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Strategic Alignment in Business Management

The document is a sample exam question paper from the National Institute of Business Management asking students to answer 4 out of 6 questions related to business process management. The questions cover topics like the importance of strategic alignment, governance in process management, project execution, the need for a Center of Business Innovation, and the importance of people capability. Students are required to answer in at least 2 pages or 300 words for each question and will be scored out of 100 marks.

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Rehncy Singh
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0% found this document useful (0 votes)
38 views21 pages

Strategic Alignment in Business Management

The document is a sample exam question paper from the National Institute of Business Management asking students to answer 4 out of 6 questions related to business process management. The questions cover topics like the importance of strategic alignment, governance in process management, project execution, the need for a Center of Business Innovation, and the importance of people capability. Students are required to answer in at least 2 pages or 300 words for each question and will be scored out of 100 marks.

Uploaded by

Rehncy Singh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

National Institute of Business Management

Chennai - 020
EMBA/ MBA

Elective: Business Process Management (Part -2)

Attend any 4 questions. Each question carries 25 marks


(Each answer should be of minimum 2 pages / of 300 words)

1. Why is strategic alignment important? Explain.

2. Describe governance as part of process management .

3. Explain the key elements of project execution.

4. Why is project execution important? Explain.

5. Why do we need a Center of Business Innovation (CBI) and what are the
benefits? Explain.

6. Why is people capability important? Explain.

25 x 4=100 marks
Exam 36014 – Business Process Management (Part-2)

Why is strategic alignment important? Explain

Ans 1
Strategic alignment is the process and the result of linking an organization's structure
and resources with its strategy and business environment (regulatory, physical, etc.)
Strategic alignment enables higher performance by optimizing the contributions of
people, processes, and inputs to the realization of measurable objectives and, thus,
minimizing waste and misdirection of effort and resources to unintended or unspecified
purposes. In the modern, global business environment, strategic alignment should be
viewed broadly as encompassing not only the human and other resources within any
particular organization but also across organizations with complementary objectives
(i.e., performance/business partners).

The word “strategy” is widely used in business today. In addition, then why so many
people fail to properly execute their strategy and here’s an interesting perspective!
Although approximately 65 percent of businesses know their intended strategy, only
about 10 percent of them successfully execute them. This can be attributed to the fact
that many businesses don’t consider strategic alignment in their business planning
process. For instance, It has been found that many simply embark on their business
planning process without fully understanding how it affects the planning process as a
whole, or how to integrate their strategy at every step of the process. In other words,
many strategy managers are not fully aware of what strategic alignment means.

Strategic alignment involves linking a company’s business environment and strategy


with its resources (including people skills and tools) and structure. It refers to a state
where an organization’s strategies align internally and externally, with its users,
marketplace, and customers.
“Alignment” is the keyword here. The strategies of company must align with the ultimate
business goal at every step of your business planning process – from creation to
execution.

BENEFITS OF USING STRATEGIC ALIGNMENT IN BUSINESS PLANNING


PROCESS.

Saves time
There is a saying, “lost time is never found again.” Time is a very important and delicate
resource in the business world. The way you use your time could determine where you
will be among your peers. Managers that do not adopt strategic alignment tend to
embark on activities that, while being good ideas, are simply not the right fit at that very
moment. If they are lucky, they will find out in time that they are operating off course,
and wasting time. To avoid this situation, ensure that your business strategies align with
your company’s goals and objectives.

Motivate team

Team motivation is another important area that needs to be considered in any business
plan. The point to grasp here is that when your team understands the big picture, it
becomes a natural motivation factor. Therefore, strategic alignment helps keep teams
motivated by making your strategy clear to them and showing them how it ties to the big
picture. Businesses that actively use Shared Values as a Winning Formula to Business
Success master this very well. At the end of the day, alignment between strategy and
goal encourages shared values, helps gain “buy-in” and everyone sees the value in
achieving these set goals and objectives. In essence, it helps you eliminate conflicting
priorities, so everyone can be on the same page.

Supports market maneuverability

Maneuverability, long known as a military term, is now being applied to business today
because of the dynamic nature of the marketplace in our global economy. We have to
find ways, strategies, to maneuver and stay ahead of the competition. However, in a bid
to keep up with the various trends, we must be careful to not lose business identity. An
aligned strategy helps businesses to focus and maintain the balance between following
trends and keeping true to their identity.

