Oil and water

30 05 2007

Oil and water don’t mix.

That’s what I believed until today.  Oil and water do mix after all

In an organization there are departments that don’t mix well, or not at all.  Sales, finance and production departments are notorious for having problems or “not mixing”.

Each of these groups has a different way of thinking, they create very different processes and final products, it makes sense that they will not agree to, or understand what the other departments are doing.

Tension, misunderstandings, frustration and chaos can result if left unattended.

Sales and marketing is concerned with creating or identifying demand for the product and negotiating an agreement.  It’s about people and relationships, emotions, taking advantage of opportunities, being creative innovative and adaptable, exploring new ideas, making sure the customer is satisfied.  Uncertainty is a large part of every business day.

Finance focuses on numbers.  What did we do in the past, what are we doing now, what will we need in the future and how do we reduce or eliminate our risk.  Structured, predictable, logical, they label everything.  Their evaluation and decision making is based on guaranteed outcomes and not on uncertainty.

Production is concerned with efficiency and is also numbers driven.  Processes are studied, analyzed and standardized in order to maximize control and eliminate  errors.  They prefer set plans and actively resist rapid or constant deviations and modifications.  Believers in contingency plans and backups, logical, not fond of uncertainty.

The goal is to acknowledge that every group is very different, with different points of view, and that these differences are essential to the success of any organization.

The entire system (organization) benefits from the interaction, questioning, and controls required by each department.

If there is total agreement, all the time, something is wrong.

Leadership’s role is to provoke, question, listen, analyze and push this chaos toward a goal.

Successful leaders know how to make oil and water mix,  and make it happen on a regular basis.

Related Links 

New Scientist – Oil and water do mix after all

Are we killing team performance by over communicating 

Leadership, want the job or just the title and benefits

Leadership – who do you want to lead

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Are you on the right team?

21 05 2007

 When the focus at work is on providing a great product or service to the customer (maximizing) the perceived value of the product is higher for the customer, and they are willing to pay more.

This translates into more profit for the company.

When our focus is on maximizing profit for the company, management tends to rush toward cost cutting and/or reducing product quality (minimizing) many times resulting in reducing perceived product or service value for the customer.

The customers may not buy your product now, resulting in less profit for the company.

It’s all about providing a product or service that will be appreciated, sought out and embraced by the market.

Creating a product or service that is valuable to the market.

The more people want YOUR product, the more money they will pay for it.

It’s about listening to customers, creating new ideas, innovating, and taking calculated risks based on your expertise and understanding of your business.

It’s not easy.  Creating has never been easy.

Success is not guaranteed.  In fact the higher the risk the higher the potential payoff and profits.

But it sure is more exciting and rewarding than cutting pennies off manufacturing, administration, sales and logistics costs.

It takes a different type of leadership, management and employees to make this happen.

What team do you want to work with, lead or manage?

Related Links

The 6 Fundamental Concepts Behind Every Successful Business

Successful Managers Should Be Breaking the Rules

Even governments market