Organisations develop cultures, ways of working and habits to operate in steady, stable times.
But when new factors rock their boat, how do they react when they face external changes, or even internal changes?
Steady, stable conditions
In steady, stable conditions, an organisation has a certain size, a certain configuration.
It evolves in given conditions and a given environment, which has a certain size and configuration.
When all is well, the organisation fits perfectly in its environment and conditions.
On the right-hand side, the organisation is represented by the elements within the broken grey line and the environment and the conditions are represented as the red lines.
Under pressure, changes, influences, evolving conditions or a transforming environment, whether they are external or even internal, organisations have three reaction options:
Reaction type 1 - no reaction at all
Unfortunately, many organisations do not react when they are faced with significant external or internal changes.
Reasons vary:
- The leader of the organisation:
- has not detected the change; or
- does not know how to react to the change
- The organisation has no mechanism to monitor and react to its conditions and its environment
- Complacency at all levels often plays a significant part
If nothing is done, consequences can be very harsh:
- Significant loss of market shares or of hold on followers
- Job / position losses
- Loss of credibility
- In extreme cases, destruction of the organisation
On the right hand site, the size and the configuration of the environment and the conditions have changed, but the organisation maintains its size and its configuration and no longer fits in its environment.
A figurative empty bin shows that the organisation does not get rid of what is perceived as obsolete.
Reaction type 2 - inadequate reaction
Many organisations, unfortunately, fail to understand the true nature of the changes that they are facing and they adopt an inadequate reaction to the situation.
Understanding what is happening and having the intuition of what needs to be done is not easy.
Very few individuals possess the intuition required to steer the organisation to an adapted new objective.
If an adapted reaction is not adopted, consequences can be very harsh:
- Significant loss of market shares or of hold on followers
- Loss of credibility
- Job / position losses
- In extreme cases, destruction of the organisation
On the right hand site, the size and the configuration of the environment and the conditions have changed, and the organisation has somewhat reacted, but the reaction remains inadequate and the organisation no longer fits in its environment.
A figurative bin shows the elements of which the organisation has got rid - with no positive effect.
Reaction type 3 - adequate, adapted reaction & response
It takes a particular type of individual at the top of an organisation to:
- Perceive that there is a change
- Understand the nature of the change
- Identify the need to change the organisation
- Form a vision of the new direction and objectives
- Understand the path to a successful change
- Take the change to completion
People capable of such abilities are categorised by Kerr Noll Consultants as individuals capable of:
- Recognising patterns
- Developing the intuition of extrapolation of trends
- Developing the intuition of the strategy to adopt
- Identifying the need for self-change
- A child-like 'culture-free***' problem-solving approach
*** Not ineffectively trying to use what has always been done, not trying to use the same old formulas and recipes.
With the input of right individuals, the organisation can adapt, survive and set on a new course of success.
The size and the configuration of the environment and the conditions have changed, and the organisation has adapted.
A figurative bin shows the elements of which the organisation has successfully got rid.
Organisations facing destabilising influences must learn to react adequately, with the help of:
- Visionary leaders
- Consultation of organisational resources who are on the cold face of change
- External parties capable of bringing a new perspective on the situation.
The reaction time and the nature of the reaction have a significant influence on the outcome and on the future of the organisation as an entity.
For more insight on the above topic, read book "Avoiding or Overcoming Organisational Inertia".
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