Wednesday, September 5, 2012

Sub-Optimizing

As an enterprise grows and begins to compartmentalize into specialized segments or departments, sub-optimization, another natural negative change, will occur in the absence of clear leadership and frequent communication.  Sub-optimization is the condition where a specialty area gives their own objectives a higher priority than that given to the common objectives of the organization.

The tendency is a natural phenomenon and must be managed and controlled.  Where conflict exists between the unit goals and those of the organization as a whole, sub-optimization is damaging and distracting.  For long-term purposeful success the organization must be consistent and proactive in maintaining harmony between the unit’s goals and those of the organization.  Communication is essential in that process.  A sales department’s goal to achieve quota can lead to over promising and under delivering.  The legal department’s objective of protecting the firm from liability can result in one-sided unrealistic terms.  A shipping department’s goal to avoid overtime can result in late deliveries to customers.  The marketing department’s goal for maintaining a uniform message can strangle the organization’s efforts to reach diverse segments of the market.
 
PS: The popular wine blog pullthatcork.com posted a review of The Claret Murders.  If you love good wine,  you will want to read The Claret Murders.  It is available in print for $15.99 or as an e-book, Kindle, Nook or iPad, for $2.99.  

No comments:

Post a Comment