Dave Ulrich: Reinventing the Organization

 

I continue to be impressed by Dave Ulrich's ability to articulate the future of HR, leadership and organisation. Since my current focus is on organisational management, that applies in particular to Dave's recent focus on organisations, with the suggestion that organisation has four times the value of talent (in Victory through Organization). So I really appreciate Dave writing the Foreword to The Social Organization (TSO) too.

And now, writing with Arthur Yeung, Dave has once again moved his thinking on a significant notch. Reinventing the Organization deals with the formation of the Market Oriented Ecosystem (MOE) which I referred to when posting on Dave's and other sessions at the Drucker Forum in Vienna last year.

In many ways I see the book as a follow-on from mine. TSO dealt with the opportunity for melding networks, including the use of platforms, internally. MOE is a build on that, extending the ideas internally and developing them externally too. But I still believe that in the majority of cases, the first useful step to create a MOE might be to develop something more like the melded network from TSO. That then provides a great basis to develop this approach outside of the firm too (see more on this later).

Regardless of where you start, Dave’s book is by far the best book you can read to understand the development of platform based ecosystems, particularly over the last five or so years. It's a deep book, and quite hard going (for me, that's not a negative) so although I've been through the book twice, I need to spend quite a bit longer on it too. Therefore, my notes here summarise my early, rather than fully formed, thoughts.

However, I think I have now got my head around why Dave suggests the book provides an evolution in organisational thinking - a reinvention of the organisation rather than just incremental experimentation. Dave explains this as “reinvention means more than just changing people’s reporting relationships, building teams or announcing a new strategy. You must build a fundamentally new organisation, redefining how your organisation works. Besides understanding and shaping your work setting, you need to change how you coordinate the work, the principles that govern it, and your own and others’ leadership actions.”

If I'm correct, then Dave’s organisational reinvention isn’t about the MOE itself, but the way we see organisations which Dave suggests has progressed from a focus on structure (leading to a focus on hierarchy / bureaucracy) to one on more holistic organisations (the systems view of McKinsey’s 7S or Jay Galbraith’s Star model), and mainly through Dave’s own insights, onto the outcomes or capabilities which an organisation provides. I think TSO develops these ideas further too, describing how organisational forms and other options can be selected to provide the capabilities and organisation principles which are required. That logic applies to the selection of a MOE just as it does a functional, team based or other organisational form. So despite the following diagramme, I don’t think the MOE itself is the radically new idea.

The new idea - and I suppose it’s not that new, but as a result of this book, it’s now more strongly articulated, is that we should always think about an organisation’s ecosystem and not just an individual organisation. Eg I liked the suggestion that MOEs focus on stakeholders more than processes.

So actually, the new logic, I think, is to be clear about the external environment and the required capabilities, and then to develop the ecosystem, systems and structures to support them. I think that this is at least a partial reinvention of organisation design. So I’d adapt the diagramme like this:

By the way, the mini-slide I’ve chosen to illustrate capability on the top left in the above diagramme is the one from TSO showing how the different elements of an organisation from the systems perspective can link with the different aspects of capability, ie human, organisation and social capital. I still think that works for an ecosystem too, although the social capital needs to be extended to what I normally call relationships capital, which is the value of the connections and relationships outside of the single organisation.

You could argue, and maybe this is what Dave is doing, that the traditional ways of seeing systems and structures needs to be replaced by the key features of the MOE, which I explain in a later post. However, I don’t think that’s so. MOEs still have the 7S’s structures, systems, shared values, style, staff and skills, or the Star model’s people, rewards, processes and structure (see the ecosystem model from IRC4HR below), or whatever other set of elements you pick (eg in TSO I present the Organisation Prioritisation Model which focuses on work, infrastructure, people and connections as well as a largish number of organisation and HR enablers, which might not be a reinvention but is, I think, a bit more suited to today’s organisations, and ecosystems too).

Assuming that a reinvented organisation has got to have a particular feature takes us back to the first step in Dave’s evolution diagramme when we assumed all organisations had to have a hierarchical, functional structure, just with a more modern equivalent replacing this. I don’t see that as helpful and certainly don’t believe it would contribute to more evolved thinking. Much better to start with a set of core elements and then build up from there.

It’s still helpful to have an archetype. Dave’s three legged stool for HR is a good example of this, but that’s different to saying all HR organisations need to have three legs. Or that all organisations need to have a platform.

Dave actually suggests there are three archetypal MOEs but I’m just going to review their basic features - see my next MOE related post over the next few days for more on this.

https://tinyurl.com/cudc3zv2

RoundMap® : Framework 24 Shifts

 

Transformative Journeys: 24 Shifts to Shape the Future of Organizations

 In recognizing the imperatives of change within the contemporary business landscape, the emergence of RoundMap® stands as a beacon of innovation. Serving as a comprehensive framework, RoundMap® guides businesses through a transformative journey, challenging and reshaping traditional paradigms. As we delve into the following insights, each representing a pivotal transition, we gain a panoramic view of the shifts necessary to construct the vibrant organizations that will define the landscape of tomorrow. These insights, cultivated during the creation of RoundMap, illuminate the path toward adaptability, resilience, and sustained success in a rapidly evolving business world.

