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Complementarity in Organizations Strategy Leadership Management Talent and Engagement in The Fourth Industrial Revolution Paul Turner Full Chapter
Complementarity in Organizations Strategy Leadership Management Talent and Engagement in The Fourth Industrial Revolution Paul Turner Full Chapter
Complementarity in
Organizations
Strategy, Leadership, Management,
Talent and Engagement in the Fourth
Industrial Revolution
Paul Turner
Leeds Business School- Associate
Leeds Beckett University-Associate
Leeds, UK
© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature
Switzerland AG 2022
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To Violet Renee Turner
Acknowledgements
Liz Barlow
Karthika Devi
Professor Martin Reynolds
And to the support and happiness given by Gail, Jane-Marie, Annette,
Harrison, Ellis, Sebastian, Jacob, Gary, Will
Heart like Roses
vii
Contents
7 Complementarity in Organisation173
ix
x Contents
9 Complementarity
in Business Organisations- 20 Important
Conclusions233
Index261
About the Author
xi
List of Figures
xiii
1
From Singularity to Complementarity
able to create for its buyers that exceeds the firm’s cost of creating it.’ He
argued that competitive advantage was influenced by the choice of com-
petitive scope and the range of a firm’s activities. (Porter, 1980, 1985;
Henderson, 1989; Kay et al., 2006)
Overarching all of these considerations was the belief that the maximi-
sation of shareholder value would not come about by serendipity but by
clear objectives, a well thought through strategy and plans, and an under-
standing of the value chain and the importance of each link in it. But the
greater depth of analysis implied in strategy setting brought a diversifica-
tion of strategic theory and practice. The literature of strategy prolifer-
ated, with a variety of distinct ‘schools,’ including design, planning,
positioning, entrepreneurial, learning, the cognitive school, the environ-
mental school, and the configuration school. Some of these were pre-
scriptive, concerned with models of how strategy should be formulated.
Some were about positioning the organisation, others about learning and
others still about charismatic leadership. (Ahlstrad et al., 1998)
Subsequently, a resource-based view of strategy and the exploitation of
core competences were enthusiastically embraced as alternatives. There
were plenty of models from which those involved in strategy could choose.
But the lack of consensus on the best way to approach strategy
prompted questions. Martin (2014) argued for example that a too rigid
approach could create a series of ‘comfort traps’ which would lull the
strategists into a false sense of control. Strategic planning and cost-based
thinking were often bound by ‘self-referential planning frameworks’
based on what the company could control thereby limiting a focus on
what it couldn’t. Further reservations were raised about the very processes
of strategic planning. Earlier, and to counter such perceived rigidity,
Henry Mintzberg wrote of the concept of emergent or crafted strategy
(1978 and 1987) that presented an approach requiring agility; a respon-
siveness to unanticipated events and the ability to ‘craft’ as opportunity
became clearer, using its resources to build advantage. At each end of a
spectrum Porter believed that the essence of strategy not only included
decisions about what to do but also choices about what not to do; whilst
Mintzberg viewed strategy as a pattern based on a stream of decisions.
There are multiple positions between these two points of view. One of
which, the Resource Based View (Barney, 1991) is of particular interest,
6 P. Turner
Organisations—Collections of Individuals
and Political Systems with Defined
Boundaries, Goals and Values, Administrative
Mechanisms, and Hierarchies of Power
A further consideration on the theme of progression, is that of organisa-
tion design and development. In the early stages of industrialisation, lon-
ger production runs, and new levels of supervision necessitated a level of
formality, and an introduction of hierarchy albeit limited in depth and
scope. This period was not only the genesis of modern management but
also the genesis of modern organisation. As industrial and commercial
opportunities grew, an ‘American way’ of business was shown to be more
efficient. In this instance new management processes became the norm,
based around the scientific management methods of Taylor, and deployed
in large scale industrial units epitomised by Henry Ford’s factories.
Organisations became more structured—Weberian hierarchies- and
accountabilities for each layer of design or process were formulated. Later,
more people-oriented business methods—a human relations approach—
was used to replace or supplement the purely process driven methods that
had provided the bedrock of industrial development. By the time of the
Third Industrial Revolution from the middle of the twentieth century,
Asian organisations, first from Japan, then the Asian Dragons and Asian
Tigers and subsequently Indian and Chinese organisations, took advan-
tage of new technologies and globalisation in remarkable levels of busi-
ness performance, often introducing new forms of management or
organisation design.
