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Executive Team Effectiveness

We are being asked by more and more clients to look at leadership effectiveness – not only at individual level – but also as a collective board or executive team.

For example, production and supply chain leaders are increasingly encouraged to work with customers as participants in customer innovation processes and knowledge share.  Sales leaders are encouraged to collaborate better at sales and operations planning stage and so on.  We call this the Enterprise Level.  Indeed, leadership is about the sum of its parts as well as at individual levels.

Our partners at SHL have recently launched their Enterprise Leadership Model which we are currently introducing to clients who may need to improve governance and collective decision making.  We have long found that collaborative cross functional working is a major concern to many organisations.

Technology such as ERP has not been successful at helping to raise the performance bar for may organisations who still suffer from silo mentalities, narrow departmental working and dysfunctional collective leadership.

Focusing on a common goal with collective decision making reaps benefits.  CEB estimate:

  • An impact of 12% revenue growth for the leader’s business unit
  • An impact of 5% revenue growth for other business units
  • Teams led by an enterprise leader are 68% more innovative and 21% more adaptable than teams of individual leaders
  • Teams experience higher levels of engagement and customer satisfaction when their leader is an enterprise leader compared to an individual leader.

The nature of decision making has changed in recent years as the complexity of decision-making processes has increased, the need for good corporate governance has become more pressing and the importance of high-performance work practices is proven.

Only 1 in 10 leaders are at this level so how do we facilitate change to help leaders to improve?

  1. Assess capability objectively both at individual and collective levels. We use The Enterprise Leadership model from SHL.
  2. Make sure effective governance is in place to collectively provide objective oversight
  3. Ensure network leadership is in competency models.
  4. Re-engineer the corporate culture to encourage collaboration, cross functional working and so on throughout the enterprise
  5. Discourage silo-based thinking through communication and a shared vision
  6. Involve leaders at every stage of the decision-making process
  7. Be empowered to make change happen!

Contact Matthew Davis medavis@theopg.co.uk or call him 02380 236944. Alternatively, see our related article on top team effectiveness by clicking here.

The Occupational Psychology Group has been a leading business psychology consultancy since 1991. We provide online assessment for a growing list of clients and offer both bespoke solutions and SHL OPQ32 reports. Our business focused consultants understand business and they understand how people make the difference to performance and capability.

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