Where's The Elephant? — by Dan Lynn
By Dan Lynn
As everyone knows, depending on how a business is doing, there is typically more pressure on one part of the organization than on other parts (e.g., Sales vs. Operations). If revenues are below plan, the pressure is squarely on the shoulders of the Sales organization. If revenues are above plan, Operations feels the weight of the World on its shoulders. It's just a normal business cycle. And it can change fast. One month Sales feels all of the heat and the next month the pressure is on the Operations team.
A colleague once told me that his former employer used a stuffed elephant to show which organization had "the elephant on its back" at any point in time. When sales were good, the head of Sales placed the stuffed elephant on the head of Operation's desk. When sales were slow, the head of Operations returned the favor. The questions was always, "where's the elephant?"
So what? Well, I think it is important for everyone within a company to know that it is normal to see these organization-based pressure points and that, in most businesses, the pressure is constantly shifting. Also, it is important for everyone to be extremely understanding of the group under pressure - because the pressure is probably shifting to them next! And, it shows how important it is to focus on continually developing forecasting and capacity planning tools to try to anticipate business shifts and alleviate as much pressure as possible.
Questions this Key Learning answers
Is it normal for pressure to shift between sales and operations?
Yes. The author describes this as a normal business cycle that can change quickly. When revenue is below plan, Sales carries the pressure; when revenue rises, Operations may become overloaded. Our analysis adds that this does not necessarily mean a department became incompetent. It often means the company’s current constraint has moved.
What do you do when another department is overwhelmed at work?
The author emphasizes being extremely understanding of the group under pressure, because that pressure may soon shift elsewhere. Our analysis similarly treats an overloaded team as an early-warning signal rather than a convenient target. Shared visibility can help colleagues offer support and recognize the situation affecting the team before assigning personal blame.
How can a company prepare for pressure shifting between teams?
The author points to continually developing forecasting and capacity-planning tools to anticipate business shifts and relieve as much pressure as possible. Our analysis expands this into a recurring shared planning process that connects demand forecasts, pipeline, staffing, inventory, and capacity. The goal is earlier visibility and clearer tradeoffs, not perfect prediction.