21 Century Organization Attributes: Fast, Fluid, Flexible Learning Organization

Slide 1
21st century organization attributes
Reward
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Carnall and By, Managing Change in Organizations PowerPoints on the Web, 6th edition © Pearson Education Limited 2015
Slide 2
‘Road blocks’ to 21st century organization

Organization
rewards
service and
seniority
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Slide 3
Organizational trends
• Externally, priority is being given to building closer

relationships with customers, while internally, the focus is
upon harnessing human talent in order to deliver greater
customer satisfaction.
• There is recognition of the importance of the ‘people factor’.
• Responsibility is being devolved and delegated to groups and

teams. The focus is shifting from ‘input’ to ‘output’, and the
organization is becoming a portfolio of projects.
• The membership of teams is being drawn from a wider

spread of functions, locations, nationalities and organizations.
Slide 4
Organizational trends (Continued)
• Awareness is growing of the importance of access to the

approaches, skills, processes and supporting technology that
can facilitate team-working.
• Companies are increasingly thought to be competing on the

basis of their processes, attitudes and values rather than their
technology, all of which can be copied.
• The management of corporate transformation is becoming

recognized as a strategic management challenge in its own
right.
Slide 5
Future organizations
People – a key asset
Focus on core business
Flexible boundaries
Manage networks
Service orientation
Knowledge based
Learning organizations
Slide 6
Managing change
Stabilize Change
change
Stability
Manager Pressure
from environment
Perception of
Plans
need to
change
Uncertainty
anxiety
Acceptance
of Development of
problems concern
Slide 7
Necessary conditions for effective change

Awareness (energizing)
(I understand, I know)
Capability (empowering)
Will (inclusion)
(I can, I can cope)
(I choose, I value, I will)
Figure 14.1 Necessary conditions for effective change

Slide 8
The change coping cycle

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Denial Defence Discarding Adaptation Internalization
Performance
Self-esteem
Time
Figure 13.5 The coping cycle
Slide 9
The rhetoric/reality gap
Desired
outcomes
Lower expectations
Aspiration Reduce rhetoric
Promote realism
Claim to be responsible and honest.
Build capability to deliver

Put missing elements in place
Tackle barriers and obstacles
Enable and empower
Increase motivation
Clarify objectives.
Achievement
0 Time
Slide 10
Assembling the building blocks
Desired
outcomes
Reporting and sharing
Aspiration Reward
Assessment and learning
motivation
Empowerment
Roles and responsibilities
Establishing
capability/resources
Achievement Objectives and strategy

Vision and purpose/goals
and value
0 Time
Slide 11
Styles for learning and change
• Seeks ‘clients’ with problems showing willingness to help
• Views problems broadly
• Adopts broad-based criteria for success: flexibly
• Develops solutions by drawing data and views from

others
• Recognizes that solutions need to be technically sound
and organizationally feasible
• Does not use professional technique to maintain control
• Expects challenge and conflict
• Sees change as a corporate activity and responsibility.

Slide 12
Strategic
management of change
Vision and leadership
Group-wide
architectures
High cost to group
Unresponsive
Scale User control
business unit ownership? Variable standards and
Economies Ownership competence
Business unit control of Standards Responsiveness
overhead costs Critical Centres of Reinvention of wheels?
mass of excellence
Inflexible skills Integration?
Strategic
control
Centralized Synergy and Local management

project-managed leverage of change
change
Figure 14.5 Strategic management of change

Slide 13
Options
The ‘control’ hierarchy

• Knowledge resides at the top
• Orders flow down
• People obey
• Information flows upwards
• Employees do not design work process.
The ‘flattened’ hierarchy

• Fewer middle managers – broader spans
• Self-managing teams
• Empowerment
• More employees are ‘knowledge workers’
• Use of computer-based decision – support.
Slide 14
The network organization

