Have you ever bought a technology solution with all the bells and whistles and only use 2 of the 5 modules for your business? I wrote a blog called, “Technology Isn’t Always The Solution”, which discourages our reliance on technology before solving our People and Process issues. Technology is merely a tool to help us (People) do things (Process) better. It is never THE solution that makes our business healthy!
Technology is Merely a Tool
On my last post, I mentioned that Process is important in deploying your talents in your company. Technology accelerates that deployment if used properly.
“. . . technology is an accelerator of greatness already in place, never the principal cause of greatness or decline.” Jim Collins
From a broader perspective, technology is a component of your overall business Infrastructure. Infrastructure represents any resource or tool you use in order for your People to Process things. When you have the right People doing the right things (Process), then your Infrastructure should get you there faster, rather than hamper it. Too many times, our Infrastructure gets in the way of our efficiency and effectiveness because we short-cut the solution before solving the People and Process issues. As entrepreneurs, we tend to overcomplicate things and create monsters. After all, entrepreneurs love to create, resulting in a hairy beast that must be fed because of the infrastructure we’ve created.
Having a FIT Business Body
I break down Infrastructure in 3 main components: Functional structure,Incentives, & Tools (FIT).
Functional Structure deals with how we organize our company in terms of roles and accountabilities (The Accountability Chart in EOS speak). This shows reporting structures and ultimately who owns specific functions and the key roles within those functions. It sounds simple but we tend to build complex organizational charts that sometimes confuses people on who’s accountable for what. It’s usually because we don’t have the right person in the right seat. So we create seats that are unnecessary to accommodate weaknesses in our People. When you’re a small company, getting the right talent (People) is important. But as you get bigger, functional structure becomes more important to establish clear lines of roles and accountabilities, especially if you want to continue to grow. At that time, you must focus on structure first (right seat), then on the right person. Or you will fall into the trap of creating an organization based on who you have and past history, rather than what is best for the organization to go to the next level.
Incentives deal with anything that has numbers. This includes compensation structures, incentive programs, goals and metrics. Incentives are tools that, when done right, create the right behavior so you get to results faster. Well-designed, simple Incentives align numbers to the greater cause of the organization. Poor Incentives create dysfunction and mis-alignment throughout the organization. Incentive tools are meant to perpetuate the values and goals of the company, not create territorial wars or individualistic attitudes. Incentives should be more intrinsic in nature than extrinsic as found by Daniel Pink.
Tools deal with the rest of the resources you use to deploy your People and Processes. This includes your physical space/layout, technology, checklists, manuals, etc. Yes, technology is a subcomponent of a component of Infrastructure and not a component on its own. Your checklists, manuals and office space could be more important than the technology you use. Work shouldn’t stop just because your network is down! I know that may be an extreme but you get my point. We use several tools in our business. These tools change as our company evolves and scales. Just remember they are tools to help deliver the service or product . . . they are not the end service or product.
FIT for Peak Performance
So imagine your business Infrastructure that is strong in all 3 components: Functional structure, Incentives & Tools (FIT). You have a FIT company that accelerates your People and Processes! Back to the Best Business Model, the human body – if your business Infrastructure body is strong, it’s more able to withstand external pressures in an ever-changing environment. You won’t be sick or injured with minor and even major blows. But you must also be strong in your People and Process components of your business body. Your Infrastructure is merely a resource for you to use so your talents (People) are deployed (Process) for peak performance!
If you feel you have the right People doing the right things (Process) but are still not getting results you want, then maybe it’s time to look at your Infrastructure. Are you using the best tools and resources to deploy your talents? Or maybe you rushed into an Infrastructure solution before analyzing your People and Processes. Is it time to stop making tool/resource excuses and drill down to the root cause in your People or Processes? Remember, People, Process & Infrastructure are what make up the Perfect System. All 3 are important to have a healthy business.
Take the Organizational Checkup to gauge the health of your company! For more information on creating a healthy business lifestyle, read about theEntrepreneurial Operating System (EOS).
My next blog will refer to examples of companies that are strong in People, Process and Infrastructure.
To Your Business Health!