 

Key Insights for Building Vibrant Organizations:

 

Business Model

1. As-a-Product → As-a-Service → As-a-Platform

 The shift from “as-a-product” to “as-a-service” marks a significant transformation in the business landscape, and as we navigate the Business Model Matrix, there’s an intriguing evolution beyond—entering the realm of “as-a-platform.” Initially, businesses offer products, creating a tangible and discrete value proposition. Progressing into the service domain, the focus shifts to providing ongoing value and experiences. However, the journey doesn’t conclude here. The transition to “as-a-platform” takes the business model to a higher level on the matrix. Now, it’s not just about delivering a service; it’s about cultivating an ecosystem. Businesses evolve into dynamic platforms, allowing users to tailor and expand their experiences. The platform becomes a foundation for innovation, enabling users to integrate diverse functionalities or even develop their solutions within the provided framework. This strategic progression from product to service and finally to platform not only aligns with the Business Model Matrix but also signifies a paradigm shift toward more interactive, customizable, and engaging business models.

  

Business Strategy

2. Product-centric → Customer-centric → Community-centric

 The transition from a product-centric to a customer-centric and onward to a community-centric approach represents a strategic evolution in how businesses cultivate relationships and deliver value. Shifting from a product-centric standpoint, which emphasizes individual offerings, the customer-centric model acknowledges and caters to the specific needs of the customer. However, the progression towards community-centricity expands the scope even further. In a community-centric approach, businesses recognize that their audience forms interconnected communities with shared interests, values, and aspirations. The focus shifts from transactional interactions to building a sense of belonging and collaboration within these communities. This advanced stage involves actively engaging with and contributing to the broader community, fostering a two-way relationship where businesses not only address individual customer needs but also play a role in the collective experiences and aspirations of the community. By adopting a community-centric mindset, businesses position themselves as integral parts of a larger ecosystem, fostering loyalty, advocacy, and a deeper sense of connection among their audience.

 

Connection

 3. Transactional → Relational → Communal

 The shift from transactional to relational to communal represents a strategic evolution in how businesses cultivate connections with their customers. Initially, the transactional approach focuses on individual transactions, emphasizing short-term exchanges and one-off interactions. Recognizing the limitations of this model, the transition to a relational paradigm unfolds, where businesses seek to build longer-term connections and understand the unique preferences and needs of individual customers. Moving beyond individual relationships, the next step is communal engagement. Businesses recognize the value of forming partnerships with customers, engaging them in co-creation processes, and involving them as active contributors to the value circle. This communal approach extends beyond traditional customer-supplier dynamics, transforming customers into valued partners. The formation of communities emerges as a natural progression, where customers not only engage in collaborative problem-solving but also provide valuable feedback and insights, shaping the direction of product development and innovation. This shift from transactional to relational to communal underscores the importance of building meaningful, two-way connections that go beyond transactions to create a mutually beneficial and dynamic ecosystem.

 

Culture

4. Open Dialogue → Psychological Safety → Collaborative Trust

  The evolution of workplace dynamics unfolds as a journey from Dialogue to Psychological Safety and, ultimately, to Collaborative Trust. Commencing with a foundation of open communication, organizations lay the groundwork for fostering a culture where ideas and opinions are freely expressed. As this communication evolves, the focus shifts to establishing psychological safety, creating an environment where employees feel secure to take interpersonal risks, share innovative thoughts, and contribute without fear of retribution. The progression culminates in collaborative trust, signifying a workplace culture where mutual trust is deeply embedded, encouraging seamless collaboration and collective innovation. This strategic sequence not only encourages employees to speak out but also nurtures a collaborative and trusting environment that is conducive to sustained creativity and success.

 

Customer Value

5. Relevant → Significant → Sustainable

 In the evolving landscape of value creation, the progression from relevance to significance and, ultimately, sustainability marks a strategic transformation. Initially, businesses strive to be relevant by addressing immediate needs and providing solutions that meet present demands. As organizations advance, the focus shifts to significance, recognizing the importance of creating a lasting and meaningful impact that extends beyond the immediate transactional relationship. This involves anticipating and fulfilling future needs, building enduring connections, and contributing positively to the broader context. The pinnacle of this evolution is sustainability, where businesses embrace practices that ensure long-term viability and positive contributions to society and the environment. Sustainability goes beyond short-term gains, emphasizing responsible practices, ethical considerations, and a commitment to leaving a positive legacy. This strategic shift aligns businesses with the imperative of not just being relevant and significant but also ensuring sustained positive influence and responsibility for the well-being of future generations.

 

Decision-Making

6. Centralized → Consensus → Consent

 The evolution in decision-making processes reflects a transition from a top-down approach to consensus-building and, now, advancing toward consent-based decision-making. Initially, decisions were traditionally made at the top echelons of the hierarchy, with a clear chain of command and authority. As organizations embraced a more collaborative approach, consensus-building emerged, emphasizing the importance of collective input and agreement among stakeholders. However, the journey doesn’t end here. The current trajectory points toward a consent-based model, where decisions are made with the active consent of those involved. This approach goes beyond mere agreement; it seeks the explicit endorsement and buy-in of all relevant parties, fostering a more inclusive, transparent, and participatory decision-making culture. The shift from top-down to consensus and now towards consent-based decision-making signifies a commitment to shared responsibility, empowerment, and alignment with the values and perspectives of all stakeholders involved in the decision-making process.

 

Evolution

7. Continuation → Adaptation → Innovation

 The evolution from continuation to adaptation and innovation encapsulates a strategic approach to organizational development. Initially, in the continuation phase, organizations maintain existing practices, ensuring stability in their operations. The subsequent shift to adaptation represents a proactive response to challenges, emphasizing flexibility and the ability to adjust without undergoing radical transformations. This intermediate phase serves as a bridge, preparing the ground for a more profound shift toward a culture of innovation. In the innovation phase, the organization actively seeks and embraces change, viewing it not just as a response to challenges but as a constant driver for improvement and advancement. This progression signifies a deliberate and gradual evolution, navigating from the comfort of business as usual through the adaptability of change, toward a culture where innovation becomes an integral part of the organizational DNA, driving continuous improvement.

