Pinpoint The Priorities And Assess Hidden Costs

Leading at Light Speed is an essential new leadership book by Eric Douglas synthesizing the best business practices into 10 Quantum Leaps that build trust, spark innovation, and create a high-performing organization.

Most people and most organizations can only absorb one or two large change initiatives at one time. When managing a change process, focus on the one, two or three most important priorities. Leave the rest for later.

The best way to identify priorities is to first do a light analysis to see whether a particular initiative rises to the top. the impact Matrix shown below is a good tool to help people organize the options. if the light analysis doesn't reveal which option makes the most sense, do a deeper analysis. The planning group should ask: What are the hidden costs and benefits, both in the option we're considering, and in the current system? Resist the temptation to do a superficial analysis in this stage. if someone says something is true, don't take it at face value. Observe it. the real costs and benefits need to be documented. it will be necessary when the forces of resistance mount a last ditch stand!

The following list shows some of the hidden costs that organizations typically wrestle with:

• Resources are dissipated across many products and services, rather than focused on a single point of excellence.
• Functional silos create self-justifying priorities, with the result that the organization doesn't respond to change quickly and external opportunities are not capitalized on with enough speed.
• internal performance measures are in conflict - resulting in people working at cross purposes.
• internal gatekeepers are acting as chokeholds on innovation. No one can say "yes," everyone can say "no" to a new idea.
• a particular business process is not working well - customers are unhappy, value is being lost in wasted time, returns, loss of goodwill. But no one "owns" the process end to end, so change is difficult.
• information systems are not delivering the value needed. Legacy systems are continually bandaged, rather than scrapped altogether.
• the board of directors is unclear about its role, causing discontent and turnover in the senior ranks of the organization.
• an organization's structure has not evolved at the same pace as the organization itself. Management roles aren't aligned with the actual processes that create value.
• the company's top performers are being "rewarded" with more work and responsibilities, while unproductive employees are not being held accountable.

It's often difficult to see these issues at first. Many of the costs will be obfuscated by well-meaning people who have only a partial view of the problem. Up until its dying days, Arthur Andersen's managers vastly understated the impacts of the Enron fiasco. It's simply human nature to put a rosy face on an ugly duck.

This is why the planning group needs to be composed of individuals who bring both credibility and courage. They need to look beyond symptoms to the underlying cause. They need to be willing to dive into a complex situation and map it the best they can. The ongoing support and championship by the leaders in the organization is crucial. If the planning group encounters resistance, then the champion's authority needs to be invoked.

What if the champions start to wilt at this moment? Then the planning group should either wait until new champions appear - or disband. Championship from the top is essential if change is going to be real and meaningful. If the champions have vanished, there's no point in proceeding.

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Leading at Light Speed is a must-have leadership book describing the 10 Quantum Leaps to accelerate trust, empower innovation, and develop a high-performing organization. Take this free work survey to assess your organizational strengths and weaknesses.