Never try to change People in a Business before Changing the Business Model and Management Systems to support the Business Objectives

During my discussions with business owners and executives about their organizational needs, a common theme emerges: the desire for their teams to exhibit greater focus, engagement, initiative, alignment with business objectives, collaboration, and productivity.

Similarly, when we delve into the desired outcomes for projects, the objectives often revolve around sales growth, profitability enhancement, operational efficiency, cost control, product/service innovation, and market expansion.

Regardless of industry or scale, business objectives tend to converge around the pursuit of profit through sales optimization and cost management, alongside a drive to better serve existing markets or explore new ones. Achieving these goals often hinges on enhancing the effectiveness and productivity of management and teams.

However, in my experience with management consulting projects, I’ve observed that many organizations face a fundamental challenge: their existing business models and management systems do not effectively support the desired aspirations and objectives. It becomes evident that the primary barrier to change lies not solely in the individuals within the organization, although their development is crucial, but rather in the inadequacy of the business model and supporting systems.

The realization emerges that meaningful change necessitates a holistic approach, starting with the transformation of the business model and supporting systems towards fostering alignment, collaboration, performance, and agility. Frequently, organizational structures and HR functions are found to be misaligned with the desired outcomes, causing discomfort among top management and business owners when confronted with the notion that change must begin from the top down.

To cultivate a culture of performance and well-being beneficial to all stakeholders, it’s imperative to assess and be open to modifying the business model and supporting systems. A strategic shift towards performance management becomes essential to instill traits such as agility, collaboration, goal orientation, and resilience within the organization.

Central to this transformation is the design of a business model and organizational structure anchored on two pillars: strategy and performance management. This resilient framework operates as a self-regulating mechanism, ensuring alignment with strategic objectives and continuous performance improvement. By fostering a strategic performance management approach, organizations can cultivate a culture that is faster, more collaborative, goal-oriented, agile, and resilient, thereby driving sustainable growth and success.

Yiannakis Mouzouris
Strategy and Performance Management
Expert / Business Consultant / Trainer
B.Sc. Mechanical Engineering
M.Sc.Engineering Management, US