 

Execution

8. Excel → Excellence → Elevation

 The pathway from “excel” through “excellence” to “elevation” encapsulates an organization’s strategic advancement. Initially, the focus is on excelling—surpassing others through high performance and skill in specific areas, with a commitment to continuous improvement. This phase is about the dedication to becoming the best, laying the groundwork for the next stage: excellence. Here, the aim is to refine processes for higher proficiency, embodying operational perfection. Ultimately, the journey leads to elevation, where innovation and a visionary approach signify breaking new ground, underpinned by a culture of transformative growth and learning, redefining organizational performance standards.

 

Fulfillment

9. Customer Service → Customer Success → Customer Empowerment

 In the trajectory from customer service to customer success, a pivotal stage often involves customer experience optimization. This step is marked by a dedicated effort to refine and enhance every touchpoint, ensuring a positive and seamless journey for customers. Building upon customer success, the evolutionary path extends toward customer empowerment. Here, the focus transcends mere success, emphasizing a deeper connection that empowers customers to derive maximum value from products or services independently. Customer empowerment involves providing resources, tools, and knowledge that enable customers to take control of their experience, fostering a sense of autonomy and mastery. This advanced stage signifies a commitment to not just meeting customer needs but empowering them to navigate and maximize the value of the products or services, contributing to a more sustainable and mutually beneficial customer-business relationship.

 

Governance

10. Shareholder Value → Stakeholder Value → Stewardship

 The transformative journey in governance unfolds as a progression from a focus on shareholder value to embracing stakeholder value and ultimately culminating in a paradigm of stewardship. In the traditional context of shareholder value, businesses primarily prioritize short-term profits and cater to the interests of shareholders. Recognizing the limitations of this approach, the evolution advances toward stakeholder value, acknowledging the importance of balancing the needs and expectations of all stakeholders, including employees, customers, partners, and the broader community. However, the journey doesn’t conclude here. The visionary destination is stewardship, where businesses not only consider the impact on stakeholders but also take a proactive role in shaping a positive and sustainable influence on society and the environment. Stewardship goes beyond immediate interests and profit motives, focusing on creating enduring value and contributing to the well-being of both present and future generations. This strategic shift from shareholder value to stakeholder value and ultimately to stewardship reflects a commitment to responsible and impactful business practices, aligning purpose with long-term societal and environmental goals.

 

Hiring

11. Functions → Roles → Competencies

 The evolution in hiring practices has traversed a trajectory from rigid functions to dynamic roles and, subsequently, into a competency-driven paradigm. Initially, organizations adhered to specific functions and predefined roles when building their teams. However, recognizing the multidimensional nature of individual capabilities, the focus has shifted towards competencies—a holistic approach encompassing diverse skills, abilities, and attributes. This shift acknowledges that individuals bring a unique blend of talents that transcend conventional role boundaries. Importantly, it signifies a departure from the emphasis solely on qualifications to favoring experience—a nod to the rich, practical insights individuals bring to the table. Moreover, a concurrent trend involves the establishment of skills-based databases, enabling organizations to systematically harvest talent. These databases serve as reservoirs of diverse competencies, allowing businesses to flexibly match individuals with evolving organizational needs. This strategic shift not only emphasizes the dynamic nature of contemporary workplaces but also reflects a commitment to cultivating a workforce that excels based on a broad spectrum of competencies and experiential wisdom, rather than rigidly predefined roles and qualifications.

 

Leadership

12. Directive → Collaborative → Empowering

 The evolution in leadership transitions from a centrally directed model, characterized by a top-down (directive) approach where decision-making authority is concentrated at the top, to a more inclusive and participative framework. This shift sees the emergence of collaborative leadership, where decision-making is shared among team members, valuing localized insights and fostering organizational flexibility. Such an approach encourages teams to make more informed and autonomous decisions within a defined framework, leveraging collective intelligence.

Taking the philosophy of leadership evolution further, we arrive at empowering (often referred to as Servant Leadership). This style disperses decision-making authority even more broadly, emphasizing the empowerment of each individual within the organization. It is rooted in the belief that leaders should serve their teams, prioritizing the personal and professional development of team members above traditional hierarchical mandates. Empowering leadership relies deeply on trust, collaboration, and a unified vision, underlining autonomy, adaptability, and a commitment to serving the greater good.

This progression from directive to collaborative and finally to empowering leadership reflects a strategic response to the complexities of the modern business environment. It underscores the necessity for leadership approaches that are not only inclusive and participative but also fundamentally oriented towards empowering individuals. Such approaches are crucial for navigating the dynamic and rapidly evolving landscapes of today’s world, ensuring that organizations remain agile, resilient, and capable of fostering continuous innovation.

