Every department exceeded their targets, so why didn’t the CEO

It starts with a scenario of CEO anxiety and quickly points out that the company has serious departmental collaboration problems. The three solutions proposed, including binding goals, process integration and setting up horizontal organizations, are in line with the basic principles of organizational management and take into account the difficulty of actual operations. They are worthy of reference for the company.

When I was consulting for a company, I attended their executive meeting. The heads of each department came to the stage to give performance reports. The PPT was full of red bold numbers and steep upward arrows. All departments exceeded their goals, and it looked like it should be a good year.

Finally, it was the CEO’s turn to take the stage.

He said anxiously: You all have achieved your goals, why haven’t I?

The root of this problem is that there is a lack of collaboration between departments, and each department is independent and fighting on its own. This is essentially an organizational problem.

I did some detailed research, let me give you an example.

The product department was only concerned with its own research and development pace, but no one took over the users brought in by the marketing department, and did not even pay special attention to this part of the data.

If asked about the poor retention rate of new users, they will put the blame on the marketing department, saying that the quality of these new users is too low, so the retention rate is poor.

This creates a vicious cycle of mutual blame.

This is just one of the scenarios. The problem exists in the collaboration between many departments, including A and B, and the intersection of A, B and C. It is very complicated.

To solve such a problem, it is meaningless to discuss whether the product department did not take over or the marketing department had poor user quality. Because the two are two nodes in the chain, they will definitely affect each other, and if one of them has a problem, it will harm the other.

So, I'm helping them integrate the various departments of the company and solve this problem from an organizational level.

There are three specific methods:

1. Goals are bound to each other

First of all, the head of each department must bear in mind a company-level indicator.

For example, DAU or GMV, profit, etc., account for at least 30% of their own performance. This ensures that everyone will pay more attention to the progress at the company level.

Don’t put all the pressure on the CEO.

Next, set cross-targets.

Departments are not allowed to only look at the indicators within their own division of labor, but should extend to upstream or downstream indicators to form an indicator combination. For example, in the problem mentioned above between the marketing department and the product department, the goal set by the product department should include new user retention, and find ways to do a good job in the acceptance of new users.

With this indicator, the two departments will spontaneously work together.

2. Process Integration

Optimize the processes in key business links and integrate the upstream and downstream parties that should be deeply involved in the chain.

For example, the marketing department wants to do an external communication, but the plan has been approved internally only, and almost no other departments are involved in the entire discussion process.

After optimizing the process, we need to involve colleagues from the product and operations departments, who can provide suggestions in an auxiliary role. The selling points of external communication are better aligned with the product, and the effect of communication is also reflected in the product, etc. All of these rely on product and operations colleagues.

Such large-scale company-level projects or product-related demand discussions require the participation of roles from other departments. This process should be written into the company's process requirements, and the PMO will be responsible for its implementation.

3. Set up a horizontal organization as a pilot

The above two methods both try to integrate several departments. The direction is definitely right, but it is definitely very difficult and the cycle will be relatively long. In addition, the heads of various departments may not necessarily agree with it. After all, the butt determines the head.

At this time, we need to set an example and have a best practice, which can also be regarded as an organizational attempt by the company.

Set up a horizontal organization like FT (feature team), with a certain business as the direction, and gather all the required roles. For example, if you want to make an innovative product function, then you can propose a separate line, and each department must have N full-time people to join (N depends on the needs). The workstations are together, and the FT person in charge also has performance authority, and everyone is responsible for the relevant indicators of this new product.

In the initial stage of the experiment, it is recommended to set up a small-scale FT, with a dozen people. This will make the organization and management easier and easier to accomplish.
After this pilot is successful, it can be replicated in multiple projects. The company can have a departmental structure based on responsibilities, such as product department, marketing department, and operation department. It can also have a horizontal structure based on projects, such as online channels, new customer conversion, A plan, etc.

If you can handle these 3 points, at least the problem at the beginning of the article will not occur.

Solving organizational problems requires longer-term, sustained and resolute progress. My solution is a preliminary one for an early stage problem.

Author: Han Xu

Source: WeChat public account "Operation Dog Work Diary (ID: yunyingriji)"