How effective is your organisation?
There is a difference between being effective and being efficient. Both are crucial in a disruptive world. Being efficient but not effective means producing the wrong product or service. Being effective but not efficient means producing a product or service no one will buy because it is not competitive (delivery may be too slow, price too high, etc).
There are only four ways of doing things.
We can do the wrong things wrong or the wrong things right. Or do the right things wrong or the right things right.
Wrong things wrong
Doing the wrong things wrong, can be applicable in various situations where individuals or organizations have an unclear purpose that leads to unclear priorities that lead to ineffective or counterproductive executions. Let’s say your workers do not know the purpose and the goal, and they are manually working slowly on tasks that make no contribution moving you closer to your goals. I have seen this scenario many times over in different types of organisations.
Reflection:
Can you guarantee that no one in your organisation is doing the wrong things wrong?
Wrong things right
Doing the wrong things right is the absolute most deceitful way to do things, as this can be very seductive. It’s easy to “feel” good when you are efficient, but there is absolutely nothing worse than being efficient at something that should not be done at all. This is extremely wasteful, and I love how Peter Drucker expresses this:
“There is nothing so useless as doing efficiently that which should not be done at all”.
– Peter Drucker, regarded as “the father of modern management.”
Unfortunately, this is not at all uncommon. I have seen many leaders and teams make this mistake. I believe many leaders over-focus on efficiency without much consideration of how effective they are.
Example 1: People in your organisation may be more focused on “keeping busy” than on the actual business impact of their actions. I have seen many leaders running around attending numerous meetings all day and working nights to get their “real job” done. Is this effective? Of course not, it´s reactive and often a result of poor prioritisations and no time spent on reflection. Ask yourself:
- Are our top 3 priorities clear to me?
- Do I believe they are clear to everyone else?
- How will these three priorities help move our organisations position on the market? (We are looking for impact remember.)
Example 2: Let’s say that your organization focuses on efficiently producing Product A. However, when you go to market you realize that what customers want is Product B. This was the case for both Kodak, Nokia and Blockbuster remember?
There is much work done efficiently which should not be done at all in many organisation.
Reflection:
Can you guarantee that no one in your organisation is doing the wrong things right?
Right things wrong
The third way of doing things is, doing the right things wrong. Apart from slow delivery, a company caught in this trap may experience some of the following challenges: Long TTM, Decreasing sales, and low profits. An organization that aligns its strategy and execution and that truly starts with why and measures what matters in all they do but still delivers too slowly is caught in this trap.
Examples: Having only manual work, duplicating by copy-paste instead of using modern refactoring and reuse methods are just a few examples of working in the wrong way to stay competitive in a fast-changing world. Not knowing how to incorporate AI into daily work could be another. Failing to adapt to changing customer behaviour regarding tablets and mobile phone usage instead of computers can be another etc. You can be sure you are doing things wrong if you have slow delivery and uncompetitive pricing or low margins.
Reflection:
Can you guarantee that no one in your organisation is doing the right things wrong?
Right things right
Finally, there is the best way to do things. That is of course doing the right things right. This is when you are both effective and efficient.
How do you know if you do the right things right? When you are doing the right things right, you deliver on time and at a competitive price with great margins while fulfilling your purpose and moving closer to your vision.
You know you are doing the right things when what you do moves you closer to your vision and fulfil your purpose. You know you are doing them in the right way when you seize windows of opportunities, delivering at the right time and price what customers want and need. When you do the right things right you are a market leader. You disrupt yourself before anyone else disrupts you and you run an overall healthy business with both happy people, growth, and profitability. You also know you are doing the right things right, when you have recurring customers who become your ambassadors and employees who would never dream of switching jobs because they feel valued, grow and develop.
Even the best companies would not say they always do the right things right. If you never fail, you probably play it way too safe. You may be stuck in your comfort zone, that by any means is not a safe zone.
All want to, but not all do the right things right
Everyone understands and wants to do the right things, but studies show that 93% of workers cannot explain where their company is headed and why, leaving less than 7% who do. Even if you are twice as good as the average organization, you still risk having many of your people operating doing the wrong things.
It’s easy to fall into the trap of doing the wrong things right, which is the absolute most deceitful way to do things. It’s easy to “feel” good when you are efficient, but there is absolutely nothing worse than being efficient at something that should not be done at all. This is highly wasteful, and I love how Peter Drucker’s quote , which inspired this article, expresses this:
“There is nothing so useless as doing efficiently that which should not be done at all”.
– Peter Drucker, regarded as the father of modern management.
I have seen many leaders and teams make this mistake. Some leaders overfocus on efficiency without much consideration of effectiveness. This is true in all organisations that experience a gap between their strategy and their execution.