Mission

13. Profit-driven → Purpose-driven → Planned Impact

 The evolution in the mission and strategic orientation of businesses unfolds as a progression from a profit-driven focus to embracing a purpose-driven approach and ultimately reaching a stage of planned impact. In the profit-driven paradigm, organizations prioritize financial gains as the primary measure of success. Acknowledging the need for a more holistic and meaningful existence, the transition moves towards a purpose-driven focus. Here, businesses articulate a shared purpose that extends beyond profit, emphasizing the positive contributions they aspire to make to society, the environment, or other meaningful causes. However, recognizing that a purpose alone may remain aspirational without tangible results, the trajectory advances toward planned impact. This strategic phase involves systematic planning, measurement, and reporting of the impact created by the organization. By setting specific, measurable, and sustainable goals aligned with their purpose, businesses move beyond rhetoric to concrete actions, ensuring that their mission translates into meaningful outcomes. The shift from profit-driven to purpose-driven and finally to planned impact reflects a commitment to articulating values and actively working towards creating a lasting and positive influence on the world.

 

 

Organizational Development

14. Weaknesses → Strengths → Sustained Growth

 The organizational evolution from mitigating or eliminating weaknesses to identifying and aligning strengths, and ultimately embracing growth, represents a strategic shift in mindset. In the initial phase, organizations diligently address weaknesses or problems, aiming to minimize vulnerabilities and challenges. As the progression unfolds, there’s a pivot towards recognizing and aligning with strengths, acknowledging that cultivating excellence in proficient areas forms a solid foundation. Simultaneously, the organization transitions from merely solving problems to identifying opportunities, where strengths are strategically aligned to explore and capitalize on emerging possibilities. The ultimate stage is a commitment to proactive growth, where the organization not only addresses weaknesses and seizes opportunities but actively develops and maximizes its potential. This holistic approach involves leveraging strengths to navigate challenges, capitalizing on opportunities, and proactively shaping a future of sustained growth and innovation.

 

Progression

15. Linear → Non-Linear → Cyclical

 At the heart of RoundMap® lies a transformative evolution from a linear operational approach, solely focused on improving results, to an integrated and cyclical operation that prioritizes increasing impact. This fundamental shift, encapsulated in RoundMap’s® name, highlights the incorporation of an intermediate step—integration—where the business processes and strategies are harmonized for a more cohesive and interconnected operation. Research consistently demonstrates the power of closing the loop, incorporating feedback, and embracing continuous learning from each cycle. By adopting this integrated and cyclical mindset, businesses can harness the insights gained to create more value, foster greater loyalty, and drive higher customer and employee engagement levels. RoundMap® emphasizes the importance of feedback loops, enabling businesses to adapt and refine their strategies and operations, ultimately leading to increased profitability and sustainable growth. By embracing this critical aspect of RoundMap®, businesses can propel themselves toward a more impactful and prosperous future.

 

Resilience

16. Fitness → Agility → Vitality

 In navigating a VUCA (Volatile, Uncertain, Complex, Ambiguous) world, the fitness, agility, and vitality sequence represents a strategic progression for firms to enhance their resilience. Initially, achieving organizational fitness involves optimizing core capabilities and operational efficiency, ensuring a solid foundation. As the environment becomes more volatile and uncertain, the focus transitions to agility, emphasizing the ability to adapt swiftly to changing circumstances, seize emerging opportunities, and navigate unexpected challenges. Agility enables organizations to respond with flexibility and speed in the face of unpredictability. However, recognizing that adaptability alone may not suffice, the pursuit of vitality emerges as the next stage. Vitality encompasses a proactive and forward-thinking approach, involving continuous innovation, learning, and the cultivation of a culture that thrives on change. It goes beyond mere adaptability, emphasizing the proactive creation of new opportunities and the ability to shape the environment rather than merely responding to it.

 

Structure (Horizontal)

17. Silos → Integration → Whole System

 The transition from siloed operations to integration and, ultimately, the incorporation and consideration of the whole system signifies a profound shift in organizational dynamics. While integration emphasizes breaking down silos and fostering collaboration among diverse components, the move towards the whole system goes beyond mere integration. It involves recognizing the interconnectedness of all organizational elements and considering their collective impact on the broader system. This advanced stage not only enhances diversity of thought but also propels creativity, innovation, resilience, and vitality to unprecedented levels. By incorporating a holistic perspective, organizations not only break down internal barriers but also consider external factors, stakeholders, and the broader environment. This comprehensive approach cultivates a culture where ideas flow freely, diverse perspectives are valued, and innovation thrives. Consequently, organizations become more than just adaptable and resilient; they attain a vitality derived from the profound interconnectedness and collaboration inherent in considering the entire system.

 

Structure (Vertical)

18. Hierarchy → Matrix → Holon

 The transition from Hierarchies to Matrices and ultimately to Holons represents a transformative journey in organizational structure. Initially structured in a hierarchical form, organizations follow a clear chain of command with well-defined roles and responsibilities. Recognizing the limitations of hierarchies, the transition to Matrices introduces a more dynamic model where teams collaborate across traditional boundaries, enhancing communication and flexibility. This intermediate step acknowledges the need for increased collaboration and cross-functional interaction. The final stage is the adoption of Holons, where entities operate both autonomously and collaboratively, reflecting a more decentralized and self-organizing structure. Holons allow for a balance between autonomy and integration, promoting adaptability and responsiveness in a complex and dynamic environment. Notably, the concept of Holons has inspired innovative approaches like the Constellation of Teams in Consentricity, emphasizing interconnected and self-organizing teams within the broader organizational framework. This shift from Hierarchies to Matrices to Holons reflects a progression toward more agile, interconnected, and resilient organizational structures.

