Companies’ organizational strategies are crucial factors in their success. Specifying how companies should allocate their resources (for example, labor, inventory and investment), organizational strategies can profoundly influence a firm’s financial performance, product innovation and overall growth. However, developing and executing efficient organizational strategies are not the easiest tasks. While 80% of business owners in 2012 considered their companies good at developing strategies, the percentage dropped to 68% in 2016. What’s worse, only 2% of leaders were confident that they would achieve 80%–100% of their strategy’s objectives.
Appropriate organizational strategies set precise directions and priorities for departments and employees. And these clear directions and priorities align everyone together with a common objective, leading to a more efficient working environment. Also, organizational strategies in business administration can stimulate the creativeness of employees and encourage the sharing of knowledge within the company. How do we implement these strategies to catalyze the growth of our own companies? Here are three tips to help develop the best organizational strategies.
1. Encourage Critical Thinking
Organizational wisdom, such as critical thinking, reasoning, and prudence, is a key influencer in firm productiveness. And improving critical thinking skill is one of the most significant wisdom practices because it has a strong correlation with the product innovation process. As a result, critical thinking ability becomes an essential skill in employees. To enhance employees’ critical thinking skills, leaders should encourage their employees to doubt or even criticize the current product, project or development process. In this way, employees gain a greater sense of responsibility and incentive to deliver the best result.
A consensus is not the ultimate goal in this process, though it is desirable. As various thoughts emerge, there will be some employees who constitute a minority because their ideas are contrasting to others’ opinions. In this scenario, managers ought to let these employees know that their ideas are equally valuable and everyone’s contributions indeed represent the progress of the discussion.
2. Create Transparency
The prerequisite to encouraging critical thinking is creating a transparent environment. In an open environment, employees feel safe to share their knowledge within or outside their departments. When the entire team is familiar with the process of the project and what each person is working on, more team members are accountable and engaged. As a result, sharing ideas becomes more natural and convenient. While employees can seek practical advice from colleagues about their current task, they are also willing to help others with their expertise.
3. Cultivate Community at Work
A sense of community is vital to organizational strategies. Without a community, employees are less likely to accept the company’s initiatives and engage in the firm’s overall growth. In contrast, a strong sense of community can effectively enhance employees’ working attitude. Who does not want the community to become better?
Increasing interaction among employees is the key to cultivating a community at work. For instance, a group of researchers set up a meeting area with free fruit and beverages for a company with 2,000 physicians, scientists and senior administrators to test the influence of community. Within three years, this area rapidly became an incubator for creative ideas, high-quality interactions and so on. After this experiment, the company reached its highest overall performance. This experiment was so successful that the company opened other similar meeting areas for its employees.
Developing organizational strategies is one of the most common practices among business owners. And there are countless suggestions and tips for better-planned strategies. However, due to the uniqueness of each firm (size, culture, core product, etc.), designing the proper strategies can be frustrating and painful. Want to find out which organizational strategies best fit your company? Click here to contact a CoreAxis specialist to analyze your company and customize your organizational strategies!
The information contained in this article is for informational purposes only. No information (or possible omissions) contained in this article shall be considered legal advice and no attorney-client relationship is established.