The Power of Relationships

When we ask ourselves who within an organization has authority in a certain area of the company's operations, we tend to automatically want to check the organization chart. That's not a bad thing. Organizations all rely to some extent on the concepts of hierarchy, authority, accountability and decision rights. Organization charts help to communicate responsibilities and accountabilities for business activities and functions.

But a narrow, organization chart-focused approach to doing business can keep companies from developing creative thinking and teamwork. Excessive concern for decision rights can lead employees to resist taking initiative on the grounds that "it's not my job or area of responsibility." The result is that silos arise around operating areas and functions, leading groups or divisions to function almost autonomously from each other. On its own merits, a department may be very efficient–but if it fails to operate in sync with the organization it will fail to add as much value as it could.

The Real Potential of an Organization

The way to unlock the potential of an organization is not to define ever more specifically who is responsible for which decision. The real potential of an organization is in the relationship between motivated individuals and groups and the mission of the organization as a whole.

Emerging growth companies need to focus on the power of relationships-vertical and lateral relationships within the organization and relationships between the organization and the world outside it. This basic fact is captured in statements we have all heard: "all of us is smarter than one of us" and "the whole is greater than the sum of its parts".

Company founders and CEOs would do well to look hard at their organizations to see how well individuals and departments are connected and working together. Is there common understanding and connectedness towards achieving an outcome? Are different groups cooperating to address such core processes as supply chain and customer service-that by nature cut across departmental silos such as Marketing, Sales and IT? Is there honest communication that allows people to express issues and disagreements openly and constructively?

You should direct even more scrutiny at the frequency and quality of interactions with vendors and customers. Are you hearing about issues, problems and opportunities from vendors and partners? Are they working together with you to achieve their goals? The future of your business depends on getting honest feedback from customers about how well your products and services fit into their direction and plans.

Companies that emphasize the quality of relationships and teamwork across department lines and with key outside stakeholders are in a better position to leverage their collective knowledge and power for long-term, sustainable success.

This article was sent to is by Jordan Berliner and authored by Keith Richards, both partners at** Newport Board Group**

Newport Board Group is a nationwide partnership of approximately 100 C-level executives who work with CEOs of companies in two kinds of crises - a difficult period a company or its CEO may be going through -or- the "crisis" of growth where growth must be planned for and sustained or the company may stagnate or fail. We also work with companies planning or during a transaction.

We are experienced in:

*Getting to the core issue/need

*Determining needed action

*Implementation

to increase corporate effectiveness and value. In serving our clients, each partner has access to the industry and operating experience of all the other partners to focus our firm's total experience on our clients.