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Is Organizational Renewal the New Phenomena to Achieve Success? In the ever changing world of business, new products and services, technological and social media trends, political, legal and economic shifts demand continuous investment in a company's human capital

By Khalil Zafar

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Today's dynamic and competitive business environment requires innovation. Self-satisfied organizations cannot stand up to the remarkable external forces at play in today's turbulent global economy. Organizations of the current era require exceptional quality of leadership and business processes if they are to renew themselves and become a receptive and motivated enterprise proficient of sustaining success.

The concept of "organizational renewal" is completely different from organizational development as the entire dynamics shift when the change in the company is being managed, keeping the changing business environment as a primary focus. Therefore, to be successful, organization must develop a leadership style, business process and culture that can effectively handle the challenges and prospects that might come up. A management style that was adequate under one set of conditions may become progressively less effective under changing circumstances. Thus, organizational renewal results in preventing corporate entropy.

Unfortunately, for business leaders and managers, there is no proper literature available for learning and implementing organizational renewal. But through the following set of points they can surely achieve their desired results.

Align Top Leadership

Business owners and its managers do not usually invest enough time in their own professional growth and seldom develop into experienced business managers. Specifically, their employee management skills never fully develop and as a result they are unable to build and retain high performing teams. So, the first step is to align leadership, make them realize what true leadership is and what role they now have to play in an organization. This can be achieved through various types of leadership development programs.

Develop/Modify MVVs

Mission, Vision and Values (MVVs) provide a clear path to organizational success. Leaders must live, breathe and preach MVVs at all stages of the corporate structure. The leadership team must clearly set down well defined and easy to understand statements of the company's mission, vision and values and make sure everyone working for the company understands them well. To encourage a culture that is mission-oriented and value-based has crucial implications for long-term growth.

Implement Leadership Pipeline

Bringing in the leadership pipeline model intended at developing new managers, managers of managers, functional managers, business unit managers, group managers and enterprise managers also produces tremendous results. Each employee must know what set of skills and behavior they require in their current and aspired roles.

Fine-tune Strategy and Business Model

Building a successful corporate strategy is about getting a corporation to achieve and then withstand its performance. It is vital to analyse competitors, pricing, key legal and economic challenges so that the company can be able to create value by coordinating and configuring its market activities. It is important here to differentiate between corporate strategy and business model. The first one is about making precise choices about where you are going to play and how you are going to win as an enterprise; a business model is about how you are going to create and capture value for stakeholders.

Introduce and Monitor Financial Management

The top management in collaboration with the CFO must plan revenue growth, 5-Q rolling forecast, budgets and all of this must be documented and communicated as financial goals. Along with that, financial KPIs for corporate success that can measure progress must also be implemented and monitored to have complete control about "where is the business going this year".

Adopt Process, Policies, Procedures and Performance Predictors (PPPs)

Aligning your employees' goals with the needs of organizational PPPs means their goals are aligned with the goals of the organization. Through well-defined business processes, job descriptions, standard operating procedures and HR manuals, which are overall linked to the MVVs and corporate strategy, the organization can adapt to any change taking place in the business arena.

Differentiate Through Performance and Values

Managing people is different than managing numbers. In the ever changing world of business, new products and services, technological and social media trends, political, legal and economic shifts demand continuous investment in a company's human capital. Leaders must reward their star employees and coach/train/mentor who needs assistance in performance. But remember, never think all employees are equal; be prepared to make tough calls if corporate strategy and MVVs are at stake. It means getting rid of even the high performing employees, if they do not match the organizational renewal action plan.

Total Talent Management

Make sure the employees receive training and coaching, are well appraised, compensated, rewarded and respected. Through a total management system, company can increase profits through higher performance outcome and employee retention.

Technology Application

Companies not willing to adopt or keep pace with technological changes will not survive. Make sure the maximum processes are automated; it helps in better management, reduces errors, increases productivity and results in higher transparency.

Note: This particular model of organizational renewal plan is developed by the writer himself through his experience of working with different senior strategy and management consultants. The companies can add and remove any point based on their industry and budgetary constraints.

Khalil Zafar

Senior HR and management consultant


Khalil has over 10 years of rich and progressive international experience in strategic HR, training, leadership development, talent acquisition, organizational renewal, business process automation, performance management and organizational/strategy development.

Currently he is working as senior manager HR/ Partner-Organizational Renewal at Straxecute Consulting (UAE & Pakistan). He is also a professional trainer/instructor who has not only delivered trainings to corporate clients, but has also taught students at higher education level to help them develop their management knowledge and skills.

 Khalil has completed a M.Sc. in Organizational Psychology/HRM, along with a master's degree in mass communication. He is also an IRCA certified internal auditor for quality management systems.

He has taught people from different nationalities including India, Pakistan, Philippines, Lebanon, Jordan, Cameron, China, Scotland and Canada.  


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