• Information accessible to all
• Employees can interact across ‘boundaries’
•Teams scattered in different locations
•Value-added for customers a prime focus.
The cluster organization

• Value clusters focus on value-added
• Service clusters support customer facing clusters
•Planning, organization design and enabling is done
by the CEO team.
Slide 15
21st century
Real organization
time networked, de-layered
customer focused
responsive
Functional Integrated
or enterprise
location
silos Traditional
organization
‘Time’
silos
Slide 16
Old culture New culture
Hierarchies Teams
Boundaries Connections
Internal focus External focus
Differences Interfaces
Figure 2.1 The new and old organizational cultures (after Hastings, 1993)
Slide 17
Old culture New culture
Paternalistic Empowerment
Second guessing Trusting
Controlling Supportive
Analysis Action
Risk aversion Calculated risk taking

or innovation
The new and old organizational cultures (after Hastings, 1993)

Figure 2.1
(Continued)
Slide 18
Capabilities for future
Cross culture skills and orientation

Networking/interfacing
Political skills/pressure groups
Language skills
Personal flexibility/empathy
Change
Learn how to learn
Urgency
Multi-functional skills
Slide 19
Human resource issues
Developing ‘self-reliance’
Defining ‘capabilities’
Career development and portfolio careers
The learning organization
Professional advice and facilitation
Training for performance
Developing the corporate culture
Slide 20
Human resource issues (Continued)
‘Portfolio’ careers more ‘normal’
Spiralling costs of education and health care
40%+ junior/middle managers now women
Flexible working patterns
Organizations flatter, more work done in teams
Quality and information a source of competitive advantage
Public sector/private sector contracting out
‘Facilities management’
Slide 21
Why focus on corporate cohesion?
• Managing strategic interdependencies

• Mirroring the needs of global/corporate customers
• Economies of scale in sourcing and purchasing
• Reducing lead times in product development and
worldwide/regional commercialization
• Combining economies of scale in R&D or
manufacturing with localizing product marketing
• Transfer of learning, know-how and experience
(overcoming NIH0)
• Building local-but-global centres of competence
(avoiding HQ bureaucracy and local duplication)
• Fostering innovation (in management and organization
as well as products and services)
Slide 22
Why focus on corporate cohesion? (Continued)
• Responsiveness (speed and agility in responding to

change)
• Joint-venture learning
• Providing career opportunities, retaining and developing
good people
• Development of leadership
• Maintain group/corporate identity.
Slide 23
Main causes of decline
1. Drop in market demand

– Changes in technology, substitutes
– Demographic changes, oncome
– Cyclical causes.
2. Falling revenues due to company pressure
– Technological change lowers rivals costs, substitutes
keep prices low
– High exit costs in combination with falling scale, lack of
product difference and lack of cost advantages.
3. Lack of effective direction, use and control of
marketing effort
– Control of marketing effort.
Slide 24
Main causes of decline (Continued)
4. Poor quality and reliability

