Do you also feel that you waste a lot of time on work tasks that really do not help you solve your core task, that measurements, KPIs, rules, procedures and structures at best do not make you more productive, and at worst, do you less productive? Then you are not the only one who has this feeling. Research shows that companies' ability to become more productive is declining.
And according to Yves Morieux, from the consulting firm Boston Consulting Group, the reason is increased complexity.
The difference between complex and complicated
Complex means that, among other things, are more stakeholders, more customers with more choices, more markets, more conflicting demands and faster changes, while
Complicated means that there are more procedures, layers, structures and scorecards
Complexity understood in the way that rules, measurements, clarity and division of responsibilities make things more complicated. We spend more time managing work than doing it. BCG's study shows that managers' time is spent writing reports (40 %) and going to meetings (30-60%).
In the past, the answer to the increased complexity we encounter in companies has been to make the work or the solutions more complex. But it does not work.
What is the solution then, you are naturally thinking now, and Morieux's answer is cooperation. "But we already collaborate," you think, and yes, you already collaborate, but because you also have to take into account KPIs that measure how effective you are in meeting the same KPIs, you use less time to actually solve the company's core task. Your productivity drops - and that's a problem.
So how do you run a business without setting goals, KPIs and rules to hold people accountable?
According to Morieux, the answer is 'collaboration'. In the good old-fashioned way. Without intermediaries and controlling links. Collaboration where you have direct responsibility for the task solution and insight into what your decisions and actions mean for everyone else further down the company's conveyor belt.
The solution is formulated in six simple rules:
Find out what's really going on in your business. Find out what context shapes behavior. And find out how your employees collaborate, find resources and solve problems – or not.
To do this, you need to understand goals, resources, and constraints.
Example: A hotel chain had problems with earnings and falling share prices, especially due to low occupancy and low turnover per room. They tried both to restructure and redefine employees' roles and with customer satisfaction surveys, processes etc. But it helped just a little.
The problem was a vicious circle where rooms were made available late or were held back due to maintenance. This angered customers. The cleaning staff were rewarded for cleaning the rooms quickly so they did not report the maintenance issues. The receptionists have no choice but to give angry customers a discount or other rooms. That's why they kept rooms in reserve.
The solution was to give the receptionists power over cleaning and maintenance so they could work together to solve customer problems without giving away rooms. In addition, managers were now required to work in more than one function so that they could learn how the department worked and collaborated.
Find out where and how collaboration happens and who makes it happen. These people are the company's integrators. The people and entities that bring people together and drive processes. Remove layers and rules and give the integrators the power, authority and incentive to make the whole task succeed.
What is an integrator?
An integrator is not a coordinator. An effective integrator has both an interest in getting others to cooperate and the power to encourage them to do so.
How to identify an integrator:
Power is not a zero-sum game. By increasing the total amount of power, it becomes possible for the manager to act on more performance requirements. This strengthens both strategy and leadership and at the same time helps the company respond to the demand for complexity. Creating power can be a small thing and it doesn't necessarily look strategic, but it can have a big impact on the performance of the organization.
Power is the possibility that a person can make a difference to problems – or what is at stake – that matters to others.
For something to be at stake, it must have meaning or make a difference. It can be either positive or negative, something that a person or group wants to achieve or avoid.
Perhaps the most important lesson you can take away from this article is that collaboration is more important than anything else. But how do you make collaboration work? And why is one so important?
First, work is becoming more interdependent. This means that we need to trust each other more and collaborate directly rather than relying on dedicated user interfaces, coordinating structures or procedures. These are things that make life complicated, while 'mutual dependence', or 'reciprocity' as it is called in English, ensures that we have a common interest in working together. This makes people collaborate freely and therefore makes the life of the organization simpler.
Definition of 'reciprocity'
Reciprocity is, that people or units in an organization recognize that they are mutually dependent on each other to achieve their goals. In order to create 'reciprocity' it is necessary to make people dependent on each other, e.g. by removing resources.
This rule means that we must know what our actions will mean - in the future. It should be clear that if I do X, then it is going to mean Y.
Actions have consequences, and living with the consequences reinforces performance.
Case:
A car manufacturer has problems meeting a number of demands. When a competitor added a five-year warranty, it became even more difficult as their cars were difficult to repair. Ex. To repair the car's headlights, they had to remove the engine.
The problem was not a lack of common direction, but a lack of cooperation. The solution was simple. Require the engineers to collaborate and make sure they consider repair challenges. Specifically, the manufacturer sent some of the engineers down to the service department, where they have to repair the cars they designed.
People think collaboration is risky - Make it riskier does not to cooperate.
Blame and risk avoidance are at the heart of any organizational culture. But smart organizations accept that problems have many causes, and the only way to solve them is to minimize the rewards for those who don't contribute to a solution. Performance evaluation and reward systems are central. But instead of punishing mistakes, instead use systems and evaluations to punish those who fail to help or who don't ask for help.
Case
A railway company had problems with timeliness because employees concealed errors and operational problems. By introducing a rule that meant that if a unit reports a problem, the units that fail to cooperate in solving the problem are responsible for the delay. That is: "When another entity causes you to be late, you are responsible."
See this Ted video for a quick insight into Morieux's work.
Rules, systems and control worked fine in the 50s because everything was simpler then and change happened more slowly. Today, when everything is far more complex and changes are constantly taking place, such metrics, systems and accountability can actually prove to be a drag.
What you should focus on instead is collaboration. According to Morieux, when we collaborate, we can accomplish more with less.
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