The Operating Dynamic


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	The Operating Dynamic

	The Operating Dynamic is the resultant leadership available to guide and drive a company after all dissonance and misdirection are accounted for. Commonly this is less than the sum of the leadership potential of the individual managers. But it can be much greater. When that happens, you have a world class company that thrives even in hard times. In such a company managers perform beyond anything they could be expected to do elsewhere. Other equally valid terms for the Operating Dynamic are The Will To Compete and Corporate Spirit. The Operating Dynamic is that complex of organizational and human factors that drive and underlie all corporate expectations, motivations and performance. These drivers are entirely within the control of management. They can be easily altered. They cost virtually nothing to change. In all, there are more than a hundred of these drivers, each of which can have a positive or negative value. See list in Fire in the Corporate Belly. However, they break into two major categories: the Critical Functions and the Generators/Blockers. The Six Critical Functions. Customer Orientation Innovation Lean Operations Performance Management Profitable Growth Talent Management Each of these, of course, is comprised of numerous elements. When measured, they provide a Balance Sheet value for the Operating Dynamic. This is either positive or negative. If positive, the Operating Dynamic is driving the company towards success. If negative, it is weakening it. I.e. they show the innate trajectory of the company long before results show in the financials. They are the strongest leading performance indicators. They predict performance further ahead than any other measures. They are easily changed. If they are changed, the trajectory and performance of the company are changed. Studies by McKinsey and the London School of Economics, now of more than 4,000 companies, show that a 25% improvement in three of these Critical Functions results in a 40% improvement in financial returns. Nine Major Generators/Blockers How the Critical Functions work, is driven by the Generators/Blockers. Again these are in the control of management, they are easily measured, they are easily changed. Measuring them, provides the pressure - positive or negative - on the Critical Functions. Changing these, changes the performance of the Critical Functions. Accountability Acknowledgement of Work Adaptability Commitment of Management Cooperation Corporate Assertiveness Corporate Decisiveness Openness of Management Each of these, of course, is comprised of numerous elements. When measured, they provide a Growth and Loss statement for the Operating Dynamic. Both the Critical Functions and the Generators/Blockers can be measured quickly and economically via the web. For information please contact Diane Neumann at 847-599-9960 or DianeN@ManagementConsultants.com