Schlagwort-Archive: Competencies

Rules rule rules that rule rules

In times of increasing bureaucratization it becomes more difficult to oversee the innumerable rules that must be followed. Since the employees act autonomously and each detail cannot be regulated from the top, they need a clear set of rules. In order to provide the best possible directions, the enterprises use for example COSO and COBIT as a guideline, i.e. standards for implementing the Governance. The trend to a constantly growing number at standards is foreseeable. Let’s remember the different standards in Project Management. Do we have to adjust ourselves to the fact that in the future rules rule rules that rule rules?

Schlangebeisstschwanz

A common denominator in the rules is the fact that they follow certain rules. The following aspects define the quality of the Governance.

  • Transparency
    In this case the decisions, the decision path and the principles of leadership should be made accessible to the employees. They should always be able to understand, for what reasons the top management deploys certain rules. At the same time they should understand the point of control for their own influence.
  • Economy
    In order to create a reasonable handling of scarce means, the procedures should be designed accordingly. These definitions prevent an uncontrolled growth of rules and procedures. Beyond that, they reduce the expenditure for the introduction of guidelines and enable over time an improved use.
  • Participation
    The employees are motivated by personal sharing and participation in the designing of the enterprise. They receive with the regulations the right and the obligation to participate in the decision making and the implementations. For this reason clear points of control for the participation of the employees are inserted in the procedures.
  • Competencies
    Through clear assignments of authority and responsibility defined tasks prevent Muda and friction losses. All areas are considered as well as the overlap of authorities and mutual obstructions are prevented. The employees know through the transferred rights and obligations, what they have to do – and what not.
  • Rule of law
    Through the bindingness to the rules for all, without exception, the individual is reinforced. In order to get a functioning interaction, it must be guaranteed that that all are equally treated. For this purpose it needs in case of conflicts a clear procedure as well as an independent board of arbitration that can be called by everybody.
  • Justice
    Through an adequate and demandable reconciliation of interests, the justice offers a general framework that goes beyond the detailed rules. The values of the enterprise need a common, fundamental understanding about what is right and what not. A respective understanding avoids a variety of detailed regulations.

In order to guarantee that the Governance is adapted to the respective conditions, a clear control model is required for the enterprises. Thus, COSO offers a framework for the financial reporting and Cobit for the IT. The Governance can be introduced correctly at the right place with these frameworks.

Bottom line: The build-up of a control system, the Governance, is an effective means, for steering enterprises or departments. Standards facilitate reliably the implementation. It is however important to resist the regulation craze. More is not necessarily better. Rules rule rules that rule the rules is the end of effective rule sets.

Where do I want to go?

The longer an enterprise exists, the more with difficult it is to maintain the enthusiasm. An impressive illustration of the direction and the goals produces the necessary energy to keep the momentum during the activity. This is valid for teams and particularly for each person – inclusive oneself. This direction can be more or less extensively prepared as a text, a metaphor or an image. Remember the following visions:

  • … before this decade is out, of landing a man on the Moon and returning him safely to the Earth? (J.F. Kennedy)
  • … a computer in each household? (Bill Gates)
  • … ideas worth spreading? (Chris Anderson)

These future pictures from the past are already accomplished. In order to make this happen, it needs many people and much time. The direction becomes tangible by defining the strategy (where you want to go) and motivates the involved people to take part during a longer period.

Strategie03Miss

The following parts provide the comprehensive picture of the future.

  • Vision
    Through the easily conceivable picture of the desired future, the vision, the creativity of the involved people becomes stimulated and creates momentum that prevails for a long time. At best it affects, if it is described in a way, as if it already would be reality.
  • Mission
    The general assignment, the mission, includes the expectations of the decision makers. The mission produces a view of target states similar to the vision. Additionally, it contains the expectations of the leadership team with their assumptions and a consistent explanation, including what should be done, for whom, and what it makes special.
  • Influence factors
    The description of the influence factors (i.e. the critical success factors, the favored value discipline as well as the strengths, the weaknesses, opportunities and risks) shows the involved people the external framework that should be expected during the realization.
  • Strategic direction
    The generally targeted trends create focus for the people involved. It enables them to bring in their competencies. For example, the will to grow or shrink explains additionally, what is intended to be reached, see here.
  • Strategic goals
    The strategic goals are the framework for breaking down the aims. At the same time, it shows a compact overview of the intentions. Make sure that the highest level covers the entire topic.
  • Strategic core
    In the future the core competencies, the core processes and core deliverables become more and more important, since overarching cooperation’s take place more frequently in different constellations (e.g. across locations or enterprises). Clarify the substantial abilities for your deliverables. Limit yourself on those aspects that you actually need for your value creation. Last but not least it is important to assign the products and services that have to be produced to each unit or person.

Bottom line: In times, when everything is possible, it is important to determine your own future. The strategy, described as clear as possible, is the pre-requisite for the ever more frequent cooperation in various groupings. It ensures that all people pull the rope in one direction and at the same time that only a few friction losses arise from conflicts or misunderstandings.

Same series:

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