“The world that we have made as a result of the level of thinking we have done thus far creates problems that we cannot solve at the same level as the level we created them at.” – Einstein
Organization in its life cycle goes through many ups and downs. To diagnose the root cause it is necessary to administer Organizational Diagnosis. The tool identifies the areas of concern to be addressed and an effective analysis gives details of the problem and opportunity to discuss, debate and conclude the solution to overcome the challenges.
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An engineering company, specializing in Designing, Piping and EPC for the oil and gas industry was struggling to stay above board with multiple losses. The organization was not sure of the factors that are impacting them adversely and had taken some initiatives but after little success the same failed over a period of time. After our initial discussion we concluded that the “Organizational Diagnostic Survey” would highlight the reasons for the business going down and a detailed study was mandatory.
Catalysts stepped in, to turn things around. We met employees in person, understood their concerns, and addressed issues through multiple meetings with individuals and groups over a period of time. We did due diligence to understand the financial status of the organization, Worked with the client to understand the image of the organization in the marketplace, went through the contract and its terms to understand the supply chain systems and processes. Our efforts reinforced a confidence about the longevity of the organization and helped us define the employees impact, streamline performance, and create a monitoring system to identify deadwoods and gaps.
The organization diagnostics revealed that there were structural issues – the Managing Director was entrusting the running of the company on the good will he had garnered over the years without a system to maintain the functioning of the organization over time. The Second line of Command was not ready for a takeover, which made the employees feel uncertain about the organization’s future that resulted in many leaving the organization.
This led to an inability to successfully execute orders or deliver good quality work, resulting in a loss of staff, drying of orders, adversely affected working capital, and delays in penalty and payments.
Post this, we sourced leaders to head operations, inducted professionals as directors with profit sharing, and developed an exit plan for the present MD and Board of Directors.
Eventually the company was taken over by the new Board members and it witnessed a turnaround within 24 months – churning profits and cutting losses!
