“Trim the sails with headwinds ahead”
With the uncertainty of election season now (mostly!) behind us we can once again cast forward as we all prepare our organisations for 2024. It seems the NZ economy has navigated the post-covid, supply-chain disrupted and global-conflict fuelled twin threats of inflation and economic slowdown (or stagflation) in reasonably robust shape for now. There are however a range of disruptors ahead. For the commercial sector conflict in the middle east looks set to keep oil prices high (with the terminal days of fossil fuel near they may never be low again), and China’s slowdown looks set to weigh on global growth but be a particular headwind for NZ due to impacts on our primary export sector. In the public sector the imperative to reduce spending will require a rethink about how government organizes itself to deliver more with less.
Regardless of the sector you are in, now might well prove to be the calm before the storm and organisations’, that trim the sails, lighten the load, and chart a clear but flexible course will be the best equipped to survive uncertain conditions ahead. D & Co’s view is that it is important to review organizational productivity and effectiveness at least annually, but most certainly ahead of a period of change, uncertainty or choppy waters. Organisations that wait til they hit turbulence tend to go into crisis mode or the kind of “across the board” knee jerk cuts that can lead to “death by a thousand cuts”, demoralize their workforces (leading to a rush of their best talent to the head-hunters office), and lead to a loss of “muscle” that will be a drag on future performance. Our position is that navigating difficult times starts first with getting your leadership team right. Alongside a review of strategy and organizational design there needs to be an evaluation of capability (right leader, right role) and an alignment of structure and resources to key strategic goals. Once this is done leaders development (both as individuals and as a team) should be aligned to be delivering common organizational goals. Without a strategic approach to organizational change that encompasses selecting and developing the right leaders from the top-down organizational effectiveness and productivity tends not to follow.
By Mark Hutchinson, Managing Director