Large Leadership - Think Small
Business Management March 23rd. 2009, 5:34amJack Welch, the former GE CEO, has said that, “small companies move faster”. But Welch has also maintained that even the largest organizations can move just as fast as a small one.
As an organizational leader, you should try to incorporate what Welch called the “small company soul” into your organization. Here are some practical ways to think small while leading any size organization.
First, communication is vitally important. Have you ever noticed that as organizations grow, communication sometimes becomes thinner and less effective? At times, large organizations may start out as poor communicators, leaving those at the bottom of the organizational chart in the dark about the current situation, goals, and the company vision.
The secret of thinking small is to keep communication constant - and restructure the communication tree with every growth spurt. Nowadays, technology makes communication relatively easy, even to large and geographically diverse groups. Consider using an Intranet where messages and articles can be posted regularly. Some organizations even use video streams to send “face-to-face” messages from the top executives all the way down to the part time employees.
Keeping a small mentality means that you must maintain communication at all levels, at all times.
Next, eliminate “red tape” and bureaucracy. Some organizations slow down with approvals, paperwork, and miles of “channels”. In these organizations, ideas just don’t get pushed up to the decision makers because it’s simply viewed as a waste of time. Other organizations continue to maintain the status quo because “that’s the way it’s always been done”.
One of Welch’s innovations was the “Work Out” program, which brought business units together to brainstorm solutions and obtain immediate answers from managers and executives. Think about how a front line associate in your organization would introduce a money-saving, efficient idea. If it has to go through multiple levels before it’s even considered, that’s too much. Does the person have to fill out a form and get it approved by an immediate supervisor, or can he or she introduce the idea to a virtual “suggestion box” that goes directly to a decision maker?
However you execute it, you must eliminate the “red tape” that keeps people from innovating.
Third, examine your organizational structure for inefficiency. There are large organizations that, upon second look, discovered two or three people doing the same jobs in multiple departments. Some organizations have several layers of managers who simply add to the bureaucracy. In today’s economic climate, it’s not easy to discuss eliminating levels, but it could be the only key to survival. But on top of this, it is possible to reassign people into areas that will make the most difference. You must take a look at the structure to determine if this is possible. Where you can, put resources on the most important organizational activities.
You may even find that there’s much more room to assign resources to those valuable assets, like customers, and to get those resources out of the back rooms and corporate offices.
Next, know your customers. This may sound simple, but in reality it may be rather difficult. As an organization becomes larger, the people who know the customers best are sometimes the ones left in the dark. Try not to let this happen. Make sure all levels know who the customers are, what they like, what they dislike, and how they are treated in every interaction.
If departments are removed from customer contact, don’t forget that they still have customers: internal customers who should be treated with the same respect as the external ones. Even those removed departments should have a good picture of the external customers and how they contribute to the success of the organization as a whole. Take the time to get to know your customers and filter that knowledge throughout the organization.
Finally, small companies move without hesitation. Hesitation can also stem from layers of approvals, multiple management levels, and paperwork. Small companies understand that one moment’s hesitation could put them out of business, and large organizations should act with the same zeal. This doesn’t mean that to thinking small is acting impulsively. It simply means that when and idea “feels” good, it probably is. And you, as a leader, can make decisions quickly to act on those ideas. When other organizations in your segment are still “percolating”, you may have led your organization to a new market segment.
Leading any size organization can be easier by thinking small. Remember to communicate, eliminate red tape and inefficient structure, know your customers, and move without hesitation.
Copyright 2009 Bryant Nielson. All Rights Reserved
Bryant Nielson - Learning & Development Expert - assists executives, business owners, and top performing sales executives in taking the leap from the ordinary to extraordinary. Bryant is a trainer, business & leadership coach, and strategic planner for many sales organizations. Bryant’s 27 year business career has been based on his results-oriented style of empowering
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