Organization Strategy

Last month I wrote about the importance of a unified sense of direction, vision and business planning.The next essential component of team performance is organization strategy.

Strategy formulation is the selection of the best course of action in order to achieve the organization’s vision. Basically, strategy formulation defines how the organization is going to achieve its vision, or how to close the gap between where it is now and where it wants to be. In other words, it identifies the correct road map to follow in order to arrive at the desired destination.

How to double profit in large technical organizations

The question has been asked: as a manager, you come to your office to find that you have all your plant and equipment, but no people, what would it cost to do what was necessary to develop a new group of people to a point where they were functioning with the same degree of effectiveness as the original organization? Estimates range from 20 to 30 times the annual earnings of those people and suggest that a 4% deterioration in the value of the human organization will completely offset normal profits.Similarly, a 4% improvement in human effectiveness will double normal profits.

Why plan?

Of all the things I’ve done, the most vital is coordinating the talents of those who work for us and pointing them toward a certain goal. Walt Disney

The first essential component of team performance is a unified sense of direction.

A unified sense of direction can best be summed up in the phrase one team, one direction. A unified sense of direction means that all the departments, teams and individuals that make up an organization are pulling in the same direction. Or to put it another way, everyone is singing from the same song sheet and is working harmoniously together to achieve common goals.

To achieve a unified sense of direction there needs to be agreement at all levels on what the organization values, what it does, where it is headed and how it plans to get there.

Going it alone

External and internal consultants need each other.

Developing performance improvement systems is almost always part of the broader aim of creating an environment that lends itself to continuous performance improvement. This can sometimes be a very complex issue. A part of any solution will be the interrelationships between managers, supervisors and the workforce, systems processes and procedures, the satisfaction of critical training needs, and the development of a total team approach to performance improvement.

The ambitions contained within these aims and the wide scope of a typical performance improvement project are only two of the many reasons for using an external consultant. Their role is not to run courses or perform other activities that internal people could do, but rather to make the overall project work.