HOW STRATEGIC ALIGNMENT CAN BE USED IN THE BUSINESS PLANNING


PROCESS
As mentioned earlier, one should incorporate strategic alignment into every stage of
your planning process. This way, you can be sure that you don’t leave anything
unattended. Let’s consider the creation, communication, and execution stages of your
business plan.

Creation

This is the stage where you consider How Goals and Objectives Help Your Business
Succeed with consideration for the changing marketplace. Therefore, focus on drilling
down to strategically align your action plans. You see, in a bid to retain business
identities, many refuse any bit of change regardless of current trends or customer
preferences. On the other hand, some businesses bend to the will of every customer,
thereby losing their identity. A mindset towards strategic alignment helps you apply a
systems approach to maintaining a healthy balance between these two extremes, thus
helping you sustain your business.

Communication

This is perhaps the most important area of any business strategy.


The Communication Plan is where you focus on how to achieve shared values and
getting buy-in from every party involved. A strategy that aligns perfectly with your
business goals communicates stability to teams, employees, management and
customers alike. The goal here is to ensure that daily actions and decisions align with
the strategic direction of the organization’s goals.

Execution

Execution is the stage where you produce the desired outcomes. Therefore, while
executing the various objectives, it is important to continually assess and ensure that
you consider the company’s structure and goals. Many organizations miss it here and
end up damaging employee engagement and trust. In a thrust to adapt to changes in
the market, ensure you don’t stray away from your business identity. Your business
identity is what makes you a brand.

Strategic alignment, means that all elements of a business — including the market strategy
and the way the company itself is organized — are arranged in such a way as to best
support the fulfillment of its long-term purpose. While a company’s purpose generally
doesn’t change, strategies and organizational structures do, which can make chasing
“alignment” between strategy and the organization feel like chasing an elusive will-o’-the-
wisp.

As if that weren’t tough enough, another challenge for corporate leaders is how to make
sense of strategic alignment at both the team / business unit level (or division or
department, however it is classified) and at the enterprise level.

And yet it is possible. For example, as it grew, Facebook found that its early “move fast and
break things” culture had to be funneled into focused technical teams and product groups
to make its product development process faster and less erratic, and for it to have a chance
of meeting the demands of its new public shareholders following its IPO. The current mantra
is “Move fast with stable infrastructure”, which speaks to the organizational design
challenge of operating at scale in a fickle and volatile world.
Why Strategic Alignment Matters
Just as a car has an engine, dashboard, brakes, and wheels, an organization has
various strategies, systems, processes, and people. When a car’s suspension is out of
alignment, it results in uneven tire wear, a decrease in fuel economy, and the potential
safety risk of a tire blowout. When an organization is misaligned, it results in decreased
performance and disengagement.
In fact, according to organizational alignment research, the proper alignment of strategy,
culture, and talent allows organizations to grow revenue 58% faster, be 72% more
profitable, retain customers 2.23-to-1, and to engage employees 16.8-to-1.

The Organizational Elements Required for Strategic Alignment


Three main elements must be aligned to create organizational alignment and higher
performance.
 Strategy
Strategic alignment starts with having a clear, believable, and implementable plan for
success. Strategic clarity accounts for 31% of the difference between high and low
performing teams. To succeed, leaders must be crystal clear on strategic goals
(where the organization is headed) and strategic actions (how it is going to get there).
A good strategy guides the entire organization, provides rationales for resource
allocation, and sharpens decision-making at every level. A bad strategy creates
ambiguity and opens the door to politics, bad choices, and lower performance.
 Culture
Because your strategy must go through your culture to be successfully implemented,
your workplace culture can directly help or hinder your strategic plans for success.
We define culture as how and why things truly get done in an organization. Once your
strategy is clear enough to act, it is time to understand, shape, and align your culture
to best accelerate your strategic priorities.
A healthy and aligned culture makes it easy to get stuff done in way that makes sense
for the business and for your people. An unhealthy or misaligned culture disengages
employees and makes it difficult to do the right things for the right reasons.
 Talent
Once your strategy is clear enough and you have shaped and aligned your culture to
be healthy, high performing, and aligned with your strategy, it is time to consistently
attract, develop, engage, and retain talent that fits your unique strategy.
And getting talent right matters. On average, companies spend over one-third of
revenue on employee salaries and benefits.