 

Talent Development

19. Motivated → Empowered → Synergized

 The evolution of talent development, progressing from Motivated to Empowered and ultimately to Synergized, marks a strategic journey in unleashing the full potential of individuals within an organization. Motivating individuals involves tapping into their drives and aspirations and aligning them with organizational goals. As the evolution unfolds, the focus shifts to empowerment, granting individuals the autonomy, resources, and support needed to take ownership of their roles and contribute meaningfully. The pinnacle of this progression is Synergized talent, where the collective collaboration and harmonization of individual strengths lead to a dynamic synergy that transcends individual capabilities. In this stage, the organization becomes greater than the sum of its parts, fostering an environment where diverse talents complement each other, creativity flourishes, and collective achievements surpass individual accomplishments.

 

Targeting

20. Customer Needs → Customer Jobs → Customer Outcomes

 The progression in value creation, from addressing customer needs to understanding the broader context of customer “jobs-to-be-done,” and ultimately delivering specific outcomes, represents a strategic evolution. Initially, businesses focus on identifying and understanding the specific needs customers have within a given context. Moving further along the progression, the next stage involves comprehending the customer’s job, understanding the broader objectives or tasks they are trying to accomplish. This expanded perspective allows for a more holistic understanding of customer requirements. The ultimate goal is to provide not just products or services that fulfill needs or jobs but to deliver specific and impactful outcomes. This shift to outcomes requires a nuanced understanding of the desired results or benefits that customers seek when utilizing a product or service to accomplish a particular job. By aligning value creation with these ultimate outcomes, businesses can deepen their understanding and more effectively meet customer expectations, contributing to long-term satisfaction and loyalty.

 

Technology

21. Assisted → Augmented → Autonomous

 The evolution of technology has traversed a remarkable path, progressing from merely assisting human activities to augmenting them with advanced capabilities. In the next frontier, we envision a stage characterized by autonomous intelligence. Here, technology not only provides assistance and augmentation but operates with a heightened level of autonomy, leveraging sophisticated artificial intelligence and machine learning. This phase involves intelligent systems making independent decisions, guided by predefined rules and learning algorithms that adapt to dynamic contexts. The transition to autonomous technology represents a future where human-machine collaboration is seamlessly enhanced, offering not just assistance and augmentation but a more proactive, self-directed role for technology in various domains. This trajectory reflects a paradigm shift toward a new era of technological evolution, promising deeper integration and collaboration between human and machine intelligence.

 

Value Orchestration

22. Value Chains → Value Networks → Value Circles

 The evolutionary shift in value orchestration progresses from value chains to value streams, further expanding into value networks and ultimately culminating in value circles. Initially, the value chain concept focuses on the sequential steps in the production or service delivery process, creating a linear path. The evolution then advances to value streams, recognizing the flow of value across various processes and emphasizing efficiency and coordination. Building upon this, the evolution extends to value networks, acknowledging the importance of external relationships, partnerships, and collaboration in the value creation process. Finally, value circles signify a continuous, adaptive, and holistic approach to value creation, emphasizing ongoing feedback and collaboration, with a seamless integration of internal and external stakeholders. This progressive shift reflects a departure from linear and isolated models toward more interconnected and dynamic orchestrations of value.

 

Value Proposition

23. Features → Experiences → Emotional Resonance

 The evolution in value proposition emphasis follows a deliberate trajectory, starting with the communication of product features. Initially, the narrative centers on highlighting specific functionalities, providing a detailed exposition of the offering’s capabilities. As the story unfolds, the focus seamlessly shifts towards articulating how the product creates meaningful experiences, recognizing the intrinsic value and benefits it provides. This pivotal transition sets the stage for the ultimate destination—crafting a compelling narrative that goes beyond features and experiences to establish emotional resonance. Here, storytelling becomes the central means to frame the proposition within a broader context, acknowledging the profound influence of emotional resonance and overall narrative cohesion in shaping the audience’s perception. This strategic progression, from Features to Experiences and ultimately to Emotional Resonance through StoryCasting, marks a nuanced and holistic approach that transcends technical details to create a resonant and captivating story around the product or proposition.

 

Workforce

24. Specialist → T-shaped → Polymath

 The evolution from a specialist to a T-shaped professional and, ultimately, a polymath represents a transformative journey in shaping one’s expertise and perspective. Beginning as a specialist, individuals focus intensely on acquiring in-depth knowledge and skills within a specific domain. The progression then leads to a T-shaped professional, where the vertical bar of the ‘T’ symbolizes their deep expertise, while the horizontal bar represents a broader understanding across related disciplines. As the journey continues, the ultimate destination is polymathy, characterized by a wealth of knowledge spanning diverse domains. A polymath possesses not only deep expertise but also a breadth of perspective, enabling them to draw insights and connections from various fields. This evolution underscores the importance of not only specialized proficiency but also a holistic and interdisciplinary approach, reflecting a dynamic shift in how expertise is cultivated and applied in today’s interconnected world.

 

Navigating Strategic Transitions: Insights from RoundMap®

 In recognizing the dynamic and complex nature of the contemporary business landscape, the shifts and transitions outlined here have emerged as key considerations during the creation of RoundMap®. However, it’s important to emphasize that these transitions are not exclusive to RoundMap®; rather, they reflect broader trends and evolving strategies in various organizations. The identified shifts span diverse dimensions, ranging from business models, strategies, and organizational structures to leadership styles, talent development, and customer interactions. As entities venture through these strategic progressions, RoundMap® offers a guiding framework to navigate these transformative journeys. Whether it’s the evolution from product-centric to people-centric strategies, the transition from hierarchical structures to consentric organizations, or the shift towards consent-based decision-making, these trends mirror the ongoing evolution in the business world. RoundMap® serves not only as a reflection of these shifts but also as a proactive tool to help organizations strategically navigate, adapt, and innovate in the ever-changing landscape of contemporary business.

