Sunday, August 15, 2021

Tradeoff Practices

Organizations today have to become more purpose-driven and people-centric by making tradeoffs, setting priorities, identifying leverages and creating business synergies.

Nowadays there are so many things going on, with risks and pitfalls, distractions or disruptions. Businesses have limited resources and they can’t chase all emerging opportunities. Planning and forecasting become challenging, business leaders have to set the right priority and make necessary tradeoffs almost on a daily basis for leveraging resources effectively and leading changes seamlessly. 

To improve people-centricity, they have to create an environment in which customers are satisfied and employees can be successful.

The trade-offs of different business management dimensions:
There are so many things going on in organizations nowadays, different stakeholders pull the business from diverse directions, frictions or change inertia are the normality, in the worst case scenario, organizations get stagnated if not balancing smoothly. From a management perspective, to leverage resources, assets, and time effectively, it takes a logical approach to consider the trade-offs between operational excellence, products/services quality, and customer intimacy. For many companies that get stuck at the lower level of business maturity, it’s difficult for them to be good enough on all three dimensions depending on the nature of their industry, as well as which stage they are at the business development cycle.

To climb up the organizational maturity pyramid from functioning to firm to delight (employee engagement + customer satisfaction), organizations need to make certain tradeoffs for balancing growth and stability, putting product/service innovation on the top, customer relationship/human capital in the middle, and operational excellence at the base. The business management needs to do technical analysis by following people-centricity principle: Customers are the reason for operational existence while Human Capital are the asset to reach critical business targets, and as enablers for operations. High performance management develops deep interpersonal relationships with their employees and focuses on achieving excellence. To take steps further, it’s important to keep innovating new business models/products/services to delight customers and reinvent the business on a continuous basis.

The tradeoff of business stability via current IT infrastructure and accelerated growth via IT consumerization:
Information Technology is the very glue to integrate varying components into differentiated business competencies, it could also turn out to be the hassle causing business stagnation. IT architecture design and deployment are not for their own sake, but have two purposes: one is to describe how IT supports the “maintenance” and “keeping the lights on” efficiently; the other is to articulate how IT enables business change and accelerates business growth. It's about delivering IT-enabled business solutions with continuum. Perhaps IT leaders need to make tradeoffs on how they allocate resources scientifically based on their risk appetite to implement IT strategy which is an integral part of the business strategy; make an objective assessment on whether the current vision is implemented and in the various stepping stages on the way to the “nirvana.”

In practice, it is important to listen, engage and nurture relationships with both end customers and internal users, build an integrated view of business insight derived from information extracted via different sources. Methodologically, the alignment with architecture, design, and functions is ultimately where you need to be to really make a difference (products/services/ capabilities, etc.) Many IT organizations struggle to catch up with business speed and are perceived as cost centers, though forward-looking IT leaders envision their organization as a change agent and growth engine that rides learning curves ahead of the rest of the company. Thus, they have to make some tradeoffs by communicating with varying stakeholders to ensure that business is not only moving forward with continuum, but also capturing the emerging trends such as IT consumerization to innovate business solutions and enhance personalization, etc. Sometimes, when one business area has a new product or ideas that can be used by another, IT leaders can connect the dots to scale up to reach the next level of innovation maturity.

The tradeoff of employee satisfaction and customer delight: Although every forward-looking organization intends to build a people-centric organization, very few of them see the interconnectivity between employee satisfaction and customer satisfaction. Will that cause conflicts sometimes if customers are satisfied but employees feel resentful; or if employees command and control, so customers feel frustrated, etc, psychologically, economically, technically, so ultimately, businesses lose and organizational brand is tarnished. Employee Satisfaction is a company’s ability to fulfill the physical, emotional, and psychological needs of its employees; whereas Customer Satisfaction is a company’s ability to fulfill the business, emotional, and psychological needs of its customers.

Organizational management needs to make necessary tradeoffs from diverse perspectives of stakeholders in the business and focus on your top strategic priorities at the moment. If you need to retain your best customers or approach the new market share, then customer satisfaction is critical, business management and employees need to work hard and smart, proactively concentrate on keeping customers happier by putting more resources, time, and talent on them. From the inside out perspective, if your employees have lower morality, not being put in the right position to solve the right problems, you need to set the right priority to make better alignment first, otherwise, customers will suffer later on. Customer satisfaction is the key to boost up business and make profit; Employee Satisfaction is a key determinant for strategy management success. The best practices for people management include a better understanding of people through empathy and better empowerment.

The new paradigm arises out of new knowledge and the emerging trends to reinforce the very characteristics of the business enlightenment. Intentional human behavior always has a purpose. Organization composed of collective human beings, is intentional, and therefore, it must have a purpose for creating satisfied customers and forming strong teams to achieve a high-performing result. Organizations today have to become more purpose-driven and people-centric by making tradeoffs, setting priorities, identifying leverages and creating business synergies.


The great thing about this post is the quality of information. I always like to read amazingly useful and quality content. Your article is amazing, thank you for sharing this article.

Are you looking for the best digital marketing training in Jaipur? You are in right place. Dzone is offering you the best digital marketing training with a great learning experience and practical exposure. We offer you a practice-oriented real-time digital marketing course. To know more contact us at 9829708506
Or can visit our website:

Post a Comment