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This is an era where roboadvisors will soon become the norm, where digital insights will change the face of marketing forever, where back-office administration will be transformed by technologies and where new products and services will develop at a speed never seen before.
To make things even tougher for established companies, not only is there hot competition from the usual places, technology has also removed barriers to entry, forcing incumbents to question their operating models and their hold over once loyal customers. But in this rapidly changing digital economy, could it be that the biggest threat to your business isn’t the competition but the organisation itself?
The disruption we are now facing on a massive scale requires organisations to transform in the fastest possible time. While many companies immediately look towards costly investments in hardware and software solutions in an effort to keep up, it is only the more astute companies that reflect on the organisation’s ability to quickly identify and evaluate relevant innovation and to rapidly evolve in response.
One thing that we have heard a lot in the past from large multi-national clients is that “unlike startups, here it takes a long time to turn the ship”. Our question is, is that lack of organisational agility an inescapable characteristic, built into the DNA of large organisations, or is adaptability a matter of choice?
Our Design Leads have addressed complex systemic challenges at both ends of the business spectrum, from startups to market leading incumbents. This work has certainly highlighted the characteristic strengths, aptitudes and behaviours of each: It will come as no surprise to readers that young, innovative companies tend to take more risks, are more reactive and more willing to fail; an advantage for sure, if harnessed effectively. They are also comfortable in emergent situations, which means that Innovation Arts’ approaches to problem solving – including Design Thinking and cross-functional collaboration – tend to already feel natural to the people who work there. This is not always the case in more established companies, whose cultures have evolved away from entrepreneurialism towards the need to protect and grow brands and meet shareholder expectations. But there is a reason companies cultures evolve as they do. When working with engineering clients who design and build aircraft engines, or the aircraft themselves, for example, we have not been shocked to find that a need for precision, caution and paramount safety have also influenced the way business processes are managed. Yet here too, digital transformation is an imperative, and leaders have found ways to exploit cultural strengths while still embracing new, accelerated ways of thinking and working that save thousands of hours of effort and rework.
Some incumbents choose to fast track their development of targeted innovation by combining forces. Our work in the Financial Technology sector has involved partnering with startups and established big names who, recognising each others’ strengths, search for symbiosis to exploit emergent Fintech markets. But even there, innovation cannot be kept distinct from the rest of the organisation and ultimately the ship still has to be turned. The question is how? At Innovation Arts we are convinced that the solution lies not in a book or a consultancy report, but within your existing organisation.
No matter who comprises your organisation, from millennials to experienced old-hands planning their retirement, every person within it will have lived through an extended period of highly intensive and accelerated change – as a child. Children face transformation constantly: physically, mentally, emotionally and in the expectations family and society have of them. Children are extraordinarily resilient and adaptable, and every new change strengthens them for the next. By drawing on this to recreate three key conditions that make thriving in change possible in your organisation, we can rediscover that strength:
Traditional hierarchical control and decision-making will not work. In some cases the more experience we have with things working well, the harder it is to access breakthrough thinking. Leadership teams must have the courage to acknowledge that we are in a new, unexplored era, and that their leadership requires resourcefulness – seeking answers from those who know, those who decide and those who do. This culture of trust and delegation will give employees in turn the courage to pose questions and offer suggestions they otherwise would have kept under wraps. Bring the right people together at the right time to answer important questions, and sometimes -in periods of intense transition – consider a temporary focal ‘hub’ to accelerate and align.
One of our core beliefs at Innovation Arts is that failure always precedes success. Modelling, testing and iteration are as key to Design Thinking as they are to technological advancements. If your company has a culture that punishes failure, innovation will never flourish; a learning culture is key to agility. You will also need to rethink cumbersome ‘traditional’ processes for decision-making, communicating and aligning/realigning – you simply don’t have time. A good design is never finished, but good enough for now can be good enough for now: operating models, action plans and communications strategies that meet immediate needs and can be iterated later are appropriate in this fast changing world.
