What do we mean by "creating", what do we mean by "high performance" and what do we mean by "organisation" ?
The word creation implies in its virgin meaning a "clean slate operation" ; a "building out of nothing". This article, however, assumes that we are talking of and referring to an existing organisation, though the objective of creating a high performance organisation may possibly call for first creating a clean slate -- in terms of tearing down and demolishing all past practices and building anew !!
High performance, in today's business context, when spoken of in an "unqualified" manner normally connotes, high growth (as measured by turnover), high profitability, high market capitalisation (basically high market value for shares) and increasingly, the current flavour of the season high EVA. For the purposes of this article, however, we will also be considering other "performance" parameters which, in the opinion of the author, impart a more holistic meaning and therefore nudge the organisation to a more balanced approach.
For the purpose of this article, it is further being assumed that organisation, refers to a commercial / business organisation.
Let me first try to enunciate what could be considered high performance after which we can consider ways and means of attaining that level of performance.
It is true that growth and adequate levels of profitability are important, nay, essential for an organisation's survival. They are necessary requirements for an organisation to be considered a performing organisation. However, it will be myopic, if not dangerous to let these be the sole and/or only considerations that an organisation should have in its march toward performance. This inevitably leads to distortions in values, conflicts with various other segments of society and downright dishonesty and falsehood. An excellent example of this is the recent ENRON story -- a typically high performance (in the conventional sense) organisation that turned out to be one of the worst examples of lies, deceit, cheating and indeed cancerous effect on all those who dealt with it. Nearer home we have many such examples starting form the recently uncovered Home Trade Scam to the high-flying MS Shoes, Flex Industries and suchlike.
Therefore, it is proposed that high performance should, inter - alia, include the following :
1. Sound economic performance
2. Tangible contribution to society, particularly in the immediate physical proximity, over and above the transactional fulfilment of supply of goods and services of right quality at fair prices
3. Conformance to the laws of the land
4. Value - based and ethically grounded dealings with all stake-holders that ensures a fair deal to all those that inter-act with the organisation
There are three evolutionary stages in the life of an organisation. These are :
EVOLUTIONARY STAGES IN THE LIFE OF AN ORGANISATION
Performing Organisation
Learning Organisation
Contributing Organisation
The first stage is that of a Performing Organisation -- which meets the requirement of conventional yardsticks of performance measurement : essentially the economic or financial measures like growth, profitability. When the numbers become high and remain so for many years, we tend to describe these high performing organisations. At one level this seems to make sense, but I would like to differ.
Such performance is only the basic requirement of survival but only in the short-term. It cannot and does not ensure long - term survival unless the organization is able to move to the next stage of evolution i.e. become a learning organisation.
The word creation implies in its virgin meaning a "clean slate operation" ; a "building out of nothing". This article, however, assumes that we are talking of and referring to an existing organisation, though the objective of creating a high performance organisation may possibly call for first creating a clean slate -- in terms of tearing down and demolishing all past practices and building anew !!
High performance, in today's business context, when spoken of in an "unqualified" manner normally connotes, high growth (as measured by turnover), high profitability, high market capitalisation (basically high market value for shares) and increasingly, the current flavour of the season high EVA. For the purposes of this article, however, we will also be considering other "performance" parameters which, in the opinion of the author, impart a more holistic meaning and therefore nudge the organisation to a more balanced approach.
For the purpose of this article, it is further being assumed that organisation, refers to a commercial / business organisation.
Let me first try to enunciate what could be considered high performance after which we can consider ways and means of attaining that level of performance.
It is true that growth and adequate levels of profitability are important, nay, essential for an organisation's survival. They are necessary requirements for an organisation to be considered a performing organisation. However, it will be myopic, if not dangerous to let these be the sole and/or only considerations that an organisation should have in its march toward performance. This inevitably leads to distortions in values, conflicts with various other segments of society and downright dishonesty and falsehood. An excellent example of this is the recent ENRON story -- a typically high performance (in the conventional sense) organisation that turned out to be one of the worst examples of lies, deceit, cheating and indeed cancerous effect on all those who dealt with it. Nearer home we have many such examples starting form the recently uncovered Home Trade Scam to the high-flying MS Shoes, Flex Industries and suchlike.
