Tuesday, March 2, 2021

Organizational Coherence

High performers seek to make multidimensional business value they create visible to their internal and external stakeholders and deliver premium products/services/ solutions consistently.

Consider digital organizations as the coherent, self-organized but interlaced and hyper-connected ecosystem, coherence is about logic and consistency. “Business logic" comprises business rules that express business policy, workflow or information flow from one person to another. 

If the logic is clear enough, the business is operated frictionlessly and change can be implemented seamlessly. Here are a few perspectives on digital innate-coherence.

Operational coherence: The business is a dynamic system with this side, that side, and the interaction of both sides. Information exponentiality, increasing pace of changes, fierce business competitions, and frequent disruptions create characteristics such as uncertainty, volatility, complexity, unpredictability, and ambiguity. Operational consistency remains a favorite mantra for management and it is essential in earning and holding the trust of one's team. Therefore, consistency remains a favorite mantra for management and facilitates efficiencies in operations and the ability to deliver a shared brand promise across services, sectors, and business boundaries.

From mindset to attitude to behavior, consistency is a critical element for delivering quality business products or services and driving cohesive changes. Consistency enforces effectiveness, fosters customer satisfaction, improves quality, and unlocks performance. The organizational maturity is not based on how many years organizations have been around to support the business, but about how proactively the organizations can respond to the business requests and how effectively it can provide high quality and tailored solutions to meet customers’ needs in a consistent way.

Process coherence: Processes underpin business capabilities. Process coherence fosters “cosilience” (coherence + resilience” of the organizational capabilities. Process design is logical-how it is or will be done - describes a solution. Design is usually only done on "to be" future processes because the existing "as-is" processes are already designed. If a process exists, process designers create a model of it and measure the outputs; if it produces the desired results, wonderful, if not, then use the model to identify the process components most likely to be responsible and re-design them to ensure coherence.

To optimize a process, analysis is conceptual - what is done, what is needed, describe the problem, and what can be done for existing "as-is" processes - what is done; or for future "to-be" processes - what is needed. Designing and modeling are the two sides that make a bit of metal a coin. In a nutshell, Process Design is described as the larger activity of creating new processes or improving on existing ones, while process modeling may be described as a part of the overall design phase which aids in process analysis. If no process exists, or, if it is incapable of delivering measurable results, then process designers start with a design, model it, measure it, and seek improvements to achieve process coherence.

Logic plus consistency lead to coherence: The degree of business coherence decides how flexibly the organization can adapt to business dynamics and how innovatively it can drive progressive changes. Business managers have to come from clarity about internal and external environments and the dynamics that affect them. As a matter of fact, the digital coherence is the decisive factor for the success of business strategy implementation and how well organizations can take the step-wise approach to make the cohesive change in a logical way, continual renewal, and build a long-term winning position of the business.

The differentiated business competency is based on having a deeper understanding of the drivers of value in their specific markets, having imagination to think differently and demonstrating courage to translate those thoughts into actions. From an organizational structure perspective, a company can approach the flow zone when communication is clarified, the positions in its hierarchy have clear and accountable tasks, the business system is running coherently, and processes are streamlined to improve the organizational performance seamlessly.

High performers seek to make multidimensional business value they create visible to their internal and external stakeholders and deliver premium products/services/ solutions consistently. The challenge for organizations is to manage its portfolio of relevant cross-border strategic synergies and organizational interdependence, fine-tune the structure to achieve business coherence, and manage risks to improve organizational resilience.


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