As good as it gets
Flexible enough to adapt quickly to external market shifts, this organisation remains steadfastly focused on and aligned on a coherent business strategy.
This forward-looking and self-correcting type of organisation anticipates changes routinely and addresses them proactively. When it does hit a bump in the road — as all companies do — the resilient organisation distinguishes itself in its response, which is immediate, thorough, and constructive. It attracts motivated team players and offers them not only a stimulating work environment, but also the resources and authority necessary to solve complex problems.
The resilient organisation has a distinctive culture that is disciplined in focusing its efforts on areas in which it can win. Senior people “walk the talk” and deliver consistent messages. Collaboration and commitment run high across the Resilient organisation with influence based on reputation, credibility, and relationships.
This is the healthiest organisational type. The firm is in good working order, but that’s no invitation to complacency. Consistently, Resilient companies know better than to believe their own press. They’re always scanning the horizon for the next competitive battle or market innovation.
The coherence index specifically measures the coherence or consistency of your organisation's strategy. Most resilient organisations will score high in this area. Coherent companies have a clear set of capabilities that are in line with their strategy and that they use over and over again in their portfolio. Please visit the coherence profiler to learn more about the strengths of coherence.
Flying in formation
Often driven by a small, involved senior team, it succeeds through superior execution and the efficiency of its operating model.
Often driven by a small, hands-on senior management team, this type of organisation hums like a well-oiled machine. Everyone knows his or her role and implements it diligently, creating the overall effect of fluid and consistent execution. The military precision organisation is hierarchical and operates under a highly controlled management model. It can conceive and execute brilliant strategies — often repeatedly — because it has drilled the organisation and run it through every scenario in the manual. This is a highly efficient organisation that leverages its scale masterfully in executing large volumes of transactions.
In a military precision organisation, when a colleague makes a commitment, people can count on it. Senior people “walk the talk” and deliver consistent messages. military precision organisations are generally more task oriented and organisational influence depends mostly on title and role.
While it provides for a certain level of autonomy in the field, the military precision organisation’s biggest ongoing challenge is preparing for growth beyond the tenure of its current leadership. Talented people need to be groomed, not just drilled, to release their full potential and there must be provisions for smooth succession within the organisation’s management ranks. Moreover, feedback loops need to be institutionalized to ensure that top commanders understand — in real-time — what’s happening on the front lines. Military precision organisations can be vulnerable to sudden shifts in the external market environment as they do not typically deal well with significant and unexpected change.
The coherence index specifically measures the coherence or consistency of your organisation's strategy. Most military precision organisations will score moderately high in this area. Coherent companies have a clear set of capabilities that are in line with their strategy and that they use over and over again in their portfolio. Please visit the coherence profiler to learn more about the strengths of coherence.
Succeeding by the skin of our teeth
While inconsistently prepared for change, this organisation can “turn on a dime” when necessary, without losing sight of the big picture.
Although not always proactive in preparing for change, this type of organisation has demonstrated an ability to “turn on a dime” when necessary, without losing sight of the big picture. Just-in-time organisations attract talented and motivated people. They’re often fun and frenetic environments and great places to learn. There’s an adventurous attitude that infuses the office and inspires creative outbursts, frequently real breakthroughs. But in the absence of consistent, disciplined structures and processes, the organisation cannot fully capitalize on these opportunities or replicate them. They often become “one-hit wonders,” rather than a reliable source of competitive advantage.
The Just-in-Time organisation has a distinctive culture that gives it a competitive advantage. When big things change in its environment, it adapts successfully. People in the just-in-time organisation are typically motivated more by values and pride in their company.
Although it manages to hold on to good people and performs well financially, the just-in-time organisation has not yet achieved peak performance. This type tends to miss opportunities by inches rather than miles, and to celebrate successes that are marginal rather than unequivocal. Despite its frustrations, however, it can be a stimulating and challenging place to work. It just needs to transition to a more stable and sustainable management model.
The coherence index specifically measures the coherence or consistency of your organisation's strategy. Most just-in-time organisations will score moderately high in this area. Coherent companies have a clear set of capabilities that are in line with their strategy and that they use over and over again in their portfolio. Please visit the coherence profiler to learn more about the strengths of coherence.
Let 1,000 flowers bloom
This organisation has scores of smart, motivated, and talented people — but they rarely pull in the same direction at the same time.
Scores of smart, motivated, and talented people work in the fits-and-starts organisation — but they usually do not pull in the same direction at the same time. When they do, brilliant, breakout strategic moves can be the result. Typically, though, they lack the discipline and coordination to repeat these successes on a consistent basis. The fits-and-starts organisation lures intellect and initiative — smart people with an entrepreneurial bent; it’s a no-holds-barred environment in which you can take an idea and run with it. But, in the absence of strong direction from the top and a solid foundation of common values below, these initiatives either clash and explode or simply peter out. The result is an overextended organisation on the verge of spinning out of control.
People don’t collaborate effectively across organisational lines. Senior people don’t “walk the talk” and consistent messages are not delivered by top leaders. Leaders in the fits-and-starts organisation are more focused on immediate objectives versus playing for the long term.
