The Value Dynamics Model, developed by us, is an organization building framework. The model, adapted from “The Social Process” by the Institute of Cultural Affairs, comprises three interdependent dynamics of an entity – the Enterprise, the Organization and the Culture.
The Enterprise Dynamic works as a Compass for the organization and helps in setting the strategic direction. It focuses on building shared clarity on:
- Markets and Customers – Understanding/defining the target markets and customers for the organization.
- Products and Service Offerings – Understanding/defining the products and services that the business can/should offer to service the identified markets and customers.
- Delivery Capacity and capability required to offer the identified products and services to the target markets and customers.
The Organization Dynamic enables building the execution muscle for the strength and stability of the organization. This dynamic is about how the organization does what it does by focusing on:
- Systems and Processes – Building/strengthening systems and processes for improved efficiency and sustainable performance.
- Governance and Controls – Implementing effective governance and control mechanisms to ensure robust processes without getting bureaucratic.
- Engagement and Ownership – Enrolling employees into the way of doing things that builds engagement, accountability and ownership.
The Culture Dynamic helps in aligning people to why the organization does what it does by generating energy and infusing passion and meaning for the organization’s purpose. It represents the spirit of the organization and includes:
- Values and Behaviours – Articulating values and behaviours that anchor the culture of the organization.
- Norms and Practices – Implementing practices, norms, rituals aligned to the articulated Values that help embed the organization’s culture.
- Identity and Reputation – Building a strong brand for the organization by consciously living the organization’s values in service of its purpose.
Using the Value Dynamics Model for Organization Transformation
The organization building process starts with assessing the level of shared clarity, alignment and execution capability that exists within the organization. This assessment is done through our proprietary Value Dynamics Diagnostic which is deployed at a team, function or entity level and/or 1-1 key stakeholder conversations. The Bright and Hot Spots emerging from the diagnostics provide valuable insights on improvement opportunities in the Enterprise, Organization and Culture Dynamics.
A facilitated conversation on the insights enables the team, function and/or entity to make strategic and/or operational choices about where transformations are required and agree on the roadmap to initiate the transformation. This is also when the leadership teams in functions or the entity as a whole start experiencing sharing clarity and alignment, a starting point for building ownership for the co-created transformation agenda.
Real-World Application of the Value Dynamics Model
A Chemicals company based in the western part of India suddenly experienced a huge vacuum at the leadership level when its founder entrepreneur decided to move out of the organization. The business struggled to grow as until then the founder entrepreneur was the one who set the business goals and took all decisions while the rest of the team executed what they were asked to do.
Our approach and solutions to partner this organization were based on our Value Dynamics model.
We started with Enterprise Dynamic to get the team to focus on and align towards one business direction. This was done by co-creating the annual business plan for that year, cascading that plan into performance goals for the leadership team and initiating a performance management process. This commenced the process of implementing some systems and processes under the Organization Dynamic. We supported the team by participating in goal setting and annual performance review conversations with the leadership team and linking performance to reward mechanisms – all which enabled in building engagement and ownership of the next set of organization leaders.
After stabilizing this for a little over 2 years, the organization’s leadership felt confident to create a longer-term plan. We then co-created the shared aspirations and the strategic directions to achieve the aspirations. The strategic directions also threw up the need to enhance other organization building elements which included:
- reviewing the organization structure
- streamlining the organization’s Responsibility Levels to establish internal equity of roles and not base it on tenure of people in the organization
- co-creating the competency framework, implementing individual development planning processes and leadership training to facilitate talent capability building and career development
The outcomes through the long-term facilitation and execution partnering included:
- Institutionalizing long range planning (LRP), Annual Operating Planning processes – done in 3 year and annual cycles for a few years now
- Embedding a robust performance management process which includes completing the goal setting across levels by Mar-Apr, every year and timely review of annual goals.
- A well-established framework and process for remuneration (fixed and variable pay)
- Setting up of the learning & development function with well-defined structure and processes which has enabled internal capability building through focused training and coaching interventions, apart from on-the-job development.
The company has recently articulated its core values and are in the process of educating employees and embedding them across the organization. Additionally, over the years, with the interventions mentioned above, the organization’s culture has shifted from one of command and control to being more empowering with a core leadership team in place leading businesses and functions.
Since our association with this organization its business has grown approximately 10 times with three business verticals, a stable leadership team and internally groomed talent.
Leveraging the Value Dynamics Model, Core Creators assists organizations in achieving its growth aspirations and sustainable transformation. Explore how we can support your transformation journey. Enquire Now!