Editor's Note: Take a look at our featured best practice, Organization Design Toolkit (103-slide PowerPoint presentation). Recent McKinsey research surveyed a large set of global executives and suggests that many companies, these days, are in a nearly permanent state of organizational flux. A rise in efforts in Organizational Design is attributed to the accelerating pace of structural change generated by market [read more]
The Dexterity of the Competing Values Framework (CVF): Organizational Design, Leadership, Culture, & More
Also, if you are interested in becoming an expert on Organizational Design (OD), take a look at Flevy's Organizational Design (OD) Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.
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The Competing Values Framework (CVF), developed by Robert Quinn and Jon Rohrbaugh in the 1980s, is a management theory that was developed initially from research done on the major indicators of effective organizational performance. Based on statistical analyses of a comprehensive list of effectiveness indicators, Quinn and Rohrbaugh discovered 2 major dimensions underlying conceptions of effectiveness, focused on:
- Organizational focus
- Organizational preference for structure
Together, the 2 dimensions form 4 quadrants, with each quadrant unique and defining sets of values and implications.
This model has been found useful for organizing and understanding a variety of topics related to Organizational Design, and extending beyond, including Leadership Development and Organizational Culture. Here is a broad list of topics where we can apply CVF:
- Organizational Design
- Organizational Effectiveness
- Leadership Competencies
- Organizational Culture
- Stages of Life Cycle Development
- Organizational Quality
- Leadership Roles
- Financial Strategy
- Information Processing
- Brain Functioning
Below is a diagram capturing the essence of this framework:
Now, let’s take a deeper dive into each of the quadrants.
Collaborate – Human Relations Model
The top-left quadrant places a lot of emphasis on flexibility and internal focus. It stresses cohesion, morale, and human resources development as criteria for effectiveness.
General competences and attributes for organizations in this quadrant include teamwork, collaboration, talent management, empowerment, or inter-personal relationships. Key value drivers include commitment, communication, and development.
Leaders fitting this collaborative orientation tend to fit the profile of facilitators, mentors, and team builders. Facilitators tend to manage conflict well, using participative decision making.
Create – Open System Model
The top-right quadrant emphasizes flexibility and external focus, and stresses readiness, growth, resource acquisition, and external support. Tools and techniques, including innovation, creativity, articulating future vision, transformation change, or entrepreneurship, are highlighted here.
Control – Internal Process Model
The bottom-left quadrant emphasizes control and an internal focus; and stresses the role of information management, communication, stability, and control. Tools and techniques, including assessing and measuring, controlling processes, structuring, efficiency improvement, or quality enhancement, are highlighted here.
Compete – Rational Goal Model
The final quadrant emphasizes control and an external focus. It regards planning, goal setting, productivity, and efficiency as being effective. Tools and techniques, including competitiveness, fast response, decisiveness, driving through barriers, or goal achievement, are highlighted here.
Interested in gaining more understanding of CVF? You can learn more and download an editable PowerPoint about the Competing Values Framework (CVF) here on the Flevy documents marketplace.
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Want to Achieve Excellence in Organizational Design (OD)?
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Organizational Design (AKA Organizational Re-design) involves the creation of roles, processes, and structures to ensure that the organization's goals can be realized. Organizational Design span across various levels of the organization. It includes:
1. The overall organizational "architecture" (e.g. decentralized vs. centralized model).
2. The design of business areas and business units within a larger organization.
3. The design of departments and other sub-units within a business unit.
4. The design of individual roles.
In the current Digital Age, there is an accelerating pace of strategic change driven by the disruption of industries. As a result, to remain competitive, Organizational Design efforts are becoming more frequent and pervasive—with the majority of organizations having experienced redesign within the past 3 years. This has only been exacerbated by COVID-19.
Frustratingly, only less than a quarter of these Organizational Design efforts are successful. Most organizations lack the best practice know-how to guide them through these Transformations effectively.
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About David TangDavid Tang is an entrepreneur and management consultant. His current focus is Flevy, the marketplace for business best practices (e.g. frameworks & methodologies, presentation templates, financial models). Prior to Flevy, David worked as a management consultant for 8 years. His consulting experience spans corporate strategy, marketing, operations, change management, and IT; both domestic and international (EMEA + APAC). Industries served include Media & Entertainment, Telecommunications, Consumer Products/Retail, High-Tech, Life Sciences, and Business Services. You can connect with David here on LinkedIn.
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