Management Solutions

Creating Focus in the Organization

By Dennis Thurman

A vital issue facing many organizations today is the need to create and maintain focus and alignment at all levels, from the CEO to the newly-hired trainee.

A statement recently voiced by a participant at an executive development workshop brings to light the frustration being experienced by managers: “If I could only get my direct reports and their personnel to consistently focus and spend their time on what’s most important, we could make a quantum leap in productivity, and ultimately profitability.”

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After a group problem solve with other managers and leaders inside his organization, this individual realized that to create and maintain focus, his employees needed to come to work each day with a clear understanding of five basic areas:

•The “short list” of Critical Success Factors (CSFs) (What’s most important to our success) for the organization.
•The responsibilities of their particular job, and how they can affect the CSFs.
•What is expected of them; i.e. goals and performance standards.
•How and when their performance will be evaluated and by whom and further how to evaluate their own performance daily.
•What rewards or consequences can be expected as a result of their performance.
•Foundational to the first item would be a clear and agreed to set of Critical Success Factors. Think of the CSFs as a shortlist of things an organization must do well in order to achieve its Mission Statement.

They first must be established at the top level in the organization. Then each department must determine which items on the list they have direct and indirect ownership in, from their the department and it’s team members must create their own departmental CSFs which feed the top level list. In this way each department is aligned and understands what they must do to enhance the top level Critical Success Factors

Next, each individual needs to develop a clear understanding of their specific responsibilities in alignment with the CSFs for the department and ultimately how his or her work impacts the top level CSFs. This is best done through direct facilitation by the supervisor or an experienced consultant. Goals, measurements, and timing of performance reviews can be set from this point going forward. The employee should be in charge of keeping his own score and he or she should know on a daily basis how they are performing on their goals and responsibilities.

If the employee, whatever their title and seniority, lacks understanding of items 1-5, chances for both short and long-term success for an individual, department, or the entire company are pretty slim. The organization will not be a well-oiled, finely tuned productive machine. Employees will be left to their own devices and to do whatever they think is best, which in most cases, is not in line with corporate strategy.

Results for situation analyses conducted by professional business consulting firms have indicated time and time again, that when the above five specifics are lacking, the organization suffers greatly in many critical ways:

•Customer satisfaction is reduced;
•Employee satisfaction is low;
•Productivity dips below required levels;
•Profitability diminishes or disappears;
•Accountability is given lip service but is never the motivational tool it can be;

This list can be extensive and far-reaching. No one escapes the impact of the lack of focus. The ripple effect is all encompassing.

Here are a few basic action steps to consider to aid in the process of creating and maintaining focus within the organization.

Foundational is to install a management and accountability system comprised of monthly critical success factor team meetings (referred to as CSF meetings). Agenda items include: long and short term goal setting and goal achievement reporting on the individual and the team. Measurement spreadsheets and scorecards are a part of the reporting.

It is essential to develop the annual business plan in a team format, drawing on the skills and insights of the company’s best minds. When this occurs, the final product is the creation of “their plan, not your plan.” It needs to be done at the beginning of the quarter before the new year begins.

Utilizing the plan negotiate one-page goal sheets with each employee, including business and professional growth goals which will insure the plan’s success Work with the team to find timely and appropriate corrective action when goals are behind, while delivering heartfelt praise when goals are achieved or exceeded.

Compare performance to plan across the company at least quarterly.

Implement a well-defined employee performance evaluation process.

Live by a principle that has changed countless careers and the fortunes of many—it is called the “Pareto Principle”: Concentrate on the vital few and ignore the trivial many.
The Pareto Principal is sometime referred to the 80/20 rule. The purpose of putting in place the management system, Critical Success Factors, goal setting, and etc. is to ensure the team spends 80% or more of its time doing what makes your company successful and 20% or less fighting the inevitable fires. Too often we have found it to be the other way around. Lack of focus and alignment are the tinder which fuels the fires and keeps them ablaze.

It takes discipline and tenacity to remain focused, especially in the face of an economy in turmoil, fuel prices skyrocketing, and the ever present competition. A well-designed management system as I outlined above, will challenge employees to be focused on what is critical and important. Because of the atmosphere of alignment and the motivation driven by measurable progress you can sleep easy at night knowing you and your team are moving at a pace and in a direction which will result in certain success.

Take a good, hard look at how you and your company operate. Determine with your team what is vital and concentrate on it. Focus your efforts and energies toward your critical success factors and you’ll be amazed at the results.

Dennis Thurman is a principal at Salt Lake City-based Biz-Align Strategies and Consulting which specializes in assisting organizations in improving the effectiveness of management and leadership to increase productivity and profitability. dcthurman@biz-align.com