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Leading in a Complex Environment
The Great Recession has forced organizations to revolutionize their processes and do more with less. This is particularly evident in large, critical, and complex program initiatives — from large government programs to reorganizations of corporations. The leaders of organizations in every sector are being challenged to evolve processes; during the current financial crisis, leaders of auto manufacturers like GM, Chrysler, and Ford faced the great challenge of restructuring in the face of huge financial losses. The same was true for several major financial institutions, which failed, were acquired under duress, or were subject to government takeover. Those that survived faced significant changes to function in a new environment.
The federal government has also begun an overhaul that will require immense leadership resources. For example, the Obama Administration is currently conducting a data center consolidation, which aims to drastically reduce the number of federal data centers that currently exist. Not only that, but the Administration also announced that it would align the consolidation with a data sustainability program. This monumental undertaking will be coordinated by several large organizations, including the Office of Management and Budget (OMB), the White House Council on Environmental Quality and the Federal Data Center Consolidation. An OMB memo released in November 2010 stated “The FDCCI seeks to curb this growth by reducing the cost of data center hardware, software, and operations; shifting IT investments to more efficient computing platforms and technologies; promoting the use of Green IT by reducing the overall energy and real estate footprint of government data centers, and increasing the overall IT security posture of the government.”
Elements of Complex Programs
It is clear that large organizations need to strategize for long-term success. And the eventual success of these programs no longer hinges on the selection of the right or even ‘best’ technical option; corporations and the government must recognize this and devote talent and resources to the program areas and factors that are high risk in today’s environment. Key initiatives include ensuring that strategy takes potential outcomes into consideration; launching an effort to build commitment and align stakeholders; and developing an integrated, outcomes-based program management approach that takes the above two factors into account, manages results through balanced-scorecard style performance metrics and data, and can adapt over time as the requirements and stakeholders change (Suntiva’s Executive Insights Q4 2007). But added complexity grows the challenges that leaders of large programs will face.
“Complexity” from a leadership standpoint does not only mean “big,” but it also involves:
- Many stakeholders with differing viewpoints that you can influence, but not direct;
- System complexities (security, availability, accessibility, and data integrity);
- Priorities, agendas, and objectives that shift and change as political and leadership changes occur (such as “green” initiatives that increase short-term costs);
- Shrinking budgets;
- Aligning agendas and communication across multiple organizations.
Leaders must address each of these elements in terms of their technology, project management, and operational needs.
Strategies for Success in Complex Programs
What can one leader do when he or she is just one of many leaders or must guide a complex, multi-faceted program? The prospect can be overwhelming. But there are innovative strategies that leaders can use to help keep things on track, keep people focused and engaged, and promote success.
- Create a clear program baseline. Creating a plan might seem obvious, but the importance cannot be overstated. When a plan is in place that reflects cost, schedule, resourcing, critical path, and other factors, knowledge-based decisions can be made in the face of unexpected changes or budget cuts that minimize detrimental effects to the program.
- Learn how to “lead through influence.” If you can’t directly change the course of a project, you can influence the environment that might encourage effective change. The more elements you influence, the better your chance at success. This is called “overdetermination.” Leaders must overinvest in efforts to change employees in individual, social, and structural areas. Offerings such as trainings, organization redesigns, or mentoring programs can all be helpful; only using many of them exponentially increases chances that any program will succeed.
- Align stakeholders. Consider ways to better align key stakeholders and reduce churn. “Success” might mean different things to different stakeholders: for example, for some success means achieving key cost and schedule metrics; for others, it means delivery of new or increased capability to the warfighter or to citizen constituents. Communicating with and developing common goals among stakeholders is important; all stakeholders’ goals should be considered.
Today, many large organizations in the U.S. are facing a new reality – and not just as a result of the economy, but also as a result of internal change. Automakers, financial corporations, and government organizations are all facing these challenges now, and they are more complex than ever – while also undertaking programs and technology agendas that are as complex as ever. Often, it can seem that the needs of these complex programs are insurmountable; but planning, innovative leadership techniques, and clear communication among all stakeholders will help ensure the success of any project.
