identifying all of the tasks, timelines and metrics necessary to successfully execute will help you design the proper organizational structure for your company.
Decision rights
Who decides what? How much or how little oversight do individuals have? How long does it take people to make decisions? For example, who can purchase within your company, and up to what level? Are all employees empowered to make customer service decisions? Does your organization have incentives and motivations for making intelligent and strategically aligned decisions?
Many companies, especially smaller ones, have micromanagement cultures whereby owners and a small team of management paralyze the entire organization because everything has to be “run by them.” Have you articulated clear goals and guidelines and empowered your team? Clarifying decision rights will not only help you solidify your organizational structure and assign responsibilities to the right parties, but it also will save a lot of time, money and energy, while building a world-class team.
Motivators
If you’ve clearly defined your strategy for your employees, hopefully you have also included metrics and rewards for success, and coaching and guidelines for dismissal. Be certain that you have created motivators that are aligned with your strategy, budgets, customer retention levels, safety records, market conditions and growth opportunities.
Information
Building a successful company where employees make the right decisions, and are motivated to successfully execute them, requires quality information. Are individuals in your company receiving the proper information (at the right time) in order to make intelligent decisions?
Take a hard look at the flow of information within your company. Who gets what? Everybody in your organization should receive some type of communication, regardless of where they fall on the organizational chart, what language they speak, or how much money they make. Does everybody know the strategic vision of the company, or is it only the owner and small group of management who possess this information? While I am certainly not advocating that everybody within the company have access to all information, it is important to identify what information needs to be communicated to all, versus individuals, to be successful. I have found that the leaders who communicate their strategic intent to the entire organization ensure that everybody is marching to the beat of the same drum. What tools, technologies and timing are you using to effectively communicate with your employees?
This is a great time of year to sit down with your team and review and assess, and make the necessary changes in order for you to be a winner in 2012 and beyond.
To receive a copy of Guido’s organizational and strategic management model, which will guide you in building a successful company, email her at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Judith M. Guido is a principal in Guido & Associates and a business management consultant who has been helping snow and green companies grow successfully for more than 20 years. Visit her on LinkedIn, Facebook and Twitter.
