For Best Organizational Performance, Don’t Benchmark

Benchmarking is a tried-and-true approach for operational processes, but it should not be used to determine how best to structure or lead an organization.  Yeah, I know, finding out what Google and Apple and Zappos do is all the rage, but when it comes to organization design and leadership practices, there’s no evidence that copying what other firms do improves results.  Skip the off-the-shelf solutions and focus instead on these:

  • Your company’s strategic imperatives
  • What your organization needs to do extremely well to execute the strategy
  • The 20% of processes that drive 80% of your value
  • The kinds of talent you need, particularly in key positions
  • And the structure that will best leverage the organization’s capabilities to deliver the strategy.

A flexible operating model is by far the most important attribute to capitalize on strengths and seize new opportunities.

How well is your organization delivering for you?

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