Tag Archives: company sustainability

Shaping An Organization– Lasting, Enduring Leader in World of Constant Change: It’s Surviving, Thriving with Sharks…

Contrary to today’s widely-held belief that companies must be prepared to fundamentally rethink strategies in response to a world of constant change… many organizations  prosper by doing the opposite; they focus on a simple core strategy and learn to adapt their early success over and over again… According to Chris Zook, James Allen; research suggests that– simplicity, focus, continuous adaptation almost always triumphs over radical change and reinvention…. An organization’s enduring, lasting success comes not necessarily from choice of market or industry, but from the essential design of the organization…

Organizational change is not optional to keep pace in world of constant change… All organizations, at one time or another, make substantive modifications to some aspect of their business… According to bomi; aside from major reinvention there are many small measures that an organization can take to adapt to change, e.g.;  # embrace technology— learn to use it to improve the organization… # increase speed and agility— opportunities come to organizations that respond quickly… # learn to live with ambiguity and uncertainty— these are the realities in a world of constant change… # adding value— value is life blood of profitability… # know your niche-– understand changing customers’ needs… # be a fixer— organizations that solve problems (fixers) are those that excel in a world of constant change…

In the article Thriving Amid World of Constant Change by Chris Zook, James Allen write:  Some companies succeed because they have ‘repeatable models’… Companies with repeatable models are built on a set of core strategic and organizational principles that have a stabilizing effect… The world is complex and it changes quickly… In such an environment, keeping the business simple and repeatable is a tremendously powerful and sustainable advantage… Repeatable models pose an interesting paradox. On face of it, their advantages ought not to be durable. Their differentiation is stark, their values and organizational structures are usually well publicized. So how can they enjoy a sustainable competitive advantage if everyone knows their secrets? For three principles:

  • Principle 1: Strong, Well-Differentiated Core: Focus on clear, repeatable differentiation… Differentiation is essence of strategy and root source of competitive advantage. Successful companies define differentiation not as an artificial construct dreamed-up in the boardroom but as a set of daily activities… These shape how everyone in an organization behaves. These core activities foster learning, constant change, improvement, erect barriers against imitation…
  • Principle 2: Clear Non-Negotiables:  Embedded core values are used to turn strategy into consistent decisions and actions– the non-negotiables… These are  few hard-wired, simple values and prescriptions that are the foundation/culture of the organization. This have the effect of reducing the distance from management to employees and customers… Belief in organization’s values and strategy improves employee loyalty and commitment…
  • Principle 3: Closed-Loop Learning: Transparency and learning drives the organization’s ability to adapt to a world of constant change… Key to adaptability is knowledge, and great ‘repeatable models’ have well-developed systems for learning… They stay close with customers and employees… They learn and develop early warning tools that allow them to anticipate fundamental change in the marketplace… These companies understand that inability to adapt or to respond urgently to a potentially mortal threat can derail an otherwise successful organization…

In the article Thrive in a Dynamic World Environment by Marie Wiere  writes; It’s argued that organizations are built to be– predictable, consistent, stable… Processes are designed to ensure– consistent performance, control workplace behavior, produce good outcomes… Some would argue that in recent years the great recession, technology change, other factors transformed traditional business, into a more dynamic environment characterized by a world of constant change… Constant and fast change is the new normal…. While change can be daunting, executives need to embrace change and accept that the future is harder to predict than ever before…

Constant focus on innovation is fundamental for the success of an organization, and leaders must recognize that innovations can come from anywhere and in many forms within the organization… Hence, everyone need to be empowered to innovate and share knowledge… Organizations need to be more inclusive and agile and to adjust, in real-time, as change occurs… Organizations must be paranoid in the search for different ways in which they can better meet customers’ needs…

In the article Building Organizations to Last by Jim Collins writes: There are two types of leaders; ‘time-tellers’ and ‘clock-makers’. Having a great idea or being charismatic, visionary leader is ‘time-teller’… Building a great organization that can prosper far beyond the tenure of any single leader and through multiple business-life-cycles is a ‘clock-builder’… The shift from ‘time-teller’ (great product visionary) to ‘clock-builder’ (create great organization) is perhaps the single most important step in transforming a hot-growth organization into a visionary company that is built to last…

Visionary organization embrace both ends of continuum, including; continuity and change, conservatism and progressive, stability and revolution, predictability and chaos, heritage and renewal, basics and craziness... According to Bob Galvin; organizational change is essential but when taken alone it’s limited, and doing  things different is change when it calls for renewal, replace, redo… But organization also should cherish its proven basics core values and guiding purpose… According to Bain & Co; many highly successful organization have demonstrated that simplicity, focus and continuous adaptation almost always triumphs over strategies of radical change or reinvention…

Enduring success comes not from choice of market or industry, but from the essential design of the organization… According to Josh Bersin; high performing organizations fall into two categories: those that endure and prosper over long periods of time (decades), and those that rapidly rise to prominence than falter due to faulty organizational design, and often are acquired (or disappear). According to Raphael Bemporad; many organizations are challenged to think more creatively, purposefully, holistically (not necessarily more radically) to thrive… In this age of uncertainty and a world of constant change, organizations must have relevance and resilience to endure for generations…