Optimize Your Organization’s People, Processes and Decision-Making
By Ann Kelleher
April/May 2011
Background Information – Leaders in organizations often talk about the need for maximizing efficiency and cost effectiveness to maintain, and grow, their operations. This becomes essential during tough economic times because it is harder to ignore inefficiencies when there is a less robust revenue stream. Today, this effort to streamline is often called optimization. This term refers to the proper alignment of functions throughout your organization involving the key components of people, processes, and decision-making. Let’s take a closer look at what we mean by optimizing functions related to each of these three components.
People – Most people will agree that it is very important to have the right people in each position within an organization. At the same time, it is important that employees be retained to enhance efficiency and stability. To ensure you are selecting the right employees, it is necessary to have good workforce planning, flexible hiring options, and clearly defined organizational design and job design. All of these people-related functions must be closely aligned with your organization’s strategic direction.
Processes – It is necessary to have clearly defined processes for optimal functioning within an organization. This requires analyzing necessary processes and documenting them in writing. Processes need to be aligned with your organization’s functions and corresponding policies. These processes are translated into procedures that must be communicated clearly and on a regular basis to all employees. This sets the stage for consistency in conducting daily work activities and meeting the needs of your customers.
Decision-making – Effective management is focused on standardization to provide order and consistency in an organization. Concurrently, it involves guiding others through change when this is considered necessary to make an organization better or more viable in the marketplace. Leadership involves influencing others to work together as a team to make an organization more effective in achieving its vision, mission, and goals. Inherent in that process is setting a clear direction and identifying your organization’s values. Managing and leading must be aligned with the ongoing decision-making process to ensure your organization is moving steadily in its planned, strategic direction. At the same time, strategic planning must by dynamic – not just an annual effort – to ensure that the plan reflects new developments (e.g., law changes, changes in the economy, etc.).
Summary – There are many elements that impact organizational optimization. The different factors of each of the three components – people, processes and decision-making – should be reviewed by an organization on a regular basis to facilitate proper alignment between them. Your leadership team needs to be open to change if it is found to be necessary over time. Leaders must be ready to help employees embrace change. Appropriate alignment requires work, commitment and support from the highest levels to make your organization as efficient and effective as possible.