The fits-and-starts organisation is profoundly uncoordinated. Its movements in the marketplace are spasmodic and its messages conflicting, due to the inherent contradictions between and among its core building blocks. For example, while decision rights are highly decentralized, the information required to make the best decisions for the company is often only available at headquarters — if at all. Decision-makers at every level fly blind, and the organisation as a whole fails to execute its strategic agenda.
The coherence index specifically measures the coherence or consistency of your organisation's strategy. Most fits-and-starts organisations score lower in this area. Coherent companies have a clear set of capabilities that are in line with their strategy and that they use over and over again in their portfolio. Please visit the coherence profiler to learn more about the strengths of coherence.
The good old days meet a brave new world
Too large and complex to be effectively controlled by a small team, this organisation has yet to "democratize" decision-making authority.
The outgrown organisation is literally bursting at the seams — it's expanded beyond its original organisational model. Too large and complex to be controlled effectively by a small team of senior executives, it has yet to “democratize” decision-making authority. Consequently, much of the organisation’s potential remains untapped. Because power is closely held at the top, the outgrown organisation tends to react slowly to market developments and often finds it cannot get out of its own way. If you’re in the middle of this organisation, you might well see opportunities for positive change, but it’s just too hard to run these ideas up the flagpole. The legacy of top-down direction and decision-making is well entrenched, and old habits die hard.
In an outgrown organisation, people are motivated more by values and pride versus incentives and rewards. Workarounds are a common occurrence since process and internal issues typically get in the way of focus on markets and customers. Top leaders typically deliver consistent messages and collaboration across organisations run high. Yet, influence in the outgrown organisation depends mostly on title and role.
This model worked very well when the organisation was smaller and less complex, but now it is stunting growth of the organisation and the career development of its best and brightest. Ironically, this unhealthy type is a natural outcome of early success, and an easy trap for high-growth companies to fall into. It’s worth paying attention to its symptoms, so you know which temptations to avoid.
The coherence index specifically measures the coherence or consistency of your organisation's strategy. Most outgrown organisations score lower in this area. Coherent companies have a clear set of capabilities that are in line with their strategy and that they use over and over again in their portfolio. Please visit the coherence profiler to learn more about the strengths of coherence.
We’re from corporate and we’re here to help
Multiple layers of management create "analysis paralysis" in a frequently bureaucratic and highly political environment.
Burdened with multiple layers of management, the overmanaged organisation is a case study in “analysis paralysis.” When it does move, it moves slowly and reactively, often pursuing opportunities later or less vigorously than its competitors. More consumed with the trees than the forest, managers spend their time checking subordinates’ work rather than scanning the horizon for new opportunities or threats. Frequently bureaucratic and highly political, this organisation frustrates self-starters and results-oriented individuals.
Influence in an overmanaged organisation is mostly dependent on title and role and collaboration across organisational lines is not a common occurrence. Senior people don’t “walk the talk” and rarely deliver consistent messages. People in the overmanaged organisation are motivated more by incentives and rewards versus value and pride in their company.
If you work outside of headquarters in an Overmanaged organisation, you’ve almost certainly had your decisions reversed by someone in Corporate who knows less about customer needs than you do. Perhaps customers approached you about a new program they saw advertised, and that was the first you’d heard of it. If you’re staff, you spend an inordinate amount of time anticipating questions that never come up and running analyses that go straight to the shredder. There’s a lot of wasted effort and stagnant information in the Overmanaged organisation. Ritual promotions up the extended corporate ladder ensure that mediocrity prevails over merit.
The coherence index specifically measures the coherence or consistency of your organisation's strategy. Most overmanaged organisations score lower in this area. Coherent companies have a clear set of capabilities that are in line with their strategy and that they use over and over again in their portfolio. Please visit the coherence profiler to learn more about the strengths of coherence.
Everyone agrees, but nothing changes
Congenial and seemingly conflict-free, this organisation builds consensus easily, but struggles to implement agreed-upon plans.
So congenial as to seem conflict-free, this is the seething, smiley-face organisation. Building consensus to make major changes is not a problem; implementing these changes, however, is next to impossible. Entrenched, underground resistance from field operations routinely defeats corporate initiatives. Lacking the authority, information, and incentives needed to undertake meaningful change, line employees tend to ignore mandates from headquarters, assuming “this too shall pass.” Confronted with an apathetic organisation, senior management laments the futility of “nailing jell-o to the wall.”
Participants in the passive-aggressive organisation can rarely count on the commitments made by colleagues. As expected, senior leaders don’t do as they say and fail to deliver consistent messages to the organisation.
Passive-aggressive organisations tend to strive for the mean. Mediocrity is not only quietly accepted, it’s often promoted. Decision-making authority is murky at best, and, once made, decisions are often second-guessed. The herd mentality runs rampant, trampling innovation and ownership, and information is locked down, inaccessible to those who most need it. Ironically, this profile is the most common among the seven we’ve identified and fits many Fortune 500 companies. Having secured a large and defensible market position, they are now fiddling while Rome slowly burns.
The coherence index specifically measures the coherence or consistency of your organisation's strategy. Most passive-aggressive organisations earn a low score in this area. Coherent companies have a clear set of capabilities that are in line with their strategy and that they use over and over again in their portfolio. Please visit the coherence profiler to learn more about the strengths of coherence.