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Monday, May 5, 2008

Chaotic Structures and Success ( II )...

by David Bookout

To follow up on our last installment of Chaotic Structures and Success we promised to focus on the effects of the behaviors represented in Scenario C.

The functional leaders whom have been focusing on other areas of the business, unless their areas are running at peak efficiency, are in effect neglecting fundamental promises of accountability for productivity and effectiveness within their own operational domains.

The C.E.O., by allowing the functional leaders to present plans for the development of other functional areas, and not holding these leaders to the basic promises and accountabilities for improvement of their own areas first, is destroying trust, and the new teams ability to effectively collaborate and coordinate to grow the business. In addition, his forgetfulness relative to his own failed promises for revenue generation and overall commitment to an agreed upon strategy put him at risk with his board.

The Marketing V.P. has failed to establish leadership in his own functional area by not moving soon enough to understand the interpretations and needs of the new managers, as well as failing to move effectively with the C.E.O.

In our next installment I'll contrast this with Scenario E.

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