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Knowing When Corporate Headquarters Adds Rather Than Subtracts Value

February 14, 2016
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Warrick Long

Big IdeaWe have probably all experienced the program lumped upon us by head office, who is far away and (in our view) wouldn’t have a clue what does and doesn’t work at the coalface. Or we may have been in an organisation where the senior leadership introduces “efficiency measures” that make their life easier, but adds significantly to the load of the already overworked employee who actually does the work of the company. Andrew Campbell and Gabriel Szulanski, writing for consulting firm McKinesy and Company have addressed this in an excellent article, which you can read in full here.

In summary, the authors propose three tests that every proposal should have to meet before being unleashed on the company. These tests are:

  1. Whether the project adds significant value
    In asking this, the proposed value needs to be real, and not simply promises of what is perceived should happen. This brings into play the question of how this value has and will be measured, and some form of accountability for it.
  1. Whether there are risks of unintended value subtraction.
    This entails looking at the complexity of the projects, whether it will decrease the engagement of existing entities and employees, and other potential risks.
  2. Whether the initiative will encounter barriers to implementation.
    The article authors list 9 specific barriers, which they have researched and found to be the most common. Their research also indicates that if an initiative meets three or more of these barriers, then it is less likely to succeed. These barriers are:
  • Actions needed for a good outcome are poorly understood;
  • Little evidence that the proposed change will yield improved results;
  • The designated change agent is not motivated to lead the project;
  • The change agent does not have credibility;
  • People whose contribution to the project are needed aren’t interested;
  • People who will have to change their behaviour will probably find it hard to do so;
  • Few spare resources are available to help those who need to change;
  • There is little contextualised pressure to motivate change;
  • Managers concerned have a history of poor relationships.

When you next propose a change within your organisation, run it past these three tests and see what its chances of success really are. The challenge is to have the courage to admit your brilliant idea just might not be the right thing at this time.

The Avondale Business School can help you with change management in your organisation – find out how by contacting Warrick Long at the Avondale Business School.

E: [email protected]

P: 02 4980 2168

About the author: Dr Warrick Long is an experienced chief financial officer, company secretary and company director, having worked for more than 35 years in the not-for-profit sector. From 2013 to 2024, he was part of the Avondale Business School (ABS) lecturing as a leadership and governance specialist and coordinating the Master of Business Administration and a leadership and governance specialist. Since late 2024 Dr Long has been serving as the Chief Financial and Operations Officer for Avondale University and undertaking some casual lecturing in the ABS. LinkedIn

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