Best Practices

Best Practices of a successful Organization

  •   People continuously expand their capacity to learn and be productive,
  •   New patterns of thinking are nurtured,
  •   Collective aspirations are encouraged, and
  •   People are encouraged to see the “whole picture” together.

Five disciplines which successful organizations follow are:

  •   Personal responsibility, self reliance, and mastery— People accept that they are the masters of their own destiny. They make decisions and live with the consequences of that. When a problem needs to be fixed, or an opportunity exploited, they take the initiative to learn the required skills to get it done.
  •   Mental models— they explore their personal mental models to understand the subtle effect they have on their behavior.
  •   Shared vision— The vision of where they want to be in the future is discussed and communicated to all. It provides guidance and energy for the journey ahead.
  •   Team learning— They learn together in teams. This involves a shift from “a spirit of advocacy to a spirit of enquiry”.
  •   Systems Thinking— They look at the whole rather than the parts.

Reasons for unsuccessful Organization

There are many reasons, especially:

  •   Failure to execute by overcoming the four key organizational hurdle

->  Cognitive hurdle

->  Motivational hurdle

->  Resource hurdle

->  Political hurdle

  •   Failure to understand the customer

->  Why do they buy

->  Is there a real need for the product

->  inadequate or incorrect  marketing research

  •   Inability to predict  environment reaction

->  What will competitors do

  1.  Fighting  brands
  2.  Price wars

->  Will government intervene

  •   Over-estimation of resource competence

->  Can the staff, equipment, and processes handle the new strategy

->  Failure to develop new employee and management skills

  •   Failure to coordinate

->  Reporting and control relationships not adequate

->  Organizational structure not flexible enough

  •   Failure to obtain senior management commitment

->  Failure to get management involved right from the start

->  Failure to obtain sufficient company resources to accomplish task

  •   Failure to obtain employee commitment

->  New strategy not well explained to employees

->  No incentives given to workers to embrace the new strategy

  •   Under-estimation of time requirements

->  No critical path analysis done

  •   Failure to follow the plan

->  No follow through after initial planning

->  No tracking of progress against plan

->  No consequences for above

  •   Failure to manage change

->  Inadequate understanding of the internal resistance to change

->  Lack of vision on the relationships between processes, technology and organization

  •   Poor communications
  1. Insufficient information sharing among people

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