Entrepreneurship

The Power of Friction Audits to Unlock Business Leadership Potential

Dan Nicholson

Inefficiency. Feeling stuck. Slow or delayed progress. Momentum grinds to a halt, seemingly after a single email chain goes dark. All of these challenges are universal feelings in life, and in business, too. Enter the friction audit. It’s a strategic tool gaining momentum in the corporate world for its ability to identify and eliminate sources of stagnation. Here’s how friction audits can serve as a compass for business leaders looking to break free from the shackles of organizational inefficiency.

Identifying and Categorizing the Friction

Businesses, irrespective of their size, encounter inefficiencies that impede progress. The friction audit serves as a diagnostic tool, categorizing friction into two main types: environmental and behavioral. Environmental friction stems from policies, processes, and tools, while behavioral friction is connected more to the people in the workplace—culture, relationships, and emotions. Recognizing these distinctions is the first step in the quest for streamlined operations.

The power of the friction audit lies not just in its ability to diagnose but in its potential to catalyze change, explains business coach Erik Mickelson. “We want businesses to improve, but they frequently fail to improve until there is some sort of friction. [That’s when it’s time to ask] what is slowing the business down?”

The Process and Benefits of Friction Audits

Friction audits offer a roadmap for improvement, explains Dr. Adam Alter, who describes how to effectively conduct friction audits in his book Anatomy of a Breakthrough. Through surveys, interviews, workflow mapping, and technology assessments, businesses can pinpoint congestion points, assess cultural impact, and systematically unblock processes that aren’t working.

The process involves a delicate dance of gathering employee feedback and then acting on it. Real-world examples of business friction range from redundancies to weak feedback loops, so leaders should be prepared for different types of friction to arise from these audits. But if the audit is successful, it helps the business evolve.

Alter recommends biannual friction audits to ensure that organizations stay ahead of the curve. The focus, however, must extend beyond mere diagnostics: it's about actively listening to employee feedback and proactively addressing their friction points. This iterative approach ensures that businesses not only identify problems but actively participate in the solutions, creating a culture of continuous improvement.

Conclusion

In the journey towards organizational efficiency, the Friction Audit stands as a beacon, illuminating the often-overlooked corners where inefficiencies thrive. By understanding the types of friction, embracing regular audits, and actively engaging in the process, business leaders can transform roadblocks into stepping stones for growth. The Friction Audit isn't just a tool; it's a mindset shift. It empowers leaders to embrace challenges, confront inefficiencies, and chart a course toward a future unencumbered by organizational friction. 

Sources

The Consultant and the Coach Podcast

New York Times

The Growth Faculty

Linkedin

Dan Nicholson is the author of “Rigging the Game: How to Achieve Financial Certainty, Navigate Risk and Make Money on Your Own Terms,” deemed a best-seller by USA Today and The Wall Street Journal. In addition to founding the award-winning accounting and financial consulting firm Nth Degree CPAs, Dan has created and run multiple small businesses, including Certainty U and the Certified Certainty Advisor program.

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