14 P. Turner
Business Progression
Objective
Objective Objective
progressive and
increase the value of increase the value of
sustainable
tangible assets intangible assets
development
develop people or
respect for the
human capital with
competitive advantage competitive strategy environment and fair
cross organisational
trade practices
capability
identifying and
implementing organisation design and
complementarities development to foster
collaboration and
knowledge management
used together are more valuable (to someone) than the sum of their val-
ues in separate use.’(Baldwin, 2018)
Competitive advantage will only remain an advantage if an organisa-
tion builds in progression as part of its value chain, progression means
forward movement in the generation of tangible assets, intangible assets,
and sustainable development. In this respect complementarity holds that
the business phenomena of strategy, leadership, management, talent, and
engagement, have complementary properties which, if recognised and
directed, can have a broader impact than if they were regarded as inde-
pendent activities. It is concerned with ‘the valuable, unique, and inimi-
table synergy that can be realized by integrating complementary resources
provides an opportunity for the firm to create competitive advantages
that can be sustained for a period of time.’ (Harrison et al., 2001)
In this regard the concept of complementarity has been applied across
organisational theory and practice. Most notably Milgrom and Roberts
(1990) applied it to the shift from mass production to modern manufac-
turing, with the proposition that doing more of one thing increases the
returns to doing more of another. ‘The theoretical model specified comple-
mentarities between an organisation’s strategy, structure, and managerial
process….The core insight is that certain configurations of organisational
structures and practices are associated with a firm’s competitive advan-
tages.’ (Jackson & Ni, 2013) The challenge to all organisations is to ensure
that the energy unleashed by such activity is experienced as positive force
that has benefits to the whole organisation rather than conditional poten-
tial that has benefits for a part. Complementarity is the principle that the
outcomes of singular initiatives will be improved where they take account
of the potential synergistic opportunity with other initiatives. It brings
together the properties of singular activities into a complementary frame-
work which takes account of the totality of the phenomena.
Progression through complementarity will have occurred when coher-
ent, aligned, mutually reinforcing business strategies and management
practices give superior outcomes (such as shareholder value, profit, cus-
tomer satisfaction, market share or cost reduction) to those that would
occur if such strategies or practices had taken place independently of one
another. It is where the complementary agency of those strategies pro-
duces superior results. The core tenets of this hypothesis are:
1 From Singularity to Complementarity 21
In particular, the book will address the idea that there are synergies to
be had where organisational functions or practices go beyond singular-
ity—strategies that take place with little reference to others- to comple-
mentarity. Complementarity holds that the business phenomena of
strategy, leadership, management, talent or engagement, have properties
which, if recognised and directed, can have a broader impact than if they
were regarded as independent activities. This book is concerned with the
idea of progress in organisations as we stand on the cusp of the Fourth
Industrial revolution or Industry 4.0.
There are elements of business strategy that can stand alone. But there
are elements that would benefit from being linked to and associated with
others as shown in Fig. 1.2. It is to the latter that complementarity
applies.
22 P. Turner
complementarity
complementarity between talent
between leadership management and
and management workforce
engagement
complementarity
complementarity in
between business unit
organisation design
or functional
and development
strategies
complementarity
outcomes and
benefits for the
whole organisation
organisation design and development with the hypothesis that when the
qualities of leadership complement those of management which in turn com-
plement those of talent management and employee engagement in a holistic
model of organisation, the outcomes will exceed the sum of each of these phe-
nomena as singular events. The outcome will be a complementarity model
of organisation. It will focus on the creation and dissemination of knowl-
edge, an emphasis on collaboration to ensure that knowledge is applied in
an optimal way across the organisation, leaders and managers who are
committed to organisation wide goals and objectives as much as func-
tional or business unit ones; talent that is regarded as a corporate resource
and is deployed for the benefit of the wider organisation; and workforce
engagement that is based on knowledge, skills, attitudes and behaviours
that add to the strength of the organisation as a whole. Chapter 8 will
review the knowledge, skills, attitudes, and behaviours required to ensure
that the concept of Complementarity is applied to optimum effect. It will
focus on organisational competence and how this will be developed with
the application of complementarity; and the leadership and management
competences to facilitate this process. It will cover the meaning of compe-
tence at all levels, a literature review on the subject and a methodology for
identifying the competences required in a complementarity system,
organisation, and culture. Finally, Chap. 9 will present 20 important con-
clusions and outline the benefits of taking a more comprehensive, holistic
perspective when considering the areas of strategy, leadership, manage-
ment, talent and engagement and highlight the benefits of so doing.
