In the months ahead, a number of big, uncontrollable external forces could converge to create something like a hundred-year flood in global business. Some businesses will be destroyed by it. But companies that break their rigidities, building operational flexibility into their culture and processes, can swing to the uncertainties faster and take advantage of the change.
Almost all business leaders pay lip service to the idea of flexibility. Still, even some very successful organizations are prone to rigidity, in arenas like budgeting, resource allocation, and organizational structure. Those rigidities can keep companies from adapting well in times of crisis or unexpected change. Fortunately, with effort—and just as important, with sustained practice and rehearsal—those areas of inflexibility can be addressed and improved.
Where rigidity comes from
The best intentions to adapt and change in the face of radically different circumstances will fall short if the sources of rigidity are not clear. Executives who want to combat rigidity should identify three to five of them that could be the biggest drag on the organization.
Reviews, budgets, and KPIs are generally high on the list. If the external environment changes in a big way, the performance targets you’ve set may become impossible to achieve. Sticking to unrealistic targets can be demotivating or lead to cutting corners. That said, in some cases, KPIs should be raised to reflect new opportunities.
Decision-making processes are another common culprit. If too many layers are involved or accountability is unclear, the organization slows to a crawl.
Sometimes a single individual is a source of rigidity. A person in a critical role who is psychologically unable to grasp a new reality can have ripple effects across the organization. They might hold back on moving people, shifting resources, or changing pricing, any of which can mean missing the bend in the road.
How do you overcome rigidity?
No responsible actor or athlete would go out and do their jobs without constant rehearsals and drills. Corporate leaders should take a lesson: Build flexibility through rehearsals and practice. That approach will prepare them to swing the sails of the ship as the wind shifts direction. Here are some of the elements of a rehearsal-driven approach to conquering rigidity:
Envision and prepare for the unexpected: For lack of a better word, socialize the concept of…
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