Making that final investment decision

Even though many organisations are seriously unhappy with their organisational performance there is always a certain level of doubt about making an investment to make it better.

For most organisations investing in a physical piece of equipment seems to be much more palatable - yet investing in expert consultancy or training support at a fraction of the cost is often subjected to more scrutiny. I know the argument that if you have a piece of equipment it has a residual value - but that is the folly of many purchases as it is often extremely difficult to realise the value that second hand equipment have on the books!

I suppose the concern comes from whether or not you are buying quality support and consulting, unlike many commodity items, is not the same irrespective of the price. I will explain this point - you would expect a TV you purchased for £50 to work as much as you would a TV for £5,000 - the picture and features might be different but fundamentally they will both work. In consulting terms the same is not true - you can pay £50 and get a 'non functioning product' - much the same as you can for a £5,000 consulting project!

This does not make it easier to buy consulting, it actually makes it harder! Coming back to the first point I made, it is very difficult to make a decision about consultancy and many, many organisations have been caught out by being sold the 'corporate package' by a well dressed partner only to have the service delivered by a poor quality graduate.

To make the right decisions I would suggest the following five points:

1. Ask who will deliver the project - and meet them to ensure you like them
2. Buy in stages (with get out clauses) so you can terminate if you are not happy
3. Understand exactly the process/methodology they will follow
4. Ask for references - they don't all need to be directly relevant but they do need to 'stack up'
5. Get 1st hand feedback from the people working with the consultants on a regular basis

Of course, you could always go and spend £500,000 on a machine - but I would always say pay £5,000 on consultancy to identify whether you need to actually buy the equipment at all!

Repetition and (no) Deviation creates Hestitation

Stealing shamelessly from BBC Radio 4's 'Just a Minute', I have modified the rules for the game to highlight a problem that came up in a workshop I was attending today at Earl's Court.

Doing the same thing over and over again makes people an expert at undertaking that task, but in the longer term - when variation is required - this repetition creates a 'furrow' into which people channel their energies - making it hard for them to create the new patterns of working that are needed.

In the worst cases, the desire to continue doing what has been done before (without deviation) delays the organisation's ability to react to the changing circumstances and prevents improvement. This hesitation can be devastating to the long term health of the organisation.

The cure is often hard bear for some people in that it requires them to accept (and perhaps even value) failure, errors and divergent thinking - something that people normally get fired for in many corporates!

But to be clear, this disruption is different to devastation - which will be the topic of a later post!

Strategy Drives Improvement?

Earlier this week I was due to run a workshop but because of a mix up I had to allow someone else to do it for me.

The topic was to explore the linkage between Strategy and Improvement and in planning for the event (which ultimately I did not undertake), I was given the time to reflect on another reason why improvement programmes go wrong - this being that the various areas improved have no impact on the organisational trajectory and therefore the net effect is like the proverbial 'arranging the deck chairs on the Titanic'.

An example I was made aware of was given me by a friend last night who had worked with one of the 'Big 5' consultancies and had been tasked with transforming the administrative processes in the business's headquarters in Switzerland. Very quickly he realised that the real problems lay with the root and branch sales activities which were spread out across Europe. However, he diligently worked through the improvement programme, charging some £500k, and the overall effect on the bottom line was nothing as the company ran out of cash and closed.

This demonstrates that if you choose to improve the wrong thing, you will improve nothing! Therefore, being clear about the Strategic Issues facing the business is almost more important that rapidly moving to action and actually doing something!

Increase in Productivity or Increase in Intrusion?

I am writing this on a train coming back from a business development weekend in Scotland - the train is moving and I am sitting here wondering whether the fact that I have cleared my emails, dealt with a client proposal for the NHS and am now writing a blog entry is an increase in productivity or just an increase in the levels of intrusion into my 'personal space'.

At present, I am feeling quite good about the experience in that I know when I finally get home at around midnight tonight that I will not have to deal with any emails and can just go to bed -but if I were here with a friend, had a good book to read or just did not feel like working, I would probably feel that the ability to access WiFi/Emails during the journey would be an intrusion, nagging away at me - asking for me to deal with issues.

In business, having a clear delineation between 'work time' and 'play time' (the latter which could include creative time) is vital - but the line between the two is disappearing. On Tuesday I have a meeting which we have had to book a room in a hotel to avoid being disturbed, but even there we will probably be interupted by mobiles and the occasional message at the hotel.

I worry that this blurring of work and play will have a serious impact on organisational performance as individuals have less and less time to themselves and less time to be creative - but for now I am just enjoying the ability to travel and work!