Staffing for Success
(revised from November 2008)
Just about every organization in this economy has to learn to do more with less. Public, private, non-profit: budgets are shrinking across the board. Unemployment is near 10% nationwide. If you are working in or leading one of these organizations, you still have customers that need your services, products and support. The fact that you have significantly less resources doesn’t mean much to them. To survive, you need to be better than ever at keeping the clients you have and finding new ones. Cutting your way to prosperity rarely works. So how do you accomplish this Herculean task? (hint: it isn’t about focusing on budgets…)
Define Success
Do you have a conference room right now that is packed with finance people, spreadsheets and a line out the door of managers pleading their cases to not have their budgets slashed? Did the CEO demand ‘across the board reductions’? Does it appear that everyone is trying to nickel and dime their way to meet budget numbers?
Try this exercise instead: get your senior leaders together and define what success looks like for your organization. Is it three new products introduced in 2010? Holding the line on market share? Increasing enrollment by 5%? Get that decision and provide guidance for your department managers.
Organize for Success
Have your team look at every department and organize them to specifically deliver on that success. You may find that you have a few businesses that exist, even profitable ones, that don’t deliver what you say you’re in business to do. Jack Welch, former CEO of GE, set a goal of being #1 or #2 in every market in which GE had a business – and if GE wasn’t #1 or #2, then fix/sell/close that business within six months. GE decided that even profitable businesses that did not match the organization’s vision had to go. What is your business holding on to that isn’t part of the future?
Fund Success
Now we start looking at the budget. How much does this new world order cost? If your people were judicious in their work, you should find a minimum of discrepancies in what should be funded. If they are still holding onto legacy business, unprofitable products or accounts, or programs that do not meet their intended purpose, you have an easier way to give guidance. Repurpose budget dollars to fund the stated success, and/or increase revenue/donations/partnerships to fund that success.
DEFINE SUCCESS
ORGANIZE FOR SUCCESS
FUND SUCCESS
Joe Raasch :: Jan.18.2010 :: Innovation, Leadership, Organizational Development, Performance Management :: No Comments »