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Half of all employees view their
companies as either "passive-aggressive" or "overmanaged,"
according to a new online evaluation tool created by Booz Allen
Hamilton. Respondents complete a five-minute Web evaluation and
then receive an immediate diagnosis of their company's type in
one of seven categories, each with distinct "organizational DNA"
that affects employee behavior and corporate performance.
Over 3,100 businesspeople have already completed
Booz Allen's online evaluation, which is available at
www.orgdna.com.
Almost half (48%) of the responses have come from senior or
middle management, and the industries best represented are
professional services (21%) and software (11%). Companies of a
broad range of sizes are represented, with 38% of respondents
working for companies that have annual revenues of $500 million
or more.
The diagnostic tool found "passive-aggressive"
to be the most common corporate type, at 32%. Such an
organization seems congenial, even conflict-free, yet still
resists meaningful change. "This is the 'everyone agrees but
nothing changes' organization," said Booz Allen Senior Vice
President, Gary Neilson. "Building a consensus to make major
changes is no problem; it's implementing them that proves
difficult. Line employees tend to ignore mandates from
headquarters, assuming 'this too shall pass.' In such an
apathetic organization, instituting change is like trying to
nail Jell-O to the wall."
The next most common corporate type is "overmanaged"
at 18%, with bureaucracy and politics hindering action. The
"outgrown" organization, which does not expand decision-making
authority to match its size, was the least common type, at only
2%.
Other findings from the evaluation include:
Of employees who viewed their companies as
Overmanaged, the highest percentages work in IT (25%),
manufacturing (24%) and sales (21%).
Of employees who viewed their companies as
Resilient, most work in finance (16%). Employees working in
R&D/PD/Engineering are most likely to report that their
organizations are Passive-Aggressive (39%).
Nearly half (48%) of insurance industry
employees consider their companies Passive-Aggressive,
compared to only 18% of capital goods employees.
No employees in the insurance, consumer
durables or real estate industries believe their organizations
are Outgrown.
Small companies ($0-$500M) are more likely to
be seen as Resilient (16%) than mid-sized ($1B-$10B) companies
(10%).
Small companies are also least likely to be
viewed as Overmanaged organizations (17%).
Senior managers have a different view of their
companies than other employees:
22% of senior managers report their
organizations are Resilient, compared with only 10-12% of
other levels of employees.
Fewer senior managers tend to see their
organizations as Overmanaged (13%), compared with 19-22% of
other levels of employees.
Senior managers are also the least likely to
view their companies as Passive-Aggressive, (26%) compared
with 34-36% of remaining levels of employees.
The evaluation tool was designed as a first step
toward improving organizational performance, to help companies
gain insight into what is not working in their organizations,
how it got that way and what to do about it. "The ability to
execute is embedded in the management processes, relationships,
measurements, incentives and beliefs that constitute an
organization's DNA," said Neilson. "This tool allows companies
to identify and treat the root causes of dysfunction in a
company, not just the symptoms."
The Organizational DNA Assessment diagnoses
distinct corporate personalities by examining a company's
structure, decision rights, motivators and information.
Companies are then sorted into one of seven distinct
organizational DNA profiles:
The Resilient Organization: Flexible enough to
adapt quickly to external market shifts, yet steadfastly focused
on and aligned to a coherent business strategy.
The Outgrown Organization: Too large and complex
to be effectively controlled by a small team, but has yet to
"democratize" decision-making authority.
The Just-in-Time Organization: Inconsistently
prepared for change, but can turn on a dime when necessary,
without losing sight of the big picture.
The "Overmanaged" Organization: Multiple layers
of management create "analysis paralysis" in a frequently
bureaucratic and highly political environment.
The Military Organization: Often driven by a
small, involved senior team, it succeeds primarily through the
will and foresight of its leaders.
The Fits-and-Starts Organization: Contains
scores of smart, motivated and talented people who rarely pull
in the same direction at the same time.
The Passive-Aggressive Organization: Congenial
and seemingly conflict-free, this organization builds consensus
easily but struggles to implement agreed-upon plans.
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