7 minute read
Simplifying Business Six components to building a successful organization
by: Shawn Peterson, Liberty Business Systems
The business world is currently in unprecedented times. Businesses have never faced the challenges we are seeing. With uncertainty comes confusion, leading to a tendency to freeze up and become paralyzed.
Resist the urge to lock up and remember that as we tackle some of the most complicated times in history, it is still simple. While the large issues seem enormous, we need to plan and execute. This is the exact thing that businesses must do every day to thrive.
These times provide an opportunity for businesses to make quantum leaps in their processes, cultures and operations. For a record 126-plus months, the economy grew. This led many organizations to become comfortable with the business climate and complacent in operations. This may have allowed us to keep extra expenses, keep people in the wrong positions and delay technological advancements to improve our processes, among many other items.
Focus is going to become more important than ever. What are the areas in which we can excel and bring a positive bottom line? How do we get all of the proverbial oars rowing in the same direction? In this article, we are going to look at six areas to ensure your company continues to be successful: vision, people, data, issues, processes and traction.
Vision
You must be crystal clear on where you want to go. This is done by answering eight questions: (1) What are your core values?; (2) What is your core focus?; (3) What is your 10-year target?; (4) What is your marketing strategy?; (5) What is your three-year picture?; (6) What is your one-year plan?; (7) What are your quarterly items to complete for each person?; and (8) What are your issues?
People
Great leaders often reference having “good people” as a reason for their success. It will be imperative that companies have the right people in the right seats. There is no room for people on your payroll to be unproductive or not operate in their strengths. The question then becomes: How do we cut through buzzwords such as “A-players,”
“superstars” and “the cream of the crop”?
First, you will need to look at your organizational chart with the names removed. Next, put the absolutely necessary duties into the boxes on the chart. This will create an organizational chart that needs to be filled in. To decide which seat each person can fill, look at your core values and ensure each person lives these out. Secondly, look at these three absolutes for each role: Does each person “get it,” “want it” and have the “capacity to do it”? This process will cut out the emotions and the gray area to optimize your company and fill it with people who wholeheartedly believe what you believe in.
Having the right people, in the right seats, doing the right things will be the competitive advantage needed in tough times to out-execute the competition. With the employment environment changing, many potential rock stars will become available to assist in growing your company. Your understanding of direction and accountability will allow you to quickly lock up this new talent.
Data
Defined metrics allow you to manage your company more effectively. Each person within the company needs to have at least one number that he (or she) is accountable for. This helps define success in a role or project without bias. It can also help us identify issues more quickly and implement course correction at the first sign of problems. Outside of raising accountability, it brings to light the most important markers for the company to be successful and narrows focus. Many “people issues” come from a lack of understanding of what is expected. Having a number and monitoring it regularly allows for clarity.
Having great data will also allow you to make truthful and informed decisions more quickly. This will lead to more forward progress. Leaders will have less decision fatigue and will be able to save energy for the more complex decisions.
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Issues
There will inevitably be issues in your company. When you have a clear vision communicated, the right people in place and track the correct metrics, your issues will come to the surface. Most companies procrastinate, making decisions based on fear of conflict, lack of focus, lack of discipline or personal egos.
The purpose of meetings is to communicate information and make decisions. Too often, employees are dragged into meetings that go nowhere, a few do most of the talking and nothing is accomplished. This has given meetings a bad name.
Have a brainstorming session to safely get all of the company’s issues on the table. Once you have a list of 30 to 50 issues written down, rank them and start tackling the most important and urgent ones that bring the most results. This process will bring clarity and ensure employees are working on the correct items so accountability can be held. The issues-solving track: (1) Identify, (2) Discuss and (3) Solve. Processes
Consistency allows a company to scale. In order to be consistent, you must understand the core processes that create your unique company — in other words, the way you conduct business. These may be the sales process, order-fulfillment process, HR process, marketing process, accounting process and customer-relations process. The leadership team members must identify the core processes that address every activity going on in the business.
Next, list them all in one document and make sure that everyone agrees on the amount, the names and what they are. This will create clarity and a common language in regard to the processes with which your company operates.
Then you must document all processes. This is done by identifying one leader who is responsible for each core process. It is his job to ensure documentation. Before you start documenting, make sure you have identified all core processes. Avoid documenting 100% of all processes; the idea is to get the most important 20% of each process to ensure you are not skipping steps as a company. When you have a clear vision communicated, the right people in place and track the correct metrics, your issues will come to the surface.
Traction
The ability to create accountability and discipline — and then execute — is the area of greatest weakness for most companies. The world is filled with great visions. Unfortunately, most will never be realized because of an inability to execute and gain traction. Build a company that executes great visions 90 days at a time with discipline and accountability.
Final Thoughts
We have looked at six key components to building a successful organization. Imagine a world where everyone in your company executes regularly, rows in the same direction and, ultimately, you grow your business. That is all still possible, but you need to improve and maintain discipline on these six core components. Daily habits and rituals will be more important as we create leaner, more efficient companies built for the future. n Shawn Peterson is CEO of Liberty Business Systems, headquartered in Fargo, North Dakota.
He is also president and CEO of Quantum Business. Peterson is available to and works with companies throughout the United States in consulting or speaking capacities to help create alignment, grow revenue and increase bottom-line profits.
He can be reached at shawnpab@gmail.com.
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