If you can’t have fun with the problem, you’ll never solve it: If disruption is seen as a chore or something to be feared rather than as an exciting challenge then your organisation’s response will be lacklustre at best. Adopt collaborative approaches that engage employees and make working together on complex challenges tough but pleasurable. That doesn’t mean you can’t acknowledge employees concerns – people still need to understand what changes means for them. One thing that can help is keeping a constant focus on your values. Games Science can help you keep focused on who you are as a company even when you face a perpetually moving target.
These practical changes can tap into your organisation’s innate ability to adapt and embrace the opportunities that digital transformation presents for your business. Talk to us about how we can help you release the solutions within.
When a situation breaks, the Communications Director is on the frontline managing an increasingly complex number of stakeholders; media, shareholders, suppliers, partners and customers. The objective is to protect the brand and organization while keeping the media coverage to a minimum and stakeholders informed and placated.
However, while every Communications Director will ensure their company has a Crisis and Issues plan prepared in advance, one key stakeholder group is too often forgotten: your employees. They can be your saviour in such a situation, available to call upon as well-informed brand ambassadors and corporate advocates, OR they can be your bête noire if ignored. Of course when you are in crisis mode you have to prioritise, but if you wait to engage the broader employee base until the fire-fighting has subsided, it might be too late.
We know that most employees need to feel part of a holistic system, to be engaged with the wider purpose of the organisation. So if they are getting their updates from social media, feeling powerless to respond and sensing themselves on the periphery of the organisation, they will not only feel confused and demotivated, but could also present an immediate risk and a longer term weakness. A recent survey showed strongly that if employees no longer believe in their company, or that they can successfully uphold the brand or reputation, they are likely to start looking elsewhere (Gallup Survey 2017) and this effect is amplified in times of crisis.
The implications of this are borne out in difficult experience. Whatever the sector or industry, the Communications Directors and Internal Communications Directors we have worked with, who have faced such situations, all say the same – the one thing they would do differently next time is to ensure that all employees accompany the senior team managing the situation in unison.
At Innovation Arts, when we talk about Employee Engagement, we are not talking about the measure of employee morale previously known as ‘job satisfaction’. Rather, we are talking about actively engaging the organisation collaboratively in the aspirations, ambitions, trials and successes of the wider company. And we believe that your crisis handling should mirror the way you engage your organisation on a day to day basis, and around important initiatives – just in a more focused and intensive way commensurate with the urgency of the situation.
So if you were to come to us looking to put a crisis plan in place that engages your employees effectively, our first question to you would be, what is your internal engagement process OUTSIDE of a crisis situation? Don’t worry if you don’t have one yet, you’re certainly not alone. And it could well be that planning for a crisis situation provides the impetus you need to develop a broader employee engagement mechanism to support your business. We would always recommend putting this plan in place BEFORE you need it! The next question, then, is how to go about designing a plan that will actually be used, and used effectively?
Innovation Arts believes that more voices cut down on noise, which is another way of saying that by involving all critical stakeholders in creating the plan they will be expected to deploy, their ownership of the plan not only makes it more effective and reduces resistance but also devolves the leadership required in rapid-response situations.
The number of critical stakeholders we suggest you involve in creating your plan can vary between 12 and 100 depending the size and complexity of your organisation, and this in turn will guide the time investment required to collaborate and align on your Internal Engagement plan. Depending on your needs we will recommend between one and three days of intensive work in a DesignSession for exponential results.
Typical questions you might want to answer in such a DesignSession include:
By using Design Thinking and Collaborative methodologies in this process, the outcome will be more robust. From Framing of how a crisis situation might occur in your organisation to Architecting around different plausible scenarios and Building an employee engagement plan which is aligned across stakeholder groups.
All our DesignSessions are bespoke, co-designed with you and every one starts with a simple conversation about the opportunity to collaborate. Click here to contact us to discuss how engaging your employees could be the secret ingredient to success.
Participants congregated to share research, explain current initiatives and ideate new solutions for the needs of children on the move as well as means of prevention against the many risks these children face. Among participants were humanitarian organisations like UNICEF, government representatives, the United Nations, intergovernmental agencies, universities, private sector companies, Save the Children’s many international offices, and many more.
It was inspiring to see the spirit of collaboration and collective action that permeated the event. There was incredible energy as attendees shared their work, ideas and passion for change.
