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Are you injecting effective processes into an ineffective business system?

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The art of creating a ‘requisite organisation’ is to develop a strong hierarchy of accountabilities that will support effective, efficient processes and stimulate and encourage the behaviours required for sustained success.

Organisations tend to morph themselves into something that hinders people from working together effectively. They often acquire too many layers; undefined working relationships, strange concepts of leadership, unclear roles and accountabilities, and chaotic compensation systems to name a few. Inserting effective processes and good managerial leadership behaviours into an ineffective system renders them short-term at best.

The solution lies in ensuring that your organisation is fit-for-purpose and able to do business with efficiency, competitiveness, and initiative. The achievement of a requisite organisation is not just executive accountability but a moral leadership duty.

What does a requisite or fit-for-purpose organisation look like?

1. STRUCTURE: It has a universally applicable structure comprising of a clear and minimal hierarchy of managerial layers, accountabilities and authorities, with well-defined working relationships and teams, accountable leaders, and clearly established and levelled functions

2. ALIGNMENT & PROCESS: It has organisational-wide values and vision which are aligned to all working levels, and a detailed system of managerial-leadership processes including two-way teamwork, context setting, planning, assigning task, personal effectiveness appraisals, coaching and mentoring, continuous improvement, merit recognition, manager-once-removed leadership, talent pool analysis and development, and clearly symbolic leadership

3. REMUNERATION & REWARD: It has an equitable differential structure with pay linked to layers and levels, and which takes individual effectiveness into account

4. PEOPLE: It has a system of evaluating individual current and potential capability as well as skilled knowledge and commitment to give practical meaning to having the right person in the right position, as well as for retention of a sound talent pool

What a Requisite Organisation (RO) brings to the table

A powerful way of distinguishing among the very different natures of relationships that are required for an organisation to function optimally, for example, manager-subordinate relationships, partner relationships, and customer relationships.

It teaches the ‘how’ in redesigning of organisational roles and compensation/reward schemes, so they operate in harmony, instead of undermining each other. It involves a shift in managerial accountability. Every manager is accountable not just for overseeing subordinates, but for the results of their subordinates. Instead of blame becoming pervasive, a culture of accountability, coaching, support and training becomes second nature.

By Pam Lewis, DB & Associates

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