The COVID-19 pandemic prompted a domino effect of unprecedented global disruptions that upended nearly every industry in every region. As industries pivoted to new ways of working, others saw operations stall due to supply chain issues. The details may have differed but the result was the same: Many businesses had to change how they operated.
In a normal economy, organizations maintain a certain threshold of excess capacity to manage increased demand. As the pandemic extended from months to years, companies and individuals had to work beyond their capacity for prolonged periods. The unsurprising result was that workers experienced low morale, while firms recorded high attrition rates.
We call this “organizational breakage.” It illustrates how overwork and stress contribute to employee turnover, which, in turn, can impede company productivity.
There are multiple ways that companies can mitigate organizational breakage.
Companies can get ahead of breakage by prioritizing employee well-being, cultivating work-life balance and providing health and wellness resources. Employee engagement ensures that workers remain satisfied and less likely to leave. At the same time, fostering a culture of feedback means that employees can voice concerns and identify inefficiencies. This allows management to spot early warning signs of potential breakage.
Effective communication from management reduces misunderstandings among teams, while a well-defined hierarchy and clear division of roles and responsibilities ensure that teams execute tasks efficiently.
Companies should also prioritize capacity planning and aim to maintain excess capacity to manage unexpected events. Introduce agile processes that adapt to a firm’s scale, which can prevent breakage due to rapid expansion. Investing in regular training keeps employees’ skills up-to-date, which can prevent breakages due to lack of expertise or knowledge.
Within operations, monitoring key performance indicators can help management identify areas of concern early and implement corrective actions before issues escalate. This includes regular audits of processes, structures and systems as well as investing in new technologies that streamline or automate workflows.
Lastly, the best plan against breakage is assuming the worst may happen again. Having a crisis and contingency management plan will help companies navigate tumultuous times and emerge on the other side without significant breakage.
By preparing for the worst, companies can not only mitigate the risks associated with organizational breakage but also create a resilient and adaptive organization that can thrive in any challenge.
What is Organizational Breakage?
