"To Thrive or To Survive": That is the Question

Filling the Missing Piece of the Puzzle and Leading Your Organization to a Promising Future

In today's rapidly changing business environment, organizations face a critical choice: to thrive or merely survive.

The ability to distinguish between these two paths is crucial for the future of the organization, yet many still find themselves without a clearly defined direction or purpose.

At the core of every successful organization should be a unified vision, supported by a strong strategy, structured systems, standardized processes, careful planning, and a feedback mechanism in the form of a clear and transparent reporting system.

This framework is important not just for the organization as a whole but extends to every business unit, department, and individual employee.

Understanding and consistently implementing this Organizational "Life Cycle" can move your organization from merely surviving to a whole new level where it can thrive and confidently tackle the challenges of a VUCA world, characterized by volatility, uncertainty, complexity, and ambiguity.

1. Vision: More Than Just Writing on a Wall

According to a study by the American Management Association, 71% of employees in organizations with a clear and unified vision understand the importance and responsibility of their role in achieving it, compared to only 23% in organizations lacking clear direction.

Vision is the foundation of every successful organization. It offers a clear, unified, and inspiring picture of the future and guides all strategic decisions and operations.

Vision strengthens the focus on long-term goals and efficiency, shapes the company culture and identity, and is the most important lever for boosting employee engagement.

It's crucial to have a clear and aligned vision at the level of business units and departments as well. Their vision should merge with the organization's overall vision, enabling every part to work towards common goals.

The same applies to all employees. Their personal career vision can be equated to a personal development plan that shapes their career path and encourages continuous professional and personal growth.

2. Strategy: A Plan for Success

A Harvard Business Review study showed that companies with a clear and effectively communicated strategy are 70% more likely to outperform their competitors in terms of profitability and growth.

Once the vision is set, the next step is to develop a concrete strategy.

Strategy charts the path to achieving the vision, detailing the steps and actions needed to reach the desired future. It includes analyzing the internal and external environment, setting specific goals, and effectively allocating resources.

Defining the strategy within individual business units and departments ensures their operations align with the broader goals of the organization. Each unit must develop its own strategy that supports and complements the organization's vision, promoting collaboration and eliminating "silo thinking".

For employees, the strategic part of their professional and personal development is realized through their career path. When clearly defined, it greatly motivates employees and strengthens their understanding of how they can advance within the organization, which skills they need to develop, and what opportunities are available to them.

This not only increases employee engagement but also ensures that their personal goals align with the organization's goals.

Gallup research shows that employees with a clear career path are 2.5 times more likely to stay with their current employer.

3. Systems: Structures and Processes

To effectively implement the strategy, organizations need efficient systems that include structures and processes.

Structures define the organizational hierarchy and reporting, ensuring clarity of roles and responsibilities.

Processes detail the steps to ensure tasks are completed consistently and efficiently. For achieving efficiency, it's important that processes are set with standards.

These standards provide benchmarks for measuring success, allowing organizations to track progress and identify areas for improvement.

Standardized processes also simplify training and development, ensuring employees are equipped with the knowledge and skills to perform their roles effectively.

The International Organization for Standardization (ISO) reports that organizations with standardized processes are 50% more likely to achieve their business goals.

On an individual level, understanding organizational processes relates to employees' work habits and skills.

Skills like time management, setting priorities, and effective communication are crucial for personal and professional success.

These habits contribute to achieving process standards, ensuring employees meet their goals and contribute to the organization's goals.

4. Planning and Feedback: A Continuous Improvement Loop

A PwC study showed that organizations with effective planning processes are 60% more likely to achieve their strategic goals.

Comprehensive planning is crucial for any organization.

Planning involves setting short-term and long-term goals, developing action plans, and allocating resources. It ensures the organization is proactive, anticipating challenges and opportunities rather than merely reacting to them.

Even the best planning process is meaningless without an effective feedback mechanism.

Feedback in the form of reporting allows organizations to track progress, evaluate performance, and make necessary adjustments.

Regular reporting provides a clear picture of what works and what doesn’t, contributing to continuous improvement and significantly increasing the chances of achieving set goals.

For business units and departments, regular feedback ensures their operations align with the organization's overall goals. It promotes accountability and transparency, strengthening a culture of continuous improvement.

For employees, feedback is gathered through satisfaction surveys, regular feedback sessions, and development talks. These mechanisms provide employees with a clearer understanding of their performance, helping them better understand their competencies and areas for improvement.

Regular feedback fosters a culture of continuous learning and development, contributing to the lasting development of employees both professionally and personally.

According to a study by the Society for Human Resource Management (SHRM), companies that conduct regular feedback and development talks have a 14.9% lower turnover rate compared to those that don’t.

Organizational "Life" Cycle: Finding the Missing Piece

The organizational "life" cycle can be compared to assembling a puzzle. Each piece—vision, strategy, systems, processes, planning, and feedback—is crucial for creating a complete and cohesive picture. Missing any part leaves the organization incomplete and dysfunctional, hindering its ability to achieve set goals.

By adopting a holistic approach, organizations can ensure not just survival but truly thrive and create to their fullest potential.

The vision of each business unit and department must align with the organization's vision and strategy, supported by systems and processes that help achieve their goals.

Each employee must have a clear career path, appropriate work habits, and opportunities for skill development, ensured by regular feedback that promotes their professional and personal growth.

Conclusion

The difference between thriving and merely surviving lies in an organization’s ability to create a clear and functioning framework that aligns vision, strategy, systems, processes, planning, and feedback.

This promotes a culture of continuous and lasting improvement, helping navigate the complexities of the modern business world and achieve long-term success.

You know Leaders are Readers, right?

In our weekly reading recommendations, you'll discover the top must-reads that perfectly complement the content of this newsletter.

We also love hearing from you, so don't hesitate to share your favorite books with us. Dive into our curated list and let's inspire each other!

"Good to Great" by Jim Collins is a groundbreaking business book that explores why some companies make the leap to extraordinary success while others do not.

Collins and his research team identified key characteristics and strategies that enable companies to transition from good to great.

The book emphasizes the importance of disciplined people, thought, and action, highlighting the roles of leadership, culture, and strategic focus.

Through compelling case studies and data-driven insights, Collins presents a framework that is both practical and inspiring.

His concept of "Level 5 Leadership," where humility and professional will combine for effective leadership, is particularly impactful.

Overall, "Good to Great" is a must-read for business leaders and anyone interested in organizational success.

"Every single day gifts us with 24 hours. The only question is how we choose to use them to create impact and drive change."

Gregor Kosi, #thegreatleadership

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