Organizational success and effective functioning both depend not only on the excellence with which the team’s individuals perform their duties, but, equally importantly, upon the principles applied in organizing the operation.
These are two different issues: a) effective function and, b) business success and prosperity.
At first glance, executives, seeing these two issues are often related, assume they are one and the same or otherwise depend on each other. Not so. One can have effective function without business success and prosperity, and visa versa.
Thus the following maxim: to ensure the continuing success and prosperity of any business undertaking, it must organize and align its functions correctly so it operates most effectively and toward optimum outcomes.
The organizational structures of most American corporations violate this maxim. Their organizational structures only express a vertical communication line of control and power: their structures do not express the flow of completed actions or inputs (useful or valuable outcomes produced) that must occur and pass between the functions of the operation if an enterprise is to have continuing success.
Look at your company’s organizational chart — does it only state the reporting relationships and vertical flow of power and authority ? Does it define the product produced by each department that is valuable to the next? Does it define the flow of these subsidiary valuable products through the organization toward the accomplishment of the enterprise’s ideal circumstance of an on-going viable exchange of something of value with its public ?
If it fails to show the myriad subsidiary products flowing as a sequence from one departmental function to the next for use or fuller processing toward the completed final, valuable, exchangeable, end product or service; you are missing vast opportunities and could be headed for disaster.
Ability Consultants, Inc., uses an innovative approach to enterprise organization. Firstly, we do not just rewrite the chart; we introduce the natural law of the production cycle to management. Second, we train management on the explicit sequence of basic abilities that must be naturally followed and fulfilled by any individual or organization hoping to succeed in any endeavor or production cycle.
When an organization’s operation is properly based on this natural cycle, and all functions are aligned to pursuing its correct ideal circumstance, it will prosper. Where there are violations of this, it will have difficulty . . . and be wondering why.