GM or S&O: a balancing act

In complex business environments, one-off initiatives often require seamless coordination across multiple departments. The key to success in such scenarios lies in forming dedicated teams and appointing a singular, capable leader to navigate through the intricacies of cross-departmental collaboration.

The effectiveness of projects that span across different departments, domains, or business units is significantly enhanced by identifying and capitalizing on mutual goals. Forming dedicated 'heavyweight' teams is often the most effective strategy in such situations. A key element of this approach is assigning a single leader who maintains open communication lines with the heads of involved departments and, if necessary, the executive team.

This approach was exemplified during the implementation of payments in Canada at Weedmaps. The project, with its broad impact on multiple business units including delivery, storefront, and e-commerce, necessitated a collaborative effort from various teams. Appointing a designated leader to oversee this initiative was a prudent decision. This leader was responsible for steering the project to its successful completion, after which the resources could return to their original departments.

Given the strategic nature of such projects and their wide-ranging implications, executive oversight is crucial. Consistent updates to the executive team are vital to ensure alignment with the organization’s overarching goals and strategies. Although this leadership structure parallels the General Manager (GM) model in terms of scope and responsibility, it differs in its temporary nature and the absence of P&L responsibility. This distinction places such initiatives within the realm of Strategy & Operations or Business Operations, rather than under the GM organization.

The strategic importance and urgency of the project may warrant the allocation of full-time resources, and need to be agreed upon by relevant stakeholders at the outset of the project. Furthermore, the prioritization of these initiatives should be carefully considered against other projects proposed by GMs during the resource allocation process, ensuring that they justify any reallocation of resources.

Effectively managing cross-departmental initiatives requires a clearly defined leadership structure, open communication, and strategic resource allocation. Adopting a dedicated team model and ensuring executive oversight enables businesses to steer these complex projects toward success, striking a balance between the needs and contributions of various departments.