Thinking about Organizational Development that Contributes to Strategy Realization - ManagePro #10
Hello! I am Tsuboi (@tsubot0905), an HR Business Partner at DeNA.
The 'ManagePro' note, which began this year to explore the evolution of management, is the commemorative 10th installment 🎉 It has finally reached double digits 👏👏
In this ManagePro note series, I strive for a simple structure that is easy to learn in 5 minutes, and content that is conscious of questions that are easy to synchronize with and use in communication with others.
Now, starting from the previous installment, the
ManagePro Strategy Edition has begun.
In the ManagePro Strategy Edition, I would like to deliver content for those who use strategy, such as:
・How to face strategy?
・How to utilize strategy?
The theme this time is 'Strategy and Organizational Development'
As I touched upon in the previous talk, organizational development is the perfect theme for addressing how to utilize strategy and how to realize strategy.
Here is the table of contents!
<Utilizing Strategy>
Last time, I mentioned that although it is better to think based on the premise that 'structure follows strategy', you will hit a wall where 'strategy has no choice but to follow structure'.
To realize a strategy, changes based on the external environment and internal resources are necessary, and challenges must be taken on.
If the organization's power is insufficient and the execution of the strategy does not gain momentum, the strategy will lose to the gravity known as the extension of the status quo and will have no choice but to follow the organization, and as a result, it may not reach realization, don't you think? From
ManagePro #9
Based on that, this time it will be a discussion on how to utilize strategy and how to build an organization for that purpose.
I learned many theories regarding management at the organizational personnel consulting firm I joined as a new graduate.
This time, since it is a discussion starting from organizational development theory, I think there may be some who are not familiar with it. For those people, please try reading by replacing it with the nuance of 'organizational development = organizational building'.
So, this time, as a theory of organizational development, I would like to introduce the Congruence Model of Organizational Behavior (what is called the Nadler-Tushman Model) and deepen our exploration of the theme of strategy and organizational development.
It sounds like a difficult name, but it's okay!
There are also diagrams!
<About the Nadler-Tushman Model>
When I was a new graduate who knew nothing about organizations, whenever I organized information about various companies by applying this organizational development theory, there were issues that would become visible, and I relied on it as a reassuring theory. It is an organizational diagnostic framework that is like a reliable partner at any time.
By the way, this theory itself is know-how that is open to the public in books and the like. I am by no means exposing the secret sauce of the company I am indebted to (laughs).
It is a theory that is also touched upon in the book 'Inquiry into Organizational Development' by Professor Nakahara and Professor Nakamura.
Now, I will explain this Nadler-Tushman Model, starting with the overall picture.
The Nadler-Tushman model models the whole by dividing it into input, throughput, and output (I have created a diagram that is slightly modified and supplemented for clarity in the Management Professional style).
It represents the flow of taking a strategy based on inputs, going through a throughput fluctuation process via organizational design such as organizational restructuring or transformation, and producing the expected output results.
From here, I would like to briefly explain by dividing it into input, output, and throughput.
<Inputs of Corporate Activities>
• Corporate Philosophy
• External Environment
• Internal Resources
• Past History
Actually, the reason I have written about corporate philosophy and strategy in Management Professional until now is because I wanted to develop the discussion from this area of inputs.
The reason why the concept that appeared in the previous Management Professional strategy theory, 'structure follows strategy,' is a premise is because it captures the concept of this model where strategy obtained from inputs is utilized through organizational throughput.
And the idea that 'strategy must follow structure' is because inputs such as internal resources and past history have a significant impact on strategy.
To give an example from my experience at my second company, Groupon, which operated the coupon purchase site 'Groupon,' it was difficult to sell Osechi (traditional Japanese New Year food) in the year following the sparse Osechi incident.
Even though it was a situation where it would be better to sell Osechi as a year-end and New Year product as a service, the risk was too great to touch it considering the image that had been formed in the past.
It is necessary to understand that both the good and bad aspects of past history influence strategy and decision-making.
Also, I would like to explore the perspectives that should be assessed when deciding on a strategy in the next Management Professional and beyond, so look forward to it!
Next, let's talk about output first.
<Outputs of Corporate Activities>
• Organizational Level
• Group Level
• Individual Level
In strategy, I think what you want to achieve as a business or organization, in other words, the criteria for success, is shown as output. However, I suspect that the output explicitly stated as the target of strategy is often at the organizational level.
What is unique about this model is that it focuses down to the group level and individual level. If you think from a management perspective, you look mainly at organizational level output, but if you think from a field perspective, you should also focus on how to maximize the results of teams and members.
If you break down goals to make corporate activities successful, output at the individual level as well as the organizational level is naturally important.
If you consider the culmination of individual results to be the overall result of corporate activities, this is a model designed to be easy for anyone to think about what kind of results should be produced at these three levels.
