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Mapping the Organizational DNA:
A System Approach to MERGERS & ACQUISITIONS - PART II
This
chapter focuses on the four cornerstones of the Organizaitonal
DNA. Mapping of the kind can increase the clarity of purpose
and the ways to achieve it tremendously.
By
Prasad Kaipa, Ph. D., Thomas Milus,
Kathie Dannemiller and Dannemiller Tyson Associates.
Download
this article ( PDF file, 167 KB ) ( PDF
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Cornerstones
of the Pyramid
The Leadership cornerstone
Leadership
gives direction, clarifies purpose, helps chart the course,
inspires commitment and has the capacity to hold the line
as well as the intuition to know when to push the limits.
Leadership assumes the responsibility for the performance
of the whole and is accountable for the production and effectiveness
of whole. It helps set the milestones and vision in a way
that is attainable. There is tension between asking for
the sky and understanding the limits of the earth you walk
on. Leadership is about accomplishing the most with what
you've got. It can be about envisioning the future and inspiring
people to share it and execute on it. It is about the clarity
of a vision and the commitment to making it happen. It is
about working with existing structures, culture and strategy
to provide appropriate mentoring, guidance and clear direction
to get the job done.
The Strategy Cornerstone
Strategy
is part of the organization’s road map to accomplishment
of the vision. It is the overarching plan for realizing
the vision. The strategy will eventually contain the goals,
objectives, and tactics necessary for success. As we will
see below, strategy is intimately connected to structure,
leadership, and culture for its operational form. When properly
aligned with organizational culture, the organization gains
will power and ability to persist in the face of difficult
economy, or tough market. When proper Structure is combined
with strategy, decision-making becomes clear and effortless
in the organization. Leadership provides the direction and
their meaningful link leads to clear and shared vision in
the organization.
The
Strategy cornerstone influences the other three through
its purpose –- accomplishment. When Leadership proposes
a vision, Strategy responds with its concepts about how
the vision might actually come into being. That response
can be wildly supportive or pessimistically withdrawn. When
the strategy looks for capacity to enable its plans it has
Structure and Culture as partners. Structure assists by
bringing tactical resources to the table. It can either
contribute these when the “mood” is right, or
withhold them when the plan conflicts with Structure's perceptions.
Culture, on the other hand, brings meaning, value, ethics,
enthusiasm, and myriad other gifts to the engine of accomplishment.
If Strategy is in harmony with these elements –"all
is well"; if not, the potential for success fades.
The Structure Cornerstone
Structure
is the explicit container that sets the boundaries for relationships
between various members of the organizational ecosystem
(customer, employee, supplier, community and competitors).
It includes organization charts, accounting procedures etc.
The relationships and levels of responsibility in the process
of production or providing service are determined by the
structures, hierarchy and systems that are established.
Structure is a tangible, anatomical equivalent of the body
of the organization. Structure determines the types of energy
and processing connections (like circulating blood flow)
that exist. It creates the communication mechanisms (like
the nervous system). Structure determines who is located
by whom, interacts with whom, reports to whom, responsible
for what, etc.
Governance,
motivation, and decision-making are influenced by the organizational
structure in relationship with the other cornerstones. Functional
relationship with leadership leads to effective governance
and so on. Communication between strategy and structure
leads to effective decision-making. Aligning the tacit dimensions
of culture, the explicit tangible structure increases motivation
and morale within the organization.
Structure
is often considered inanimate; and, therefore, is a reflection
of action rather than an active force. Although the structure
can be represented on an organization chart, ledger, or
facilities diagram, it still comes down to people. People
can be “"handled" or considered,”
“"managed" or led,” or “"included"
or co-opted.”
The Culture Cornerstone
As one moves from the generic model to actual application,
perceptions of the Core Incompetence can carry a negative
connotation that is misleading. The incompetence arises
as a result of a failure to adapt to demands of other parts
of the system, i.e. demands of leadership, strategy, structure,
or culture. This does not mean that the element assigned
to the Core Incompetence position within the pyramid is
itself incompetent; rather that the its perceptions, attitudes,
and behaviors run counter to those necessary for accomplishing
the system's stated purpose. It is, therefore, the system's
Core Incompetence.
Culture
is the invisible glue that transmits the meaning of what
is present in the organizational field. The culture of a
company gives it a character and uniqueness that could be
closest to biological DNA. Culture refers to the collection
of values, beliefs, behaviors, and attitudes that characterize
an organization, which are contained in the stories, symbols,
beliefs, assumptions, and values that members share. Culture
can be inferred from what people say, do, feel and think
within in an organizational setting that is largely tacit
and not explicitly defined by rules and structures. It is
structurally complex because it consists of large sets of
implicit assumptions that cover how employees view their
relationships with various environments (customers, suppliers,
community, leadership, and each other). In other words,
the personality of an organization is represented by organizational
culture, and it influences how people interpret information
and behave within the organizational system.
Culture
determines, to a large extent, what employees see, hear,
and feel, and how they respond to each other and the outside
word. That is why it is critical to understand and map the
Culture when attempting to create success in a newly merged/acquired
company. Some aspects of culture can impede or prevent successful
change. This impedance is often mani fest a set of behaviors
/ attitudes that were successful in the past, or perceived
to be so, but is now a roadblock to change. It represents
the status quo. Many aspects of culture are often invisible
to us unless we focus our attention on its influence on
the organization. Even then, it can be difficult to see
clearly without real work.
Culture
is a richly nuanced arena that is ever present in any community.
Looking out from the Culture cornerstone one can see Strategy,
Structure, and Leadership. Along the will power / sustainability
relationship Strategy is informed of Culture's needs for
fulfillment in order to engage in the partnership of production.
Culture relies on Structure for a meaningful and functional
work environment. Finally, Culture needs Leadership to exhibit
an executive style that is properly nourishing and respectful
of Cultural norms etc.
In this particular application, Culture might be considered
a core incompetence. This is not to imply that the culture
is incompetent; rather, it considers that the culture carries
within it, the capacity, and intention, to take action independent
of its leadership. An organization's culture is complex.
A proposed change might be seen by the culture as a benefit
in one area, but perceived as a threat in another. Maintaining
the status quo would be an example of culture acting against
leadership's attempts to change. Acting to maintain the
status quo may not actually be in the best interest of the
system, but might be seen as the right thing by the culture
at this time. It is the “heart” of the organization
in our model.
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