Saturday, 7 June 2014

Universal Laws applied to Business Organisations

Universal Causal Law applied to Business Organisations

Swami Chinmayananda explains the three laws as under:

1.     Every effect is on account of a cause
2.     The effect is the cause itself in different forms
3.     If one removes the cause, there is nothing that remains

In this, he clarifies that the manifest arises from a universal source, ie Consciousness, that is singular, all that exists is the plurality of the source itself, and it is life itself (read energy force) that creates all, which once removed renders the effects non-existent.

Let me apply this to Organisations.In the world of business organizations, the organization itself is a creation. All organizations are ‘perfectly designed to be the way it is’ – it arises from the source. You get what you deserve, for it is this that you have created and sustained. Are the product and services it offers, a ‘pull’ – that is, does it attract consumers to it, or does it wish to ‘push’ products. Organizations that are prosperous, but are constantly anxious about losing its Goddess Lakshmi, remain preoccupied by its wealth, yet organizations that strive to serve – that offer value to its consumers, always attract, and grow in firm measure. True value comes from the desire to serve consumer needs – to first give. The by products of giving, result in creating fruits (read profits). Those that have an orientation to serving the myriad stakeholders rather than profit for its own stake survive.

In the role of organizational practitioners, one preoccupies oneself with either work on ‘work processes’ or ‘management systems’ to improve effectiveness. These systems are either the review processes, rewards systems, compliance processes, learning, or organization structures. Much has been done in this area (read organization benchmarking, best practices, Process engineering, etc). By itself these are not enough. Under the universal laws these are ‘effects’ of the cause, there are not the cause that shapes effects.

Much time has also been spent on Culture renewal. Culture to me is derived. It is the effect of the cause. There is little gain in trying to change the culture, unless we visit the source itself – ie, that which is the cause that creates the culture effect.

In this I am pointing out that work either at the systems level or at the culture level is futile. These are the outcomes or effects of something arising from the cause. It is true that the effects itself are the cause in different forms. The presence of the cause in the effects itself continues to make us work with the effects of cause. It deludes us from the real task - the cause.

I argue that we have to go beyond the effects of systems and culture transformation. The work must begin by reviewing the design itself, and the very nature of the design principle. When one does this one can see only too clearly why an effect continues. Perhaps the design principles were built for a context and the context itself has changed, which may require an overall change in the design itself. It is this adaptability that allows organizations to change to succeed over time. Looking for this root cause is fundamental, else one is forever treating the symptoms. For example, working to reduce obesity at the effect level will not work, it needs a change in lifestyle, if it is to succeed. The body mirrors the lifestyle we lead. Change the cause and you can change the effect.



Here lies the basis for innovation, for only through innovation is the organization design principles revisited for relevance and changed to better adaptability to a situation. A design arises out of a paradigm, set by oneself or as a byproduct of the social mirror around us. This requires changing the paradigm, with intelligence different to that which originated it. 

I argue that design principles by themselves are not enough. Deep within the intellect is the deeper understanding of two elements – one being the dominant logic of the organization that pervades all design principles, and the other being the dominant values. The first is the thinking, and the other the feeling – the two forces that give way to the organization blueprint – the fabric of the design that allows for creation and sustenance.

It is this dominant logic that illuminates all – it exerts ‘adhikar’ on all design parameters, and with it is the softer ‘anurag’ that gives it energy, that binds all actions. It is the balance that is the key – the ‘samtulan’ that holds it together. Both adhikar and anurag are needed, as the gardener must prune, remove weeds yet water the plants. Doing both, with the sole purpose to serve is the balance.

It is this cause (read organizational vision and purpose and value) that sets up the phenomena, around which the effects manifest. The consequences and outcomes are then the plurality of this vision, and in the absence of which the organization decays. The vision holds resilience, yet is negotiable with its environment, and is held by an enduring vision that is compelling.

It is said that Vision is the key to what organization becomes. It is the cause that gives birth to the effects. Without it, there are no effects. Thus, the universal causal laws are important principles.


In summary, there is the cause (logic and values) that creates the Organization Design, within which lies the effects of the systems and processes, that creates a culture for delivery that defies the business results. I argue that all work must begin from the ‘gangotri’ the very source, not mid stream or down stream.

3 comments:

  1. This is a deeply reflective article. Steve has rightly highlighted the importance of organization design rather than narrowly focusing on processes and systems alone. Gangotri comment in the end is also apt. The early stage choices in an organization's life cycle have lasting impact on the organization. Successful change management requires revisiting organization design and certain aspects of the core DNA of an organization.

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  2. In Graphology, I remember reading that in as much as one's personality influences one's handwriting, by changing one's handwriting, certain aspects of the personality can be changed (albeit with much difficulty).

    In my first initiation into organization design, I remember my manager stating there are 2 schools of thought - One that echoes what Steve has written above - have the right design and the rest tends to follow; the other coming from the Systems school of thought that says install the right systems & processes and through rigorous implementation, enable the right outcomes. The second is easily accepted as it lends itself to measurement and tangible actions while the first can raise a lot of fundamental questions that the leadership may feel uncomfortable to answer - like why did Infy have to bring back NRN deviating from its professed policy.

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  3. Keerthi / Prashant,
    Thank you for your reflections on my blog. Appreciate your sharing your viewpoints. As you say there have been two views: the first, Change Attitudes and you change beliefs. That takes longer! very much longer. Often some of our attitudes come from the sub conscious and unconscious, sometimes passed on through generations (minority complex, being one example). Rather than this longer process, organisations went in for behavioural modification: proscribe the behaviour you wish, and over time people would adapt to aligning to the principle, and attitudes would change.
    For example, an organisation may dictate that all sales folks wear ties. Employees may wear ties as a norm, but not necessarily agree to it. Over time, some may convert to the view that wearing ties does enhance 'branding' and may be more favourable.

    I would argue that it is pointless to aim for Shared Beliefs or a common culture - that would be a merger wherein the diversity is lost. Organisation need to support inclusion of diverse beliefs, and differences in order to be innovative and creative.

    That said, having a Shared Purpose ( Vision) and a Shared Values (agreed norms of behaviour) supports alignment to deliver organisational objectives.
    Both of these can be measured: what is key is that the behaviour should be reinforced through rewards.

    The economic equation - of what's in it for the organisation and what's in it for me both need to be answered, for the fundamental basis for human behaviour is the 'incentive' of the perceived pay off, the differential between the 'current me' and the 'future me'.

    Thanks again for your contribution.

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Join me with your reflections, observations and perspectives. Please do share. Thanks, Steve