Results = Strategy + streamlined organization + accountability

Define strategy, implement best organization structure based on available resources to execute on the strategy, hold people accountable against objectives and measure results.

It is surprising how many companies or departments within companies struggle to deliver results. Either the strategy is not clearly understood by one and all, or the organization structure is not streamlined or people are not held accountable.

First step is to ask if the strategy is well-understood. Can the employees communicate what the strategy is? Simple is better and is very powerful. If it is not simple, it will not be understood, cannot be communicated by all and therefore cannot be implemented. I remember reading Peter Drucker’s Adventure of a Bystander where he talks about how Alfred Sloan asked his executive team if the strategy is understood by the shop-floor employees. When one executive questioned the need, Mr. Sloan responded that it is the shop-floor employees who would finally execute on the strategy and if they do not understand the strategy then it is destined for failure. Yes, it has to be simple and easily understood.

Second is to have an organization structure that is optimized to execute on the strategy. There is no one-size fits all. The organizational structure and the balance of the leadership team of a company selling technology gears versus products versus solutions will differ. On one end of the spectrum lie technology companies who will have an overload of techies in the management team and potentially run by technical folks who are also competent in sales. On the other end of the spectrum are the solutions selling companies where sales and marketing departments play dominant role. Organization structure is also a function of company maturation. It is typical to have small companies organized by functional areas such as sales, marketing, development, etc whereas large companies are structured around business units with profit and loss responsibilities.

Finally, it is about accountability. Measure, align incentives, and optimize based on results! Measure each department against stated objectives and desired outcomes. Measurement has to be quantitative. It is important to take subjectivity out of the equation, as much as possible. Sales results are visible and immediately quantifiable. As one moves from the sales spectrum to the engineering and development spectrum the measurement becomes less quantifiable. For example, for those products that are only part of a solution and not directly sold, how would an organization measure the effectiveness of the product managers of those products? Some measurement metrics can always be established based on the context of the problem domain. Next is the alignment of incentives. It makes sure that the engine is well-oiled.

Only when the actual results can be compared against the desired outcome, management and all can optimize the entire process for maximum organizational efficiency and achieve best results.