While strategic planning is a critical forward-thinking effort that company leadership can’t afford to get wrong, poor execution is a common problem that can jeopardize a great plan. Accomplishing goals is a necessarily important part, but the company also has to accomplish the goal in an efficient and sustainable manner. Organizational effectiveness addresses both quantity and quality for how well a company can execute and achieve its goals.
Execution requires performing a series of tasks or activities that result in achieving the purpose or objective. More complex execution requires the success of many sub purposes that when coordinated together achieve the overall purpose or objective. Critical for effective execution are “4 Musts” listed below. Most companies generally understand and appreciate these “4 Musts” to some degree, but struggle doing all 4 well:
Organizational effectiveness addresses both quantity and quality for how well a company can execute and achieve its goals.
- Purpose/Objective/Mission MUST be clearly understood & bought in by stakeholders
- Results MUST be measurable
- Stakeholders MUST understand how they impact or are impacted by results
- Stakeholders MUST be accountable
This first “Must” for effective execution is defining and communicating (Communications) the Purpose/Objective/Mission. This must start at the top (Leadership) and must flow down (Delivery) throughout the organization. Getting consistent and complete communications throughout the organization is often more difficult than you think. “Must” #2, measuring (Measurement) and quantifying results clarifies expectations. If measures are missing, ambiguity and subjectivity cause confusion. Good measures clarify the Purpose/Objective/Mission while poor or no measures can trigger disfunction. Musts #3 and #4 clarify roles and accountability (Accountability). The dots must be connected between people, roles and expectations. Consistent accountability with clear performance measures will drive desired behaviors and promote a performance driven culture. With stakeholders or people being key to 3 out of 4 of the “Musts”, having the right people (Performance) in the right company roles is also very important for overall Organizational Effectiveness. By clarifying expectations and roles, assessing personnel for their fitness becomes a more objective analysis.
Six Sigma’s DMAIC methodology and Lean’s tools and techniques addresses both effectiveness and efficiency so we leverage them with the “4 Musts” to help companies improve their Organizational Effectiveness. Creating Key Performance Measures can significantly improve issues relating to “Musts 1 & 2.” Often there are poor processes that make delivery or execution difficult so we can apply Lean mapping tools and techniques to address them. If underlying issues are organizational alignment or design, or personnel qualifications related, we help identify areas of weakness and recommend changes.
While we leverage Six Sigma and Lean with the “4 Musts” of execution to improve Organizational Effectiveness, in the end our solutions address and confirm traditional categorization:
Supply Velocity works closely and collaboratively with organizations to help them improve Organizational Effectiveness and drive their strategic plans.
Reducing Out-of-Stocks (OOS) and Stock-Outs