Three major problems in organisations and what you can do about them
Organisations constantly evolve, adapt to new challenges, and strive to maintain a competitive edge. Yet, as they grow and mature along their lifecycle, they often encounter roadblocks that hinder their progress and may jeopardise their long-term success. These challenges can vary, but three common problems frequently emerge from our experience serving owners across sizes, industries, and geographies: excessive organisational changes, over-reliance on consultants, and seeking universal solutions for complex issues. Below, we explore these issues, their potential root causes, and some practical solutions for tackling them.
1. Too Many Changes, Too Little Focus
Problem Overview:
Modern organisations face relentless pressure to innovate and transform, resulting in a flood of change-related meetings, initiatives, and projects. Popular methodologies like Agile are often rolled out organisation-wide. However, this can lead to excessive, poorly coordinated changes that disrupt workflows, increase burnout, and dilute focus, ultimately impeding progress.
Potential Cause:
Assuming that every part of the organisation needs the same degree of change or can benefit equally from uniform methodologies like Agile contributes to this problem. Different units within the organisation may have distinct focus areas, levels of process maturity, and time horizon orientation. A "one-size-fits-all" approach fails to consider these differences, leading to unfocused and potentially counterproductive changes.
Potential Solution:
Tailoring management approaches based on each business unit's specific needs can alleviate this issue. The application of Wardley’s Pioneer, Settler, and Town Planner (PST) model offers a practical way to segment the organisation into three distinct groups:
· Pioneers: Teams or units working on the cutting edge of innovation, exploring new markets or technologies.
· Settlers: Teams focused on refining and scaling proven innovations, converting new ideas into reliable, repeatable processes.
· Town Planners: Groups responsible for optimising and stabilising established processes, ensuring efficient day-to-day operations.
By tailoring the organisation to these distinct roles, organisations can avoid over-applying methodologies that work well in one part of the business but may not be suitable for others.
2. Shifting Responsibility to Consultants
Problem Overview:
While you might find it quite funny to hear such a thing from an advisory firm, many organisations rely heavily on external consultants. We have seen (and, to be honest, invited to lead or support) countless Project Management Offices (PMOs) that essentially take on major decision-making responsibilities. While this certainly provides temporary relief, it can result in a long-term dependency on a consulting firm(s), effectively outsourcing the company's critical thinking and strategic capabilities.
Potential Cause:
The root cause often lies in a deficiency of leadership skills within the internal management team. When executives lack the necessary experience, skills, or strategic vision, they turn to consultants for guidance on key areas, from operational processes to strategy development. This reliance results in an inadvertent loss of control over the organisation's direction and leadership.
Potential Solution:
Investing in internal leadership capabilities is crucial to resolve this issue. Here are some practical steps:
· Use Advanced Leadership Assessment: Implement leadership assessment tools that gauge decision-making capabilities, cognitive complexity, and overall effectiveness. While some of these tools may be very costly, they provide deep insights into leadership strengths and gaps. You can easily calculate the risk (if not, consult with your Chief Risk Officer) of being unable to cut costs or get rid of a key competitor.
· Invest in Leadership Development Programmes: Provide targeted training, coaching, and mentoring to build a confident leadership team that can make key decisions independently without over-relying on consultants.
· Balance Use of Consultants: Consultants can offer valuable external perspectives, but their role should remain advisory rather than executive. Foster a culture where consultants supplement internal decision-making, helping to build skills and competencies within the organisation rather than taking over control.
The goal is to empower a management team capable of driving strategic initiatives and ensure that consultants serve as complementary advisors rather than decision-makers.
3. Seeking Universal Solutions for Unique Problems
Problem Overview:
Many organisations instinctively look to external best practices or competitors’ strategies (and even organisation charts!) when confronted with challenges. While benchmarking against others can be helpful, it often leads to the application of generic solutions to context-specific problems. This is particularly problematic when addressing complex issues, resulting in solutions that may not align with the organisation’s unique environment or needs.
