3 Factors That Determine What an Organization Can And (Cannot) Do

In their article, “Meeting the Challenge of Disruptive Change,” Clayton Christensen and Michael Overdorf list three factors that will determine what an organization can – and cannot – do.

These three factors include the following:

  • Resources – When making a decision on vision, mission and strategy, leaders must ask the question, “What resources do I have?,” followed by, “What resources am I willing to spend?” The greater the resources, the greater your organization can achieve. The fewer the resources, the less your organization will achieve. Take inventory of the resources you have and what you are willing to invest.
  • Processes – What is your organizational structure? What are your processes for getting things done? Are these processes effective? Are people within the organization following the stated processes? If not, why? When trying to accomplish the organizational mission, you must understand and document the processes you have in place. The organization must never be based on personalities and personal whims. While the organization must be empowering for the people who implement the processes, the processes must not be flexible. In other words, the processes must provide the structure for the organization, not the people.
  • Values – What does your organization value most? Do you know? Do your employees know? Do you communicate authentic values or values you found on another company’s website? Are your values working? Are these values working to create the culture you want? These are questions you must ask when moving forward with mission and strategy. You must have authentic values and live by them.

Resources. Processes. Values.

In order to truly be innovative and move your organization forward you must know these three factors. Additionally, if you are struggling to keep your organization moving forward, examine these three factors. You will find the problems – and solutions – there.

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