Competition is a catalyst for innovation and improvement in many sectors. It’s high time this principle was applied to internal departments such as human resources, information technology, and legal services. Traditionally, these departments have been shielded from competition due to their internal nature. This lack of competition can often lead to complacency, inefficiency, and substandard services.
A potential solution is to introduce competition within the organisation. This could be achieved by allowing other departments or external vendors to bid for tasks traditionally performed by these departments. A competitive bidding process would encourage these departments to improve their efficiency and service quality to win the bid. This approach has been successfully implemented at some leading companies, resulting in significant improvements in service quality and efficiency.
Another approach is to measure the performance of these departments against industry benchmarks. This would provide a clear picture of their performance relative to their peers and highlight areas for improvement.
By fostering a competitive environment, organisations can drive innovation, efficiency, and service quality improvements in their internal departments. This will ultimately lead to better service for employees and improved organisational performance.
Go to source article: https://hbr.org/2017/02/a-little-competition-could-improve-your-hr-it-and-legal-departments