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Congruence Model-POSTED PDF
Congruence Model-POSTED PDF
Gap analysis
(based on metrics)
Strategy Capabilities
Symptoms
Rethink mission, Translation – (we’re unable to …)
vision, and strategy How??
Informal
People
The Congruence Org.
Model (after Nadler
& Tushman)
The Congruence Model
– Enterprise Perspective
(Modified after Nadler and Tushman, 1980)
Five Hows
- strategy to action
The Multiplier Effect in Strategy
Deployment
How many people are involved in strategy
deployment?
For each Objective, there can be multiple
strategies
For each Strategy, there can be multiple
action plans
For each Action Plan, there can be several
teams
For each Team, there will be multiple
employees involved
Congruence Model
- Strategy
Note that “Strategy” in the Congruence
Model is an umbrella term for:
– Mission
– Vision
– Values
– Strategy
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Congruence Model
- Strategy
Strategic decisions:
• Are grounded in mission/vision/value
statements (belief systems)
• Can be restricted by rules (boundary systems)
• Are triggered by performance and
environmental monitoring (mgt control systems)
• Result in “action plans” that develop
capabilities to accomplish strategic objectives
Strategy drives changes in the organizational components
The Congruence Model
– Organizational Structure
• Organizational units, their relationships,
supervisory structures, and
communication mechanisms
• (Physical) work environment
• Job design (job roles and work rules)
The Congruence Model
– Management Systems
• Measurement systems (e.g., accounting)
• Compensation systems
• Human resource management system
• Forecasting system
• Production planning and control system
• Quality assurance system
• Maintenance system
• Continuous improvement systems
and associated decision-making processes
The Congruence Model
– Processes
Work in organizations is carried out using
processes. Processes exist at various levels of
aggregation.
Major business processes for a manufacturing
firm:
Marketing and selling
Product/service design and development
Order management (including purchasing and scheduling)
Production
Shipping/distribution
The Congruence Model
– Technology
Process or information technologies supporting
or performing work:
• Fabrication processes (e.g., welding)
• Equipment or devices for making / moving /
connecting / regulating / storing …
• Computers, devices
• Software, IT architecture
The Congruence Model
– People in the Workplace
Employee characteristics:
• Leadership style/qualities/reputation
• Knowledge and skills
• Experience and accomplishments
• Needs and preferences
• Aspirations and expectations
• Tenure in the organization
• Other characteristics (e.g., country of origin,
language)
• Etc.
The Congruence Model
– The Informal Organization
• Informal work units and their interactions /
communication patterns
• Power and politics
• Culture (norms, values, and beliefs)
The Congruence Model
– Capabilities
What are “capabilities?”
• Expertise
• General skills
• Core competencies
• Abilities
that the organization has developed over
time and which support design, production
and delivery of goods and services.
The Congruence Model
– Capabilities
• The organizational components
(org. structure, mgt systems, etc.)
together create the organization’s
capabilities.
• In turn, the capabilities represent the
basis for the firm’s outcomes.
The Congruence Model
– Outcomes
Performance - measured at the organization,
group (work unit)/process, and individual
levels:
• Outcomes can be measured in financial
and/or non-financial terms
• Group/process and individual-level
measures are most often non-financial
• Organization-levels metrics often financial
Managing Change is About Moving an
Organization from a Current State
to a Future, Desired State of Operating
Organizational Management
structure systems
}
• Environment Technology
• History
• Resources
Strategy
Strategy work processes Capabilities
Capabilities
{ Individual
Group
Organization
Gap analysis
Strategy Capabilities
Organizational Structure
Management Systems
Processes (incl. customer relationships)
Technology
People (incl. leadership)
Informal org (culture)
}
• Environment Technology
• History
• Resources
Strategy
Strategy work processes Capabilities
Capabilities
{ Individual
Group
Organization
Controllable vs. Less Controllable
Factors in Change
Organizational Management
structure systems
}
• Environment Technology
• History
• Resources
Strategy
Strategy work processes Capabilities
Capabilities
{ Individual
Group
Organization
}
• Environment Technology
• History
• Resources
Strategy
Strategy work processes Capabilities
Capabilities
{ Individual
Group
Organization
}
• Environment Technology
• History
• Resources
Strategy
Strategy work processes Capabilities
Capabilities
{ Individual
Group
Organization
42
Diagnosing Required Cultural Change
1. Identify critical strategic challenges
2. Link the strategy for meeting these challenges
to the critical tasks needed to implement it.
3. Identify the N/V/Bs that will help accomplish
critical tasks.
4. Diagnose the N/V/Bs that characterize the
current culture.
5. Identify gaps between the N/V/Bs needed and
existing ones.
6. Decide on actions needed to reduce these gaps
43
Diagnosing Required Culture Change
(Adapted from Tushman and O’Reilly, Winning Through Innovation, HBSP, 2002)
44
Diagnosing Required Culture Change