Improving the performance of key people is often as simple—and as profound—as changing the resources they control and the results for which they are accountable. by Robert Simons
You have a compelling product, an exciting vision, and a clear strategy for your new business. You’ve hired good people and forged relationships with critical suppliers and distributors. You’ve launched a marketing campaign targeting high-value customers. All that remains is to build an organization that can deliver on the promise.
But implementation goes badly. Managers in the regional offices don’t show enough entrepreneurial spirit. They are too complacent and far too slow in responding to customers. Moreover, it’s proving very difficult to coordinate activities across units to serve large, multisite customers. Decision making is fragmented, and time to market is much longer than expected. Excessive costs are eating away at profit margins. You begin to wonder: “Have I put the wrong people in critical jobs?” But the problems are more widespread than that—in fact, they’re systemic across the organization.
This tale of a great strategy derailed by poor execution is all too common. Of course, there are many possible reasons for such a failure and many people who might be to blame. But if this story reminds you of your own experience, have you considered the possibility that your organization is designed to fail? Specifically, are key jobs structured to achieve the business’s performance potential? If not, unhappy consequences are all but inevitable.
In this article, I present an action-oriented framework that will show you how to design jobs for high performance. My basic point is straightforward: For your business to achieve its potential, each employee’s supply of organizational resources should equal his or her demand for them, and the same supply-and-demand balance must apply to every function, every business unit, and the entire company.