The real problem leaders underestimate
Most GCC organisations don’t fail because they lack strategy. They fail because their operating model still encodes yesterday’s assumptions:
- Centralisation by default. Decisions escalate upward “for safety,” creating delay and dependency.
- Informal exceptions as a parallel system. When relationships override rules, processes can’t scale cleanly—especially when automation is introduced.
- Project thinking instead of product thinking. Teams deliver initiatives, then disband, losing learning and ownership.
- Governance fused with operations. Emotional priorities (legacy, harmony, control) spill into execution design, slowing trade- offs.
- Bureaucratic drag accumulates silently. Approvals, meetings, and duplicative reporting expand until they become the operating rhythm.
In short: enterprises try to run a modern strategy on a legacy engine. That mismatch is what creates “transformation fatigue.”
The framework: the RECODE model
A practical way to “reboot business DNA” is to rebuild the operating model around six mechanisms leaders can implement and audit. Use RECODE:
R — Rebalance stewardship and management
Clarify what belongs to the family (purpose, values, ownership policy) and what belongs to management (performance, execution, capability building). This reduces emotional interference in operational design while protecting legacy.
E — Engineer decision rights
Stop relying on escalation as the safety valve. Define decision rights explicitly—what can be decided at the edge, what requires escalation, and what triggers board involvement. Many GCC groups use variants of RAPID (Recommend–Agree–Perform–Input–Decide) to make this practical and teachable.
C — Capability heatmap, then invest
Map capabilities (what the business must be able to do) rather than debating structures (who reports to whom). Prioritise the few capabilities that are both strategically critical and operationally weak—then resource them like a portfolio, not a wish list.
O — Operating rhythm that replaces heroics
Install cadences that reduce ambiguity: weekly dependency reviews, monthly “stop lists” to retire low-value work, and quarterly resource reallocation. The goal is to make alignment repeatable—so performance doesn’t depend on the chairman’s availability.
D — Dual-speed “stagility” design
Not everything should move at the same pace. Keep high-risk, cash-generating cores stable (with clear controls), while running innovation domains with agile pods, faster funding cycles, and outcome-based accountability. This avoids “cargo-cult agile” and preserves reliability where it matters.
E — Evolve the talent engine
Shift from loyalty-based retention to skills-based mobility. Build internal academies, rotate talent into priority capabilities, and define progression by scope and impact—not headcount. This is how resilience becomes institutional, not individual.
What good looks like
When a GCC enterprise successfully reboots its operating model, you can see it in behaviours:
- From escalation → boundary clarity: fewer approvals, more defined authority bands.
- From meetings → mechanisms: decisions move because the cadence is built, not because someone “chased.”
- From projects → products/value streams: stable teams own outcomes end-to-end.
- From exceptions → designed pathways: relationships still matter, but they stop breaking the system.
- From founder-dependence → institutional continuity: the business runs without single points of failure.
A simple test: If a senior leader is unavailable for two weeks, does execution slow—or does the system keep moving?
How to execute: 6 steps
- Run a “DNA scan.” Identify where decisions bottleneck, where exceptions override process, and where reporting replaces action.
- Publish decision rights for the top recurring decisions. Codify escalation triggers and timelines.
- Build a capability heatmap. Pick 3–5 capability upgrades that will unlock outsized performance.
- Install the operating rhythm. Weekly dependencies, monthly stop lists, quarterly portfolio reallocation.
- Move two domains into dual-speed mode. One core (stability) and one growth area (agility) as a controlled pilot.
- Reset talent mechanics. Skills taxonomy, internal mobility, and role charters aligned to the new model.
Risks and trade-offs
- Cultural resistance: formalising decision rights can feel like a loss of status. Mitigate by linking clarity to speed and risk reduction, not control.
- Zombie agile: adopting rituals without shifting authority creates frustration. Mitigate with real delegation and outcome ownership.
- Over-centralisation of “shared services”: standardisation can turn into drag. Mitigate with service-level agreements and customer-style feedback loops.
dership questions
- Which decisions still require senior escalation that should be routine at the edge?
- Where does our system reward exceptions over standards—and what is it costing us?
- Which capabilities, if strengthened, would unlock disproportionate speed and resilience?
- What would break if the founder stepped back for a month?
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