5. Poor management
– Inflexible autocrat, failure of communication and over-
loaded top management
– Over-cautious top management
– Neglect of core business, lack of focus
– Failure to create shared vision
6. Inadequate financial control
7. Poor organization
– Too centralized structure
– Decentralized decision making combined with
inadequate control
– Too formal and bureaucratic
– Head office too large and expensive.
Slide 25
Organizational ineffectiveness
‘Syndrome’ one – tight control
Characteristics Symptoms
Distrust Incremental change
Analytical ‘Muddling through’
Centralized Too much consultation
Reactive Too many meetings
Sophisticated Poor innovation
Information systems
– External focus
Strengths Weaknesses
Good knowledge of Lack of clear strategy
threats and opportunities Insecurity
Diversification
Specific history:
Dramatic loss of market or market share
Slide 26
‘Syndrome’ two – systems focus
Tight, formal controls Lack of innovation
Standardization Ritual
Hierarchical structures Low involvement
Conformity Inflexibility
Fixation
Efficient operations Traditional structure pre-
Well integrated product-market dominate
strategy Manager dissatisfaction over
Distinctive competence lack of influence and discretion
Specific history:
Fairly dominant in stable environment
Achieved dominance from relatively weak position
Has lost control at various stages of its history.
Slide 27
‘Syndrome’ three – personal style
Highly centralized Unbridled growth
Unpredictable Inconsistent strategy
Inadequate structures Into and out of markets
Poor information systems Decisions without analysis
Little consultation
Good knowledge of threats Wasted resources
and opportunities Problems of control
Diversification Inadequate role of second-
level managers
Rash expansion policies
Specific history:
Rapid growth, chief executive wishing to prove himself
Slide 28
‘Syndrome’ four – paralysis
Lack of confidence Insular
Leadership vacuum Decisions avoided
Bureaucratic Change difficult
Efficient internal Limited to traditional
operations markets
Focused strategy Apathetic managers
Weak competitive
position
Specific history:
Well established, same technology, customers and
competition for many years.
Slide 29
‘Syndrome’ five – leaderless
Leadership vacuum No involvement
Power struggles Incremental change
Poor information flows
Effective power in shifting
Coalitions of second-level
managers
Creativity Inconsistent strategy
Lack of leadership
Climate of distrust
Poor co-operation
Specific history:
‘Withdrawn’ chief executive
Slide 30
Managing change – the architecture pyramid
VISION
COMMUNICATION
MEASUREMENT KNOWLEDGE
SYSTEMS PROCESSES
IMPLEMENTATION CAPABILITY
BUILDING
Slide 31

(Continued)
VISION
Strategy forum Steering
Groups Ongoing dialogues
Idea generation
COMMUNICATION
SYSTEMS PROCESSES
CAPABILITY
IMPLEMENTATION
BUILDING
Slide 32

(Continued)
VISION
COMMUNICATION
Key messages
Cascades
Briefing groups
Visits/away days
‘Town meetings’
Launch events
Whole system events
SYSTEMS PROCESSES
BUILDING
Slide 33

(Continued)
VISION
COMMUNICATION
MEASUREMENT
SYSTEMS
Value based KNOWLEDGE
Balanced scorecard PROCESSES
Relationship management
Alignment
CAPABILITY
IMPLEMENTATION
BUILDING
Slide 34

(Continued)
VISION
COMMUNICATION
KNOWLEDGE
PROCESSES
Reference groups
MEASUREMENT
Focus groups
SYSTEMS
Best practice
Benchmarking
Knowledge management
BUILDING
Slide 35

(Continued)
VISION
COMMUNICATION
SYSTEMS PROCESSES
IMPLEMENTATION
CAPABILITY
Change workshops
BUILDING
Cultural/leadership workshops
Task forces
Work streams
Pilots/trials
Co-ordination
Roll-Out Plan
Slide 36

(Continued)
VISION
COMMUNICATION
SYSTEMS PROCESSES
CAPABILITY
IMPLEMENTATION BUILDING
Competence models
Gaps
Skills workshops
Performance management
Mentoring coaching
180o/360o
Slide 37
Managing change – the recipe
• Diversity
• Process focused on possible futures
• Process focused on action plans
• Recognize culture
• Who to involve: ‘top of the house’; ‘whole
systems events’; critical mass events; sub-
system events; functional/team events; diffusion
events…
Slide 38
Programme design parameters
• Role deployment
• Stakeholder inclusion
• Key player involvement
• Framework deployment – range/end-to-end
• Definition of outcomes
• Measurement of outcomes
• Transparency of process and outcomes.
Slide 39
The Big One
CULTURE
Slide 40
Do these phrases sound familiar…?

