Most of the time, reasons like legacy culture, bounded rationality or massiveness of the organisational structure are cited to explain organisational inertia. But besides the basics that we may already know, what are the other deep-seated issues that could possibly cause the organisation to react/respond too slowly to a rapidly changing business landscape? Here are 3:
1. Routinisation? Don’t get sucked into the “stick to our core competencies”. Everything in life is about balance, extremes produce error. Sole focus on core competencies will likely cause a firm to fail in innovation and doing something radically new, which sometimes may well be the key to revitalise a firm.
2. Institutionalisation? Isomorphism is what causes a structural lock-in which results in a difficulty in adaptation and realignment. Although rigidity is often cited, little is really done to address it.
3. Lack of Integration? Use the 7S framework in a detailed manner to check the level of integration between the hard components of strategy (plan), structure (organisation), systems (procedures and activities engaged by staff to execute functions of the organisation), and the soft components of shared values (core values, culture), skills (capabilities and competencies of staff), style (of leadership), and staff (employees). Where are the broken linkages?
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