An organizational structure that enhances organic collaboration may not be inherently efficient, but Studios Architecture finds that in some regards, ambiguity builds success.
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LEAP is a strategic assessment tool developed by The Greenway Group that appraises the likelihood of profitability in a design firm. At its core is the assumption of a four-fold basis of success: leadership, empowerment, accountability, and processes.
If a firm is to find success in today’s challenging business environment, it must be focused on maximizing profits organization-wide. Neither a firm’s size nor its reputation guarantee continued success. Employees must be empowered to do their jobs, but they must also be held accountable for results. A management system needs to be in place to drive revenues and profits.
The following self-evaluation from Greenway allows firms to determine if they have a management system and culture in place to succeed at the highest level.
Check off each item below that is fully implemented at your firm.
• All employees know and understand the top priorities of the firm, and their job activities are focused accordingly.
• Employees are empowered to do their jobs, and they understand the need to link empowerment with accountability.
• The strengths and weaknesses of the firm are known and being acted upon accordingly.
• All employees are accountable by specific, measurable, and time-framed individual objectives contributing to the success of the firm.
• Priorities, objectives, and accomplishments are periodically reviewed and adjusted.
• The employee appraisal process and salary administration are linked to what makes the firm succeed.
• All employees know what salary increases are based upon.
• Incentive compensation plans are linked to what makes the firm succeed.
• A formal annual planning process is in place and involves all employees.
• Managers and staff embrace a management system that enhances the firm’s culture, promotes teamwork, and makes everyone more productive and effective.
• A current and easy-to-update strategic plan is in place that drives revenues and profits.
• Revenues and profits are growing as a result of happy clients, happy employees, and happy owners.
• Double-digit pre-tax profits are consistently achieved each year.
If you checked 11 to 13: Congratulations on a great management system that drives profitability.
If you checked 8 to 10: You may need to fine-tune your management system.
If you checked 1 to 7: You need to make significant changes to maximize profits.
For more information: http://greenway.us/leap.
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