We were asked to graphic record throughout the day, capturing output from talks and workshops. The graphic recording was galleried in the main hall so attendees reflect upon the content from the day, and discuss plans for future action.
We created an infomural that wove together the output of the event into a visual story. There was a powerful narrative running through the event – the journey of young refugees, migrants and displaced persons from risk and turmoil to hope and opportunity, supported by the collective initiatives of all those represented by the event – and we wanted to bring it to life.
As part of the event, Save the Children nominated 20 inspiring young people, all currently or in the past considered “children on the move”. These incredible young people were strong advocates for the rights of their peers, contributing music, legal aid, philanthropic support, and more to the cause. We shared their stories in visual form and were thrilled to see them respond effusively, laughing and taking photos of each other.
It was a pleasure to collaborate with Save the Children and we were inspired by the stories we captured during the event. The strength and positivity that was generated during the two days of talks and workshops is much needed. There is a lot of work to be done but huge hope for the future.
After months of research into the inner workings of the company, US Attorney general Eric Holder this week published a report with recommendations for what Uber could do to redeem itself https://goo.gl/zwGhJA. Central to the report was a recommendation to “Reformulate Uber’s 14 Cultural Values,” to reflect more inclusive and positive behaviors.
Corporate value statements—those things you often see engraved in Plexiglas in corporate lobbies—exist to remind a company of its purpose in the wider world, of its very human reason to exist. But they must move beyond the lobby to act as the glue to bind employees together like a family, a beacon to steer towards when the going gets rough, and a code of ethics to hold employees to a higher standard. And yet, because company value statements are—necessarily—broad and open (or in Uber’s case vague and meaningless), a company’s values can be difficult for employees to translate into day-to-day behavior. What, exactly is meant by “super-pumpedness,” and does that mean downing several cans of Red Bull before clocking on, or something else entirely? And what happens when colleagues have different interpretations of the values? How easy is it for the language of a company’s values to translate into action for the boots-on-the-ground employee? How can a company ensure that its values are lived, not just talked about?
Innovation Arts knows that company culture crises are often an accumulation of small transgressions by employees who do not understand what the corporate values mean for the day-to-day. Or that trouble begins when the values fail to communicate what top brass believes their company to be. In our experience, a company’s values come to life within the company culture, which tends to bubble up from the bottom, from the lowliest employee to the CEO. If a company’s stated values include respect and diversity, then employees will be respectful of one another, form teams with people not like themselves, and reach outside their own sphere for new ideas. When your company values and culture promote “be yourself” and “toe-stepping,” then, well, just ask Uber what happens.
We have worked with a number of companies and cherished national institutions who are mindful of the impact values have on an organization, and wanted to ensure their values were meaningful for the people who follow them every day. However, admitting that you don’t quite understand them, or maybe that you interpret your corporate values differently than your colleagues can be a difficult conversation. That’s where the concept of game science can literally be a game-changer. By working with game designers, Innovation Arts has developed a new way to engage and inspire employees about their organization through our game Dilemma™ that translates an organisation’s values into day-to-day behaviours for every employee to understand and act upon. Dilemma™ employs a rigorous interview process to ensure a bespoke experience for each organization that uses it, and allows employees to put their corporate values through their paces through a series of scenarios matched with potential responses. Players earn points for responding with the action most closely tied to the intent of their company’s values—carefully avoiding the reactions born of habit or context. As much as we want to aspire to the better angels of our nature, it is a fact of modern life that we go astray, especially when time is short. Dilemma™ addresses these little slips and shortcuts, and encourages the players to talk through what a “wrong” response is, and yet, why an employee might be tempted to take the easy route. By identifying the preferred actions and the likely workarounds, what we have noticed is that the people who play Dilemma™ are more likely to talk about their company’s values in a way that is meaningful for each person, clarifying what the values are, why they exist, and how they should be enacted. Being honest enough to have an open and frank conversation about the accepted wisdom of company culture can motivate a group to own their values, and bring them to life.
