Category Archives: External links

#84 Negotiating internal interfaces

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To execute organization strategy, several internal functions have to collaborate. Marketing and Sales typically lead the charge (or they think they do), and Finance, IT, Manufacturing, and HR bring up the rear. Enlightened companies will challenge each internal function provide a competitive advantage. For example, if HR can hire top notch talent who have business acumen, and creativity to match, all internal functions will benefit and be firing on all cylinders.

Yet there seems to more harm done be “friendly fire” than by competitors efforts. This happens because internal functions do not negotiate among themselves to establish inputs and outputs, quality of those outputs, and Service Level Agreements. This results in bureaucracy, bottlenecks, and frustration. Not to mention higher costs of doing business, and lower productivity.

Different companies have different ways of doing business. For legacy reasons, or for other reasons. This means no out-of-the-box “standard” can be adopted and each company has to work out the inter-function interfaces to drive their business model.

For example, HR may take care of the recruitment process, soup to nuts, or the hiring manager may have to play an active role to ensure quality control. The latter happens because HR lacks the knowledge of the business. If HR determines that it must become a true partner and “trusted advisor” they will step up to guarantee quality, if they are overwhelmed by administrative duties or if they are in a complex, technical, fast moving business, they may take time to do so.

Similarly, in some organizations IT may be best suited to manage the systems infrastructure, leaving the business teams to take on analysis, design, prototyping, and proof of concept for applications. In other cases, IT may not be a competitive advantage, hence all such functions are outsourced or in the cloud.

Establish your organization’s place in a maturity model, then craft your interfaces between internal functions to execute your strategy.

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#80 Types of “acumen”

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“Acumen” is the ability to make good judgments and quick decisions. There are a number of places where acumen can come in handy:

  • Business acumen: Do you know who your customer is? Do you know whether you can fulfill their needs and make a profit? Can you do it consistently, and better than the competition? Do you know how to negotiate a win-win agreement?
  • Financial acumen: Do you know how to manage money? Do you know the difference between cash flow and funds flow? Do you know how to cut costs and invest wisely? Do you know when you are paying too much for a product or service?
  • Moral acumen: Do you know what the “right thing” to do is in any give situation? Can you execute without getting caught in philosophical disputes?
  • Common sense: If you don’t understand this, you probably don’t have it.
  • Street smarts: Can you read a situation quickly and react even quicker to take advantage of it? The emphasis here is on speed and accuracy, and leading directly to effectiveness.

A well rounded person will have all of the above. The educational system in all countries seems to fall short in developing all these types of acumen (this is not a comment backed by research, but I’d be curious to see if I am wrong). Those born with a proclivity towards one of the types will pursue a career, profession, or career that requires that type of acumen. Those who have none of the above will flounder.

The biggest problem, in my mind, is that grown adults fall back on blaming their education and do not develop the self awareness and follow it up with a concentrated effort to develop one or more of the above.

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