Sub-Optimizing

As an enterprise grows and begins to compartmentalize into specialized segments or departments, sub-optimization, another natural negative change, will occur in the absence of clear leadership and frequent communication.  Sub-optimization is the condition where a specialty area gives their own objectives a higher priority than that given to the common objectives of the organization.

The tendency is a natural phenomenon and must be managed and controlled.  Where conflict exists between the unit goals and those of the organization as a whole, sub-optimization is damaging and distracting.  For long-term purposeful success the organization must be consistent and proactive in maintaining harmony between the unit’s goals and those of the organization.  Communication is essential in that process.  A sales department’s goal to achieve quota can lead to over promising and under delivering.  The legal department’s objective of protecting the firm from liability can result in one-sided unrealistic terms.  A shipping department’s goal to avoid overtime can result in late deliveries to customers.  The marketing department’s goal for maintaining a uniform message can strangle the organization’s efforts to reach diverse segments of the market.
 
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Managing Change-KASH

In order for the downward spike of the Change Curve to be stopped and the upward movement to occur to the point of achieving the targeted higher performance, those involved must have four things: new Knowledge combined with the right Attitude to acquire necessary Skills which through use become Habit.

KASH

 
The people affected must acquire new knowledge—for the sake of illustrating what I mean by new knowledge, think of a user’s manual or training.  The receptionist trying to deal with a new phone system has to be trained, and equally important all the people in the office have to understand how their piece of the system works including its new benefits and features.  If they have been given that prerequisite knowledge, or eventually dig it out themselves, then with the right attitude they will acquire new skills (the skill to use the new equipment and features).  In short they will know how, but until those skills become habit, higher performance will go unrealized.  It is only over time that those skills become habit and allow the Change Curve to reverse its downward trend turning upward from its low point, the valley of despair, to climb up to targeted performance.  It is like a golfer or other athlete who develops muscle memory.  Taking advantage of the new equipment and benefits has to become instinctive.  If you have to take the time to check with others, refer to a checklist or open a user’s guide, the new system will still be getting in the way of performance.

When a receptionist dealing with a new phone system says “If you ask me this has just made things worse,” she is the victim of a lack of proactive change management. Sooner or later, in the example of the phone system, the organization will survive and get some of the desired benefit of upgrading its phone system—but not before hurting its performance and frustrating its people and customers for some period of time.  But other changes, left to similarly fester, can literally put a company out of business.  It is a scenario I have seen played out many times. 

PS: My new book, The Claret Murders continues to get strong reviews.  The Kirkus review organization said, "Collins keeps the story motoring with writing that is frank but not scant, muscular but not tough-guy, something akin to the 1960s TV show The Man from U.N.C.L.E.” " …when the great cache of wine enters the picture and then a roaring storm comes down to swamp the landscape and the cellar, Collins deftly moves the story forward, and frankly, the reader really wants to know what happens to the wine more than Ann, Paul and the rest of the no-goods. Collins has a nice way of evoking Tennessee, its pace and proprieties and politics, from the spicy Zumba rhythms of a local club to the breeching banks of the Cumberland River."  Ebooks are only $2.99 for the Kindle, Nook and, by going to iTunes, the IPad.  Amazon has the print edition for $15,99 and signed copies are available by going to www.markrollinsadventures.com.

The Change Curve

Business success occurs through change.  The organization seeking purposeful long-term success pursues Excellence and Lead Positions.  It practices Constant Innovation.  It diligently simplifies and eliminates.  It practices Management Judo and guards against developing weaknesses internally.  The organization that does not do those things is at the mercy of the natural forces that change us for the worse.

I am reminded of a TV commercial.  Unfortunately I can’t remember what the ad was for.  It showed a harried office receptionist trying to handle incoming phone calls.  She says, “They told us that this new phone system would make everyone more productive.”  There is a long pause.  She looks into the camera and says, “If you ask me they have just made things worse.”  To understand why things got worse, you have to know what change looks like.  We make changes like the new telephone system because we want to move to a new level of performance or benefit as illustrated here. 

In the real world that is not the way change behaves.  Change creates a sharp downward spike in performance—the bigger the change, the bigger the downward spike.  The less investment made in preparing for and managing change, the bigger the downward spike.  The Change Curve turns upward only over time, and the rate of that upward climb is dependent on how effectively the change is managed. 
 

PS: My new novel, The Claret Murders just got another great review from one of the professional review organizations.  This is what Kirkus had to say: "Collins keeps the story motoring with writing that is frank but not scant, muscular but not tough-guy, something akin to the 1960s TV show The Man from U.N.C.L.E.”  You can get e-book copies (Kindle, Nook or Ipad) for just $2,99 or the printed copy for $15.99.