Corporate values everywhere are a hot topic. The May 2017 issue of Fast Company magazine featured a cover story about the importance of embracing corporate values, and the impact they can have on the wider world. From automakers such as Ford and Audi to fashion houses like Gucci and Ralph Lauren, from health care firms to consumer packaged goods makers, companies are increasingly seeking to align their commercial activities with larger social and cultural values—not just because it makes them look good, but because employees and customers have started to insist on it. Millennials spend money in areas they believe in, and companies will simply have to respond. If you count the number of lives big companies like Facebook or Airbnb touch, they can have as much influence as a national official, so what they stand for themselves matters.
And that finally is what makes a company’s values so important. With global politics in a state of upheaval and trust in governments and other institutions suffering, corporations and large businesses may have to step forward to fill that gap and lead. What will ultimately differentiate those leaders is their inner motivations, their intentions. If your company intends to do good, and your employees know how to translate that into action, then it is clear on which side you will end up. What are your intentions? Are your employees living it every day, with every action, every decision? Perhaps it’s not clear whether they are engaged or not, or if your company’s values are simply words without meaning. If so, we encourage you to challenge your people to live up to what you say you stand for, to make each other better. What do you do when the chips are down, or you are in a hurry, or you are simply desperate to make that sale? We know that if you can count on your values in times of stress, then you will be able to rely upon them in times of ease. And it is possible that having a higher purpose will help a company’s profits in the long run.
Corporate values, like personal ones, exist to make everyone’s life better. If you enact them in small ways every day, the value compounds, and you can make a big impact.
Is your organisation one of the 10% that is getting it spot on with Engagement and Values, or are you looking for new ideas and support? Whether it’s about articulating the right values for your organisation, embedding them, or engaging your employees around strategic initiatives, we’d love you to get in touch to explore how design thinking, collaboration and games science such as Dilemma™ could help.
Whether our clients are FTSE 100 Directors, Global Directors of multinationals or large public institutions, one thing HR Directors express is the need to support both change initiatives and day-to-day operations whilst under greater pressure and flux than before. To paraphrase the Red Queen, We must now run as fast as we can, just to stay in place. And if you wish to go anywhere you must run twice as fast as that.
With voluntary resignations at an all-time high and unemployment rates historically low, the pressure is on HR Directors to find innovative approaches.
Whilst some of the evolution in employee mobility can be put down to external shifts in culture, demographics and economics there are other factors that fall within a businesses sphere of influence. Innovation Arts suggests two areas of focus that HR Directors can lead within their organisations for proven and measureable results:
Measuring absenteeism, turnover, and productivity might give you a metric of how engaged your employees feel, but true employee engagement is more than a KPI, it’s a way of life. HR Directors can lead this, but the whole leadership team needs to get behind it. It’s about getting the whole organisation involved, and actively behind the Company’s purpose and strategic objectives.
It can seem easier and faster, particularly in a large company, to take high-level decisions in the boardroom, and cascade strategies top-down rather than face the mammoth task of truly engaging hundreds and thousands of employees, and in the short term maybe it is. But there’s always a price to pay down the line when it comes to delivering the strategies.
Teams that are consistently high performing all show a number of common factors, including collaboration, trust and transparency. Conflicts are sought out and resolved together, not ignored or over-ruled. The companies we work with that invest in up-front collaboration on big decisions see pay back many times over in true employee engagement and measurable business results.
As well as playing a vital role in delivering an organisation’s strategy and objectives, lived values and behaviours are also instrumental to managing talent throughout the employee lifecycle. Most companies have them on a poster on the wall somewhere, yet it’s a rare company where they are actively managed. In our experience, sectors such as Health and Hospitality – where you might naturally expect strong common values to guide employee actions – show the strongest sense of shared values amongst employees, yet without company-wide interventions these values are still not translated into daily lived behaviours. Indeed, employees express a sense of frustration with that disconnect. In other sectors such as Finance or Manufacturing, the Company Purpose doesn’t always align naturally with any specific values, and if they are not integral to the recruitment process then it is only by chance that employees find anything to relate to in the values found on the corporate charter. Overall Innovation Arts estimates that fewer than one in ten organisations have values and behaviours that are clearly understood and lived on a day-to-day basis.
