27 October 2009

Getting more of what you want - Part 3

Last time we talked about how a growing and expanding entrepreneurial organization can all too easily lose sight of a singular goal -- making more money tomorrow than its making today. When they do so, they also lose sight of the fact that, in serving its customers, the organization is a "system" -- not a collection of loosely connected departments or functions.

So, what are the symptoms exhibited by an organization that is not being measured and managed as a "system"?
  • Lower than desired overall performance
  • Challenges in achieving or maintaining a strategic advantage in the marketplace
  • Ongoing or recurring financial difficulties
  • Almost constant "fire-fighting"
  • Frequent failure to meet customers' expectations
  • "Bottlenecks" in the organization that move frequently from function to function or department to department
  • An ongoing state of conflict between parties representing various functions or departments within the organization
If you can nod your head "Yes" to three or more of these symptoms being present in your firm, then chances are you need help getting a handle on once again seeing your organization as a "system" and turning the corner to measure and manage it in a proper way.

But what really keeps owners, executives and managers from tearing down these roadblocks to success? They aren't stupid. They've known for (perhaps) years about the constant "fire-fighting," the company politics, and conflicts between departments or functions.

What is blocking executives and owners from taking effective action against those things, of which they are well aware, that are keeping their firm from making more money tomorrow than they are making today?

[To be continued...]

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2 comments:

Kyle Thill said...

Reading this series of posts is like following the developmental history of our company.

The departmentalization, the competing priorities, all of it is so familiar.

RDCushing said...

Unfortunately, that history is being repeated in SMBs / SMEs all over the nation (and the world, for that matter). Yet, it remains fairly easy to cure.