Whether as a result of the existing organizational structure, decision-making processes or simply by inaction, medium and large companies are growing (when) at a slow pace, while smaller organizations, such as start-ups, are growing exponentially.

Heavy organizational structures with too many layers continue to be a reality in today’s organizations. These structures have negative impacts in team motivation and prevent new solution and opportunity design proactiveness.

The existing distance between the decision-makers and the shop floor teams reduces the chance of good ideas even being presented, and, of the ones that strive this long journey, many will die simply because fear of change along the management chain.

Decision-making processes, how often, a team or person, suggests a particular solution or opportunity and when presenting it, faces a response like “the legal will not allow it.” or “have you already consulted compliance” They just won’t accept it”?

Rather than promoting the idea and encouraging the team, managers excel at presenting problems instead of investing in pursuing that idea, particularly by promoting “trials” to demonstrate the feasibility and value of the idea or solution.

Inaction, contrary to human nature, which tends to be exploratory. Most organizations are living daily with the inaction of individuals who fear “change”, the reaction from their leaders, among others. Teams simply wait for instructions, and when questioned about why they do not present solutions, they respond “It is now up to me. It is up to the leadership to do it”.

These characteristics, even in different proportions, affects most organizations we encounter and have worked with over the years. The symptoms may vary, but we can certainly observe commonly a low sense of ownership, demotivated teams and high staff turnover.

The workforce has also changed organizations, but at a much slower pace, and as a result, these organizations face significant challenges in retaining their talents. This is not only due to salary attractiveness but mainly because of the feeling of frustration among those who perceive the organization as stagnant and lacking opportunities for growth and recognition.

Organizations need to reinvent themselves, creating new and more functional structures, bringing the different layers closer together. Recognition models that are valid for the entire organization, simplified decision-making, team empowerment to take risks and try new ideas, as well as the courage to take action, are paramount.

The extensive experience of our team will be a valuable ally to your organization in this much needed transformation and change management.

By: Nuno Falé