There is only so much a leader of an organization can accomplish without a strong team working towards the same goals.
Even Caesar was not able to conquer Gaul by himself. The strongest, brightest, hardest working leader in a weak organization will eventually fail unless he or she is able to transform the nature of that organization.
By yourself any CEO cannot do everything. The stronger a leader makes the organization, the greater its performance and the longer that high level performance can be sustained. For those reasons, most leaders quickly come to the realization that it is in their own best interest to build a strong organization.
A leader should never take the strength of the organization for granted.
No matter how powerful it may seem, it is still at risk.
Consider, for a moment, some of the largest empires and organizations in history and understand the collapse of these empires can be attributable to many causes, but among them must be included:
- The failure by its leadership to build and maintain its strength;
- lack of strategic foresight;
- too little attention focused on innovation and continuous improvement; and
- a lack of a clear unifying rationale for its operations.
During this pandemic, organizations must adapt to the ever-changing ways that we need to look at staying profitable and adjusting strategies that continue to improve.
I think it is safe to say this is a hostile world we are living in. For that reason, it is always necessary to be able to respond to any threat and it is always wise to believe that any new threat will be worse than anything that has gone before. COVID is a perfect example of unforeseen events.
No one ever got into trouble because they were too strong and too prepared. Organizations that are hard, strong and combat-ready rarely have anything to fear.
On the other hand, organizations that are bloated, over-stretched, indecisive or even just inefficient are incapable of mobilizing to meet threats or opportunities as they arise, are at risk of being preyed upon by other organizations more suited to survival in a competitive world.
The requirements of a strong organization vary on the nature of the organization and the activities that it conducts.
Generally, they will include:
- A stable capital base adequate to the requirements of the organization;
- sufficient liquidity (cash flow) to meet day-to-day demands for payment;
- up-to-date production and distribution equipment and methods;
- a well-trained dedicated workforce of a size adequate to meet the demands on the organization;
- a well-developed ability to carry out co-ordinated activity;
- secure access to an uninterrupted flow of raw material and other resources required for its operations;
- a base of operations well suited to its business; and
- a coherent and understood plan of action.
I would note that the first two of these requirements are financial. Their prominence underscores the fact that a strong financial foundation is essential for virtually all organizations.
The early days of Disney Studios provide a good illustration of the role that great leadership can play in the development of such a strong organization.
One critical contribution that its founder Walt Disney made was in the area of recruiting. He hired the best animators of his day and gave them challenging projects to work on.
The list of these talented individuals is long and impressive. Les Clark, for instance, specialized in animating Mickey Mouse, including the original drawing for Steamboat Willie.
Disney had both the sense and the ability to recolonize and appreciate the talent that these individuals themselves possessed and he had the wisdom to realize they could make the studio strong.
We all need to create the environment in which all organizations can flourish.
Stephen Bauld is a government procurement expert and can be reached at swbauld@purchasingci.com. Some of his columns may contain excerpts from The Municipal Procurement Handbook published by Butterworths.
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