Thursday, 19 November 2009

How does Leadership impact Organisational Challenges?

In his book "The Search for Leadership – An Organisational Perspective", William Tate contrasts and explains the Business and the Organisation. He succinctly describes the business as having an external ‘what’ focus while the organisation has an internal ‘how’ focus. It’s a simple yet thought-provoking distinction but in our experience with clients we regularly see a disconnection between the two and the inevitable resulting pain.

In essence the organisation exists to support the business on its journey of growth and development, and the organisation establishes systems and processes in order to do that. When things are static those processes serve a company well but business is not static. When business shifts and morphs in response to external factors, it exposes the systemic inefficiencies and limitations in the organisations.