Posts Tagged ‘organisation effectiveness’

You can’t outsource responsibility

Cloud computing

Cloud computing

Microsoft has shown that cloud computing (and business process outsourcing in general) has big risks and no guarantees. A recent problem for Microsoft personal customers is a stark warning for business users. Last week, Microsoft’s Danger unit experienced a huge outage that left many T-Mobile Sidekick users without access to their calendar, address book, and other key data

Cloud computing is a popular trend that is being promoted heavily and one that we have had concerns about for some time. We like to think of our company as innovative and open to new ideas, but we have so far been unconvinced by cloud computing. Where any data is held on external servers, we ensure that backups are taken and transmitted back to our server here, which has a frequent and multi-level security backup regime.

The Microsoft problem is a timely warning to consider moving data to ‘the cloud’ very carefully or, if you are already using external data services, to ensure a robust back-up procedure that moves the data out of the cloud and into a tangible, physical medium is good risk management – which is a requirement for any Business Process Outsourcing (BPO), not just cloud computing.

Show me the evidence!

Show me the evidence

Show me the evidence

Our practice has been increasingly focussing on evidence that something works as a ‘must have’ in any proposed intervention. In 2006 and 2007 this blog discussed some of the principles behind this approach, including the wisdom of ignoring management fads and approaching ideologies and theories based on the evidence, rather than assuming that the latest fashionable idea is best.

Essentially, evidence-based management is a sceptical approach that, according to Pfeffer and Sutton from their excellent book: Hard facts, dangerous half-truths, and total nonsense: profiting from evidence-based management (2006) follows a few simple guidelines including:

Treat old ideas like old ideas, and

Be suspicious of breakthrough ideas, and studies because they, almost, never happen.

There is much to still learn and discover about how organisations function, but there is also plenty of well-researched evidence around for what works in the business world. The so-called ‘gurus’ who claim that business is difficult to figure out because it is all about people and we are complex, unpredictable things that don’t follow predictable rational rules are giving up too easily. Trying to understand human and organisational behaviour is why we have psychology for instance.

So, claiming that business is too hard to fathom is weak. Worse than this though is using the complexity argument to justify unproven, flaky nonsense (see earlier posts on business psychics). A good example in the field of personal development would be “The Secret” with its claim of applying the “universal law of attraction” to achieve your desires- the idea being that if you simply visualise something it will be attracted to you – whether it is a physical object, maybe a car or yacht, or an abstract concept such as love or success.

Try as I might, I can find no evidence for this – the best I have come up with is gravity and magnetism.

People are often attracted to mysticism in it’s various forms because it offers easy answers to difficult problems. The business world, particularly in the current fragile economic climate, deserves better. So, rather than deciding that because we don’t have all the answers yet we should ignore management science and just make stuff up, let’s build on what we have found to date, do more research, reflect on experience and…show me the evidence!

Reality Check

It’s too easy sometimes to get caught up in day-to-day business and slowly start to lose touch with your organisation’s strengths and weaknesses. When was the last time you went to a customer, partner or a completely unrelated organisation and used them to gauge your own organisation’s strengths and weaknesses? It doesn’t have to be a full benchmarking exercise; a couple of discussions about their experiences and approach can often yield valuable insights into your own potential for improvement. I accompanied a client on just such a visit this week and within 2 hours they identified a key process with a potential for a three-fold improvement that could save them £2m on a £20m project. We don’t all have opportunities that big, but how many 10% increases in performance would you turn down for the sake of a 2 hour meeting?

Busy doing…?

Busy? OK, but doing what?

Another day and another meeting with an overworked manager. Nothing remarkable about that you may say, this is a refrain we hear every day. Exactly, and that’s the issue. As with many other effectiveness issues this seems to be another case where it is important to distinguish between quality and quantity. In this case it’s the difference between the quantity of work being complained about and the quality of the work being undertaken. There are simple answers to the problem and many of them have been around for a while. (See my earlier post on management fads)

Let me try to explain. A phenomenon in the modern organisation that has been well documented, at least by the cynical. is ‘death by initiative’. Smart managers learned a while ago not to call their new project an initiative for fear of ridicule and not to expect any longevity in their assignment if they were allocated to a new initiative. In many organisations the solution is quite simple: kill the initiatives; wipe the slate clean and start again from a clean sheet of paper.

In organisations where there is a chronic resource shortage it is often the case that the shortage is more perceived than real, and the problem is exacerbated by the losses that result from trying to do too many things and never finishing anything.

Here’s a simple test: is your diary or schedule full of meetings that others have set up or is it populated with activities that you have chosen as steps towards achieving your objectives? Effective organisations, regardless of whether it is a process or project environment, have proactive managers and leaders with well-formulated goals, clear prioritisation and good time management. Ineffective organisations have reactive managers whose days are ruled by a meeting schedule and the email inbox.

If you recognise your organisation in the second description above there are some simple remedies, but the discipline required to implement them may be a challenge depending on how deeply the tendency to reactivity is embedded in the culture. Here are 5 simple steps to change from reactivity to pro-activity and help build a more effective organisation:

1 Clear every manager’s schedule or diary so you start with a clean slate
2 For each individual, select their top priority and schedule the time blocks required to achieve that objective
3 Repeat step 2 for the next priority then the one below and so on until the diary is 60-80% full. The space between these planned activities should be used for thinking, planning, preparation and follow-up
4 Transfer the remaining lower-priority activities to a register so that as objectives are achieved and activities drop out of the schedule new ones can be added.
5 Er, that’s it

As with so many issues we deal with, the solution isn’t complex or particularly clever. However, until these basics are in place, there is little value in pursuing the complex ones. Planned time and calm, but productive activity improves the quality of a manager’s work and as a direct result, the quantity of work they can complete increases – truly a virtuous circle.

Integrity

A key characteristic of many effective organisations is integrity. Whether this is an ethical approach to business, leading by example or, to take a current success story in the UK, building an organisation by satisfying both customers and employees. This is the approach taken by the retail stores of the John Lewis Partnership (although there are no emplyees at John Lewis – everyone owns a stake in the business). The unusual success of John Lewis is in stark contrast to many of their competitors. Our view is that this success is related (maybe not exclusively) to the organisation’s integrity.

The Effective Organisation

Welcome. This blog is intended to stimulate discussion and ideas for making organisations more effective. It covers Direction (Vision & Values, Mission, Goals and Strategy) and how to translate this into results through aligning people, processes and systems. The scope also includes organisation design and development, change management, business process management and information systems.

The intention is to stimulate discussion about what distinguishes an effective organisation from an ineffective one. Your thoughts and contributions are welcomed.