The Need for Speed ~ Driving Pace in Your Organisation ~ Part 4

Execution of the Plan

In part 3 of this four part series of blogs I covered the importance of PACE to improve organisational effectiveness and speed and specifically Communication:

PACE = Planning + Alignment + Communication + Execution

The fourth and final part of The Need for Speed ~ Driving Pace in Your Organisation will focus on Execution of your plan to acheive your One Magnificent Goal, your OMG!

Execution

Thomas Edison famously said, “Vision without execution is hallucination.” It’s true. And as the hallucinations of countless business leaders have proved, knowing what you want to do or where you want the company to be may be less than half the battle.

a) Co-ordination and control of programmes and projects

Failure to execute has several root causes. Below are several common reasons why companies fail to execute their strategic plans fully:

  • Poor prioritisation of resource – Every goal cannot be the top priority, but we set ourselves up for failure by treating them all as if they were equal. Organisations lack the energy or focus to take on too many goals at once. Even if the capacity were there to take on unlimited amounts of work associated with implementation of strategic goals – it is a bad idea to over extend.
  • Lack of detail planning to support goal achievement – Detailed planning involves breaking down work into smaller parts. It is far easier to solve a small puzzle than to launch into solving a massive one. Inch Pebbles not Mile Stones!
  • Poor communication and coordination – Failure to communicate and educate is a huge factor in many failed plans. Employees who are responsible and accountable for their scope of execution must understand what is to be done, when and how that affects the overall outcome.
  • Strategy and culture misalignment – Execution cannot be planned without consideration of the organisation’s culture.
  • Accountability missing from goals – Everyone is accountable in accomplishing their individual tasks that are required to achieve the overarching OMG and some, including the CEO, may be accountable for reinforcement of the tasks.
  • Poor governance – Governance enables organisations to manage the interrelationships of all underlying initiatives comprising their OMG. Governance also provides the boundaries and check points needed to keep programs in alignment with the plan.
  • Ill-defined initiatives – Once ambiguity creeps into the scope of any initiative, it leads to confusion and failure in execution. The language used to state goals is usually where the problems start. Initiatives must be carefully constructed in order to be crisp and well understood. In addition, they must be measurable.

To be successful a project must:

· Deliver the outcomes and benefits required by the organisation

· Create and implement deliverables that meet agreed requirements;

· Meet time targets and stay within financial budgets;

· Involve all the right people;

· Make best use of resources in the organisation and elsewhere;

· Take account of changes in the way the organisation operates;

· Manage any risks that could jeopardise success;

· Take into account the needs of staff and other stakeholders who will be impacted by the changes brought about by the project.

· Keep stakeholders and staff in the loop as to your progress and get them ready for any impacts of the project.

b) Ownership and accountability

At work, people who have a high level of accountability will take initiative to ensure the success of a project, provide early warning of potential problems, and try to resolve a problem even if it is not their fault.

One reason we hesitate to tackle the accountability problem in a timely way is a lack of clarity on what the person is accountable for in the first place. Discussions about accountability can be straightforward and potential conflicts less intense when everyone knows ahead of time what is expected and how success will be measured. Establishing this clarity also reduces the likelihood of having to have the discussions in the first place.

Being accountable comes naturally to some people. For many of us, however, the more natural tendency is to justify and explain why we are not responsible when things go wrong. Although you cannot change human nature, those of us in a managerial or leadership role can help create an environment that enables others to operate at a higher level of responsibility. The key is to set people up for success by clarifying expectations up front and building in time to make course corrections before the deadline. This helps avoid the need to make excuses.

When targets are missed, asking three questions can solve the problem: What can you do right now to get back on track? How did you contribute to this situation? What can you do in the future to ensure this will not happen again? This approach doesn’t try to pinpoint blame and helps minimise the threat to the person’s self-image. These three questions, along with techniques to deal with a defensive response effectively, also minimises the need to make excuses as you and the other person collaborate on finding a solution.

c) Rapid and Effective Decision Making

There are three things you can do to improve the quality and speed of decisions.

a) Make sure that people closest to the action are making the decisions. This can require a change in organisational structure and, when this is not possible, empowering people and holding them accountable for taking the initiative and addressing issues when they arise.

b) Involve the right people in decisions. This helps ensure that you include perspectives and experiences other than your own and also helps fill in relevant data that you might not possess.

c) Use an objective, systematic process so that you won’t let emotion or bias cloud the issues or simply default to the kinds of decisions you’ve made in the past. This will also force you to incorporate risk assessment in your decision-making.

These last two actions ensure that we have access to a range of perspectives and information that might not otherwise be available to us, and increases the likelihood that we will be more thoughtful when making choices.

Organisations that are the best at execution also create operating plans that are coordinated across departments and levels, expect and encourage top performance from everyone, hold people accountable for results, make high-quality decisions by ensuring that the right people are talking about the right things at the right time.

In summary, PACE – Planning, Alignment, Communication and Execution will drive speed in your organisation. You as a leader will need High Energy and Focus to keep PACE on track and you’ll need a strong team around you to deliver your OMG. The rewards in achieving your OMG will be worth it!

That concludes the final part of The Need for Speed ~ Driving Pace in Your Organisation. If you missed the first three parts please click Part 1 – Planning, Part 2 – Alignment and Part 3 – Communication.

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The Need for Speed ~ Driving Pace in Your Organisation ~ Part 2

AlignmentIn part 1 of this four part series of blogs I covered the importance of PACE to improve organisational effectiveness and speed and specifically Planning:

PACE = Planning + Alignment + Communication + Execution

The second part of The Need for Speed ~ Driving Pace in Your Organisation will focus on Alignment of your organisational structure, your people and your rewards and performance management capability.

