Organizations are like people. Each organization has a body, and like a human body its various departments perform their assigned functions to create a synergic effect for effective overall functioning of the organization. Human body has been created to function according to defined systems, and any deviations from these systems will cause malfunctioning of that body part, which will ultimately affect the body as a whole. Similarly, organizations work according to defined standards and systems, and any deviation will create problems in that area and ultimately affect overall functioning of the organization.
Like a human body, organizations are also affected by law of gravitation. Any activity being performed at the top flows down the body of the organization to its lowest level. Commitment, honesty and sense of purpose demonstrated at the top management level will motivate the people at all levels in the organizational structure. On the other hand, any non-conformance or lack of commitment at top management level will flow down and affect the entire organization.
If one or other part malfunctions, it affects functioning of other parts and also of the whole body. The degree to which it will affect other parts will depend on the role it has been assigned to play. In any organization, top management plays the most important role and any problem in this area will affect the entire organization to a very large degree. Taking analogy to human body it is like AIDS, which affect the strength of its various parts and in turn the whole body, to make it vulnerable to any outside attack or internal disorder. In an organization, we can call it Failure at Top(FAT) Syndrome.
There is lot of awareness in humans about AIDS, but unfortunately organizations have failed to even recognize FAT Syndrome, and accepting that it as an organizational disorder. Whenever there is a problem in any organization, top management starts searching for reasons in other areas. It is considered natural that there can be no problem at their level. This self-certification at top management level does not even allow any body to point out that there might be a problem at the top. If any body does it, he is considered inconvenient and pushed into silence.
When I say, Failure at Top, I do not mean `top’ only at highest level in the organization(unit), but also `top’ in its various departments, sections, groups(sub-units). Failure at top in sub-units affects the organization to a lesser degree and an alert top at unit level can check it. But the failure at top of the unit will lead the organization down the precipice. It has been my experience that where top management is committed to follow a certain work ethics and demonstrate it by examples, the organization has prospered. But if top management has lacked in its commitment, the organization has been beset with recurring problems and eventually failed to achieve its goals.
Many top management think that their job is only to provide money required to run the show, and their managers are responsible for doing the rest. It is like one of seven gates of wisdom to enter the temple of learning. If one gate is by-passed by the seeker, the purpose of going to the temple will be defeated.
Any time a problem is faced, the top should first ask itself if there was a failure at his level and only then cause-searching should enter lower levels. There is every possibility that effect is visible at a lower level but the cause is located at a higher level. Top is always under a close scrutiny of the people. A simple demonstration that top also considers itself vulnerable to failures, will motivate people to be more cautious so that top is not embarrassed with problems in their respective working areas.
Many organizations have been affected by FAT Syndrome. I wish to make them aware of it. Prevention is better than cure. Control FAT, lead by examples and achieve success.
If a top management wants to operate its organization successfully, it is necessary to manage it in a systematic and visible manner. The eight quality management principles are the key. These principles have been developed for use by top management in order to lead the organization toward improved performance. Successful use of these principles by an organization will result in benefits to interested parties, such as improved monetary returns, the creation of value and increased stability.
Customer focus - Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.
Leadership - Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization’s objectives.
Involvement of people - People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization’s benefit.
Process approach - A desired result is achieved more efficiently when activities and related resources are managed as a process
System approach to management - Identifying, understanding and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objectives.
Continual improvement - Continual improvement of the organization’s overall performance should be a permanent objective of the organization.
Factual approach to decision making - Effective decisions are based on the analysis of data and information.
Mutually beneficial supplier relationships - An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.