‘People are our greatest asset’
‘Our most valuable resources are people’
‘Our employees provide us with our

competitive advantage’.
Slide 41
If we agree with these statements,
how do we value
human assets?
What often happens and why?
Slide 42
Some key questions:
What does our culture feel and look like?
• Why does it feel and look like this?
• Does the culture deliver superior performance?
• How does it compare with industry competitors?
Slide 43
Culture defined
‘A group’s pattern of shared taken-for-granted

basic assumptions.’ (Edgar Schein)
More informally: ‘the way we do things around

here’.
Schein also observes that culture is the result of a

complex group learning process that is only
partially influenced by leader behaviour.
Slide 44
Types of organizational culture
Power culture (based on strength)

• Direction
• Decisiveness
• Determination
Role culture (based on structure)
• Order
• Stability
• Control
Achievement culture (based on competence)
• Growth
• Success
• Distinction
Support culture (based on relationships)
• Mutuality
• Service
• Integration
Slide 45
The change process – common negative

reactions
‘I like it just the ‘We’ve got too many

way it is’ ideas, which way?’
Contentment Renewal
Denial Confusion
‘I’m too busy ‘Help – what a

to worry’ mess!’
Slide 46
Stakeholder mapping
+
Waiverers Champions
Attitude
to
change Opponents Sceptics
−
Perception of
−
+
benefits of change
Slide 47
Roles and issues in managing change

programmes
Roles Issues
• Sponsor • Links with the board
• Leader • Links with key stakeholders
• Champions • Inter-locking roles
• Supporters • Involving the right people
• Stake-holders • Gaining buy-in
• Alignment
• Building capability
• Keeping the business going
• Moving forward
Slide 48
Risks in strategic change
Sponsorship Scope
problems problems
Lack of top
management support
Poor ‘fit’ to vision
Key players not
Analysis paralysis
involved, leadership
Scope too narrow
‘vacuum’ Risks
Too ambitious
in strategy
Lack of new ideas Culture? phase
Closer to ‘outsider’ Fear of change
ideas. Lack of IT Key players
of organizational ‘removed’
infrastructure
Capability Politics
Slide 49
Risks in strategic change (Continued)
Handover Leadership Planning

problems problems problems
Implementation Inadequate Requirements charge

Team different to Budgets unclear unrealistic trust scales
design team Accountability No piloting
Unclear objectives Lack of unified Lack of specifications
Ownership? management Conflict over structure
‘Not-invented here’ effort Functions, definitions Risks
in
Software implementation? Lack of attention Early results poor
IT not a place to rewards and implementation implementation
Key ‘functional’ gaps motivation Poorly paced
Complexity Inadequate training aptitude if
Under-estimated Excessive workloads change undermines
on implementation confidence
team
Technical People Acceptance

Slide 50
Risks in strategic change (Continued)
Handover Leadership Cultural

Slow erosion of
effort because
Inadequate pilots Managers slow no ‘buy-in’
Variations allowed to learn new skills Culture blocks
at operational level Poor leadership change Risks
in
Software and infrastructure Problems caused by fear, Lack of planning for change
Late critical systems fail anxiety, stress, inadequate on-going improvement Roll-out
Inadequate team working Lack of momentum
organizational Poor selection of key Lack of will to solve
infrastructure players in new problems and progress
structures
Technical People Management

Slide 51
1. Establish a management structure

for implementation
• Steering group
• Project manager
• Working parties
• Consultants, staff surveys
Added value
• Wider discussion of issues
• Involvement
• Synergy
• Learn from other experience
But
• May reduce personal accountability
•May, therefore, reduce motivation, commitment
ownership
Slide 52
2. More extensive planning