Three Steps to Make Strategic Alignment a High Priority


Making strategic alignment happen should be the top priority of every organization that
wants to win.
1. Create Strategic Clarity
You will know you are headed in the right direction when the strategy is clear to all
key stakeholders, all key stakeholders agree with the direction in which you are
heading, people have the right mindset to execute the plan, the quality of your plan
is equal to the challenges that you face, and your performance measures are
aligned with your strategic priorities..
2. Ensure that Your Culture is Healthy, High Performing and Aligned
You will know you are headed in the right direction when your culture is healthy,
high performing, and aligned with your strategy.
A healthy culture has strong levels of leadership, Trust, Capability, and Climate. A
high performing culture creates a performance environment for people to perform at
their peak. And an aligned culture gets work done in a way that is aligned
across ten cultural dimensions with the business strategy.
3. Build a Differentiated Talent Management Strategy
You will know you are headed in the right direction when your talent management
strategy is proactively and explicitly linked to your business strategy and culture.
That means treating different talent and different roles differently by prioritizing
getting the right people, in the right roles, with the right capabilities to both execute
your strategy and live your culture.
Exam 36014 – Business Process Management (Part-2)

Describe governance as part of process management.

Ans 2

Defining process governance

“It is a framework that organizes and defines these elements: roles and responsibilities,
standards, tasks, organizational structure, goals, mechanisms of control and evaluation
mechanisms; in order to facilitate management processes as an everyday management
element in organizations in order to improve the performance of their processes.
“ Daniel Barroso Barros

Process governance is a major issue, and yet often forgotten and overlooked by
organizations.

In short, we can say that process governance is the way in which a company can
consolidate the process management initiatives within standards, rules, and guidelines
that all go together towards a common goal.

The term governance alone can be understood as the ability to target and orchestrate
joint efforts with the authority and acceptance of all.

In the context of process governance, its purpose is to prevent isolated and


disconnected management initiatives from processes contributing only small, localized
results. It is necessary for process improvements to add value to the supply chain in a
consistent, systematic and integrated manner, given the strategic plan set by the top
management of the company.

Why Process Governance?

Process Governance fills the gap between an organization’s strategy and execution.
Without Process Governance, there are high chances that process improvement
initiative will not find any takers. Initially, it’s easy to convince the higher management to
implement the new process improvement initiative but without a proper process
governance framework, their interest will start dwindling with the passage of time and
there will be a high risk of your initiative going down the drains.

An efficient process governance framework ensures that the organization’s success is


based on a set of standardized processes and not on bunch of skillful employees.
Objectives of process governance

We can summarize the role of process governance in a company with 10 major goals:

1. Standardize process initiatives.


2. Encourage the alignment of these initiatives.
3. As a result, encourage continuous improvement of business processes.
4. Define roles and responsibilities of the processes.
5. Determine who has the power to decide the procedures.
6. Become a more agile organization in response to the emergence of changes.
7. Promote the quality of process initiatives.
8. Change management processes on a daily application of culture.
9. Align management processes with the strategic objectives of the company.
10. Ensure that the processes office coordinates these initiatives and gives the
necessary support to all areas involved.

In short, process governance should be able to promote the guidance and direction of
process management to create synergy between initiatives and continuous
improvement. For this purpose, it can make use of some initiatives.

Initiatives of process governance

 Definition and control of rules and guidelines.


 Establishment of procedures.
 Establishment of tools to use. Check out this tool for process modeling.
 Make the overall objectives of the process clear.
 Definition of business rules.
 Determination of the forms of measurement and control.
 Create rules for the organization of processes.
 Define structures and levels.
 Direct the methodologies in process management.
 Establish the value chain as a beacon for process management.

Through these initiatives and to achieve the objectives indicated above, there are three
levels of responsibility:

1. Direct execution (in some cases) and control of business processes.


2. Coordination, assistance, and overview of management processes.
3. To promote and ensure the integrity and reliability of the processes in the
company as a whole.
As can be seen, the degree of responsibility increases from the first level, more
operational, through to the second, management, and to a more strategic third level,
where alignment with the top management of the company is essential.

Process governance model

Finally, we present a governance model of the processes proposed by Korhonen on 4


levels:

Steering Committee “Sponsership”


Strategic

Contract
Coordination
Tactical

Center of Process
Excellence”Leadership” Initiative”Ownership”
Operational

Control
Project “Ship”
Real-Time

Model

Committee procedures: strategic level

 Works with the macro processes.


 Responsible for alignment with corporate strategy.
 Selection and prioritization of projects in process.
 Resource allocation.

Office processes: tactical level


 Train and support the implementation of projects.
 Define methods, standards, tools and rules.
 Determine and maintain process architecture.

Group Manager processes: tactical level

 The “owner” of the process.


 Track performance.
 Lead projects with these processes.

