CEOs: Does Your Team Have Control of The Ball?
“The only players who survive in the pros are the ones able to manage all their responsibilities.” -- Tom Brady, Quarterback of the New England Patriots
Football, rugby, or any other sport organized around a finely-tuned playbook, requires coaches and staff to understand their roles and and for players to execute plays in both familiar or unplanned situations. Each player is fully aware of his role and responsibilities, the roles of others and has studied the plays. A solid playbook enables a cohesive team to maintain control of the ball (even off the field…) and win.
Does your company’s playbook have:
- unclear roles and responsibilities?
- players with missing skills?
- undefined or unfollowed business processes?
This all too common, weak people/process combination creates lots of broken plays corporate fumbles, pig piles, tangled situations and outright conflict over ‘who does what and how’.
Thinking Horizontally
Many organizations are driven (dominated?) by a particular function such as engineering, sales, production, or in the case of professional service firms, project delivery. I’ve worked with strong CEOs who are able to push the business forward by being grounded in one of these personal skill sets. This functional strength can be a real asset, and in many cases, it was the driving force that launched the company and enabled it to grow.
As a company’s overall operations increase in complexity, great execution only happens if all the business functions work together seamlessly. However, some of the same CEOs that are grounded in one strong functional skill set don’t make needed changes to their process/operational playbook as the company evolves. The CEO may ignore or trivialize the importance of looking at the overall business ‘horizontally’.
The Line of Scrimmage
Most of the confusion I’ve experienced related to process playbooks has been in organizations that have a complex sales process that involves:
- contracts/proposals that have unique conditions
- custom or semi-custom products
- customer orders with product/service specifications that could change from order to order
- high customer expectations related to quality, testing, product acceptance
Examples of a some of types of organizations that fit these order profiles are: , precision machining, various professional service firms, specialty custom industrial manufacturers, chemical formulations, and lots of others you could name.
Piling On --> Breakdowns in Key Processes = Trouble
What happens when the process playbook doesn’t exist, is getting dusty on the shelf, or needs a complete overhaul?
Piling on happens when: a) sales doesn’t get the order specs correct...there are flaws in design, scope, terms; b) estimating creates an inaccurately costed order with incorrect pricing; c) engineering designs what sales specified but not what the customer ordered; d) manufacturing builds what engineering designed; e) the product fails customer tests; f) rework is needed; g) and now you have a real mess
What are some of the negative impacts on the business performance when a company doesn’t have a clear playbook or deviates from the process playbook? Here’s a sample:
- the NFL gets involved :)
- dissatisfied customers (Stuck in the Rut)
- lost customers
- poor financial performance - losses, cash flow hurt
- quality deficiencies
- production mistakes
- internal conflict over cross functional issues and personalities
- demoralized employees
Solutions: How to prevent pig piles, fumbled balls and losing the game
1) Establish process flows for unique as well as routine projects and stick to them.
2) Based on the particular process, define clear roles and responsibilities. I do this. You do that. Hold people accountable.
3) Establish a clear communication system horizontally across the process chain and vertically through management so that glitches are caught early.
4) Management, through training, repetition, and even incentives, needs to reinforce the use of the process playbook. In organizations that tend to operate in a seat-of-the-pants mode, this may be the most difficult problem to solve.
5) Revisit processes on a regular basis. What’s working? What needs tweaking? Changes in personnel, especially when the products involve technical expertise, might invite revisions to the playbook.
Does your company have control of the ball? If not, are you ready to ‘think horizontally’ and get your playbook in order?