The Healthy Business Series: Organizational Alignment

Image: Minimalist Photography via flickr

Nearly 20 years ago management expert Thomas Powell wrote a piece for Strategic Management Journal entitled "Organizational Alignment as Competitive Advantage." In this piece, Powell discusses the importance of "integrating" an organization's objectives into its culture for its long-term sustainability. Bottom line, alignment can help boost an organization's ability to thrive.

So, what exactly is the culture of an organization? John Kotter describes this notion of culture as the "norms of behavior and shared values in a group of people." It is exemplified in the way that an organization's individual members act on a day to day basis. Suggests Kotter, "A good test of whether something is embedded in a culture is if our peers, without really thinking, find ways to nudge us back to group norms when we go astray." When an organization's raison d'être is embedded in the very way that its employees act on a day to day basis, i.e. when its mission statement and organizational objectives become a living, breathing reality, then its culture is aligned.

The word culture comes from a Latin stem meaning "to till, cultivate, attend to." MIT's Edgar Schein argues that an organization's culture involves three levels, which include its behavior and artifacts, its values, and (most deeply) its assumptions and beliefs. Those deep down factors that influence actions and often go unnoticed are the very stuff of culture that organizational alignment is most concerned with. As Schein has noted, "Most managers are quite blind to the fact that their strategy and structure are dominated by cultural assumptions and that a history of success and failure hardwires these cultural assumptions into their thinking."

Its easy enough to imagine what might result from a misaligned organizational culture: disengaged employees, weak leadership that is not respected by subordinates, poor quality work product, rapid turnover, the list goes on. But how exactly might an organization go about aligning itself, particularly if it seems to be bleeding at the hip? Schein suggests that cultural change takes time and should not be expected to come quickly. Like the Latin stem for the word culture might suggest, cultural leaders must spend time nurturing, cultivating, attending to, their cultures if they want alignment. Far too often, when leaders realize that their organizations are not aligned, they immediately jump into rebranding or reorganization schemes without first learning from and listening to the existing organization. Instead of leaping blindly into a series of recalibrations, Schein recommends that organizations develop the tools necessary for cultural assessment. Change starts by learning from the existing organization and drilling down to the assumptions that are driving its actions. Then, and only then, can a true plan for change begin.

Works referenced:  Kotter, J. and D. Cohen, The Heart of Change. 2002 Schein, E. "Coming to a New Awareness of Organizational Culture." MIT Sloan Management Review, 1984. Schein, E. "Sense and Nonsense about Culture and Climate." 1999.

Sir George Cox on Multidisciplinarity in Business

"We need business people who understand creativity, who know when and how to use the specialist, and who can manage innovation; creative specialists who understand the environment in which their talents will be used and who can talk the same language as their clients and business colleagues; and engineers and technologists who understand the design process and can talk the language of the business."-Sir George Cox

Blending Business and Design to Extend the Bottom Line

Source Image: @boetter via flickr

If the mantra of the twentieth century business world was “getting things done,” then the mantra for the twenty-first may well be “building smarter businesses.” As the recent years’ recession has worn heavy on many a good business plan in the works, many executives have realized that business as usual just will not work anymore. Increasingly, these leaders are turning to creative problem-solvers to help them move into the future. And simultaneously, creative entrepreneurs are turning the wheels of business in new and different ways.

A growing number of sources are recommending that businesses bring creatives into the boardroom, not to build marketing strategies or media mobilization plans, but to help re-envision business models and craft innovative problem-solving strategies. Companies like game-changing design firm IDEO are redefining the conceptions of what artsy-types can offer the business world. Simultaneously, business schools are developing DesignMBA programs and design schools are offering emphases in fields such as design management. The business world is changing, and many are taking note.

This growing movement is picking up speed in a variety of realms, and believe me, it’s one to watch. London’s Royal College of Art and the Imperial College of London have launched the DesignLondon program, aimed at bringing together MBAers, engineers, and design students for collaborative learning and doing opportunities. A continent away, Hong Kong's government has developed the DesignSmart Initiative, which is intended to fuel innovation by partnering businesses with designers. And here in the US, renowned US design schools such as Pratt and SCAD now offer programs in design management, a field that equips professionals for work on things like branding schemes, organizational planning, and strategy discussions.

Whilst some companies have solicited the thoughts of creative directors and their comrades for years, the idea of including designers in business development has only recently become trendy and is still by no means mainstream. Amidst the seasoned business crowd there remains a lingering skepticism about the kinds of ideas that designers might bring to the table. Some worry that an over-emphasis on creativity might lead companies to overlook the basics of business administration. Others doubt designers’ abilities to develop scalable, sustainable solutions to everyday business problems.

Meanwhile, numerous sources suggest that creatives have something unique to offer the business world, and perhaps also vice versa. Consider, for example, a simple search for “design thinking” on the Harvard Business Review website. Or take it down a tier and start searching for the terms “organizational design” or “employer branding” amongst the business world. The linkages are interesting and growing rapidly.

Truth be told, both the business and the design realms still have a lot to learn about one another. And, perhaps it should be said that the learning may very well begin with realizing that neither artmaking nor business development are easy. If there’s one thing that “The Great Recession”(as it’s now being called) has taught us, it is that there are no easy answers. The work that is needed is challenging, perplexing, and at times unwelcomed. But, the need for a rebranding of the notion of business as usual in today’s economic, social, and cultural landscapes is unmistakable.

As I navigate my own way in these murky waters, I’ve been encouraged by the words of Wendell Berry in his recent book Imagination in Place, which I’m currently reading. In one of the earlier chapters, Berry talks about the importance of both knowing and imagination for thoughtful living. His words suggest that to thoughtfully live into the world we must be able to simultaneously know some corner of it and its problems intimately and possess the capacity to re-imagine that corner of the world as something more than what it is now. For me, this is part of the appeal of bringing design to the business world, and just as much bringing the principles of good business to the likes of artists and designers. The two realms are not, and should not, be considered separate-for truly good design thinkers are also good business thinkers, and truly good business thinkers know how to operate a bit like designers. Both are capable of dreaming of a better world and translating that envisioned reality into something that lives in the present moment-whether it’s a strategy, a work of art, or a physical commitment to a people and place. As they find their way into our lives in one form or another, their dreams-turned-reality have the ability to change us and give us the courage to live into our own dreams even when it feels like we’re stuck in slow motion. 

For an excellent read on this topic, check out Tim Brown's 2008 piece for the Harvard Business Review entitled "Design Thinking."

Architectural Metaphors for Business Development

Image: Stefhan Weis' Photostream

I read this piece by James Kerr this morning and was intrigued by his use of architectural references to discuss the concept of organizational design. This topic has been stewing in my mind for quite some time lately and i'm nearing a point in time where I will probably start writing about it at greater length. In the meantime, Kerr's piece touches upon a few interesting themes that I think are worthwhile:

• Need for a true plan for action; a lack of planning leads to unintended consequences and waste: "Indeed these artifacts must be constructed in a predictable and deliberate way or deep-rooted internal chaos is likely to result within the enterprise – and deep-rooted internal chaos does not translate well within the markets that a business intends to compete in." 
• Business architecture is about more than a business plan or conversely a coherent vision statement: It involves "organizational design charts, operating models and [the less-often considered] workflow designs." All pieces must work together like a set of thoughtfully-placed gears in a well-oiled machine to function effectively.

More to come...