Studies show that CEOs’ biggest challenge is the gap between strategy and execution. However, I agree with Roger L. Martin’s article “CEOs Should Stop Thinking That Execution Is Somebody Else’s Job; It Is Theirs“, in the Harvard Business Review. He says, “The common perception is that strategy is done at the top of the org chart, and execution is done below.” However, if you want to be successful in a disruptive world, you cannot afford to have any gaps between strategy and execution, nor can you afford to have a large group of people in your organisation doing the wrong things.
I also like how Craig Groeschel, says this:
“If you are unclear on your “what” you will never accomplish it. You cannot do what you do not define.
However, if your “why” isn’t strong enough you won’t accomplish your “what”, because your “why” drives your “what”.”
– Craig Groeschel, Founder of Life Church
When leaders do not ensure that the daily work done in their teams aligns with the strategy, they risk wasting time doing what should not be done at all. Leaders must make sure the right things are done by communicating why and what. To ensure ensuring the right things are done right across your entire organization you need to let purpose and vision influence everything.
What distinguishes successful organisations from others
isn’t merely how efficiently they run their operations but also how well they ensure
the right things are done across the entire organisation.
But why are organisations trapped in this common challenge?
Busyness of delivering on tasks and activities
It’s easy to “feel” good when you do stuff, even if it is the wrong stuff. Many people feel the satisfaction of having a to-do list so that they can cross things off and thus see results. In the pursuit of productivity and success, individuals and organizations, therefore, find themselves entangled in countless tasks and activities. However, amidst the frenzy of busyness, it’s crucial to recognize that not all actions are created equal. In fact, profound wisdom is encapsulated in the notion that there is nothing so useless as doing things that should not be done at all.
This underscores the importance of prioritizing work. It reminds us that effectiveness and efficiency are not merely about doing more tasks or keeping busy; instead, they hinge on proactive allocation of time, energy, and resources towards work that truly matters.
Consider this scenario I keep seeing over and over:
A CEO spends her day on tasks such as planning and strategizing while neglecting to communicate the purpose and prioritized goals clearly to her organization. As a result, very few people are clear on the purpose, vision, and best business opportunities they need to deliver, and hence, employees spend time on less important work. As a result, the CEO does not get to see the strategies she has planned come to life, and she feels there is a gap between strategy and execution. This often results in leaders who are stressed because they did not meet the requirements of the board. It also leads to demotivated teams that feel underutilized.
The phenomenon of “busywork” often prevails, with leaders and employees engaging in activities that contribute little to the attainment of strategic goals. Whether it’s excessive bureaucracy, redundant processes, or aimless meetings, these inefficiencies can impede productivity and hinder innovation. Moreover, they foster a culture of busyness rather than effectiveness, where individuals equate long hours and frenetic activity with accomplishment. Busyness, however, does not equal good business.
Bussyness does not equal Business
However, there are solutions to this widespread epidemic of doing effectively what should not be done at all.
Connect strategy with the day-to-day work
Strategic planning and data-driven decision-making often don´t receive the attention they require to help employees make sound day-to-day decisions that help the organization achieve its goals. Instead, as in the example above, much time is spent on less effective tasks. Despite being occupied with numerous activities, leaders may fall short of reaching quarterly goals and fail to make meaningful progress toward the organization’s objectives. In this case, the time and effort devoted to tasks prove meaningless and ultimately detract from the overall effectiveness of their work.
To combat this tendency towards fruitless endeavours, individuals and organizations must cultivate a mindset of purposeful action. This means critically evaluating tasks and initiatives to align with strategic objectives and drive meaningful outcomes.
Embracing the rule of only “doing things that should be done” requires a shift in mindset and behaviour. It involves saying no to distractions and non-essential tasks, delegating responsibilities where appropriate, and focusing on high-impact activities that yield tangible results. Individuals and organisations can maximise their effectiveness and efficiency by channelling efforts towards endeavours that align with purpose and strategic intent.
In a world flooded with distractions and demands on our time, exercising discernment and focusing on endeavours that genuinely matter is imperative. By embracing the “Start with why and measure what matters” principle, individuals and organizations can unlock their full potential, drive meaningful progress and achieve lasting success.
Reflection:
Can you guarantee that no one in your organisation is doing the wrong things right?
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Key takeaways
As a leader, you are responsible not only for strategy but also for execution and making sure your people do the right things right is a crucial part of your leadership responsibility. If you want to utilize the full potential of your organization, you must make sure your people understand what you want to achieve and why it is important. Replace the to-do lists by helping your people understand the goals and letting them help you find ways to achieve them. This way, you will empower your people to align their work with your strategies and goals, and together, you can reach goals and harvest business success better and faster.
Do you want to unleash your organisation’s full power and ensure you hit your quarterly targets every time?
