7 Steps for Creating an Organization Capable of Controlling Its’ Own Destiny

The process of discovering underlying structures within organizations leads to identifying "limits to growth," and how to control the organization’s destiny. All companies and organizations in general are complex systems where decisions in one area always have a "downstream effect" in other areas. Here are seven steps to discover the potential of your organization and create the future...

STEP ONE:

Confront the current reality of reacting to events. 

Focus on moving away from "reacting to events" which caused yesterday's solutions to become today's problems. One event leads to quick fixes or problem solving which can cause multiple problems in the future. Often, the side effects of so-called "solutions" result in long-term difficulties which are far greater than the original problem. The first step in being able to create the future in your company is to acknowledge that there are both quick fixes and unintended consequences of those "knee-jerk" reactions.  

STEP TWO:

See change over time as data, caused by the "ebb and flow" of the organizational structure. 

Look at repetitive "undesirable" patterns that are increasing or decreasing (oscillating) over time. Chart these patterns over time to develop a shift in perception from events to trends and time histories. Trends have underlying causes built into the actual structure of the organization. When you can start to see the trends and patterns, you are one step closer to finding the root cause of recurring problems that never seem to go away.

STEP THREE:

Discover the underlying structure which controls organizational behavior and drives executive decisions. 

Utilize principles of systems dynamics to identify control (positive) and balancing (negative) feedback loops which actually cause the patterns discovered in Step Two. Remember that organizations work in systems, not in a linear fashion. Everything eventually comes full circle in the organization to either the success or detriment of the overall system. So use a flip chart to literally create loops where you write down one part of the system and then an arrow that leads to the next part of the system and another arrow etc. You typically end up with negative loops that always come back to the starting point but that can be reversed if you find the simple root causes of the negative system.

STEP FOUR:

As you look at your loops, work with your team to say "what if..." we did this or that?  

When you go through the "what if..." exercise,  not only do the root causes of your reactive organizational structure start to be revealed, you gain clarity on what needs to be done to reverse the reactive nature of your company. "Leverage points" become apparent - things that if you focus on in the right areas for the right amount of time, will cause positive movement in all areas of your company. In most cases, a few simple "leverage points" can eliminate the root cause of all the reactivity in an organization and unleash energy, creativity and potential that had been being suppressed.

STEP FIVE:

Write a detailed implementation plan for five weeks which is based on using the newfound "leverage points" for your organization.  

This has to be broken down into simple groupings of week one, week two, week three etc. Write down and agree on specific action items that need to be accomplished to utilize the leverage you have now discovered for your company. As your organizational team works through the focused deliverables for each week, positive transformation starts to occur with systems, processes and the internal commitment of the human beings that make it all work. Where before there might have been bitterness and skepticism that led to less than stellar work - enthusiasm, a sense of ownership and a true feeling of purpose drive newfound results. People start doing things because they want to, not because they have to.

STEP SIX:

Build a team-based organization to implement the new structure. 

Develop the leadership skills of everyone by creating an executive Design Team and Cause Teams for each specific "leverage point" that was identified. These teams meet weekly and are focused on maintaining balance, focus and continuous improve-ment around established leverage points. They talk about progress, challenges and any needed course correction that might need to be done and then make it happen in real time. Growth occurs from every part of the company now working together as a unit, instead of each department or area making decisions only based on what is good for them at the time.  There is no more "guarding my territory" because now everyone can see the importance of their decisions for the whole company and is committed to common goals.

STEP SEVEN:

Commit to using structural principles. 

Executive management must master the develop-mental leadership principles and practices of being a Design Team focused on creating the future. This is done by building a learning organization. The design of a learning organization's structure utilizes feedback from every area of the business and from all levels down to the front line. There is a purposeful effort to consistently listen (to both internal and external customers), course-correct, anticipate needed change and use the collective talent of the organization to constantly improve.  

This is how "learning to learn" becomes integrated. This focus must be maintained while constantly innovating and improving the core business and inventing new processes and products to maintain leading edge competitive-ness. This allows any company to go beyond reacting to events and take control of creating their own destiny.

Michael L. Stahl

For a complimentary business assessment, reach out to me at 407-375-8271 or at [email protected].