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Friday, October 8, 2010

The Analytic Mindset

“You came here with a mindful of mush, and if you survive,
you will leave her thinking like a LEADER!”



Successful leadership of complex organizations requires the development of a “meso” approach that integrates the macro (big picture stuff like strategy and structure) and the micro (the stuff that deals with the individual employee and department of the organization) elements of the organization.


The analytic mindset is developed through the exposure to and application of the analytical tools used to manage specific organizations and to formal approaches that improve managerial effectiveness.

This requires that the concepts of strategy, structure, culture, technology, and human resources be understood in a systematic way that allows leaders to view the process of leading as a melding of science, art and craft. These subsystems are interrelated and interdependent. You cannot address issues in one area in isolation from the others. If you change something in one subsystem, it will impact the others. Ceteris paribus (holding everything else constant) might work in economics, but it doesn't work when leading complex organizations.

Several years ago I was engaged in a consulting project for a large IT department. As part of my assessment I interviewed the executives and directors. I asked each of them this question: "What is the most pressing issue facing your organization right now?" The responses were unanimous. Every one told me that they needed to restructure the organization. I responded to that by asking "What's your strategy?"

They were somewhat taken aback by my new question and wondered why I asked that question. The reason was simple: Until you have clear sense of your strategy, you really cannot determine the appropriate structure.

The key idea in this analytical mindset is alignment. Are the structures, processes, and people aligned with the strategy of the organization?

Let me be somewhat of a contrarian here. Jim Collins says you have to get the right people on the bus. I agree to some extent. You do need to get the right people on the bus – and get some off the bus (But don’t throw them under the bus!). But you cannot determine who the right people are until you have a clear sense of what it is you’re trying to achieve.

There’s an old cliche that gets circulated through Principles of Management courses: “Structure Follows Strategy.”

Indeed, structure should follow strategy. And, processes should follow strategy; and people should follow strategy.

Maybe its time to do an alignment check on your organization.

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