In our previous blog (http://blog.avanton.si/2014/03/10-colors-to-score-matrix.html ) we've shown what are the preconditions and what kind of attitude and environment is needed for the organization to change. In this one let’s set the map, define the
playground, and establish the basic principles to play the game of organization
revitalization.
Not the traditional functional, nor the pure futuristic process organization. Let’s combine the two and organize in a matrix-process way. Know what to do? Big picture:
· Combine what works with what will work even better!
· Connect people to cooperate!
· Put results before levels and ranks!
· Adjust competences in a framework of accountability, responsibility and authority!
· Align key performance indicators with key processes!
· Reward results accordingly!
…you’ve set the map.
2. Define E2E processes: Start with the key ones!
Not identify “all” 35-or-so of them. Just a few, the handful of key ones. Those vital for company to be present on market also the day after tomorrow. Those that usually produce the most of revenues, or burns the most of your resources, by means of money, time, FTE. They, in a way, usually embrace all three basic functions of every venture:
· you have to produce something,
· to sell it on a market, while some internal structures exist
· to support your operations
…you’ve defined the playground.
3. Define the principles of change: Business. Professional. Ethical!
Minimize the employees’ fear of the foreseen change: outline principal rules of reorganizing! Explain how to align the change with the company’s strategy? How to put the customer in the external and the product in the internal focus of the future organization? How to transfer silos functions into a matrix? Should you consolidate or centralize same business functions across the company and the group? How to include the cross-border operations? Why strengthen individual responsibility? From perspective of communication channels, what would be the span of control - 1:10, 1:15, …? How to communicate the change?
Never forget ethical principles, especially those based on the company’s values! …you’ve defined the rules to play the change according to them.
…you’ve defined the basic rules to play the game.
4. Make one magic rule: KISS
Keep It Simple and …. Smart! Since we avoid doing stupid things…. Both, the approach to change as well as the result of it should emphasizes the simplicity in every aspect. It is excellent to improve, but it is art to do it in a simple way. For that, use the best of combination of both, the IQ & EQ business approaches while addressing with and negotiating the employees with the change.
And, besides its right measure in the communication, don’t bring business politics into process – wherever you detect potential to improve, align on arguments and do it! Avoid dualisms of business solutions! They mostly occur due to two reasons:
· ineffective business decisions, i.e. miss planned development or change implementation. Remember? Do the right thing (first time right)!
· inefficient operations of taken decisions. Remember? Do the right thing (first time right)!
· avoidance of conflict with employee or to please him/her… It’s in human nature!
Especially the last occur not so rarely. Why? Two conditions: 1)- if possible, and 2)- rather than confronting with our colleague, we introduce a duplicate solution in the business process. Really? Why do we have decentralize procurement, or hire unnecessary assistant or adviser, or establish middle office, or additional organizational layer, or have more than three vice presidents, or…? Why should owners pay for these? Dualism is never (cost) efficient – it will definitely backfire by burning you some extras of your resources.
Choose those few to be in charge of being the promoters of change. They should be self-initiative in becoming the catalysts of changes as foreseen in the company’s’ strategy. Those few leaders of new organization pillars are closely in step with the management board. Their top mission is to understand the necessary changes and to help to evolve them into and out-of the strategy. They should put their competences along with accountability in line of fire while they will promote the changes throughout the company.
They are to be paid mainly to bring people together to cooperate as appointed towards goals. They should become the main architects of healthy middle management environment driven by coopetition. By increasing engagement of people and putting them into interplay with intention:
· to stimulate them how they should work together (cooperation) in the activities and processes while truly understanding what they should do in how to contribute to goals
· to give them measurable goals (competition). But not by bucket full of KPIs! Less is more! Up to 5 measurable goals should everyone take as a maximum set of goals – as much as we have fingers on the hand that we look around for whole life!
Management board should fully support The Catalysts in removing all kind of obstacles. To promote cooperation, decrease the importance of formal as well as informal organizational layers and ranks relatively to importance of the “role of employee” business process, to pound dualities, to promote interplay and foster cooperation.
The Catalysts, if necessary, need to raise awareness among employees of what is their scope of work. And their importance in the business process. They should be fully aware of what other employees in the same process are doing. So, it is not solely a job description of individuum workplace that’s important… what really matters is entire type of work surrounding the individuum’s workplace in the process. As we said – beyond the boxes and lines in order to understand the content of work!
In the new organization, The Catalysts are formally in position of pillar executives. They are business integrators. They catalyze both, the business as usually as well as the changes needed. They appoint the middle management in converging strategic directions and goals, also over the KPI’s, to the everyday work of each individual employee. And affirmative engagement of the employees in the business process form results.
With such approach, the coopetition in Matrix will burn less of company resources than divisional decision making. For sure!
And remember - who is paying for dualities?? And the price for it? Not rarely, these can account in average up to a quarter of your OPEX…
Read in our next blog how to change and how to measure success! Until next week...
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