Group project manager: operational level

 Operates in the daily processes and is also responsible for its implementation.
Exam 36014 – Business Process Management (Part-2)

Why do we need Center of Business Innovation (CBI) and what are


the benefits? Explain

Ans 5

A Center of Business Innovation (CBI) is a means by which an organization


can centralize and institutionalize its BPI and management expertise and
experience, thus reducing this duplication. It is not however, only about
reducing duplication, it is about bringing together people with similar and dif
ferent skills and experiences to solve complex business problems.

The CBI is the central point for the pooling of expertise, experience and
resources to assist a wide range of business units to develop, implement
and/or manage process self-improvement projects and the embedding and
management of business processes within the wider organization to create
sustainability.
The typical CBI cycle that an organization will progress through is:
1. Having no CBI within the organization and not realizing that they need
one.
2. Understanding that a CBI will benefit the organization, selling it
internally, gaining approval to establish it, and determining the
appropriate structure, roles and responsibilities and where it fits within
the organization.
3. Establishing the CBI and running it successfully.
4. Finally, scaling down it because the skills and capabilities that have
been created within the CBI have been integrated into each of the
business units and having a process-focus is 'just what we do around
here' and therefore, the process skills now reside within the business,
where they should be.

Why do we need CBI and what are the benefits:-


It will be able to assist various parts of the organization in the establishment of a
'management by process' structure and provide advice on the creation of a high
performance management environment, for example, the establishment of the business
key process performance measures and targets. The team will also be able to assist
individual projects with advice, coaching and perhaps resources, depending upon how
the group is structured.
The typical benefits that can be provided by a CBI group could include:
• Leveraging any existing BPMS technology within the organization, such as,
document management, workflow or business rules engines and so forth.
• Individual projects are usually part of a larger programme of work, the CBI could
ensure that all projects / programmes are managed under a single governance
structure, assist with project initiation and ensure that the lessons learned from previous
projects are incorporated into the project. The benefits of this is that there will be lower
overall overhead and governance costs (most of which are hidden) and there will be
better quality assurance of projects, resulting in more successful projects.
• The group can ensure that if the organization requires a process modeling
toolset, that it is only using one and not several toolsets across the organization and
that there is a consistent and single modeling methodology being used. The benefits of
this include: savings on software license fees, maintenance fees, training and
management costs.
• A combined group of qualified and capable process experts will enable the
optimization of their use within the organization. Experience has shown that a CBI can
create a process community within an organization where people assist each other and
share experiences in process-related work. The benefit is better support for the
business and projects; and lower costs of external process expert resources.
• A centralized CBI will provide the ability to work on a process- focused and
continuous improvement culture resulting in more effective process initiatives within the
organization.
• The CBI could provide a single programme to monitor and determine the
required level of process maturity required by the organization and consistently and
continuously ensure that all activities contribute towards the advancement of the desired
process maturity level and more successful process initiatives. The benefit of this is that
any investment in process improvement and management in the organization are
sustainable and contribute towards the achievement of the required business outcomes.
• The CBI (and the Strategic Process Council) should be the group that monitors
or audits the alignment of any BPI project or activity to the organizational strategy and
business outcomes.
Of course, the biggest challenge is that the establishment of a CBI will actually highlight
the true cost of process management and governance, where as these activities may
well have been either hidden within other budgets or not completed at all. Sometimes
the best way to launch a CBI is to find a senior executive with credibility and enthusiasm
to help fund the initial CBI. This will allow the CBI to gain exposure and build credibility
and then bring other parts of the organization in on it.
The challenges that are usually faced by a CBI group include:
• The need to obtain tangible business results - to demonstrate the groups added
value to the organization.
• Improve the engagement model with the business - to better serve the
organization.
• Improve the project management methodology, capability and track record - to
have a repeatable, successful and sustainable project methodology within the
organization.
• Improve the BPI project framework, capability and track record - by training,
coaching and further staff development.
• Increase project / programme delivery capability.
• Acceptance from the business that the CBI will be the internal consultancy of
choice for the delivery of process improvement, process management and change
programme.
The objective of a CBI engagement model is to ensure that significant and sustainable
results are achieved by ensuring that project initiatives and results are enforced as part
of management as usual. The CBI engagement model needs to also cover the
management of processes within the organization if sustainability of process
improvement and process management is to be attained. It is part of the responsibility
of the CPO (or process executives) to create the appropriate CBI engagement model
and have it approved by the Strategic Process Council.
The main principles of CBI engagement model are:
1. Accountability - by ensuring that process stewards and business
managers are accountable for the performance results (both quantitative as well as
qualitative) of the business processes.
2. Measure outcomes- of both the quantitative as well as qualitative aspects
of the business processes and create comparisons between appropriate business
units across the organization.
3. Enforcement - the executive leadership must enforce the accountability of
the process executives, process stewards and business managers. This
enforcement task is part of the process governance and must not be placed upon
the manager of the CBI unit as he/she are usually not senior enough, in most
organizations, to force a difference in attitude and discipline, nor is it appropriate in
any case.
4. Facilitation - is the main task of the CBI group. If the business executive
enforces management of processes and their improvement, then the CBI group
can support the business managers.
In summary, achieving significant and sustainable corporate success with BPI
projects and process performance management requires more than just having a
successful BPI project or programme: it requires commitment from executive
management to make the necessary institutional changes. The two main changes
required are
1. The executive needs to manage the business unit manager on the
efficiency, effectiveness and robustness of their business processes.
2. The CBI group needs to facilitate the business units to perform better and
demonstrate improvements to the executive management.
A CBI engagement model must be introduced to ensure there is the discipline or
structure available for all business process management issues to be addressed at
the right level, without too many unnecessary escalations to more senior
management.
Exam 36014 – Business Process Management (Part-2)