Can your employees articulate your organisation’s values and explain how they affect the decisions they take and the way they behave in their own jobs? When an employee identifies strongly with an organisation’s values they are much more likely to engage and to stay. The implication for HR Directors is that from recruitment through day-to-day work to performance management, values and behaviours should be an integral part of what we measure and track.
At Innovation Arts we believe playful approaches get serious results, and this is why our Games Science team has developed a suite of easy to use, effective and engaging tools including DilemmaSelect for recruitment, and Dilemma for embedding and tracking desired values and behaviours sustainably.
Where do you fit? Is your organisation one of the 10% that is getting it spot on with Engagement and Values, or are you looking for new ideas and support? Whether it’s about articulating the right values for your organisation, embedding them, or engaging your employees around strategic initiatives, we’d love you to get in touch to explore how design thinking, collaboration and games science could help.
We tend to create the framework for our own reality based on past observations, experiences and reflections. We do this using a language that has helped us understand this state, enriched with further meaning and credibility through dialogue, shared experiences, and discussions with others.
The limitations of this process are clear. If we remain in equilibrium, constrained by our own perception of reality, then where do breakthroughs come from? What must happen to break our own alignment with conventional wisdom and follow another train of thought, and then allow others to understand it and (potentially) embrace it? It is at this point some might begin talking about ‘creativity’ and ‘brainstorming’, but many attempts at creativity in problem solving or in innovation remain framed – and as such constrained – by existing ideas of reality. Before we look at creativity our next post, we first have to deal with the idea of paradigm shifts.
Breakthrough thinking requires challenging our acquired knowledge. Without getting too deep into theory, for now we will say that to experience a breakthrough, we must be open to questioning what we think we know and the way we view the world. We must also accept our personal or organisational ‘fog of war’ – the things we are as yet unaware that we don’t know – and that whatever is in there could potentially be exciting. Engaging with our ignorance as something positive allows us to unlock our curiosity, so that we may actively seek out novelty, experience and new interpretations, which gives us the power to embrace a new paradigm of ‘possibility’.
Possibility are the things that may or may not come to pass. In any one given situation there could be many different outcomes, but we limit our choices as human beings and as communities, often because we work on options grounded in our past and by a communal agreement on what is, and what is not possible.
Challenging a communal agreement opens up the challenger to risk, whether purely reputational or much worse than that… Consider, for example, that at a time when conventional wisdom assumed Earth to be the centre of the universe, Galileo Galilei reported his discovery that the centre of the universe was, in fact, the sun. In doing so he was stepping out of a community of agreement to introduce a new possibility – opening a dialogue that challenged ‘reality’. Unfortunately, Galileo’s new ‘reality’ fundamentally disputed established teaching, and his refusal to recant his theory meant he was imprisoned by the Inquisition for the rest of his life.
Many other eminent scientists have gone on to make discoveries that became accepted as natural truths, but were subsequently disproven. Isaac Newton’s theory that light was composed of particles, for example, was accepted as fact until 100 years later when Thomas Young discovered that light spread as waves and opinion changed. Subsequently, Einstein came along with his famous e=mc2 equation and told us that light travels in waves as particles. We do not ridicule Newton or Young for being ‘wrong’ of course; each scientist made his own contribution to our evolving understanding of physics, a discipline where the most renowned thinkers are constantly open to extraordinary and as yet unimagined possibilities. Other disciplines would do well to learn from this approach.
Practically speaking, how do you shift an organisation’s paradigm from one of reality to one of possibility? We firmly believe this is not the job of a single leader. Rather, leaders must harness the combined strength, intellect and imagination of their people. By bringing many voices together in conversation and collaboration, the realm of possibility is greatly expanded and the ground is laid for exploration, experimentation, inquiry, trial and error and ultimately, triumph.
Once you have assembled the right people – people who know, people who decide and people who do – and you know the questions you want to answer, the next step is to carefully design the conditions for having necessary conversations. There are many different kinds of conversations, each of which serves a different purpose. The conversations that can be had between two people are different to those had within a small group of eight, and different again to those of a larger group, different yet again to those held in person and, indeed, virtually. It is likely that a mix of all of these, carefully structured and using appropriate language, will move you from ‘reality’ to ‘possibility’. Design thinking helps establish which conversations must be had, with whom and how, in order to achieve the possible and to unlock the Group Genius that leads to breakthrough ideas.
