by Peter A. Arthur-Smith, Leadership Solutions, Inc.®
“Organizational effectiveness does not lie in that narrow minded concept called rationality. It lies in the blend of clearheaded logic and powerful intuition.” Henry Mintzberg, Cleghorn Professor, McGill University
Participation in a very recent Webinar orchestrated by a sizeable, Texas based trucking company and listening to its challenges, especially in light of COVID, was a sharp reminder of its industry expectations. There are clearly many day-to-day perp-lexing matters to be addressed: including driver availability, increasing insurance costs, constant litigation headaches, and ongoing resource issues. Such headaches are ever present, especially combined with all the uncertainties surrounding COVID. How are trucking ventures supposed to handle these factors in a more effective or efficient way?
One of the first questions which will clearly help us, is to understand the distinct differences between ‘effective’ and ‘efficient’? We so often confuse the two and yet they are quite separate factors, which can have a significant impact on either our near-term or longer term performance. Efficiency is more about cutting costs and squeezing value, while effectiveness is more about breakthroughs and adding value.
We so often undermine our ongoing success by using them in the wrong place at the wrong time. In fact, while ‘efficiencies’ have their place in dealing with post-lockdown challenges, it will be ‘effectiveness’ thinking that will ensure your venture’s durability over the longer haul. Let’s look at some practical comparisons to put things into perspective:
Efficient Effective
» Relatively quick, easy wins » Deeper, longer-lasting wins
» Relies upon either-or outcomes » Looks for wider creative options
» Squeezes on resources » Optimizes overall resources
» Allows for expeditious solutions » Finds more profound solutions
» Depends upon financial acuity » Depends on behavioral acuity
» Demands ‘penny-pinchers’ » Needs a breakthrough team
» Often driven by owner/ » Usually driven by customer/ shareholder imperatives marketplace imperatives
There’s no doubt that there aren’t easy solutions to the trucking industry’s driver, insurance, litigation and resource issues: and there won’t be any silver bullets either. So the question is with its clear advantages: ‘How can we use effectiveness to give us a clear edge on these key issues?’ Effectiveness means working toward optimum rather than perfect solutions and avoids those efficiency-minded quick wins that often haunt us later.
Did you know that efficiency thinking created our chronic paper-towel shortage during the Pandemic? Cut-to-the-bone manufacturer efficiencies allowed for no extra capacity to meet the demand spike.
Your best bet is to put together a breakthrough team led by a strategic thinker rather than an efficiency-minded manager. That person should be a good listener, relatively humble, have a sense of humor, be a sound thinker, and be appropriately tenacious in focus. (S)He will then gather around them a temporary team of six, diverse minded individuals drawn from different domains within your organization. Once that team is assembled and properly briefed, it should proceed as follows:
» At their first session: a general discussion about their assignment. Then split into two groups of three to prioritize those four areas in terms of vital impact – driver availability, insurance costs, litigation headaches and resource issues. (NOTE: They then compare notes to negotiate a final, prioritized listing. That listing will be noted by their overall breakthrough team leader.)
» Now they can split into three complementary ‘pairs’ to take on their top three issues.
» ‘Pairs’ can be enormously productive work units – to research and summarize the factors that are key to a possible optimum, issue solution.
» At their next meeting, every pairing should then brief each other on what they discovered. Other team colleagues can then chip-in with fresh ideas that may help a potential solution. Each pair should then enlist five other members from across their venture to contribute insights to their priority.
» These three expanded teams can then flesh out breakthrough initiatives as follows: WHAT are we going to focus on? HOW should we proceed in defined ‘moves’? WHO will pursue those defined ‘moves’ – from their expanded team? WHEN will those ‘moves’ be completed by? WHERE will they go for internal or external advice for additional input? Their overall team leader will rotate among them.
» Once these initiatives are ready these expanded, breakthrough teams can then share their added thoughts with each other and proceed as promptly as possible.
» Ongoing briefings: your overall breakthrough team leader should give you regular updates.
» Success celebrations: encourage those three breakthrough teams to celebrate their recommended actions in some prudent manner to acknowledge their contributions.
(NOTE: As the overall breakthrough team sponsor: if you feel insufficient progress is being made, you should either negotiate for a fresh overall team leader or a change in team members; in order to make positive progress.)
With the right goodwill, there’s every reason to expect some valuable and effective proposals. Not only will breakthrough team members enjoy being empowered to contribute, they will likely find it a great discovery journey. With prudent celebrations upon completion, they will look forward to the next opportunity.
So instead of feeling perplexed about some thorny COVID related industry issues, give breakthrough teams an opportunity. Not only will they enjoy the challenge, it will increase their commitment to your venture. They will also better understand the differences between effectiveness and efficiency – to your firm’s advantage.
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