Organization: a competitive edge Some organizations work. They accomplish what they set out to do. The people in those organizations feel engaged, empowered, enthusiastic about their jobs.
Yet Bain research indicates that only about 20% of companies have an organization that performs at this level. The other 80% are at a disadvantage because they can't get things done quickly and efficiently.
Decisions make the difference What sets the high performers apart is the way they handle decisions. They know what their most important decisions are, and they design the organization so that people can make and execute those decisions quickly and well.
The differences between top performers and the rest of the pack are striking. Companies that are most effective at decisions report total shareholder return nearly 6 percentage points higher than low and average performers. Employees at those top performers are far more likely to recommend their company as a place to work, a powerful indicator of engagement.
Bain has a comprehensive toolkit to help companies address decision difficulties and other organizational barriers to performance. We have completed more than 1,500 organizational assignments in the last five years, spanning every major industry and geographic region. Our specialties include the following:
A decision and organization diagnostic helps pinpoints decision difficulties and identify root causes. Benchmarking your organization against Bain's database of more than 1,000 companies can show you exactly how you measure up.
Bain's approach to organizational design and restructuring helps companies structure their operations around the key sources of value in the business. The starting point for a successful "reorg" is the decisions that will realize this value, not the boxes and lines of the org chart.
A 5-Step Program for Improving decision effectiveness, as described in our new book Decide & Deliver, helps you identify key decisions, X-ray each one to determine problem areas, and reset those decisions for maximum effectiveness. It helps you strengthen weak elements of the organization and embed good decision making and execution in your everyday operations.
No company can turn in great performance without great people - which means that top-ranked organizations must ensure a steady supply of talent. High performers learn to assess their talent pipeline, deploy their most promising people more effectively, and reduce their demand for scarce skills.
High-performance culture is a critical element, because many of a company's most important decisions are made at or near the front line. High performers create an environment with a unique personality and soul, and with a passion for performance - so that people do the right thing even when no one is looking.
Your organization can make itself into a high performer, a stand-out, the one where everyone wants to work. It can accomplish great things - beginning with its next decision.
To find out more about Bain's work in this capability area, please contact the Organization practice.
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