Section A: People Factor

PEOPLE can make an organisation grow or fail. People often have a lot to offer an organisation. When organisations consider the views of some employees, they can avoid common pitfalls. However, some organisations refuse employee input, only to find themselves headed down the wrong road.

Another area that results in human-capital failure in an organisation is the recruitment and selection process. If the organisation employs people who lack the required skills, experience, or qualifications, it is already heading for failure. Some organisations employ people who do not meet the basic requirements and who, through their deficiencies, contribute to the organisation’s decline.

While most employees lean toward the organisation’s success, some employees have grievances with management and may undertake actions to show their frustration. Management must handle these employees differently from those who want to help the organisation grow.

Once your organisation employs people, management should make provisions for their growth and development. Training remains a critical need for many employees. When a person is first employed, they may lack some basic skills, but training can help them grow. Training can be internal or external. The employee or the employer can pay for training. Both options have their advantages and disadvantages. Choose the option that provides the greatest benefit to your organisation.

Leaders cannot ignore an organisation’s success or failure. Some leaders can guide a loss-making organisation to profitability in a short time, while others can lead a profitable organisation into loss in the same amount of time. Leadership provides an opportunity to influence followers to cultivate a committed attitude towards the desired outcome. Good leaders can influence others, but so too can bad leaders. Leaders must motivate people to help the organisation succeed.

Section B: Technology Factor

Technology has been, and will continue to be, an area that can help an organisation progress or fail. This level of investment comes at a cost, which an organisation may want to make for growth. However, sometimes you must make careful decisions about which technologies will work for your organisation. Just because several organisations are using a particular technology does not mean that you have to use it. Sometimes you have to follow other leaders on technology until you can innovate.

Technology can give an organisation a competitive advantage. Your organisation can move from a loss-making position to a profit-making position by introducing certain technological devices. Technology that worked several years ago may not suit today’s competition, so you may need to upgrade.

Information systems and applications help organisations use fewer employees, achieve greater success at a lower cost, and improve accuracy. While you may want to depend on a person’s institutional memory, they may not be able to recall everything in sequential order. Therefore, you must invest in technology and upgrade as needed.

Communication between internal and external people is essential for all businesses, whether small or large. Communication devices will differ from organisation to organisation, but you must equip yourself with the tools that will help your organisation grow. Organisations can save costs by reducing the number of printed documents where practicable. Sometimes, organisations generate too much waste because of printed documents. With technology, there may be less need for many face-to-face visits.

Section C: Operational Factor

No matter how much planning senior staff 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 the organisation’s operational processes to flow smoothly, coordination is key. Sometimes, everyone has an idea of what they are required to do for the organisation, but without coordination, everyone does what they think is right, only to create confusion in the organisation.

If an organisation has a product or service that it wants the public to have, then it must be able to market it. No one will automatically know that your organisation has something potentially life-changing to offer if it is not marketed. Organisations sometimes fail in this essential area. If you do not promote your products or services, then you will not be able to generate revenue to sustain the organisation. Good marketing can attract customers worldwide and help 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. Sometimes an organisation must change its operations and use options such as business-process re-engineering and continuous improvement. These options can improve operational efficiency, helping the organisation become sustainable and possibly become a leader in its industry.

Customers’ feedback must never be ignored. In fact, an organisation should constantly seek customer feedback about the organisation, its products, services, and employees. When customers provide feedback, it must be analysed, and appropriate action taken quickly. Some organisations fail to encourage customer feedback and have paid the price for not knowing where they were going wrong. Customers often notice things employees may overlook and can quickly point you to areas of failure and, where possible, offer solutions. Some customers even go the extra mile to tell you what competitors are doing and how you can remain competitive. Customers like to know they have a voice in how things operate in your organisation. It is important to manage customer feedback, since you can’t act on everyone’s concerns.

For more information about Geary Reid and his books, please use the following contact information: Amazon: http://www.amazon.com/author/gearyreid; website: www.reidnlearn.com; Facebook: Reid n Learn; email: info@reidnlearn.com; mobile: 592-645-2240.