Untangling underperformance

精品资料网（）25万份精华管理资料，2万多集管理视频讲座精品资料网（）专业提供企管培训资料UntanglingunderperformanceMATTHEWROBB,PAULTODD,ANDDAVIDTURNBULLTheMcKinseyQuarterly,2003Number2OrganizationHereistheparadox:manycompaniesknowtheyhavegreatstrategiesandgreatpeople,buttheirperformancedoesn’tmeettheaspirationsoftheirtopmanagersorshareholders.Thecauseofthisdisappointmentmayevenseemobvious.IftheCEOassignsasmalltaskforceofseniormanagersorhighflierstofindtheanswer,itwillquicklypinpointtheimmediateculprits—confusedaccountabilitywithintheleadershipgroup,perhaps,oranunforeseenshiftinthebalanceofpowerbetweenbusinessunitsandthecorporatecenter.Oncethetaskforcehasidentifiedtheproblems,theCEOmaybetemptedtofixthemstraightaway—forexample,byspellingouttheaccountabilityofdifferentexecutivesorrebalancingtherightsandresponsibilitiesofthebusinessunitsandthecorporatecenter.Butperformance-sappingorganizationalproblemslikethesemayhavecomplicatedrootslinkingoneproblemtoanother.Unclearaccountabilityatthetopmaybesymptomaticofaseriouspowervacuumwithintheleadershipgroup,andthismaybespurringbusinessunitstobecomemoreautonomous.Tryingtofixwhatisactuallyaneffectoftheproblemratherthanthecausewon’tsolveanything.Thekindofhigh-level,outside-indiagnosisthatrevealstheproblemsunderminingperformanceisunlikelytoaffordinsightsintotheirrootcauses,howtheyarelinkedtooneanother,orhowtosortthemout.Gettingmorepeopletostepinsidethecompany’sworkingsanduncoverthecomplexrootsofunderperformancecanbethefirststeptowarddevelopinglastingsolutions,asthecaseofManufactCo(notitsrealname)illustrates.COLLECTIVEDISCOVERYManufactCo,amanufacturingorganizationwith8,000employees,producesandmarketsitsproductsinmorethan20countries.Inthe1980sand’90s,itwentthroughacquisitionsthatbroughtinaheritageofvariedbusinessculturesandwaysofgettingthingsdone.Threeorfouryearsbeforetheperioddescribedhere,ManufactCo’sreturnoncapitalemployed(ROCE)hadbeenintheindustry’stopdecile.Yetoverthoseyears,itsperformancegraduallydippedintothesecondquartile—goodbutnotleadingedge.Theorganizationwasn’tdoingaswellasalmostanyoneinitthoughtitcould.LeadersatManufactCoweren’tsurewhyithadlostitsperformanceedge.Itsproductswerestrong.Ithadagoodreputationandhigh-qualitypeople.Managersandemployeesplacedanextraordinaryemphasisondeliveringhighperformance.Atthebeginningofeveryyear,thecenterandthebusinessunitsnegotiatedstretchtargetsforeachunit.Everymonththeunitssubmittedtothecenterdetailedfinancialresults,withkeyperformanceindicatorsandupdatedannualforecasts.TheCEOpubliclychallengedtheheadsofthebusinessunitsinregularmanagementmeetings:hedugintothenumberstodiscoverwhathadreallyhappenedinthepreviousquarterandtestedtheexecutivesonthecompetitiveenvironment—alltogaugewhatlevelofperformancemightbepossible.Targetswerethusoftenincreasedthroughouttheyear.Allunitmanagersattendedthesequarterlyreviews,andthesenseoftheatertheycreatedwasapowerfulincentiveforeachmanagertocomepreparedtogiveaconvincingperformance.Despitethestrengthsofthisprocess,thecompanypersistentlyfellshortofitsaspirations.STARTINGTODIGOnenewlyappointedbusinessdivisionheadfeltsostronglythatManufactCohadlostitsperformanceedgethathewasdeterminedtodosomething.ButhealsofeltsurethattherewasnosimplefixandthatManufactCowouldneedtounderstandtheproblemsfullybeforetheycouldbesolved.HethereforeinvestedanunusualamountoftimeandresourcesindiagnosingManufactCo’sperformanceissues,startingtheprocessby精品资料网（）25万份精华管理资料，2万多集管理视频讲座精品资料网（）专业提供企管培训资料assemblinganunusuallylargeteamcomposedofadozenfutureleaders—notyetbusiness-unitheadsbuthighfliers—whoserolewastopinpointthem.Theteambeganbyinterviewing60membersoftheorganization:theentiredivisionalleadershipteamandabout30otherswhorepresentedallkeyfunctionsandbusinesses—again,alotofpeopleforadiagnosticexercise.Themembersoftheinterviewingteamhadnopreconceivedideasaboutwhattheywoulddiscover.Theybuilttheinterviewsaroundtenopenquestions,craftednottoleadtheinterviewees,coveringbehavioralandmoreformal,structuralissues.Amongotherthings,theteamasked,Whatarethebarrierstoimprovingperformance?Doprocessesfacilitateorgetinthewayofdeliveringperformance?Howeffectiveisteamwork?Whatstrengthsoftheorganizationareworthpreserving?Afterhalfadozeninterviews,itwasclearthattheleadersgenerallyagreedonthecompany’sproblems,ifnotthesolutions.Forone,theleadersfoundproducingallthedataforperformancereviewsaburdenandthereviewsthemselvesatrialratherthanacatalystforbetterresults.Dialoguebetweencorporateandbusiness-unitleadersaboutperformancenolongerfelthonest,exploratory,andinspiringbutdefensiveanddispiriting.Alloftheleadersregardedthetarget-settingprocessasaconvolutedgame.Althoughtheteamnowhadacompletelistoftheproblems,itinterviewedall60keyfigurestoensurethattheyfeltlikepartoftheprocess.Wordoftheinterviewshadspread,andpeoplewantedtheirpointsofviewheard.Havingidentifiedtheproblemslimitingperformance—manyconcerningtheperformance-managementsystem—thediagnosticteamwastemptedtojumpimmediatelytosolutions.Butitresistedtheimpulsebecauseofpreviousdisapp