Role Charters Are a Key Tool in Organization Design

Organization design can and should provide an effective and practical resolution to many stubborn strategy and business-execution issues. If a redesign is to work, senior executives need to recognize that all three elements of design—structure, individual capabilities, and roles and collaboration—are essential in making a change.

If an organization’s structure is its skeleton, then individual capabilities are its muscular system, providing energy and vitality, … [ Read more ]

Think Counter-cyclically with Customer Accounts

Keep competitors off guard by avoiding the obvious. For instance, the usual reaction in a downturn is to tighten customer payment terms and increase collection efforts in order to boost cash flow. Instead, consider giving your most profitable customers or target accounts more lenient payment terms in order to capture more of their business. Make terms stricter for less attractive accounts. You’ll likely find that … [ Read more ]