Reassessing Organizational Policies for Modern Success
In the valuable insights I’ve gained over my 30+ years of experience working with over 500 organizations as a B2B sales expert and Christian business thought leader, one key lesson stands out: to thrive in today’s fast-paced environment, we must implement strategies and practices that allow our organizations to evolve alongside the changing landscape.
Unfortunately, many of our current policies and procedures are relics from a different era, crafted for circumstances that no longer apply. This means that much of our business infrastructure is on the verge of becoming outdated.
Take, for instance, the common scenario where I’m asked to review a company’s sales compensation plan. Often, when I inquire about the rationale behind their current plan, the response is simply, “That’s just how we do it.” This highlights a troubling truth: decisions are frequently based on historical precedent rather than current effectiveness. The original intent behind the plan has often been forgotten, yet it remains unchanged because it seems simpler to continue with the status quo than to overhaul it.
This issue extends beyond just compensation plans; it permeates all aspects of organizational systems. Nearly every foundational procedure dictating daily operations has a similar backstory—created long ago by people responding to now-obsolete situations. Therefore, it’s hard to justify their current validity; they just exist.
Given that these outdated systems guide much of the company’s operations, their relevance and effectiveness are essential for the organization’s success.
Consider this: When was the last time you critically evaluated the fundamental policies and procedures in your organization? Here are some common areas to reflect upon:
- Methods for prospect creation and qualification
- Processes for onboarding new customers
- Strategies for encouraging repeat business
- Approaches to partner management
- Systems for order processing
- Invoice generation procedures
- Reporting structures for employees
- Supervisory practices for team management
- Bill payment methodologies
- Invoice collection strategies
- Strategic planning processes
- New product development methods
These organizational systems consist of various processes, principles, practices, and tools that were likely established in the past and thus may not serve their intended purpose today.
Identifying the Issue:
Most of this infrastructure was designed for a different context, dictating behavior that may not lead to optimum performance. If we allow these outdated frameworks to persist, the organization risks becoming obsolete.
Proposed Solutions:
1. Identify Key Components:
Start by listing the essential elements of your organization’s systems, which I refer to as my “punch list of key systems components.” This list includes two tiers:
A. Essential activities necessary for your organization’s success. For instance, a critical activity in my business is:
Key Activity 1: Ensure individuals are exposed to our sales content, encouraging them to strive for excellence in selling and leadership through extensive content distribution.
B. The supporting practices, policies, and tools that facilitate the key activities above. For example, this includes:
– Our list of potential publishers/distributors for our content.
– Processes for blog postings.
– Strategies for newsletter content distribution.
– Methods for submitting content to other publishers.
2. Regular Review:
Make it a priority to examine these items consistently. I maintain a spreadsheet to track when each item was last reviewed, allowing me to identify when it’s time for another evaluation.
This critical assessment involves asking:
– Are we executing this as effectively as we could?
By regularly evaluating and updating these elements, organizations can ensure they are better equipped to meet today’s challenges.
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