It’s common for organizations to emphasize just one or two of the people factors and, as a result, to encounter some typical speed bumps. In practice, four patterns of organizational behavior crop up frequently. Each is characterized by different levels of clarity, unity, and agility.
Not my problem
(high clarity, low unity, average agility).
In this sortof organization, people are clear about what the strategy is but less clear about how to execute it. The strategy turns into fragments that each of the many functions or divisions interprets differently. People selectively execute the strategy in ways that protect their turf. As a result, silos form and business units work against each other. Information tends to stay within these silos or functions rather than being shared, and in some cases, information becomes power. Trust erodes, even when people think they’re doing the right thing. Pressure for shortterm performance is so high that there is little experimentation or reflection. People point fingers and blame one another. This pattern of behavior can have devastating consequences.
Everything to everyone
(low clarity, low unity, average-to-high agility).
This organization has a glorious new strategy. There’s only one problem: Nobody is doing anything about it. They jump on every “hot opportunity” they see but never quite manage to turn any of the opportunities into profitable products or services. They promise their products or services are fast, good, and cheap, when in fact they can deliver on only one or two of those promises; they take this approach because they prize customer satisfaction. Everyone is happy until
it’s time to deliver and things go wrong. Then, everyone pitches in to make it right: They expedite the order, which disrupts the other orders, and soon everything is being expedited . . . until the company goes out of business—all in the name of customer satisfaction.
Myopia utopia
(low clarity, averageto-high unity, low agility).
In this type of organization, there’s a heavy reliance on “strong results today” that overlooks the strong behaviors and values necessary for the sustained health of the business or the industry. Pressure for short-term performance is so high that there’s little experimentation or reflection and little concern for achieving clarity of direction. There is plenty of camaraderie but little accountability for finding and fixing systemic, long-term problems. The net result is organizational performance typified by peaks and valleys—potentially very deep valleys from which the firm may never emerge. Lehman Brothers was an example of a myopia-utopia culture.
4. Boiled frogs
(high clarity, high unity, low agility).
How many companies can you name that, after years of success, drop out of the competition—either to fade away or to reemerge after painful restructuring? Think IBM with the PC, the music industry, newspapers, and network television.
Generally speaking, these organizations have a very clear strategy and have been able to execute it very well. The seeds of their success, however, also account for their crop failure. They become so focused on what has worked that when things start to go poorly, all they can do is try more of the same, which only exacerbates the situation. It is difficult for them to look outside and understand that their business environment has changed. You see this happen all the time with new, nimble competitors. A big player sees a new player entering the market at the low end, so it begins lowering its own prices. Soon, the new player begins moving up the chain, learning as it goes, and eventually becomes the big player.
Like the urban legend about frogs that supposedly won’t jump out of a pot when water is heated slowly—and end up getting boiled to death without ever realizing they are in danger—this type of organization never realizes that it’s time to take a leap in a new direction.
Source: Forum Corporation