• Targets and milestones
• Resources
• Timing
• Impact assessment
• Functional plans
Added value
• Thorough search for best implementation
strategy
• Certainty
• Sense of direction
• Clear priorities
But
• Reduced freedom of action?
• Slower decisions?
• Confidentiality?
Slide 53
3. Effective leadership at all levels
• Personal accountability
• Team-building
• Vision
• Communication
• Structured decision making
Added value
• Shared purpose
• Commitment
• Bolder approaches possible
But
• Interference
• Over-ambitious strategies
• Too rapid an implementation plan
Slide 54
4. Use of long-term criteria in change

planning
• Focus on the future
• Develop skills and technology
• Build adaptable systems/plans
Added value
• Builds credibility
• Shared vision and purpose
But
• Less clear targets and accountability
• Slower reactions in difficult market conditions
• Over-optimism
Slide 55
5. Flexible controls
• Focus on solutions
• Recognize success
Added value
• Encourages innovation and risk-taking
• Allows pursuit of longer-term goals
But
• Subjective assessment
• Lesser accountability
• Corporate politics
Slide 56
6. Communications plan
• Regular communication sustained over project

• Multi-media
• Two-way
Added value
• Contingency planning and review easier
• Avoids misunderstanding, etc.
• Builds recognition of goals
• Commitment
But
• Confidentiality?
• Timing of announcements?
• Rumour?
Slide 57
The implementation gap
• Study of 200 corporates in USA and Europe, each

with turnover $400m plus
• 35% of financial targets linked to new strategy not
achieved
• Only 15% measure impact of new strategy
• Over 50% of the gap due to leadership factors.
Slide 58
The strategy problem?
• Poor results from mechanistic approaches

• ‘Real life’ strategy must deal with interdependency,
conflict and complexity
• Strategy as ‘informed conjecture’
• ‘Good enough’ vs. optimal.
Slide 59
Emergent strategy
• Entrepreneurial School – strategy as vision

• Cognitive School – learned incapacity
• Learning School – incrementalism
• Power School – getting things done.
• Mintzberg, 1994
Slide 60
The new alchemists!
What is the real problem?
The need to deal with the ‘error’ term
Strategy as ‘Art’

21 Century Organization Attributes: Fast, Fluid, Flexible Learning Organization

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Slide 1

21st century organization attributes

‘Road blocks’ to 21st century organization

• Externally, priority is being given to building closer

• There is recognition of the importance of the ‘people factor’.

• Responsibility is being devolved and delegated to groups and

• The membership of teams is being drawn from a wider

Organizational trends (Continued)

• Awareness is growing of the importance of access to the

• Companies are increasingly thought to be competing on the

• The management of corporate transformation is becoming

People – a key asset

Focus on core business

Necessary conditions for effective change

Figure 14.1 Necessary conditions for effective change

The change coping cycle

The rhetoric/reality gap

Build capability to deliver

Assembling the building blocks

Achievement Objectives and strategy

Styles for learning and change

• Seeks ‘clients’ with problems showing willingness to help

• Views problems broadly

• Adopts broad-based criteria for success: flexibly

• Develops solutions by drawing data and views from

• Expects challenge and conflict

• Sees change as a corporate activity and responsibility.

Vision and leadership

Centralized Synergy and Local management

Figure 14.5 Strategic management of change

The ‘control’ hierarchy

The ‘flattened’ hierarchy

The network organization

The cluster organization

Old culture New culture

Internal focus External focus

Old culture New culture

Second guessing Trusting

Risk aversion Calculated risk taking

The new and old organizational cultures (after Hastings, 1993)

Capabilities for future

Cross culture skills and orientation

Human resource issues

Career development and portfolio careers

The learning organization

Professional advice and facilitation

Training for performance

Developing the corporate culture

Human resource issues (Continued)

‘Portfolio’ careers more ‘normal’

Spiralling costs of education and health care

40%+ junior/middle managers now women

Flexible working patterns

Organizations flatter, more work done in teams

Quality and information a source of competitive advantage

Public sector/private sector contracting out

Why focus on corporate cohesion?

• Managing strategic interdependencies

Why focus on corporate cohesion? (Continued)

• Responsiveness (speed and agility in responding to

Main causes of decline

1. Drop in market demand

Main causes of decline (Continued)