 

 https://tinyurl.com/4styyc5n

Organisational power

 

The powers and duties of directors were the focus of some earlier posts, however these make quite narrow use of the concept of ‘power’ – which has many forms and applications.

My previous post dealt with powers legally (and therefore legitimately) afforded non-profit boards and directors, and made reference to those powers being distinctly different to other expressions of power, such as ‘power over’, ‘power with’ and ‘power within’. The header image above offers definitions for each of these, which may aid your reflection on the distinctions.

Types of Power

French and Raven catalogued the bases of social power in 1959, and while there have been some later variations on this typology, their analysis continues to be widely used today.

The chart below positions legitimate power (the right to exercise control) adjacent to informational power, at the boundary between the major categories of positional and personal power. While coercion often involves the abuse of power, from an organisational perspective, it also accommodates the authority to impose sanctions for non-compliance with policies or procedures. Getting the balance right in your organisation is a key determinant of your culture – and the likelihood that you will be identified as ‘an employer of choice’.

Sources of organisational power

Unpacking the sources of your legitimate organisational power a little further, the following schematic identifies various of the controls or ‘governance systems’ you are employing to achieve your purposes, and to meet performance and conformance obligations. Using this chart as a checklist of your control systems, you might identify some areas in which there are opportunities for improvement.

The power to delegate to committees or individuals is one such area, which many non-profits find tricky. This power is embedded within the ‘Use of organisational structure, rules and regulations’

https://tinyurl.com/25m2x5dx

Strategic Planning Process: Why Is Strategic Planning Important for Organizations in 2024?

 

Playing chess without a strong opening is a guaranteed way to disadvantage yourself. Just like in chess, organizations without an adequate strategic planning process are unlikely to thrive and adapt long-term. 

The strategic planning process is essential for aligning your organization on key priorities, goals, and initiatives, making it crucial for organizational success.  

This article will empower you to craft and perfect your strategic planning process by exploring the following: 

• What is strategic planning
• Why strategic planning is important for your business 
• The seven steps of the strategic planning process  
• Strategic planning frameworks
• Best practices supporting the strategic planning process 

By the end of this article, you’ll have the knowledge needed to perfect the key elements of strategic planning. Ready? Let’s begin. 

What is strategic planning?

Strategic planning charts your business's course toward success. Using your organization’s vision, mission statement, and values — with internal and external information — each step of the strategic planning process helps you craft long-term objectives and attain your goals with strategic management. 

The key elements of strategic planning includes a SWOT analysis, goal setting, stakeholder involvement, plus developing actionable strategies, approaches, and tactics aligned with primary objectives. 

In short, the strategic planning process bridges the gap between your organization’s current and desired state, providing a clear and actionable framework that answers: 

• Where are you now? 
• Where do you want to be? 
• How will you get there?

7 key elements of strategic planning 

The following strategic planning components work together to create cohesive strategic plans for your business goals. Let’s take a close look at each of these: 

1. Vision: What your organization wants to achieve in the future, the long-term goal 
2. Mission: The driving force behind why your company exists, who it serves, and how it creates value 
3. Values: Fundamental beliefs guiding your company’s decision-making process 
4. Goals: Measurable objectives in alignment with your business mission, vision, and values 
5. Strategy: A long-term strategy map for achieving your objectives based on both internal and external factors 
6. Approach: How you execute strategy and achieve objectives using actions and initiatives  
7. Tactics: Granular short-term actions, programs, and activities 

Why is the strategic planning process important?

Just as a chess player needs a gameplan to reach checkmate, a company needs a solid strategic plan to achieve its goals.  

Without a strategic plan, your business will waste precious time, energy, and resources on endeavors that won’t get your company closer to where it needs to be.  

Your ideal plan should cover all key strategic planning areas, while allowing you to stay present by measuring success and course-correcting or redefining the strategic direction when necessary. Ultimately, enabling your company to stay future-proof through the creation of an always-on strategy that reflects your company's mission and vision.  

An always-on strategy involves continuous environmental scanning even after the strategic plan has been devised, ensuring readiness to adapt in response to quick, drastic changes in the environment.

Let’s dive deeper into the steps of the strategic planning process. 

What are the 7 stages of the strategic planning process?

You understand the overall value of implementing a strategic planning process — now let’s put it in practice. Here's our 7-step approach to strategic planning that ensures everyone is on the same page: 

1. Clarify your vision, mission, and values 
2. Conduct an environmental scan 
3. Define strategic priorities 
4. Develop goals and metrics 
5. Derive a strategic plan 
6. Write and communicate your strategic plan 
7. Implement, monitor, and revise  

1. Clarify your vision, mission, and values 

The first step of the strategic planning process is understanding your organization’s core elements: vision, mission, and values. Clarifying these will align your strategic plan with your company’s definition of success. Once established, these are the foundation for the rest of the strategic planning process.   

Questions to ask:

• What do we aspire to achieve in the long term?
• What is our purpose or ultimate goal?
• What do we do to fulfill our vision?
• What key activities or services do we provide?
• What are our organization's ethics?
• What qualities or behaviors do we expect from employees?

2. Conduct an environmental scan

Once everyone on the same page about vision, mission, and values, it's time to scan your internal and external environment. This involves a long-term SWOT analysis, evaluating your organization’s strengths, weaknesses, opportunities, and threats. 

Internal factors 

Internal strengths and weaknesses help you understand where your organization excels and what it could improve. Strengths and weaknesses awareness helps make more informed decisions with your capabilities and resource allocation in mind. 

