Successful Organization

A successful organization is that which is highly focused and has developed

a deep understanding of it's customers' need, it's competitive environment
and it's economic realities. This understanding / analysis then form the
basis for specific strategies which are then translated into day-to-day
execution by high energy teams.

Sounds simple , Yet not enough companies really do the analytical work in a
truly objective way and even fewer can then translate these analysis into
precise action programs that are tracked day-to-day and month-to-month.

A typical company's vision statement is for the most part aspirational ,

something like a distant star. Vision statement creates a sense of
confidence – a sense of comfort and this very part is truly dangerous. Vision
statement play the role in creating commitment and even excitement
among the employees but it is useless in terms of pointing out how the
organization is going to turn an aspirational goal into daily action plans.

For the daily implications of vision we need to have good strategies. The
strategies should essentially be long on detail and short on vision. There
should be multi-year layout plan in great quantitative detail for operational
strategy , maintenance strategy , inventory reduction strategy ,
expenditure reduction strategy etc. These plans are reviewed regularly and
becomes , in a sense the driving force behind everything that a company
does towards achieving of it's goal.

In a successful organization the above activities can be built on three

different attributes.
1. World class process.
2. Clear cut strategies.
3. High performance culture.

Although successful companies are mostly living all three attributes. But
some are specially identified for their excellent processes.

1. Wall-Mart - for Superb process in store management.

2. GE - for world class cost management and quality.
3. Toyota - for best for product cycle management.
4. IBM - for Product Design function.
5. Pantaloons - for Retail front end management.
6. Maruti - for cost management and market share.

Process:
If an organization has an antiquated , disconnected and slow moving
process – particularly that still drives success in the market , Surely that
company will end up making loss sooner or later unless it changes the
process. Since the product of the above process still makes money the
sooner the process is improved / replaced the better the prospect the
company has for future.

Strategy:
Clear Strategy is something where an organization is heading for – The
reaching target , The destination. If you don't know where you are going no
road can get you there. Organization that out-execute their competitors ,
have communicated crystal-clear strategies to all their employees:- “This is
our mission , This is our strategy ,This is how we are going to carry out our
job” . But this does not remain only as a message to the employees. The
execution flows naturally and intrinsically at all level of employees inside
the organization. The manuals, rule books , trainings all may play a role in
the starting but have limited value in the heat of battle. Superb execution
of strategy is more about values and commitment among the employees. If
wall-mart is famous for superb process in store management – not because
their training manuals said it was extremely important but because their
people from top to bottom believe it was critical for their success.
Everybody in wall-mart has a clear cut understanding of their role in making
the company successful. Their behaviors emanate from their conviction and
belief , not from their procedures.

On the other hand, many a times too many companies send conflicting
messages to their employees. “We need quality maintenance , Engage
best quality agency for carrying out unit overhauls ”, Says the management
in April . “We need to reduce maintenance expenditure” , declares in June.
This gives a mixed and confusing signal. How does one expects an
employee to behave in this circumstance ?
If a company wants to out perform his competitors, it must communicate
clear cut strategies, must reinforce those values in everything the company
does and allow it's people the freedom to act and trusting they will execute
consistent with the values.

Culture:
High performance culture is superb execution of strategies. It is not just doing the
right things. It is about doing the right things faster , better , more often and more
productively than the competitors. This calls for hard work , high commitment
from employees that goes beyond the normal company-employee relationship.
This is harder to define than recognize. However silly it is, One can quickly finds
out , sometimes within hours of being in an organization what the culture actually
is. The executives are true leaders and self-starters. Everyone is committed to the
success of the organization.
Everyone talks about the target. Loosing a target - big or small is a blow that
makes everyone paranoid. Everyone understands the financial underpinnings of
his / her business.

Finally, great organizations are not managed , they are driven from one peak to
another by high performance individuals who are passionate for success. They
create high performance cultures, set demanding goals and held themselves
accountable. They constantly drive their organizations to adapt with the market
demand faster than their competitors do. The CEOs here does not hide behind
staff . He does not simply preside over the work of others. In a crisis he is more
visible than others. He lives up the core values more often than others. He rolls up
sleeves and tackle problems personally. He is compassionate and visible every
day with employees , customers , suppliers. He is the trend setter.

S. Bera
Mumbai