Potential Cause:
This problem often stems from a misunderstanding of the nature of organisational challenges. Leaders may fail to differentiate between Complicated and Complex problems:
· Complicated Problems: These are well-defined challenges with clear solutions that can be addressed through expertise and established best practices (e.g., implementing a new software system).
· Complex Problems: These are context-specific, evolving challenges with no one-size-fits-all solutions. Outcomes are often unpredictable and require experimentation and iterative learning (e.g., organisational cultural transformation).
A lack of recognition of this distinction can lead to the ineffective application of solutions, as complex problems require tailored, adaptable strategies.
Potential Solution:
Organisations should develop internal problem-solving capabilities and make decisions based on their context, social science theories, and unique data. Here’s how:
·Employ Contextual Analysis: Begin by thoroughly analysing the problem, understanding its specific nuances, and gathering internal data to identify underlying causes and potential interventions.
· Develop Cross-Functional Problem-Solving Teams: Create teams with diverse expertise to tackle complex challenges, leveraging internal knowledge and varied perspectives.
· Experiment and Iterate: For complex issues, adopt agile approaches to test different solutions, learn from outcomes, and adapt quickly. This iterative process helps develop tailored solutions that align with the organisation’s specific challenges.
By focusing on internal problem-solving processes rather than applying universal solutions, companies can develop bespoke strategies that address their unique needs.
Conclusion: Building Resilient Organisations
The three problems outlined above—too many simultaneous changes, overreliance on consultants, and seeking universal solutions for unique problems—pose significant barriers to sustainable organizational growth. However, by identifying these issues' root causes and implementing targeted solutions, companies can effectively navigate these challenges.
Tailoring change initiatives to match the organisation’s structure, investing in leadership development to build decision-making capacity, and fostering internal problem-solving rather than copying external solutions are all essential steps towards building a resilient organisation. By adopting these approaches, businesses can better navigate their unique challenges and lay the groundwork for long-term success.
Authors:
Pavel Charny, ORTALEX, Managing Partner, Dubai
Organisations constantly evolve, adapt to new challenges, and strive to maintain a competitive edge. Yet, as they grow and mature along their lifecycle, they often encounter roadblocks that hinder their progress and may jeopardise their long-term success. These challenges can vary, but three common problems frequently emerge from our experience serving owners across sizes, industries, and geographies: excessive organisational changes, over-reliance on consultants, and seeking universal solutions for complex issues. Below, we explore these issues, their potential root causes, and some practical solutions for tackling them.
1. Too Many Changes, Too Little Focus
Problem Overview:
Modern organisations face relentless pressure to innovate and transform, resulting in a flood of change-related meetings, initiatives, and projects. Popular methodologies like Agile are often rolled out organisation-wide. However, this can lead to excessive, poorly coordinated changes that disrupt workflows, increase burnout, and dilute focus, ultimately impeding progress.
Potential Cause:
Assuming that every part of the organisation needs the same degree of change or can benefit equally from uniform methodologies like Agile contributes to this problem. Different units within the organisation may have distinct focus areas, levels of process maturity, and time horizon orientation. A "one-size-fits-all" approach fails to consider these differences, leading to unfocused and potentially counterproductive changes.
Potential Solution:
Tailoring management approaches based on each business unit's specific needs can alleviate this issue. The application of Wardley’s Pioneer, Settler, and Town Planner (PST) model offers a practical way to segment the organisation into three distinct groups:
· Pioneers: Teams or units working on the cutting edge of innovation, exploring new markets or technologies.
· Settlers: Teams focused on refining and scaling proven innovations, converting new ideas into reliable, repeatable processes.
· Town Planners: Groups responsible for optimising and stabilising established processes, ensuring efficient day-to-day operations.
By tailoring the organisation to these distinct roles, organisations can avoid over-applying methodologies that work well in one part of the business but may not be suitable for others.