External factors

Externally, opportunities and threats in the market help you understand the power of your industry’s customers, suppliers, and competitors. Additionally, consider how broader forces like technology, culture, politics, and regulation may impact your organization.  

Questions to ask:

• What are our organization's key strengths or competitive advantages?
• What areas or functions within our organization need improvement?
• What emerging trends or opportunities can we leverage?
• How do changes in technology, regulations, or consumer behavior impact us?

3. Define strategic priorities

Prioritization puts the “strategic” in strategic planning process. Your organization’s mission, vision, values, and environmental scan serve as a lens to identify top priorities. Limiting priorities ensures your organization intentionally allocates resources. 

These categories can help you rank your strategic priorities: 

• Critical: Urgent tasks whose failure to complete will have severe consequences — financial losses, reputation damage, or legal consequences 
• Important: Significant tasks which support organizational achievements and require timely completion 
• Desirable: Valuable tasks not essential in the short-term, but can contribute to long-term success and growth 

Questions to ask:

• How do these priorities align with our mission, vision, and values?
• Which tasks need to be completed quickly to ensure effective progress towards our desired outcomes?
• What resources and capabilities do we need to pursue these priorities effectively?

4. Develop goals and metrics

Next, you establish goals and metrics to reflect your strategic priorities. Purpose-driven, long-term, actionable strategic planning goals should flow down through the organization, with lower-level goals contributing to higher-level ones. 

One approach that can help you set and measure your aligned goals is objectives and key results (OKRs). OKRs consist of objectives, qualitative statements of what you want to achieve, and key results, 3-5 supporting metrics that track progress toward your objective. 

OKRs ensure alignment at every level of the organization, with tracking and accountability built into the framework to keep everyone engaged. With ambitious, intentional goals, OKRs can help you drive the strategic plan forward.  

Questions to ask:

• What metrics can we use to track progress toward each objective?
• How can we ensure that lower-level goals and metrics support and contribute to higher-level ones?
• How will we track and measure progress towards key results?
• How will we ensure accountability?

5. Derive a strategic plan

The next step of the strategic planning process gets down to the nitty-gritty “how” — developing a clear, practical strategic plan for bridging the gap between now and the future.  

To do this, you’ll need to brainstorm short- and long-term approaches to achieving the goals you’ve set, answering a couple of key questions along the way. You must evaluate ideas based on factors like: 

• Feasibility: How realistic and achievable is it? 
• Impact: How conducive is it to goal attainment? 
• Cost: Can we fund this approach, and is it worth the investment? 
• Alignment: Does it support our mission, vision, and values?  

From your approaches, you can devise a detailed action plan, which covers things like: 

• Timelines: When will we take each step, and what are the deadlines? 
• Milestones: What key achievements will ensure consistent progress? 
• Resource requirements: What’s needed to achieve each step? 
• Responsibilities: Who's accountable in each step? 
• Risks and challenges: What can affect our ability to execute our plan? How will we address these? 

With a detailed action plan like this, you can move from abstract goals to concrete steps, bringing you closer to achieving your strategic objectives. 

6. Write and communicate your strategic plan

Writing and communicating your strategic plan involves everyone, ensuring each team is on the same page. Here’s a clear, concise structure you can use to cover the most important strategic planning components: 

• Executive summary: Highlights and priorities in your strategic overview  
• Introduction: Background on your strategic plan 
• Connection: How your strategic plan aligns with your organization’s mission, vision, and values 
• Environmental scan: An overview of your SWOT analysis findings 
• Strategic priorities and goals: Informed short and long-term organizational goals 
• Strategic approach: An overview of your tactical plan  
• Resource needs: How you'll deploy technology, funding, and employees 
• Risk and challenges: How you’ll mitigate the unknowns if and when they arise 
• Implementation plan: A step-by-step resource deployment plan for achieving your strategy 
• Monitoring and evaluation: How you’ll keep your plan heading in the right direction 
• Conclusion: A summary of the strategic plan and everything it entails 

Questions to ask:

• What information or context do stakeholders need to understand the strategic plan?
• How can we emphasize the connection between the strategic plan and the overall purpose and direction of the organization?
• What initiatives or strategies will we implement to drive progress?
• How will we mitigate or address risks?
• What are the specific steps and actions we need to take to implement the strategic plan?
• Any additional information or next steps we need to communicate?

7. Implement, monitor, and revise performance 

Finally, it’s time to implement your strategic plan, making sure it's up to date, creating a persistent, always-on strategy that doesn't lag behind. As you get the ball rolling, keep a close eye on your timelines, milestones, and performance targets, and whether these align with your internal and external environment.  

Internally, indicators like completions, issues, and delays provide visibility into your process. If any bottlenecks, inefficiencies, or misalignment arises, take corrective action promptly — adjust the plan, reallocate resources, or provide additional training to employees. 

Externally, you should monitor changes such as customer preferences, competitive pressures, economic shifts, and regulatory changes. These impact the success of your strategic action plan and may require tweaks along the way.  

Remember, implementing a strategic plan isn’t a one-time task — continual strategic evaluations are essential for an Always-On Strategy. It involves extending beyond planning stages and contextualizing the strategy in real-time, allowing for swift adaptations to changing circumstances to ensure your plan remains relevant.

Questions to ask:

• Are there any bottlenecks, inefficiencies, or misalignments we need to address?
• Are we monitoring and analyzing external factors?
• Are we prepared to make necessary tweaks or adaptations along the way?
• Are we agile enough to promptly correct deviations from our strategic plan while maintaining an "always-on" strategy for continual adjustments?

