Part 3: What Does It Take to Build a Model for Organizational Development?

Friday, July 30, 2021

Development of Operational Systems. The fourth critical task is the deployment of basic day-to-day operational system, which include accounting, billing, collection, advertising, personnel recruiting and training, sales, production, delivery and related systems. Entrepreneurial companies tend to quickly outgrow the administrative systems available to operate them. Therefore, it is necessary to develop sufficient operational systems, over time, versus to have developed overly complicated operational systems from the start.

Development of Management Systems. The fifth step is to develop the management systems, which is essential for the long-term viability of a company. Management systems include systems for planning, organization, management development and control. Planning systems involve planning for the overall development of the organization and the development of scheduling and budgeting operations. It includes strategic planning, operational planning and contingency planning.

At Momentum Consulting Group, we experience frequently with our clients that the mere existence of planning activities does not indicate that the firm has a planning system. A planning system ensures that planning activities are strategic and ongoing. Organizational structure involves the ways in which people are organized and activities are coordinated. As with the planning activities success depends, not on the mere existence of a structure but on the match between the structure and business strategy.

The process of planned development of the current and future managers is a Management Development System. Control systems are the set of processes (budgeting, goal setting) and mechanisms (performance appraisal) that would encourage behavior that would help achieving organizational objectives.

Questions for you:

  1. Have you planned for the deployment of an operating system?
  2. Do you have a strategic plan to implement an effective management system?