Why is people capability important? Explain

Ans 6
People are the center piece via which a process-focused organization is created and
sustained. The building of internal capability within an organization is critical and must be
supported by the creation of a Center of Business (Process) Innovation (CBI). Both will
only work effectively if the engagement model between the business, CBI and information
technology is appropriate and works. These assists in the building of the road map
towards a visionary organization for the people capability perspective.
People capability development is traditionally thought of as a linear process aligned to
career pathway, but the changing nature of jobs and the skills required to succeed in
today’s workplace require companies to rethink the way they build people capability.
Organizations need to move away from unidimensional interventions to a flexible and
continuous learning and development approach.
When striving towards a process-focused high performance management organization
the people are a critical component in execution. Hammer stated it well when he said
(1993), 'Coming up with the ideas is the easy part, but getting things done is the tough
part. The place where these reforms die is down in the trenches' and who 'owns' the
trenches? You and I and all the other people. Change imposed on the 'trench people' will
not succeed without them being part of the journey.
The most important component in any business process-focused change is the
management of organizational change, the associated people (staff) impacts and
providing the skills and capability for the staff to be able to execute their jobs to a high
standard. Execution, whether project or process, is owned by the people in the trenches.
People and their engagement is a critical factor and a holistic approach is essential. The
key to engaging the people in the trenches is leadership from their line managers and the
line managers must be engaged first.
It is the people who will determine the success (or otherwise) of your process-focused
programme. People need to be included as an integral part of the development journey.
They need to be consulted, listened to, trained and communicated with on a regular basis.
If they do not understand the reasons for change or the purpose of the organizational
strategy, how do you expect them to take any ownership and responsibility?
People need to understand clearly what is expected of them and how they fit into the
organization. Their performance measures need to be developed in consultation and
agreement with them - so make them part of the solution.
If you ask people which companies they admire, people quickly point to organizations like
General Electric, Starbucks, Nordstrom, or Microsoft. Ask how many layers of management
these companies have, though, or how they set strategy, and you’ll discover that few know
or care. What people respect about the companies is not how they are structured or their
specific approaches to management, but their capabilities—an ability to innovate, for
example, or to respond to changing customer needs. Such organizational capabilities, as
we call them, are key intangible assets. You can’t see or touch them, yet they can make all
the difference in the world when it comes to market value.
“Take my assets - but leave me my organization and in five years I'll have it all back”.Alfred P.
Sloan

These capabilities—the collective skills, abilities, and expertise of an organization—are the


outcome of investments in staffing, training, compensation, communication, and other
human resources areas. They represent the ways that people and resources are brought
together to accomplish work. They form the identity and personality of the organization by
defining what it is good at doing and, in the end, what it is. They are stable over time and
more difficult for competitors to copy than capital market access, product strategy, or
technology. They aren’t easy to measure, so managers often pay far less attention to them
than to tangible investments like plants and equipment, but these capabilities give investors
confidence in future earnings.