Strategic planning frameworks

You can use several frameworks to guide you through the strategic planning process. Some of the most influential ones include:

• Balanced scorecard (BSC): Takes an overarching approach to strategic planning, covering financial, customer, internal processes, and learning and growth, aligning short-term operational tasks with long-term strategic goals.
• SWOT analysis: Highlights your business's internal strengths and weaknesses alongside external opportunities and threats to enable informed decisions about your strategic direction.
• OKRs: Structures goals as a set of measurable objectives and key results. They cascade down from top-level organizational objectives to lower-level team goals, ensuring alignment across the entire organization. Get an in-depth look at OKRs here. 
• Scenario planning: Involves envisioning and planning for various possible future scenarios, allowing you to prepare for a range of potential outcomes. It's particularly useful in volatile environments rife with uncertainties.
• Porter's five forces: Evaluates the competitive forces within your industry — rivalry among existing competitors, bargaining power of buyers and suppliers, threat of new entrants, and threat of substitutes — to shape strategies that position the organization for success.

Common problems with strategic planning and how to overcome them

While strategic planning provides a roadmap for business success, it's not immune to challenges. Recognizing and addressing these is crucial for effective strategy implementation. Let's explore common issues encountered in strategic planning and strategies to overcome them.

Static nature

Traditional strategic planning models often follow a linear, annual, and inflexible process that doesn't accommodate quick changes in the business landscape. Strategies formulated this way may quickly become outdated in today's fast-paced environment.

Solution

To overcome the rigidity of traditional strategic planning, your organization should integrate continuous environmental scanning processes. This includes monitoring market changes, competitor actions, and technological advancements, ensuring real-time insights inform strategic decision-making. Additionally, adopting agile methodologies allows for iterative planning, breaking down strategies into smaller, manageable components reviewed and adjusted regularly, ensuring adaptability in today's fast-paced landscape.

Disconnect between strategic plan and execution

There's often a significant gap between the strategic objectives and their actual implementation, leading to misalignment, confusion, and inefficiency within the organization.

Solution

To bridge the gap, ensure accountability, alignment, and feedback-driven processes across the business. Linking team roles and responsibilities to lower-level objectives can fosters alignment and accountability, whereas aligning these with overarching strategic objectives ensure coherence in execution. To ensure goals are optimized on an ongoing basis, implement a feedback mechanism that continuously evaluates progress against goals, enabling regular adjustments based on market feedback and internal insights.

Lack of real-time insights

Traditional planning models rely on historical data and periodic reviews, which might not capture real-time changes or emerging trends accurately. This can result in misaligned strategies unsuitable for the current business landscape.

Solution

Leverage advanced analytics tools and AI-driven technologies. Invest in technologies that offer real-time tracking and reporting of key performance indicators, with dashboards and monitoring systems that provide up-to-date insights. These allow you to gather, process, and interpret real-time data for proactive decision-making that aligns with the current business landscape. 

Failure to close the feedback loop

The absence of a feedback loop between strategy formulation, execution, and evaluation can impact learning and improvement. Companies might therefore struggle to refine their strategies based on real-time performance insights.

Solution

Establish a structured feedback loop encompassing strategy formulation, execution, and evaluation stages. Encourage employees to actively contribute insights on strategy execution, fostering a culture of continuous improvement and adaptation.

Best practices during the strategic planning process

Navigating strategic planning goes beyond overcoming challenges. A successful strategic plan requires you to embrace a set of guiding best practices, helping you navigate the development and implementation of your strategic planning process.  

1. Keep the planning process flexible

With ever-changing business environments, a one-and-done approach to strategic planning is insufficient. Your strategic plan needs to be adaptable to ensure its relevancy and its ability to weather the effects of changing circumstances. 

2. Pull together a diverse group of stakeholders

By including voices from across the organization, you can account for varying thoughts, perspectives, and experiences at each step of the strategic planning process, ensuring cross-functional alignment. 

3. Document the process

Continuous documentation of the strategic management process is crucial in capturing and communicating the key elements of strategic planning. This keeps everyone on the same page and your strategic plan up-to-date and relevant. 

4. Make data-driven decisions

Root your decisions in evidence and facts rather than assumptions or opinions. This cultivates accurate insights, improves prioritization, and reduces biased (flawed) decisions. 

5. Align your company culture with the strategic plan 

Your strategic plan can only be successful if everyone is on board with it — company culture supports what you’re trying to achieve. Behaviors, rules, and attitudes optimize the execution of your strategic plan. 

6. Leverage AI 

Using AI in strategic planning supports the development of an always-on strategy — amplifying strategic agility, conducting comprehensive environmental scans, and expediting planning phases. It can streamline operations, facilitate data-driven decision-making, and provide transparent insights into progress to drive accountability, engagement, and alignment with the strategic plan.

The strategic planning process in a nutshell

Careful strategy mapping is crucial for any organization looking to achieve its long-term goals while staying true to its mission, vision, and values. The seven steps in the strategic planning process outlined in this article provide a solid framework your organization can follow — from clarifying your organization’s purpose and developing a strategic plan, to implementing, monitoring, and revising performance. These steps will help your company meet goal measurements and create an always-on strategy that's rooted in the present. 

It’s important to remember that strategic planning is not a one-time event. To stay effective and relevant, you must continuously monitor and adapt your strategy in response to changing circumstances. This ongoing process of improvement keeps your organization competitive and demonstrates your commitment to achieving your goals. 

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