Possibility, and knowing that there are in fact multiple options, also suggests the necessity of making choices. It is sometimes harder than we think to accept we have choices to make, as this also imposes the requirement of taking responsibility. The next question becomes, ‘how do we make the best decision?’ and the answer is creativity.
Once you have entered a paradigm of possibility, creativity is no longer the process of generating ideas, but the process of eliminating options.
“How you organise the future has an awful lot to do with what you do with it … an optimist tends to have a pretty good future and a pessimist has a pretty bad one, but interestingly they can have exactly the same thing happen to them”.
Since this book was first written, the world is a very different place, in fact arguably it is one that is not only more tolerant but also more supportive of individuals and groups striking out on their own. Bolles, who regularly updates his book, more recently commented: “Four areas, in particular, have changed. First, jobs today are temporary; you don’t know how long your job is going to last. Thirty years ago, before the onslaught of downsizing and such, you could count on spending your working life at the same job. Second, jobs today are really seminars; change is happening so rapidly that you’ve got to pay close attention and learn. Third, today’s jobs are adventures; you never know what’s going to happen next. And fourth, you must find job satisfaction in the work itself; your self-esteem must come from doing the work rather than from some hoped-for promotion, pay raise, or other reward – which may never materialize. Fortunately, that dim outlook is not universally true: Some organizations appreciate, praise, and celebrate their employees, but not as many as there once were – especially not when an organization has more than 50 employees”.
Interdependence makes a case for a very different type of organizational perspective and one surmised in the idea of a ‘corporation of one’. In real terms this means we, as individuals, are our own venture, responsible for our own lives, our own ‘ways of working’ our own ‘brand’ and our own integrity – if to nothing else then to the brand we ourselves have chosen to create.
In that sense, it is a lot more about individual possibility and creating a present – and future – to live in to. Just as the corporate boys create brands evoking dynamism, agility, creativity, beauty, safety, professionalism (just take a look at some of those brands out there) we too are our own brands. Already. The only significance in doing this beyond the realm of the traditional employment contract is that it is we that are responsible for making it work. There is nowhere to hide. It’s make it work or compromise yourself. It is putting yourself on the line. More so than you ever will have to do in a large company.
Corporation of one forces us to continually reflect upon where we are – like a cybernetic loop – and monitor that position with our own desired end-state always in mind, taking on responsibility for our own learning and development and constantly re-evaluating what we are best at and what we enjoy doing the most.
Taking this model of perspective, where employees are not dependent on a company, but exist as interdependent individuals in a complex, adaptive system, what are the implications for the organisation of today?
This has spurred the knowledge and experience economies in which we now find ourselves where the models of old, such as Maslow’s, do not necessarily reflect the reality in which we live. As we are increasingly and systematically bombarded with information, the need for systemic thinking has never been more apparent.
The information economy is serving to commoditise goods and services at an ever-increasing rate and, conversely, knowledge (‘know-how’) and experiences are the primary sources of value and, it follows therefore, competitive advantage. The ‘Blurred Economy’ where speed, connectivity and intangibles pervade, where the notion of the ‘offer’ supersedes product and service-orientated mindsets and where the notion of the exchange between producer and consumer has taken on far more profound implications than previously understood economics ever explained.
These changes are already upon us. We can already bear testimony to changes in our expectations as consumers as we become increasingly demanding as to the value we get for our money. As consumer expectations change so must the cost of doing business as transparency in the global economy comes to the fore. This is the real tangible effect of the internet revolution: The ramifications in terms of stock market valuations alone have been tremendous.
The notion of an ‘Atomic Corporation’, where the effects of the information economy will cause today’s big corporations to break-up under pressure and ensure the evolution of a new landscape populated by much smaller business entities is not unrealistic. None of the factors above is in itself capable of turning our business world upside down but in combination they are enough to tear apart even the biggest of our giant corporations.
