Organizational Alignment: Success Beyond Start-Up
In addition to the common gap between current reality and vision, or current and future state, we believe there is another gap preventing small businesses from achieving their optimal future state. It is the significant void between entrepreneurial ideas and the ability to operationalize those ideas to achieve long-term success.
We call this the Longevity Gap - because filling this gap increases organizational longevity, but when ignored it becomes a vacuum, shortening a company’s’ life span.
Common Disorders - manifested by a Longevity Gap
Inefficiency - preventing profitability & minimizing productivity.
Inconsistency - depleting perceived value of product/service & reducing earnings.
Inaccuracy - diminishing customer satisfaction & retention, inhibiting revenue growth.
Failure to execute objectives - impairing competitive advantages & preventing expansion.
Lack of accountability - minimizing improvement opportunities & limiting growth.
High employee attrition - obstructing team building & talent development.
Impotent problem solving - exacerbating problems while wasting time & money.
Resistance to change - preventing innovation & progress.
The gap is typically a result of nonalignment - alignment comes from well planned organizational structure, culture, and operations that are harmonious with both financial and strategic objectives. We believe this is prevalent within start-ups and small companies because entrepreneurs are often stretching themselves thin by wearing many hats, compounded by limiting activities to only ones that generate revenue.
Nonalignment is rarely due to a deficiency in knowledge, skills or abilities - it is simply a lack of resources. Moreover, it is innate within entrepreneurs to prioritize sharing their ideas with the world. Also, because they understand if the idea is not distributed, and monetized, then nothing else matters. Hence, focus on revenue generation before getting granular on the ops, structure, and culture makes sense on the surface, or at least in the very beginning.
Unfortunately, some entrepreneurs may not even realize the importance of alignment, but more often they just assume they will get to it later. Meanwhile, their organization lacks accountability, is incapable of learning and improvement, struggles to manage change, and is more reactive than proactive causing a failure to innovate.
But, because they have a great product / service, and are good at presenting its value and selling it, they can sometimes survive like this for a period. However, without closing the gap and ensuring alignment, they will still struggle to grow in a meaningful or lasting way. When they do experience growth they are unable to maintain effective performance levels which broadens the gap and minimizes sustainability.
This is the entrepreneur's death trap, for without growth they first become stagnant and ultimately irrelevant. Or if they do grow and expand from short lived revenue increases, but cannot sustain due to inefficiency or lack of continuity, then they fail to realize a profit and struggle to stay afloat. In fact, even though all they want / need to do in the beginning is grow, very few new businesses are capable of handling initial growth beyond a certain threshold when they do not first properly plan and organize their company to align capabilities with objectives.
Closing the Gap Through Alignment
When companies prioritize and address the ambiguity around their structure, culture, and operations they are able to establish proper alignment with their financial and strategic objectives - this not only supports expansion, but propels the growth needed for long term success. To close the gap, it is imperative for organizations to consider their business as a system. More specifically, one that is made up of multiple congruent systems encompassed by;
Structure that is in complete alignment with both financial goals and strategic objectives. A structure that provides guidance through clear definitions of success and accountability, and minimizes ambiguity with vision and purpose.
Culture that creates the ability to attract, acquire, and retain talent - then provides support and opportunity for growth and development. A culture that, when nurtured, creates an environment for continuous learning and improvement, enabling innovation.
Operations that enable the proficiency and efficiency required to be profitable. Operations that are built with systems thinking and cooperate across functions, encourages the free flow of information, and provide meaningful performance expectations.
An Affordable Solution for Small Businesses
To specifically address the Longevity Gap and create lasting alignment within a business, a company should consider bringing in a Chief Operating Officer who can focus on the union of people, systems, and goals. However, since it is understandable when entrepreneurs have minimal resources to dedicate to alignment, hiring a full-time, experienced operations executive seems unlikely.
But there are alternatives, including hiring Fractional Executives who are on-demand, collaborative partners - not consultants. Meaning, they are embedded within the company on a more permanent basis, but they are used only when needed and do not necessarily become a permanent fixed cost, at least not before a return is realized.
Fractional COOs help small businesses create alignment, analyze and solve problems, operationalize strategies, and optimize operations for sustainable growth. In fact, COOs specialize in addressing Longevity Gap disorders and are a key component to developing organizational capabilities to leverage competitive advantages. .
Fractional COOs cost a fraction of a full time executive salary, and can be hired on a part-time or interim basis, they can be on retainer or project-based. The point is, you only pay when you need one, and as a start-up or small company, you probably won’t need a COO 365 days a year.