Strategic Organisation: Designing for Success

Have you ever stopped to consider just how much of your team’s time is wasted “working the system” rather than doing real value-added work?

Organisations often find themselves trapped in a cycle of inefficiency, dedicating as much as 30-60% of their efforts to navigating dysfunctional structures and processes instead of focusing on value-added work. This reality highlights a critical issue: most organisations are therefore not designed to operate at their potential.

Understanding the Root Causes

What are the root causes of this time and energy drain?

Many organisations struggle with structures that do not align with their business strategy, which can also lead to a lack of the requisite capabilities arising from unclear roles and expectations. This ambiguity can breed frustration, disengagement, and an environment where real collaboration becomes a challenge. Sometimes, employees even feel like they are competing with their colleagues, turning the potential for synergy into competition—thus, 1 + 1 ends up being less than 2.

Accountability as the Basic Building Block

Accountability—or the absence of it—stands as one of the primary barriers to effective organisational design. Being “called to account” by someone to whom a commitment was made focuses on the essence of accountability. Accountability must also come with the requisite authority. When individuals are assigned accountabilities without the necessary authority or clarity of purpose and context, the system inevitably falters. This misalignment impacts not just individuals but also creates silos that undermine organisational culture.

Accountability serves as a basic building block of successful organisations. All employees are accountable for meeting their commitments and within specific constraints, which fosters trust. They are also expected to exercise discretion for innovating and creating value at their levels. Managers, on the other hand, are accountable for the outputs, adherence, and effectiveness of their teams. It’s vital that appropriate consequences are established for meeting (positive) or not meeting (negative) these accountabilities, as this reinforces a culture where accountability thrives.

In a well-designed organisation, there is clarity of accountability within and between job roles. Job roles at different levels of complexity must coexist in a requisite manner. This is an essential first and foundational step for building an organisation that can meet it strategic objectives.

Enhancing Organisational Performance through Strategic Organisation

Building a Strategic Organisation™ requires engagement and commitment from leadership at all levels. Aligning organisational structures with strategic objectives can yield significant results. By establishing clearly defined roles and fostering a culture that prioritises accountability, organisations can unlock the full potential of their workforce, enabling employees to develop to their full potential and contribute to better results. . Embracing the principles of Strategic Organisation™ can transform not just individual performance but the entire organisational culture, steering companies toward sustainable success.

In my next article, I will discuss the nature of work and how the understanding of it can help managers better organise around accountabilities and lead their teams to better performance.

 The SIM Centre for Systems Leadership (CSL) aims to develop and build systems leadership capacity to drive transformational, systemic change for the benefit of current and future generations.

We achieve this by offering professional learning and development programmes, partnering with professionals and enterprises to enhance and apply their systems leadership capabilities for greater individual and organisational success. To learn more, email us at simacademy@sim.edu.sg to arrange a discussion.

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