At the heart of it all lies a single phenomenon – an emerging information infrastructure that alters dramatically the costs of co-ordination and dispersion of knowledge.
As Camrass and Farncombe suggest; “a new focus on agility is needed, and as you can’t be big and agile at the same time (the internal cost of movement is too high), fragmentation is looking more and more attractive. And breaking up has never been easier. The availability and breadth of communications channels between organisations is growing exponentially, which is sharply reducing the costs of doing business”.
Regardless of your view of this radical prediction, the truth is that in order to simply survive, an organisation has to be willing and able to mobilise and engage its people and supporting infrastructure when and where customers demand. Many will be dependent upon their ability to recruit and retain the best brains with the best attitudes who are able and willing to meet such extraordinary demand.
How is your organisation responding to this challenge?
Maybe that’s you?
This shift away from physical to mental labour is interesting when we think back to the idea from cybernetics that people are a dynamic, purposeful component of the complex system. Perhaps when the majority of workers were concerned with the transformation of physical inputs into a final product, their scope for influence on the system was relatively limited, and the management hierarchy was relatively flat. Now though, we know this is rarely the case. Knowledge workers certainly fit the picture of purposeful components within a purposeful system, operating within a context of responsibility, which may be either management-driven or leadership-driven depending upon the developmental maturity of the organisation.
When we start to investigate the purpose of these ‘components’ in order to understand how they engage with the broader system, it’s useful to explore the different theories of employee motivation.
Douglas McGregor in the 1960s expounded the notion that workers conform to one of two types of categorisation: They are either Theory X or Theory Y. Theory X infers a dislike of work and a need for coercion, direction and control to meet the needs of the organisation: A need to be managed. Theory Y implies the opposite: Work can meet their higher psychological needs but to do so, self-direction and self-control must pervade. This is an interesting proposition. Considering we are all model-making, meaning-seeking beings this model immediately forces us to recognise that we may or may not be operating from one of these points of view. It is a potentially useful model as it allows us to consider where we stand vis-à-vis our colleagues and collaborators.
In the 1980s William Ouchi developed another category: Theory Z. This is an extension of the Y point of view, stating that people in this category actively seek responsibility and in light of this, organisations should empower these employees to participate in decision-making activities. (Interestingly, there had been proponents of this since the 1950s born out of disagreement with Taylor’s doctrine of ‘Scientific Management’). The notion of a ‘Self Managing Work Team’ was given a theory-based grounding and has since come to embody all that leaders desire and yet, simultaneously, fear.
Even for those of us in the habit of asking curious questions, this one may seem to have an obvious answer: Taking a functional view can provide economies of scale due to the encouragement of and access to specialisation. Similarly, the functional view can facilitate increased skill development and is easier to supervise as there are generally clearly defined activities associated with each role – with specialists not having to be responsible for administrative work. A functional approach may also lead to higher morale as it engenders similar norms and values within each department.
You will have heard tell, though – perhaps you even have stories of your own – of times when working in an organisation with functions becomes dysfunctional. When functions become silos, and it is difficult to co-ordinate work across them, for example. At the very least this can result in bottlenecks and the sub-optimal use of resources. It may also lead to an increased need for the co-ordination of activities within the organisation, where manager decisions tend to pile up at the top. In the same way that managers become functionally focused, it has also been argued that this tends to distract from a greater understanding of the business as a whole which can in turn lead to a narrow, short-term focus on functional goals.
So, would you describe you or your organisation as functional or dysfunctional? Is there a middle ground? Functionally dysfunctional (and vice-versa)? What box would we put ourselves in if it was a 2×2 matrix (apologies, I was once a proper Management Consultant) and would we agree which was the best box?
I think where we can agree is that a functional view is going to be useful in understanding how an enterprise…functions. Or doesn’t function. It’s just not the whole picture. As an approach it has its limitations.
Through our bespoke Design & Decide approach, we can help you to bring the best of the functions within your own organization together to tackle the complex issues you face. We can help you look at things in non-functional ways too. By breaking down preconceptions and old habits within the system, functions can behave as fully integrated parts of a team committed to working in the same direction to achieve shared objectives.