2. Shifting Responsibility to Consultants
Problem Overview:
While you might find it quite funny to hear such a thing from an advisory firm, many organisations rely heavily on external consultants. We have seen (and, to be honest, invited to lead or support) countless Project Management Offices (PMOs) that essentially take on major decision-making responsibilities. While this certainly provides temporary relief, it can result in a long-term dependency on a consulting firm(s), effectively outsourcing the company's critical thinking and strategic capabilities.
Potential Cause:
The root cause often lies in a deficiency of leadership skills within the internal management team. When executives lack the necessary experience, skills, or strategic vision, they turn to consultants for guidance on key areas, from operational processes to strategy development. This reliance results in an inadvertent loss of control over the organisation's direction and leadership.
Potential Solution:
Investing in internal leadership capabilities is crucial to resolve this issue. Here are some practical steps:
· Use Advanced Leadership Assessment: Implement leadership assessment tools that gauge decision-making capabilities, cognitive complexity, and overall effectiveness. While some of these tools may be very costly, they provide deep insights into leadership strengths and gaps. You can easily calculate the risk (if not, consult with your Chief Risk Officer) of being unable to cut costs or get rid of a key competitor.
· Invest in Leadership Development Programmes: Provide targeted training, coaching, and mentoring to build a confident leadership team that can make key decisions independently without over-relying on consultants.
· Balance Use of Consultants: Consultants can offer valuable external perspectives, but their role should remain advisory rather than executive. Foster a culture where consultants supplement internal decision-making, helping to build skills and competencies within the organisation rather than taking over control.
The goal is to empower a management team capable of driving strategic initiatives and ensure that consultants serve as complementary advisors rather than decision-makers.
3. Seeking Universal Solutions for Unique Problems
Problem Overview:
Many organisations instinctively look to external best practices or competitors’ strategies (and even organisation charts!) when confronted with challenges. While benchmarking against others can be helpful, it often leads to the application of generic solutions to context-specific problems. This is particularly problematic when addressing complex issues, resulting in solutions that may not align with the organisation’s unique environment or needs.
Potential Cause:
This problem often stems from a misunderstanding of the nature of organisational challenges. Leaders may fail to differentiate between Complicated and Complex problems:
· Complicated Problems: These are well-defined challenges with clear solutions that can be addressed through expertise and established best practices (e.g., implementing a new software system).
· Complex Problems: These are context-specific, evolving challenges with no one-size-fits-all solutions. Outcomes are often unpredictable and require experimentation and iterative learning (e.g., organisational cultural transformation).
A lack of recognition of this distinction can lead to the ineffective application of solutions, as complex problems require tailored, adaptable strategies.
Potential Solution:
Organisations should develop internal problem-solving capabilities and make decisions based on their context, social science theories, and unique data. Here’s how:
·Employ Contextual Analysis: Begin by thoroughly analysing the problem, understanding its specific nuances, and gathering internal data to identify underlying causes and potential interventions.
· Develop Cross-Functional Problem-Solving Teams: Create teams with diverse expertise to tackle complex challenges, leveraging internal knowledge and varied perspectives.
· Experiment and Iterate: For complex issues, adopt agile approaches to test different solutions, learn from outcomes, and adapt quickly. This iterative process helps develop tailored solutions that align with the organisation’s specific challenges.
By focusing on internal problem-solving processes rather than applying universal solutions, companies can develop bespoke strategies that address their unique needs.
Conclusion: Building Resilient Organisations
The three problems outlined above—too many simultaneous changes, overreliance on consultants, and seeking universal solutions for unique problems—pose significant barriers to sustainable organizational growth. However, by identifying these issues' root causes and implementing targeted solutions, companies can effectively navigate these challenges.
Tailoring change initiatives to match the organisation’s structure, investing in leadership development to build decision-making capacity, and fostering internal problem-solving rather than copying external solutions are all essential steps towards building a resilient organisation. By adopting these approaches, businesses can better navigate their unique challenges and lay the groundwork for long-term success.
Authors:
Pavel Charny, ORTALEX, Managing Partner, Dubai