I’ve just finished reading a new book called “Creating a Collaborative Enterprise, Retool Your Organization to Dominate Your Markets” by Robert Nitschke, or Bob as he is known in more casual settings. (http://creatingacollaborativeenterprise.com/) Bob’s thesis is that companies that are passionate about collaborating with stakeholders (including employees) to provide customers with superior products and services are more successful in the long run than those who rely on command and control approach to management.
I have worked on the implementation of over 150 enterprise resource planning (ERP) systems around the country and in that group I think I worked with only a couple of companies that might be considered Collaborative Enterprises (CE). And the more these companies leaned toward being a CE the more successful they were in the ERP implementation.
One in particular comes to mind. This company had a factory that configured products to customer orders and manufactured products for stock. They had a retail store and a catalog store (these days an online store). This required the deployment of 3 different systems all of them integrated, a complicated task.
The day of the implementation kickoff meeting the President gathered the team of about 10 people and told them why they had been selected (they were each key players in their departments) and what the objectives were (bring the company systems into the 20th Century) and why they were doing the project (to support growth). She also told them she expected them to run the project, keep her apprised of the status and to let her know any barriers they encountered. She also coached the project leaders in how to lead (delegate and coach).
At the end of the implementation the project was several months late, somewhat due to technology issues, but it came up relatively smoothly and helped take the company to the next level.
By contrast I worked with two companies at the same time who were essentially sister companies. They had separate ownership but the exact same business model in the same industry and operated in different states. One had some hints of being a CE (the President was a delegate and coach type) and was quite successful in the ERP implementation. The other was run by a President who was a total control freak. For example he negotiated all of the raw materials purchase contracts and wanted us to modify the software to prevent the purchasing agent knowing what their costs were. This company never did finish the implementation and last I heard instead was headed down the path of spending five times as much on a custom developed system.
The first company was truly a pleasure to work with and close to a CE in part because they were customer-centric, community aware and fostered a culture of self-guidance and self-motivation. They strongly encouraged and facilitated employee growth and I was envious of those who had the privilege to work there. As I read Bob’s book I thought of all three companies often.
I have also been involved with good and bad ERP implementations. The “good” were examples of companies where management were involved and did not have a habit of looking for the guilty and prosecuting them. The “bad” were characterized by a circus atmosphere where key managers actively avoided responsibility for their involvement in supporting the project. They would not attend meetings, would not agree to business rules but were quick to point a finger at the “current” project leader as ineffective and “the problem.” The attitude and character of an organization is set by the leadership team and CEO and in the case of a significant implementation as an MRP system requires this support from the top down through thick and thin.
Bob Nitschke’s book details how a Collaborative Organization creates an environment where boundaries between departments are lowered and working relationships across the company are encouraged. This proactive atmosphere results in a much stronger business model and a much more enjoyable work climate for employees. The real benefactor – the customer.
Mike Brice
Thanks Mike. It is very interesting how much of an influence the CEO has on the culture of the organization whether they are large or small. Being a CE really starts with the person at the top.
It’s amazing how productive and successful organizations can be when they operate as a collaborative enterprise. They’re more innovative, more competitive, more sustainable, and just more fun to work for.
Who doesn’t want to work in an environment of communication, cooperation and commitment?