- November 4, 2012
- Posted by: Javier González Montané
- Category: Turnaround
Many organizations fail to approach problems because they do not understand system thinking and/or lack of a shared vision. So in those underperformance companies quite often we find departments with a narrow focus, when system thinking is required. For example sales departments in slow growth markets or industries to turnaround the situation could try to maintain or increase sales taking unusual risks of sales orders (e.g. orders with high risk of cancellation or postponement). They fail to understand that trying to solve the sales problems with “low quality sales” add a new problem to the current sales problem.
Sales orders cancellation and/or postponement system impact
Therefore, system thinking is important but additionally we need a shared vision. Problems could be solved using different ways, but companies need a clear shared vision in order not to neutralize actions of one department with other. For example, let imagine a supply chain function trying to reduce stock to improve the working capital, and a sales department building stock to close sales faster. Both approaches could be valid, although the firm needs to define a clear shared vision to move in just one coordinated direction (stock reduction or building stock).