Organization Structure and Innovations


Organizational structure fulfils many functions—everyone in the organization knows who he or she reports to; how various repetitive/routine activities are to be discharged; who has what authority and responsibility; how personnel are grouped together (e.g., by departments or divisions); which individuals/groups have decision-making authority and which have primarily advisory functions (line versus staff functions); and what mechanisms are deployed primarily for reducing decision-making uncertainty, for ensuring differentiated or specialized responses to the operating environment, and for coordinating and integrating these differentiated or specialized responses. A well-designed structure that is compatible with strategy or is internally coherent and compatible with the organization’s operating environment tends to contribute to superior organizational performance.

Can organizational structure facilitate innovations? Possibly. Relatively flat managerial hierarchy and extensive decentralization or delegation of authority, including extensive use of profit centers and SBUs.

Certain kinds of structural changes, notably creating many self-contained, substantially autonomous units with stretch targets, extensive delegation of authority to lower level decision-makers, and delayering (removal of some of the managerial levels to reduce the number of approving authorities for innovation)  may increase the potential innovations of the organization.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Benefits of Using Teams


Teams are coherent groups of people with complementary skills who work together towards a specified goal. Teams are often the most efficient way of working, and their benefits include:

  1. The members achieving more by working together than they would by working separately or in large, unstructured groups;
  2. Improved motivation and effort;
  3. Flexibility to deal more effectively with change;
  4. More imaginative solutions to new problems; fewer mistakes, as faults are spotted by other members;
  5. Fair division of work, resources and rewards.

Nelson Mandela asked, ‘How can one individual solve the problems of the world? Problems can only be solved if one is part of a team.’ Notice that there is a difference between a team and a group of people who are simply working together. A team is a cohesive set of people who are motivated to achieve common goals. Simply collecting different people does not give a team, as they don’t trust each other, bring along internal politics, don’t share common goals and so on. Twenty people in a room don’t make a team. Team doesn’t just happen. They have to be developed, facilitated and motivated.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Executive Summary


The executive summary, sometimes called the epitome, executive overview, management summary, or management overview,  is a brief consideration of the document addressed to managers, who rely on it to cope with the  tremendous amount of paperwork they must read everyday. Generally, managers need only a broad understanding of the projects the organization undertakes and how they fit together into a coherent whole.

An executive summary for a document under 20 pages is typically one page (double spaced). For a longer document the maximum length is often calculated as a percentage of the document, such as 5 percent.

The executive summary presents information to managers in two parts:

  1. Background: this section explains the background of the project: the specific problem or opportunity—what was not working effectively or efficiently, or what potential modification of a procedure or product had to be analyzed.
  2. Major findings and implications: the methods are covered in only one or two sentences. The conclusions and recommendations, however, receive a full paragraph.

An executive summary differs from an informative abstract. An abstract focuses on the technical subject (such as whether the new radio based system effectively monitors the energy usage); an executive summary concentrates on whether the system can improve operations at a particular company.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Thinking about Processes


Many people don’t really think about the process they use, but why process planning is important:

  • You want to make products that satisfy customer demand;
  • The products must, in some way, be better than competitors;
  • The process makes the products;
  • To make better products you need a better process.

You can make most products by a number of different processes. If you make tables, you can use craftspeople to build them carefully by hand; you can buy parts and use semi-skilled people to assemble them; you can use automatic equipment on an assembly line; or you can mould complete tables from plastic. Each process gives a product with different characteristics. Process planning designs the best process for delivering any particular product.

It’s especially important to design the process for services, as you can’t really draw a line between the product and the process used to make it. How, for example, can you separate the service given by a bank, theatre or taxi from process used to deliver it?

There’s a huge variety of processes. It is easy to design a process for baking a cake; but if you want to bake 100 cakes for a garden party you will use a different process; and if you want to bake a million cakes every week, the best process is different again. Unfortunately, many managers don’t take their processes seriously, and can hardly describe them in coherent terms.

You can start thinking seriously about your processes by recognizing them and describing the details of each. Make everyone in the organization aware of the processes and their importance. Then you can see how well the processes are working and look for improvements. Your processes are at the heart of your organization, and you really should give them the attention they deserve. Emphasize your processes, which consist of all the operations needed to make your products.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Creating Strategic Slack


In considering strategies for supporting or protecting core distinctive competences and growing new ones, the issue of resource demands has to be considered. One means of releasing resources is to review those distinctive competences that are no longer central to the strategic future. As is often the case in organizations, competences and distinctive competences emerge, and become embedded into the culture/conciousness of the organization. However, as organizations change their strategic direction, the utility of these competences may reduce, sometimes with them becoming completely irrelevant. Identifying these will free up resources—creating strategic slack. Where competences (or the activities supporting them) are to be withdrawn, careful considration of how this is to be achieved is necessary (who needs to be consulted? What needs to be put into place?) so as to ensure that the resources are freed up rather than covertly protected.

 

An obvious means of freeing up resources is through outsourcing. Through building the business model, those areas that are considered potential candidates for outsourcing will have been scrutinized. Often organizations outsource units, departments and tasks without considering the overall impact on the business model, or on a distinctive competence. Understanding how the particular area or task to be outsourced fits in with the overall model can thus ensure a more sustainable and coherent approach.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Just about Vision


Vision implies imagery, and the outstanding leaders do create a world inside their heads, a vision of the future, which guides their day to day actions; it provides the coherent model. This is an ability that we all have but few of us employ. The vision is not an attainable end state, but rather a continuing process. There is no complete description—the patterns of our minds unfold beyond our ability to describe them. There is enough substance to make it almost tangible, yet sometimes it lurks in shadows. Sometimes it is alive with sound and brightness, and sometimes it is tranquil. But it is always connected at a deep level with the heart and with the gut.

Vision grows in the feedback-feedforward relationship between what might be (the word in the mind) and the present potential (the sensitive perception of the environment), and it thrives on difference. Indeed, vision seems ever elusive like the rainbow—wherever one moves, it is just beyond reach. Yet like the guiding star, it is powerfully reliable guide.

Since vision is systematic, it sees the parts and the whole in a way that the linear progression of words can never achieve. It can map the flow of the links of value from the heart of the business to the customer, and through the business to the stakeholders. It emphasizes the patterns that are the life of the business.

In order to build this hologram called vision, it is absolutely necessary to take a step back from the day-today issues. It is a qualitatively different mode of thinking than that of everyday management but will produce a level of certainty that informs each management decision. Allow some quite time in which you can really reflect in a relaxed state of mind. An easy walk in the country or a quiet evening alone provides suitable settings for most people.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight