Friday, March 27, 2009

Leadership Drives Organization

Leaders organize -- to bring about desired results -- by gathering insights, clarifying desired outcomes, mapping out plans for action to be taken, breaking down responsibilities, recruiting and qualifying whatever help is needed, making assignments by delegating authority and discretion with responsibility and accountability, and incentivizing, training, and supporting in every needed and possible way to accomplish desired outcomes.

Ongoing leadership maintains or increases the momentum of improvement.

The style and quality of leadership determines whether the state of the organization improves or declines and to what degree. The quality of the organization in turn influences the level of attainment of desired outcomes.

Organization must be improved as required by ever-changing circumstances to keep up, much less increase, the momentum of improvement of outcomes, especially to thrive in hard times.

Organizations improve as new insights are more effectively gathered and evaluated, as successive desired outcomes are more clearly defined, and as plans are better updated and refined, as well as responsibilities, recruiting, qualifying, assignments, delegation, incentives, training, and support needed and possible to accomplish successive desired outcomes. This is a process of ongoing organizational development.

Leader inspired self-directed organizations working in harmony and unity can achieve powerful improvement if enlightened by business knowledge and wisdom.

All functions of a business organization require adequacy if not suitability in the vitals of human and financial capital. The permanently imperative demand-side functions of marketing and sales drive the essential supply-side functions of design, engineering, production, and service to meet demand. Finance and banking functions provide essential fuel for the economic engine. Like all functions of business, including the other support functions of HR, IT, legal, etc., the scorekeeping accounting and auditing function is a primary source of insights into opportunities for business improvement.

Failure to inspire and nourish enlightened self-directed organizations will lead to weak and diseased organizations. Adversarial bureaucratic growths of any kind, including labor unions, will debilitate a business organization like cancer. Improving the health and well being of any organization is required to thrive in hard times.

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