Three Principles To Keep In Mind While Constructing An Adaptive Organization
November 19, 2021
Many variables must be taken into account while creating an adaptive organization, but we've narrowed it down to the most important three. Let's take a look at these three fundamental principles for creating an adaptive organization.
To begin, the company must have governance procedures in place that promote organizational flexibility and adaptability. While stability does bring the benefits of predictability and consistency, there is a price: rigidity. In such times of change, rigidity will cost the organizations the ability to recognize and quickly make necessary adjustments that enable greater benefits for them in the new settings. As such, without flexible governance mechanisms to reconsider plans, workarounds will occur instead of a comprehensive process, causing corporations lots of time and effort to fix pop-up issues or navigate through changes. Moreover, workarounds often produce political ramifications and cause detriment to the organization’s overall success.
Governance flexibility will remove the rigidity of processes and streamline the time an organization takes to respond and make decisions. Furthermore, an adaptable organization has the ability to adjust strategies, direction, and resources as circumstances dictate. In the context of the business, this refers to all elements of governance, including financial and budgetary areas.
Sense of stability
The second most important consideration in the design of an adaptive organization is to present the individuals with certain approaches to preserve their sense of stability throughout times of change.
An organization exhibits too much flexibility in governance will meet with arbitrariness. While there is undeniable value and power in the amount of flexibility, human beings need a certain level of stability – a sense of place – in order to reach the best of their abilities and potential. They need a certain amount of assurance about where they are, what the role they will be, how to know whether they are successful or not, how to be accepted, how to receive feedback and so on.
Suppose you eliminate many of these semblances of place and stability to employees in the design of a highly adaptive organization. In that case, you run the danger of creating a situation in which people feel rudderless and confused, unsure of where and how they may best contribute. Employee productivity and business performance will fall in the long run. Therefore, it is vital to examine means of ensuring stability, clarity of responsibilities and a sense of place when building an adaptive organization. In addition, the act of sharing power, putting the needs of employees first and helping them develop and perform is a critical aspect to an adaptive organization. This eliminates uncertainty among the staff as well as promotes fairness in treatment, which in turn empowers consistency in governance and administration.
The importance of corporate culture
Last but not least, corporate culture is the value system of an organization. From the first day of work, culture starts to be developed, with employees watching every movement of the boss. Employee observations demonstrate that the communications and actions the management sends are geared to promote and endorse the culture that a company openly supports.
Although corporate culture is the foundation, change is inevitable and every business culture must evolve from time to time. It is necessary to assess and modify the existing culture when it is no longer serving the firm’s interests. So, do not be afraid to inquire why this is done and whether there is the optimal/most efficient method.
Sustaining an enterprise structure while adapting to the expansion involves creating an adaptive organization. While building up your organization, take into account the three main principles and the things that you need to be worried about, which we have outlined above.
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