By Mr. Mihir Shah, Founder and Managing Partner – SMB Catalyst
As habits define an individual’s success, culture defines an organization’s success. Organizations that sustain and withstand the test of time are organizations, which have cultures that promote continual improvement, a collaborative work environment, and reward performance.
The focus should be on bringing in habitual changes guided by strategy definition and followed by its alignment via a change management program governed by system definition, process redesign, and Organizational restructuring.
If your goal is to build a sustainable and scalable business, below are key focus areas:
Set organizational goals with clear milestones
Ask every owner what is their vision for their organization and the answer usually will be, “accelerated growth and efficient operations resulting in increased profits”. Any other answer defies the mere existence of any business, isn’t it? Then why is it that lot of organizations at times show poor growth, stagnancy, and at times even turn into loss-making? Isn’t the vision understanding enough?
Most business owners lose the plot over the course of time due to the extremely dynamic business environment, internal firefighting, and at times mere lethargy. In the past 2 decades, the business environment is so dynamic that if you don’t evolve with time you can become obsolete enough to shut shop. So, what is the solution?
Set 3-5 year vision document reviewed quarterly. Ensure that it is extended beyond the board room and translated into a measurable review preferably using tools such as a balanced scorecard.
Recruit the right talent at key positions
People, especially in the key positions are as critical as is the product /service identification and the customer-centricity. They form the backbone of any organization which needs to perform with the increasing number of variables that the businesses are encountering now than ever before.
Empower | Make them Accountable | Ensure they are fairly Rewarded
This is one area where a lot of business owners and especially promoter-driven organizations struggle with. For them empowering people is synonymous with loss of control. This at times is fatal since this limits the contribution of individuals and especially performers. One simple rule is to empower the right talent, make them accountable and ensure that performance is rewarded well. In case, we realize that there is consistency in poor performance due to talent misfit, delaying actions could also turn detrimental to organizational growth.
Measure and Review
Imagine watching a cricket match where the scoreboard is not visible to a spectator. Organization where it isn’t clear what will be reviewed by whom, when at what frequency is no different an experience. Clearly defining targets and expectations in objective terms and establishing robust review mechanisms are fundamental to the continual improvement of work culture.
Working so closely with business owners has been an extremely insightful and enriching experience for us. I have nothing but the utmost respect for every business owner who succeeds in this ever-challenging and dynamic environment.
The suggestions listed above have been tried, tested, and co-created while working with SME business owners on their journey to create a profitable and scalable organization.