Excellence in the singularity of a strategy—such as cost leadership or
differentiation, or the vision of charismatic leaders or innovations in
operational management- underpinned the achievement of competitive
advantage. But now, a confluence of technologies will transform how
organisations operate; how they design and create their products and ser-
vices and how they distribute them to market. These developments will
benefit organisations that are able to adapt and to integrate their opera-
tions and services in an ‘extended ecosystem.’ The context within which
business takes place will be radically different—a great reset or a great
transformation. The challenge will be to put in place business models to
take advantage of the opportunities, but the question is, what is the best
business model—‘as our knowledge becomes wider, we must always be
1 From Singularity to Complementarity 25
prepared therefore to expect alterations in the points of view best suited for the
ordering of our experience.’ (Bohr, 1929)
We are on the brink of a Fourth Industrial Revolution which will fun-
damentally alter the way we live, work, and relate to one another. ‘In its
scale, scope, and complexity, the transformation will be unlike anything
humankind has experienced before.’ Robotics, advanced materials, genetic
modifications, the Internet of Things, drones, neuro-technologies,
autonomous vehicles, artificial intelligence, and machine vision, will
become integrated into physical, social, and political spaces, altering
behaviours, relationships, and meaning. Fundamentally, Society 4.0. and
Industry 4.0. will bring about significant shifts in the way that economic,
political, and social value is created, exchanged, and distributed. In this
context, an important question is how can commercial organisations
adapt their business models and modus operandi to compete success-
fully? This book seeks to address the point by applying the concept of
complementarity to business areas that are usually dealt with indepen-
dently—these being Strategy, Leadership, Management, Talent and
Engagement. The point of view is that organisational success will come
about not only by singularity—discreet interventions in these areas—
but also by complementarity—organisation wide interventions that
have synchronicity—connecting each of the functions to a broader pur-
pose. Complementarity means organisational constructs and actions that
are collaborative, multi layered, multi-faceted and add to the competi-
tiveness of the whole organisation. The argument being put forward is
that whilst the factors of an organisation will continue to affect each
other in one of three ways: independent, substitutive, and complemen-
tary, it will be towards the latter that a greater level of importance is
attached.
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• A confluence of technologies
• Cloud Computing
• Artificial Intelligence
• Blockchain
• Mobile devices
Fourth Industrial • Internet of Things
Revolution • Digital Energy, Health, Transportation,Communications, Production
No. 67.
Early records of the residents at No. 67 are wanting. The first
mention of the house occurs in the Hearth Tax Roll for 1665, which gives
“Lady Thimbleby” as the occupier. This was Elizabeth, one of the six
daughters of Sir Thomas Savage and Elizabeth, Countess Rivers (see p. 67).
She married Sir John Thimbleby of Irnham, in Lincolnshire.[438] How long
she had been at No. 67 in 1665 is unknown, but it is permissible to suggest
that she was there while her mother was still living three doors away. It
seems likely that during Lady Thimbleby’s stay here, her sister, Henrietta
Maria, who had married Ralph Sheldon, of Beoley,[439] also came to live
close by, for the Jury Presentment Roll for 1683 shows “Ralph Sheldon,” in
occupation of No. 69. Another sister, Anne, who had married Robert
Brudenell, afterwards second Earl of Cardigan, was also only a short
distance away, on the south side of Lincoln’s Inn Fields.[440]
Lady Thimbleby’s residence lasted until between 1700 and 1703, and
in the latter year the name of John Thimbleby appears in respect of the
house. He had left before 1709, when the house is shown as empty. The
occupiers after that date were as follows:—
No. 68.
1673. 1675.
Samuel Nelson (6) Samuel Nelson (6)
Lord Baltimore (15) The Lady Baltimore (15)
Marquess of Winchester (3) Marquess of Winchester (30)
A. Thomas Hawker[473] (7) Thomas Hawker (7)
B. Mary James (13) E (13)
C. The French Embassadour
Spanish Ambassador (20)
(20)
D. Humphrey Wild, Esq. (16) Humphrey Wild, Esq. (16)
E. Thomas Weedon, Esq. (5) Madd. James (5)
F. Mary Saunders (9) Mary Saunders (9)
Mary Watson (1) Mrs. Watson (1)
G. John Worseley (6) John Worsley (6)