DEVELOP ONE SYSTEM
Every company has a system for managing the business.
But most are not particularly systematized.
When your company is small, managing it is relatively easy.
As you grow, complexity increases exponentially. To effectively manage the business, companies must create a management system.
In the classic Harvard Business Review article, Mastering the Management System, professors Robert S. Kaplan and David P. Norton describe the need for a management system:
“In our experience, however, breakdowns in a company’s management system, not managers’ lack of ability or effort, are what cause a company’s underperformance. By management system, we’re referring to the integrated set of processes and tools that a company uses to develop its strategy, translate it into operational actions, and monitor and improve the effectiveness of both.”
There are dozens of different management systems. Some of the most popular ones include:
- The balanced scorecard, developed by professors Kaplan and Norton
- Objectives and key results (OKRs), developed by Andy Grove at Intel
- The Rockefeller Habits, developed by Verne Harnish
- The Entrepreneurial Operating System, developed by Geno Wickman and Don Tinney
- Holocracy, developed by Holocracy One
- The Top Gear System, developed by SHIFTPOINTS
- And many others
Each of these systems can be effective, but we advise clients to pick One of them. When a company adopts One System, it provides a common language, which speeds communication and reduces friction.