"Managers need to have the right level of process in place to guide their efforts but still retain the flexibility to react as challenges arise and opportunities present themselves." – John Tonkiss, COO, UNITE Group Plc. (UK).
Governance and operating model issues can significantly reduce the speed and quality of leadership decision-making and therefore, the organization’s ability to effectively execute its strategy. Left unchecked, unclear roles, boundaries, and decision rights, coupled with ineffective and inefficient forums in which to discuss and address strategic and operational issues, quickly lead to organization gridlock.
We believe that
- A leadership team is only as effective as the clarity of its role in leading and managing the organization.
- Strains in the current governance and operating model invariably accompany changes in the market, strategy, the leadership team and organizational design and need to be addressed.
- Leaders should manage the “white space.” The interactions and collaboration among the leadership team and between its members are fundamental to operating model effectiveness.
- Ineffective problem solving, lack of clarity on decision rights and poor conflict resolution processes, not personalities, are often the root cause of dysfunctional behavior.
- Choices made in designing the governance and operating model should explicitly demonstrate and reinforce the company’s values.
- Engage leadership to bring clarity, alignment and commitment to the things that really matter: values, vision, strategy and goals.
- Ensure that the CEO’s thoughts about the rest of the team’s roles in managing the business are well understood by the entire leadership team.
- Define decision rights clearly and clarify the forums and interactions where important decisions will be made.
- Increased speed, efficiency and quality of decision-making.
- Greater organizational flexibility to quickly respond to marketplace and competitive challenges.
- Increased alignment and focus across the leadership team.