While an organization is not a living organism, it is a useful construct to look at the organization as if it were an actual, single individual. Leveraging this perspective, one can better assess the true capabilities and limitations of the organization as a whole. It provides more clarity and prevents confusion between the individual expertise of team members and the capability of the organization overall.
Assessing the organization as a single entity provides different insights about overall patterns, strengths, and weaknesses. It can also more readily uncover blind spots or a lack of real capability in important areas. Organizations go through life cycle development just like humans. There are different stages in the life of an organization, and the organization’s skills, needs, and behaviors change with the lifecycle. An adolescent company, growing like a gazelle, will be different than a seasoned business that has made it through 50 years of business ups and downs. Organizations, like people, change over time.
What is most impactful is the capability of the company as a whole, without over-reliance on individual superstars. It is best when sustainable competitive advantage is baked into the company’s DNA. This can include things such as innovation, BD/growth, manufacturing excellence, or consistently meeting project deadlines.
A common mistake is confusing an individual’s capabilities with the organization’s capabilities. They are fundamentally different. You might have a couple of superstars who do great work and have a strong impact on results. However, if they were to leave, the organization’s performance would be affected significantly.
You might have people who are creative and can adapt to change easily. That does not mean your organization can do the same. Clarity on the true capability of your organization requires a distinction between individual expertise and organizational expertise. Leaders tend to confuse their own personal capability with the capability of the company overall.
When the focus is on the capability of the entire entity, the creation of enterprise value is more effective. This approach to enterprise value relies on the development and enculturation of methodologies. A methodology is quite different from a process. A methodology is a principle-based approach to doing the work, is constantly updated, and focuses on creating value and impact. When methodologies are implemented in this fashion, a more unique and sustainable competitive advantage emerges that also enables smoother scaling with fewer disruptions.
Development and improvement of core methodologies should be baked into the regular operational rhythm of the business. It is not a training course. Rather, the people who execute the work (with the help of training professionals) need to develop the methods, practice the skills consistently, and update the methods on a regular basis.
The documented methodology is the “way you actually do the work.” The documented methodology is the “ground truth,” and everything else is just a conversation. The method does not change until the actual methodology document is changed. Those changes are made in a systematic, group-based approach grounded in finding a better way to do the work.
In this way, the actual corporate nervous system is trained. The goal is to actually do the work the way you say you do it because it is a better approach. Training the corporate nervous system in a way that focuses on systemic improvement in performance builds sustainable, company-wide capability.
Just like any life skill or physical skill, you cannot cheat the process of consistent training. Set aside regular time to go through the methodologies in detail with the teams who actually use them. They will resist, and they will say, “We already know how to do this.” Do it anyway. This is the equivalent of “doing scales” for a piano player. Consistently drilling the fundamentals will drive performance improvement. Like any organized physical training program, there is a schedule, an approach, and a goal to improve performance.
When you begin to view your organization through a more comprehensive lens, clarity emerges about where to focus efforts to build competitive advantage. Approaching organizational strategy and growth in this fashion allows you to more consistently train the corporate nervous system, year after year. Do this consistently, and it is unlikely your competitors will ever catch up.