Why Organization DNA is the Secret Ingredient To Differentiate

In a competitive industry, managing of any organization must continuously find ways to retain current clients and in the same time we need to create a effective strategies to attract new customers. This is especially true in these tough competitive markets and economical times.

In all of these changes and the direct impact of globalization did we ask ourselves where we are in all this, what the positioning map of our organization and what you offer to differentiate?

Why some organizations are able to face these changes and it can form themselves in a manner that make them able to compete and offer better services or products? While others can’t leave their corner of the ring without tripping on their own shoelaces?  To answer that question, I would say look to your organization’s DNA.

In science or in biology, we know that DNA does a lot of interesting things (some of which we don’t fully understand) but one of its main and most clearly understood functions is to tell amino acids how to line up and form themselves into specific protein shapes. Do you get the idea of “to tell amino acids how to line up and form themselves into specific protein shapes?” 

In business era the scenario is the same, you have to look beneath the surface at the organization’s DNA. Organizational DNA is a metaphor forth e underlying factors that together de fine an organization’s “personality” and helps explain its performance. 

The Organizational DNA framework was developed by Booz & Company to give organizations an easy, accessible way to identify and remedy the roadblocks that impede results:

• “Everyone agrees on a course of action, but nothing changes.” 
• “There goes another opportunity, while we wait for a decision.”
• “It’s a great idea; it’ll never happen.”
•  “I’m either micromanaged or left holding the bag.”
•  “The businesses and functions just aren’t working together to get results.” 
• “I don’t feel motivated to go the extra mile. What’s in it for me?” 
• “We have the right strategy and a clear implementation plan, but we can’t seem to execute.” If any of these complaints sound like your organization, Organizational DNA can help.

The Five Building Blocks

Like the four nucleotides that comprise human DNA, there are four basic building blocks in any organization’s DNA—decision rights, information, motivators and structure. These building blocks and the way they combine largely determine how an organization behaves, and whether it can achieve results.

Decision Rights: I would like to start with this sentence “We have five seniors in this department and no one find out a solution” The most important decisions in an organization affect not only the decision maker but also other members of the organization. At some fundamental level, every individual in organization is constantly making decisions and managing trade-offs, whether it’s how to price a customer quote, which engineering projects to fund given a limited budget, or what phone calls or e-mails to return first. How well and how efficiently they make these decisions largely determines the organization’s success in the marketplace. Decision rights—the underlying mechanics of how decisions are truly made—determine how well organizations work, how quickly the right new products/services get to market, and how much the organization spends to get results. Therefore, decision rights are the first building block that dysfunctional organizations should address; it’s the cornerstone of effective organizational renovation.

Information: I would like to start with sentence “I don’t have the information I need to do my job.” Poor information is the organizational equivalent of junk food. It clogs communications arteries, bloats the system with empty calories, and fools the body into thinking it’s nourished, when, in fact, it may well be on the verge of crisis. The effects of bad information on the other DNA building blocks—particularly decision rights and motivators—are powerful. Without accurate and available information, decision makers cannot make quick, smart moves in the market- place, and employees don’t receive the recognition—either positive or negative—that their actions merit

Innovation: “We should find out new application or system for new customers segment, but we need to find a way   to implement it” Innovation is one of the keys to success moving forward. Without exception, let me know if you can think of an exception. In most great businesses today, the executives need their people to bring outstanding, new ideas to life. However, the key question remains: how? Innovation is considered as powerful tool in DNA building blocks as it help your company to differentiate in the market and foster the right decisions that contribute to the sustain your business growth .

Motivators: “We paid bonuses, but no one seems to behave any differently.” Motivators include more than money; they also encompass all of the objectives, incentives, and career opportunities that prompt people to care and achieve. These rewards, both financial and nonfinancial, can encourage individuals to align their goals with those of the organization and pursue them in earnest...or they can, however inadvertently, stimulate counterproductive behaviors by driving a wedge between self-interest and the good of the organization.

Structure: “Here’s our org chart, but let me tell you how it really works around here.” Structure is the most visible and obvious of the four Organizational DNA building blocks, and it’s where most organizational change programs start. Structure should not be a starting point, however; it should be the logical outcome of the choices made regarding the other three building blocks. While important and potentially crippling if designed poorly, structure is the capstone, not the cornerstone, of most reorganization efforts.