Finally, today's main topic.
It is the story of throughput that connects input and output. This is an important perspective for organizational development.
<Throughput of Corporate Activities>
Can we reflect the company's winning scenario, as indicated in the strategy based on inputs, into our throughput?
Ultimately, whether or not a strategy can be utilized depends on throughput—this goes without saying. The role of organizational development can also be thought of as how to make throughput function effectively.
I will define the series of processes for designing and transforming an organization within throughput as organizational processes, and explain the four elements of these processes.
・ Operations
・ Structure
・ Culture
・ Talent
The first point is whether the strategy has been broken down into 'operations'.If the strategy has changed, it is impossible for operations not to change.
Just as a diet cannot succeed without changing one's lifestyle, output cannot change without changing operations.
If there is no change in operations, it is highly likely that the organization is not aligned with the strategy.
Another important point is whether it is supported by 'structure' to reinforce changes in operations.Organizational structure, personnel allocation, various systems, and IT systems are representative examples of 'structure'.
For example, when remote work becomes necessary, if the IT system is not in place, it cannot support changes in operations, which will hinder business.
These 'operations' and 'structure' horizontal axes are the hard aspects of organizational processes.
On the other hand, the 'talent' and 'culture' vertical axes are the soft aspects of organizational processes.Organizations are important not only for their hard aspects but also for their soft aspects. When doing organizational development, one must be careful to consider the hard and soft aspects in tandem.
For example, the means of HR training is a representative example of an approach to 'talent'. However, if you think of training only within the scope of influence on talent, it is difficult to achieve significant effects.
It is a common case to have a two-day management training session, only to return to the workplace and be so busy with daily operations that nothing is put into practice.
・ Can we create development measures that link with operations?
・ Can we systematize development to accelerate growth?
・ Can we take actions that lead to fostering culture?
When you think about measures in this way, you will find that there are more initiatives than just the means described as training.
In organizational development, I believe it is important to plan approaches that influence the four elements of organizational processes and lead to output.
<What is Organizational Development?>
There are various definitions of the term, but I feel that many of them are long and difficult to visualize.
Professor Nakamura, the author of "Inquiry into Organizational Development" and "Introduction to Organizational Development" mentioned at the beginning, states that there are three common points in the definition of organizational development.
・Using theories and methods of behavioral science
・Improving the effectiveness and health of an organization
・Being an initiative that involves planned interventions in organizational processes
(I imagine you might have felt, 'Could you put that in simpler terms?' haha)
Professor Nakahara, co-author of "Inquiry into Organizational Development," uses the word "furoshiki" (wrapping cloth) to describe organizational development.
He explained that organizational development is like a furoshiki, which can change its shape to wrap and handle various types of issues freely.
It's a metaphor I like because it contains the essence of management: "handling things well" or "making things work."
Building on the words of these two masters of organizational development, let me introduce my own theory.
For me, to put organizational development in one word,
I consider it to be the "development of the 'space' (ma)."
The "space" between people
The "space" between hardware and software
The "space" between ideals and reality
Dealing with the relationships and issues that exist in these "spaces."
Isn't that what organizational development is?
What we call "issues" exist in the "space."
When we say things like the strategy is bad, the people are bad, or the structure is bad... if you trace the cause of such "X is bad" statements, they emerge because there is an issue in some "space."
In other words, organizational development is about intervening in the relationships and issues that exist in the "space."
Organizational development leads to achieving greater results toward the realization of the goals you are aiming for.
I believe that organizational development is an effective approach for management in the throughput/organizational process of bringing strategy to life.
<Questions for this session>
That was the content I wanted to deliver in the 10th ManagePro!
How was it?
So, as is customary for ManagePro, here is the final question.
Through this theme, I have selected four questions I would like to ask leaders and managers. I hope this helps you organize your thoughts and encourages new actions during your busy schedules!
※ I would be happy if you could tweet your thoughts, such as "This is what I think" or "This is what I would ask," on Twitter with the hashtag "#ManagePro"!
<Looking ahead to next time>
As an HR professional, I would love to continue exploring the theme of organizational development, but I will save that for later (laughs).
Since I am aiming for 100 episodes in this series, I would like to delve deeper into the strategy section before exploring organizational development further.
Increasing your level of understanding and clarity regarding the inputs introduced this time will provide you with important perspectives for realizing your strategy.
Next time, I look forward to exploring the perspective of facing the external environment, which is crucial for determining strategy.
Thank you for reading until the end this time as well!
It would be my greatest pleasure to explore the evolution of management together with all of you readers.Follows and retweets on Twitter are very welcome! Please feel free to send your thoughts via DM as well! (@tsubot0905)
By receiving your own theories and new perspectives on the topics covered in this note, the exploration of management should become even more enjoyable. Therefore, I am eagerly awaiting your reactions. Thank you for your support!