Abstract
Diagnosing organisations is a chapter that explores the intrinsic relationship between organisational purpose, the people, and value creation in relation to organisational structures. Without structure we can't be aware of what we are changing or monitoring if we are effectively achieving our organisational purpose. Structure in the form of governance, an operating system, or organisation design can be built to fight or embrace change. People can be taught to do the same. With the application change maturity built on organisational structures and people management coupled with a search to maximise value through creating continuously adaptive organisational systems, one can equip organisations with the tools they need to not only survive but thrive. By questioning the basic building blocks of organising, this chapter establishes not only factors that could be measures in this diagnosis of organisations, but establishes a set of invitations that are more profound in the sense that they offer strategic choice and development of this concept of organising and organisations.
TopBackground
Diagnosing organizations allows us to get a clear picture of where we are, to check that the way we are currently operating is in line with what we need to tackle in these times. Health equals an ability to change and remain relevant through development and innovation around the core organizational purpose and strategy (Burton & Obel, 2004). Supported by an update in infrastructural logic where necessary that will further serve the organization’s purpose. Besides, this creates further strategic choices posed as invitations in this text. Exploring these factors for diagnosis gives rise to areas of strategic choice, particularly when we view organizations with a system-focused, multiple contingencies lensed open systems view.
There are many concepts integral to the understanding of topics within this chapter and so let us begin with some of the invitations and working definitions for alignment. At its core, an organization is defined by its purpose or mission, which guides its activities and decision-making. It also has a formal structure, which includes roles, responsibilities, and reporting lines, that helps to ensure that its members work together effectively and efficiently. Organizations can vary in size and complexity, ranging from small, single-person operations to large multinational corporations with thousands of employees. They can also have different types of ownership, such as for-profit, non-profit, or government owned. Overall, an organization is a group of people who come together to achieve a common purpose, and who are organised in a way that enables them to work together effectively towards that goal. The first invitation comes with the way we define organizations, if defining them as a metaphorical machine then our approach will differ from when the definition is using an organism or political metaphor (Morgan, 2006). So appropriately defining the word ‘organization’ is key to unravelling the other choices and invitations we have at our fingertips and is the first building block of a healthy organization. This is certainly not the only invitation, more to be discussed later in this text.
Key Terms in this Chapter
Process: This refers to a series of interconnected activities or steps designed to achieve a specific outcome or produce a desired output. It involves systematically transforming inputs into valuable outputs through a defined set of actions and decisions.
Organizational Diagnosis: Organizational diagnosis refers to the systematic assessment and analysis of an organization's functioning and performance across various dimensions. It involves evaluating the organization's structure, culture, processes, communication, leadership, and other relevant factors to identify strengths, weaknesses, opportunities, and threats.
Governance: Governance refers to the framework, processes, and structures that guide and control an organization, ensuring proper decision-making, accountability, and compliance with rules and regulations. It involves establishing and enforcing policies, procedures, and responsibilities to achieve organizational goals and protect stakeholders' interests.
Change Maturity: Change maturity refers to the degree of an individual or organization's readiness and ability to effectively navigate and adapt to change in a systematic and proactive manner.
Dual Operating System: The dual operating system refers to a management model that combines traditional hierarchical structures with a flexible and agile network of teams or initiatives. It involves maintaining the stability and efficiency of the traditional hierarchy while also fostering innovation, adaptability, and responsiveness through self-organising teams or projects.
Organizational design: Organizational design refers to the deliberate arrangement of structures, roles, processes, and systems within an organization to achieve specific goals, optimise efficiency, enhance communication, and facilitate coordination. It involves shaping the overall framework and components of an organization to align with its strategy and support effective performance.
Invitation: This refers to a possibility to measure organizational health or redefine vital parameters in order to set up the ‘as is’ state of organizations to be able to achieve organizational health.
Open Adaptive System: This refers to a system that interacts with its environment, continuously adapting and adjusting its behaviour to external changes and inputs. It is characterised by its ability to receive information, feedback, and resources from its environment and use them to modify its structure, processes, and behaviours.
People-Centric: People-centric refers to an approach or mindset that places individuals at the centre of organizational strategies, policies, and practices. It emphasises valuing and prioritising the well-being, development, and engagement of employees.
Systems Theory: Systems theory is an interdisciplinary framework that studies the relationships, interactions, and interdependencies between components within a complex system. It views a system as a set of interconnected parts that work together to achieve a common goal or purpose.
Operating System: An organization's operating system refers to the underlying principles, values, and practices that govern how the organization operates and functions. It encompasses the organization's culture, structure, processes, and strategies that shape how work is done, decisions are made, and goals are achieved. It provides a framework for coordinating activities, aligning resources, and driving performance across the organization.
Process Flow: flow refers to the smooth and uninterrupted movement of tasks or activities from start to completion. It emphasises the seamless progression of work without delays, bottlenecks, or idle time between process steps.
Value Chain: A value chain represents the sequential set of activities and processes within an organization that add value to a product or service from its creation to its delivery to customers. It encompasses activities such as procurement, production, marketing, sales, and customer service, each contributing to the overall value-creation process.
Purpose: refers to the underlying reason or core mission that drives and guides the organization's activities and decisions.
Metaphor: A metaphor is a figure of speech that draws a comparison between two unrelated things or concepts to create a deeper understanding or evoke a certain imagery or emotion.