Organizational Transformation
Innovation and transformation are inescapable in today’s society. The churn in the economy, society and government has reached a point where even the most conservative, risk-adverse organization needs to change. Massive structural shifts in the economy, the eruption of disruptive technology, and the emergence of a new relationship between citizens and government where citizens demand the same level of service from government as they demand from the private sector make transformation imperative.
Organizational Transformation: Old versus New Government
This has created a mismatch between pre-millennial organizations (i.e., those organizations that were created prior to the great transformation that we are living through) and post-millennial customer demands. Organizations that have resisted transformation end up as being consumed by better adapted organizations that are able to survive and thrive in the post-Millennial world.
This has created a mismatch between pre-millennial organizations (i.e., those organizations that were created prior to the great transformation that we are living through) and post-millennial customer demands. Organizations that have resisted transformation end up as being consumed by better adapted organizations that are able to survive and thrive in the post-Millennial world.
Key Principals to Keep in Mind during Transformation
- Everyone Should Know What They Are Doing: Define clear and distinct charters for every function in an organization — everyone should know what they are meant to do and why it’s different from other peoples work
- Don’t Build for Superman: Eliminate impossible jobs that only super-people can fill — the more the organizational structure permits specialization, the more depth it can offer in each area, and the better it will perform
- Don’t Build for Underdog: Avoid jobs for underachievers — employ everyone’s full range of talents within well-defined lines of business
- Culture is not just a Mold on a Tub Of Yogurt: Culture is the real, alive medium in which people live their life – do everything you can to reshape the culture to support your vision – if the culture changes, the organization will follow
- Empower All Levels: Every level of the organization should be empowered and held accountable for results rather than tasks
- Empower All Functions: Don’t limit accountability to one level and authority to another – disperse power and accountability through the organization
- Don’t Intervene: Don’t attempt to control everything management does — establish general guidelines to regulate behavior
- Don’t Rely on Authority: People do things because they see a benefit from an action – don’t rely on status hierarchies and control – make the resource bargain is explicit (“if you do this, you get this”) – don’t rely solely on monetary awards
- Emphasize Business and Individual Benefits: Be explicit about the benefit of any function to the organization and the reward that an individual or organization will receive for delivering that benefit
- Remember People are Not Idiots or Children: People are smart enough to know when transformation rhetoric is just for show – don’t lie to people and expect them to believe – people can understand their own interests and will act in accordance with their perceived interest – explain how transformation will benefit them and what they have to gain from it
- Keep Rules Simple and Flexible: Don’t attempt to control everything through detailed, inflexible plans — establish general guidelines to regulate behavior and positive incentives
- Don’t Discrimination Against Functions: The organization must be equally ready to support any of its many lines of business without predefined preferences – a function that is held in low regard will not function well
- Design Around Broad Personality Types, Not Individuals: Be conscious of the personality type needed and what types are interested in the resource bargain – design around broad personality archetypes rather than people
- Reward Results, Not Tasks: Align rewards feedback loops with intended results, define structure by the products they produce rather than the skills or tasks needed to produce them
- Make Inter-dependencies Explicit: Inter-dependencies must be clearly established — build a clear understanding of each group’s internal customers and suppliers
- Build for Integration: Explicitly assign responsibilities for ensuring collaboration across boundaries
- Build for adaptation: Explicitly assign responsibilities for improving the organization – make the structure self-adjusting and self-correct