Therefore, it is proposed that high performance should, inter - alia, include the following :
1. Sound economic performance
2. Tangible contribution to society, particularly in the immediate physical proximity, over and above the transactional fulfilment of supply of goods and services of right quality at fair prices
3. Conformance to the laws of the land
4. Value - based and ethically grounded dealings with all stake-holders that ensures a fair deal to all those that inter-act with the organisation
There are three evolutionary stages in the life of an organisation. These are :
EVOLUTIONARY STAGES IN THE LIFE OF AN ORGANISATION
Performing Organisation
Learning Organisation
Contributing Organisation
The first stage is that of a Performing Organisation -- which meets the requirement of conventional yardsticks of performance measurement : essentially the economic or financial measures like growth, profitability. When the numbers become high and remain so for many years, we tend to describe these high performing organisations. At one level this seems to make sense, but I would like to differ.
Such performance is only the basic requirement of survival but only in the short-term. It cannot and does not ensure long - term survival unless the organization is able to move to the next stage of evolution i.e. become a learning organisation.
Sound economic performance requires the organisation to be effective. What does organisational effectiveness mean ?
ORGANISATIONAL EFFECTIVENESS
1. What does it mean ?
• Achievement of desired and planned results
• Continuous improvement
• Ahead of the pack, in a competitive environment
• Within legal, social, environmental parameters
2. This requires
Anticipation : Knowledge of “what to do” or “where the opportunity lies” or “where the market is headed”
Speed of response : Gathering one’s wits to marshal resources, change course, act preemptively
Efficient Execution : Proper Planning, Directing & Control
Let us examine each of these 3 proposed requirements.
ANTICIPATION
Earlier, this was taken care of by connections, contacts.
In an increasingly open & non-regulatory environment, this is no longer such a big advantage. Policies and Budgets have become long-term ; hence surprises are fewer. Consequently, the responsibility devolves on the organisation to develop sharper antennas. In other words
• Get Closer to the Customer
• Continuously scan trends --- domestic & international, since this divide is also becoming more blurred.
• Don’t wait for things to happen --- go out and find out what is likely to happen ; in other words, actively develop a wider perspective and also a sharper focus.
SPEED OF RESPONSE
This is a function of the Organisation structure, its internal bureaucracy, the hierarchical protocol and politics, its approach to opportunity --- turf - bound or goal - bound ; the communication channels developed and encouraged, the accessibility across and within levels.
This is squarely the responsibility of top management.
EFFICIENT EXECUTION
This is determined by
• Organisational Competencies -- Technical / Managerial
• Decision-making Process
• Delegation
• Communication
• Feedback and Control
• Morale
• Motivation
• Organisational Ethics
Essentially, therefore, organisational effectiveness revolves around
AWARENESS : Where are we ? Where do we need to be ? What must change or be instituted to reach there ?
WILLINGNESS : Identifying and acknowledging what needs to change and getting everybody
TO CHANGE to agree to it
COURAGE TO : Deciding to change --- even if it means the abandonment of years of
CARRY OUT tradition or time-tested methods /procedures /practices /protocols /products
THE CHANGE
TENACITY : Not get nervous and jittery at the first signs of difficulty or resistance
TO STICK TO
THE CHANGE
WISDOM TO : Continuously evaluate the change to see if the planned / forecast benefits RETRACT are, indeed, being achieved ? If not, admit the mistake, quickly cut your
AND CHANGE being achieved ? If not, admit the mistake, quickly cut your losses and get
AGAIN, IF quickly cut your losses and get going again.
NECESSARY
To summarise :
• ANTICIPATION
• NIMBLENESS
• ORGANISATION COHESIVENESS
--- Organisational Culture
--- Quality of Leadership
--- People Orientation
--- Process Efficiencies
• VALUE COMMITMENTS
EFFECTIVE MANAGEMENT IS ALL ABOUT CONVERTING
INERTIA TO MOMENTUM
Potential Kinetic
Energy Energy
Capabilities to Results
THE PILLARS OF ORGANISATIONAL EFFECTIVENESS are
Ability
Awareness
Anticipation
Agility
Action
Every outcome, finally, depends on the last pillar, viz., ACTION. This is where many organizations falter - they have endless high-quality discussions, debates and presentations but nothing changes or happens, till you ACT !!
This is a lesson that many organisations, including, the high profit-making, stock market darlings need to learn, internalise and adopt.
No comments:
Post a Comment