By Geary Reid

Learn practical strategies for leading an organisation and discover how to prepare for and avoid the most common pitfalls that business leaders encounter.

IN this introduction to business performance, author and experienced senior manager Geary Reid provides a straightforward but comprehensive overview of different strategies for maximising organisational success. Why Do Organisations Underperform? breaks the most pressing questions facing corporate leaders down into four topics, each covering a different dimension of organisational management. Reid discusses the problems that organisations regularly face and different tactics for solving those issues and creating structures to prevent them in advance. With a strong focus on common-sense management techniques, this guide is an excellent starting point for anyone interested in the finer details of organisational leadership.

Section A: People Factor

People can make an organisation grow or fail. In this first section of the book, you will see the importance of people within an organisation. People often have a lot to offer. Often, if organisations consider the views of some of their employees, they can avoid common pitfalls. However, some organisations refuse to consider their employees’ input, only to find themselves headed down the wrong road.

Another area that results in human capital failure within an organisation is the recruitment and selection process. If the organisation employs people who do not possess the required skills, experience or qualifications, then it is already looking at failure. Some organisations employ people who do not meet the basic requirements and, as a result, contribute to the organisation’s decline.

While most employees are inclined towards the success of the organisation, there are some who will do everything to undermine it. Some employees have grievances with management and will take every action to show their frustration. Such employees must be handled differently from those who want to help the organisation grow.

Once people are employed, management should make provisions for their growth and development. Training remains a critical area that many employees need. When a person is first employed, they may lack some basic skills, but with training, they can develop and grow. Training can be done internally or externally. It can be at the expense of the employee or the employer—both options have their advantages and disadvantages. It is essential to select the option that offers the greatest benefit to your organisation.

Leaders cannot ignore the success or failure of the organisation. Some leaders can guide a loss-making organisation to profit within a short time, while others can lead a profit-making organisation to loss in the same period. Leadership offers an opportunity to influence followers in cultivating a committed attitude toward achieving the desired outcome. Good leaders can influence others, but so too can bad leaders. Leaders must be able to motivate people to help the organisation succeed.

Section B: Technology Factor

Technology has been and will continue to be an area that can make an organisation progress or fail. There is a cost to this level of investment, which an organisation may need to implement for its growth. However, careful decisions must be made about which technologies may work best. Just because several organisations are using a particular technology does not mean you have to. There will be times when you must follow other leaders in adopting technology until you can be innovative in your own right.

Technology provides an organisation with a competitive advantage. Your organisation can move from a loss-making position to a profit-making one with the introduction of certain technological tools. The technology you had several years ago may not be applicable to today’s competition, so there will be a need to upgrade.

Information systems and applications are crucial in helping organisations utilise fewer employees, achieve greater success at lower costs, and attain higher accuracy. While you may want to depend on a person’s institutional memory, they may not recall everything in sequential order. Therefore, you must invest in technology and upgrade as the need arises.

Effective communication between internal and external stakeholders is essential for all businesses, regardless of their size. The devices for communication will differ from organisation to organisation, but you must equip yourself with the tools that will help yours to grow. Organisations can save on costs by reducing the number of printed documents where practicable. Sometimes, excessive waste is generated due to unnecessary printing. With the help of technology, there may also be a reduced need for many face-to-face visits, as meetings can now be held quickly and simply.

Section C: Operational Factor

Despite the amount of planning senior staff of an organisation engage in, if the plan is not executed, the organisation will fail. Operations are like a plane on a runway preparing to lift off and then taking flight. If the organisation spends all its time planning, that means the plane is still on the runway.

For there to be a smooth flow of operations, coordination is key. Sometimes, everyone has a clear idea of what they are required to do, but there is no coordination, so everyone does what they think is right, only to find that there is much confusion within the organisation.

If an organisation has a product or service it wants the public to purchase, then it must be able to market it effectively. No one will automatically know that your organisation has something to offer that can be life-changing if it is not marketed. Organisations sometimes fail in this essential area. If you do not promote your products or services, you will not be able to generate revenue to sustain the organisation. Effective marketing can attract customers from around the world, helping to grow your business.

If an organisation continues to produce its products or services with outdated tools, machinery, and equipment, then the overall cost of the item may not be competitive. There are times when an organisation must make changes to its operations and utilise options such as business process re-engineering and continuous improvement. These two options will lead to operational efficiency, helping the organisation to become sustainable and possibly a leader in its industry.

Feedback from customers must never be ignored. In fact, an organisation should constantly seek feedback about its products, services, and employees. When customers provide feedback, it must be analysed and quick action taken where appropriate. Some organisations fail to encourage customer feedback and have paid the price for not knowing where they were going wrong. Customers often observe things that employees may overlook and can quickly point to areas of failure—and, where possible, offer solutions. Some customers even go the extra mile to inform you about what competitors are doing and how you can stay competitive. Customers like to know that they have a voice in how things operate within your organisation. It is essential to manage customer feedback, as you cannot address every concern.

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