People Capabilities Explained

While people often use the words “ability,” “competence,” and “capability” interchangeably,
we make some distinctions. In technical areas, its refer to an individual’s functional
competence or to an organization’s core competencies; on social issues, we refer to an
individual’s leadership ability or to an organization’s capabilities. With these differences in
mind, let’s compare individual and organizational levels of analysis as well as technical and
social skill sets:

Individual Organizational
1 3
Technical

An Individual’s An Organization’s
functional core
Competence competencies
2 4
An Individual’s An Organization’s
Social

leadership ability capabilities

In the table above, the individual-technical cell (1) represents a person’s functional
competence, such as technical expertise in marketing, finance, or manufacturing. The
individual-social cell (2) refers to a person’s leadership ability—for instance, to set direction,
to communicate a vision, or to motivate people. The organizational-technical cell (3)
comprises a company’s core technical competencies. For example, a financial services firm
must know how to manage risk. The organizational-social cell (4) represents an
organization’s underlying DNA, culture, and personality. These might include such
capabilities as innovation and speed.

Organizational capabilities emerge when a company delivers on the combined


competencies and abilities of its individuals. An employee may be technically literate or
demonstrate leadership skill, but the company as a whole may or may not embody the
same strengths. (If it does, employees who excel in these areas will likely be engaged; if
not, they may be frustrated.) Additionally, organizational capabilities enable a company to
turn its technical know-how into results. A core competence in marketing, for example,
won’t add value if the organization isn’t able to spark change.

Imagine you’ve been shipwrecked on a desert island. Hazily you squint at the tropical
sun, run your fingers through the soft white sand, size up the ragged bunch of co-
castaways, and decide you better do something if you’re going to survive. None of you
have ever been in this situation before. None of you know what to do or feel able to do
what has to be done. In short, you have a capability gap.

The wonders of modern technology mean your smartphone has somehow survived, and
not only that, it has a 4G signal. What do you do?

 A. Watch an instructional podcast on how to survive on a desert island?


 B. Assess the resources and materials available to you, and where the opportunities
and threats lie?
 C. Organise everyone into teams, with different goals and responsibilities?
 D. Email a recent winner of Survivor and ask them to join you?
 E. Agree some groundrules and procedures everyone should follow?
 F. Remind everyone of Lord of the Flies so they recognise the importance of a
supportive culture?
The truth is that all of these could be valid actions. But no one of them is sufficient. And
so it goes with capability-building.

Capability is simply the ability to do something. A power to perform a specified task.


Individuals have capabilities. And so do organizations.
When organizations don’t have the power to perform a specified task as well as they
want to, they have a capability gap. Often, their leaders turn to us to help them remove
that gap. Often they ask us for a training workshop to remove that gap. And then, quite
possibly, their hearts sink as we say ‘we’re happy to do a workshop, but if you really
want to boost your performance, have you considered the other drivers of your
capability in this area?’

This 6 drivers of capability building

It starts with clear objectives, purpose and strategy. Then there are 5 other elements
which influence capability. And which you can influence to build people capability.
These are:
 processes
 skills
 organisation
 people
 culture

Training (we prefer the term ‘learning’) helps upskill people, enables new processes,
lets people understand their roles, what’s expected of them, how to lead and so on. But
it’s not the only tool you should use to build capability. You need to do more to make
sure your people and your company excel.
The old saying: 'you do not know what you do not know', is not only relevant to the need
for training and coaching, but also the continual development of knowledge. Many
organizations become insular, with its knowledge only expanding by its' own internal
experiences and the experience of the people inside. Some organizations try to
overcome this by periodically 'bringing in new blood', that is, new people from outside
the organization who will bring in new experiences and knowledge. While in the right
circumstances this can be the correct thing to do, it is not the solution to this issue.

There is also much an organization can achieve internally. An organization must


establish formal mechanisms for the gathering, analyzing and sharing of lessons
learned. Some of the ways this can be achieved is by:

1. The establishment of formal Post Implementation Reviews (PIR) of projects. Many


organizations complete these, but few learn from them, by simple documentation and
sharing.

2. After every new venture in the organization, whether a new product/service launch,
new product/service implementation, conduct a review. We only ask two questions: 'what
worked well'; and 'what could have worked better '. You may note the particular wording
of these questions, the latter is stated in a positive way, not to imply criticism and allow
staff to feel comfortable in contributing.

3. Allowing staff to be comfortable to try new things and fail. This is a significant
challenge for most organizations, and people in life generally, as we have all been taught
that 'failure' is a bad thing. Failure is only a bad thing if we continue to make the same
mistake over and over again. If you do not try, you cannot succeed. Developing this
mindset and allowing it to percolate the organizational culture will be a significant
challenge for most organizations. Do it - the rewards are amazing! Once you have
discovered things that work, and could have worked better, share the knowledge and
learn from it.

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