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"The Community is not just another stakeholder in the enterprise, but the very purpose of it."
... Jamsetji Tata,
founder of the Tata Group
The Context
At a glance
  • Dynamism and flux in the digital era
  • Personalized interaction now critical to value creation
  • Organizations need to be engineered around "shared" knowledge and value
  • Development of "Level 5" leadership

Description

Modern organizations are performance systems that convert innovative ideas into frames of action. Their purpose is to fulfill the requirements of a dynamic social structure through the completion of identified tasks.

Such organizations are usually structured as hierarchies of ‘managerial accountability’ that employ people in order to accomplish their goals. These organizations are thought to create value by providing products and services of their choice to consumers who indicate a demand for them. Matching supply and demand has long been the foundation of the value creation process.

However, the information and knowledge revolution is now refashioning the ways in which citizens make their choices. The complexity of offerings, each with attendant risks and rewards, bewilders them.

Further, the instant availability of information has broken down the partitions separating individuals, institutions and economies. Industry boundaries and product definitions are being rapidly blurred due to globalization, deregulation, connectivity, and technology convergence. Advances in digitization, biotechnology, and miniaturization are increasing opportunities to create fundamentally new products and services.

This emerging reality is now leading to a re-examination of the traditional system of creating value. In the fluid world of the future, personalized interaction between consumers and organizations is likely to become the new “mantra” of value creation.

Accordingly, modern organizations are being re-engineered around shared knowledge and value. The following premises are fast becoming the operating assumptions of successful organizations worldwide:

  • • In the long run, nothing can be effectively controlled from the top of a hierarchy, or a perspective. Further, no single individual can sustain success by merely programming, commanding or regulating it.
  • • People are basically trustworthy. Only institutions that give their members the chance to learn and excel through their work will succeed in the long run

Leaders who have adopted this perspective have created immense value for their organizations as well as the society. Wherever a “Level 5” leader has transformed the organization to deliver extraordinary success, the organizational citizen has been liberated to deliver excellence while the manager has harnessed synergy out of conflict.

Nevertheless, challenges remain. Modern organizational practice shows that something critical has been lost in everyday corporate life: a sense of the value of human relationships and community. Alienation is high, leading to sinking loyalty between the institution and its members. Lacking the human spirit, organizations and their leaders have sometimes been misled into creating social and economic catastrophes.

Meeting the challenges of success in the contemporary, hyper-competitive milieu requires rethinking our perceptions. Organizations need to be refashioned for thriving in a “living” and dynamic world. It would be the Samatvam Academy’s privilege to help do that.