Alignment

a) Organise your teams around your One Magnificent Goal! – Your OMG!

The benefits of a well aligned team are no surprise to anyone. A great deal has been written about how to create better alignment within teams, through team building, incentives, and other management techniques. However, the first step in any effort to improve the alignment amongst a group must start with an honest evaluation of the current state, and a desire to improve and a clear view as to where you’re going.

Convene a group of key managers within your organisation to help you look at the impacts, both positive and negative, of your current organisation structure and how it might look when aligned to your OMG. When realigning, you want to ensure that you don’t lose any core competencies. You also want to ensure that any proposed changes will support the goals you have set as well as continue the things your business already does well. A group of managers who understand the detailed workings of your organisation will help you greatly.

Develop several alignment models from which to choose. Consider movements with your existing people, additions, subtractions and combinations of these things when devising different structures that might support your goals. Use organisational charts to help you express these models so they are clear and tangible.

Solicit input from other business leaders you know, respect and trust. Examine the financial, strategic and organisational culture impacts your various alignment ideas might create in order to help you to arrive at your decision. You also need to understand any Human Resources / Employment Law ramifications of your decisions before you begin to implement.

b) Align performance goals and rewards around your OMG

To ensure achievement of your OMG you must align all your teams’ performance goals and rewards to it. In so many organisations, individual departments have separate performance metrics that do not align to their OMG. More importantly people are often rewarded against Key Performance Indicators that are misaligned. Some common examples of this might be; Sales are paid on revenue and the OMG is to increase margin; Customer Services are rewarded against hitting call statistics when the OMG is around improving customer satisfaction. Neither is complete misalignment, but both can cause a big enough gap in behaviours for the OMG not to be achieved.

When metrics and rewards systems are not realigned with changes in structure and business processes, the impacts are predictable:

• Individual performance targets compete with the OMG.

• Roles and accountabilities are confused or continue to be aligned around the old organisation design.

• Decisions are made to optimise performance in one unit contrary to the needs of the larger organisation.

• The organisation is slow to act and burdened with internal conflicts.

• Leaders resist change (because it is rational to do so when incentives encourage old behaviours).

• Individuals begin to question the impact of the organisation design changes on their personal economic well-being, distracting them from winning in the new formation.

Again, sound out your leadership team to ensure that cross-organisation goals and rewards are not in conflict with each other before you implement. Talk to leaders and managers in other companies to get some broader context of what works and doesn’t work elsewhere.

It’s really important that the reward structures align from top to bottom within your organisation and there is an OMG specific payment when you achieve it – A Long Term Incentive. That encourages everyone from Executive to Admin Assistant to shoot for the OMG. Obviously the levels of reward might be different, but everyone wins when you achieve your goal!

c) Push decision-making authority as far down the organisation as possible

In the era of organisational flattening, there are less and less layers of management. We are happy about getting rid of hierarchies, but we are less good at understanding the associated challenges. If a layer of management disappears, decision-making should go to the lower level and not to the higher one. A reorganisation where layers go down from 6 to 3, but where senior management absorbs most of the decision rights that became available tends not to work effectively.

A consequence of decision-making being pushed down is that there are many new ‘decision homes’ where empowered people could make a decision on the spot. One of the big problems associated with decision rights flowing upstream, to a higher level, is that these decision rights tend to go or be deferred to the management bodies that only meet from time to time.

So, pushing the decision rights down to a lower level also means that many decisions could be taken ‘in real time’. Provided that people are empowered to do so, there is no reason why they should delay the decision-making process. Pushing decisions downstream and making decisions ‘in real time’ as much as you can are two simple disruptive rules. They won’t cost much but they have the power to transform your company on a big scale.

Some principles you should consider:

  • Implement decision-making at lower levels across the business, not just in one or two departments
  • If something can be decided at a lower level, it should. And you should make it lower and lower all the time.
  • If nothing can be decided at a lower level, you are the problem.
  • Your management goal is to decide less and less every day.

‘Closure’ and decisions made in meetings and committees may be efficient, but not necessarily effective if it could have been done at a lower level.

The amount of ‘deferred decisions’ (as opposed to real-time ones) in your organisation is a good indicator of your agility and empowerment. How many organisation even measure this I wonder?

d) Clearly defined roles & responsibilities

In order to effectively manage your people, it is important to provide them with a clear definition and understanding of their role, function, and responsibilities in the workplace. This will provide them with a good understanding of the job and tasks they are to perform as an individual and within any teams they are a part of. It also provides information on where they fit within the organisation and who they report to, helping to avoid disputes and misunderstandings over authority.

Failing to define workplace roles and responsibilities can create tension, miscommunication and inefficiency within your business. People may be unsure as to what jobs are their own and who they are required to report to. Mistakes and omissions can also occur where people are unsure of what is required of them, therefore creating inefficiencies which cost time and money.

e) Stopping projects / activities that don’t support the plan

Tighter goal alignment and goal visibility allows for quicker execution of organisation strategy by enabling your management team to more effectively allocate resources across various projects. By exposing business initiatives not aligned with your OMG, it also increases overall efficiency by ensuring employees are not duplicating the efforts of others. Plus, goal alignment strengthens the leadership at your company by allowing managers to:

  • Understand more clearly all responsibilities associated with specific goals
  • Eliminate redundancies across job titles
  • Focus their staffs on your company’s most pertinent goals

So, you’ve now got the right people, organisational structure and performance culture to deliver your plan. In Part 3 of The Need for Speed – Driving Pace in Your Organisation,  I will be look at the third element of PACE, Communication.

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