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Listen "Episode 122 - There are no departments/ units/ divisions in companies, there are only ideas and conflicts of ideas"
Episode Synopsis
Departments like Finance, Sales, … are constructs (to label and structure where people are)
What really exists are problems: conflict of ideas
For example: Finance wants customer payment periods shortened for working capital reduction, sales want to give longer payment terms. 2 ideas are conflicting here. You can never say that Finance deals with this, because sales is going to counter argue.
The solution to the conflict is never black and white IN a particular department
It is a mistake to think it should. “We are finance so we decide on payment terms”
It is all cooperation around a conflict of ideas from both sides. The solution that is implemented CAN EVEN come from a sales guy … or from any outsider. And those can be good solutions.
Or a sales person can criticise an initial solution from Finance, making Finance change their solution. Can you then say that the Finance department solved it ? No you can’t
What is the concrete implication: do not restrict solutions too narrowly to departments, set-up open, cross-functional teams to solve these problems, understand that solutions evolve via criticisms from many parties, making them eventually much better than the initial idea
What really exists are problems: conflict of ideas
For example: Finance wants customer payment periods shortened for working capital reduction, sales want to give longer payment terms. 2 ideas are conflicting here. You can never say that Finance deals with this, because sales is going to counter argue.
The solution to the conflict is never black and white IN a particular department
It is a mistake to think it should. “We are finance so we decide on payment terms”
It is all cooperation around a conflict of ideas from both sides. The solution that is implemented CAN EVEN come from a sales guy … or from any outsider. And those can be good solutions.
Or a sales person can criticise an initial solution from Finance, making Finance change their solution. Can you then say that the Finance department solved it ? No you can’t
What is the concrete implication: do not restrict solutions too narrowly to departments, set-up open, cross-functional teams to solve these problems, understand that solutions evolve via criticisms from many parties, making them eventually much better than the initial idea
In God we trust