get good results and survive long-term in a world of competition and change
But HOW can they do it?
Let’s start out simple - from the basic
"power cells” of org. management -
TEAMS of people
collaborating within teams
and between teams.
Their success depends on
three key factors:
- shared goals
- sharing necessary information
- mutual respect
(Relational Coordination Theory)
Large organizations usually have a formal structure that prescribes connections between teams and lines of authority among managers (bureaucracy). In addition informal relationships often develop especially thru the pressure for Continuous Improvement.
This organizational learning creates and requires networks of relationships and leads to widespread innovation and adapting of practices (action learning and adaptive structuration theory).
Both formal and informal aspects of organizations must be understood and supported BUT they are often in conflict; many managers see only the formal side (which gives them their authority) and neglect to support the informal networks and their informal leaders. More on this later in Duality Theory and Ambidextrous Management. But first another point.
Although Organizational Learning is needed throughout every organization, in several different areas it may take different forms.
These key areas in any org. are:
1) the operating core (where most workers are found), each team in its niche;
2) informal networking, collaborating & sharing of useful knowledge between teams;
3) formal support for cross-team sharing - shaping infrastructure to help networking;
4) external relations - monitoring customers, resources & rivals, watching for threats and opportunities;
5) guiding the organization as a whole, linking the linkers, strategy & vision, managing tensions, e.g. formal & informal, stability & innovation.
The Duality Challenge (balancing "odd couples" elements that must collaborate despite their sharp differences ) is seen in all five areas, especially in #5 Managing the Whole, and especially where radical innovation is needed and protected.
That concludes a v.short intro to DYNAMIC CAPABILITY-
explaining how large organizations can survive long-term in a turbulent world.
That topic continues with "Both/And" theory - which follows ...