Organizational Transformation - POWER3®
Organizational Transformation - POWER3®

If there is no progress, regression takes place. For us, stability is not stagnation, but rather sustainable development. We believe that in this modern reality only those organizations that see development as a continuous process will survive and grow.

Any symptom showing that development is being hindered through the slowing down of the pace of growth can result in a decrease in profitability, the outflow of valuable human resources, an increase in “unsolved” problems related to product development and innovations, and leadership feeling stagnation, or regress. These are all undoubtedly signs of a need for a new transformation.

We have come up with a unique model of transforming an organization -

POWER3® (THE POWER OF THREE®), which gives our clients much-needed support to move to the following phase on the development spiral.

POWER3® Model arrow

We perceive an organization as a mini model of the universe which is driven by three main powers: the power of creation, the power of order, and the power of change. The balance and combination of these three powers create an order of the universe while imbalance among them can result in chaos.

The number three can be considered as a universal number, while for us it is a natural way to perceive reality: space is three-dimensional, and time also has three tenses – the past, present and future. Triads, as a principle to explain the order of the universe, are often incorporated into various mathematical, religious, or philosophic tractates: whether this is the Christian Holy Trinity, Hindu Trimurti, Mesopotamian Triad, Trinity of Plato, etc. We can find an analog of three powers in humans as well: thinking, emotion, and action. What all those concepts have in common is that despite each of the powers being crucially important, only their unity creates entirety.

This vision and belief system act as a foundation of our unique approach which we named the POWER3®. In an organizational context, we believe that three main powers for the development and success of an organization are: (1) vision – the power of creation, (2) culture – the power of order, and (3) execution – the power of change.  

THE POWER OF THREE® - Key Principles

What makes our model unique is that it is construed on three key principles:

I Equality of Powers 

I I  Balance of Powers

Companies are often overly focused on achieving short-term goals and the effectiveness of enforcement, as many believe this will bring them success. As a result, the importance of a long-term vision and organizational values are leveled. It is also worth mentioning that the majority of the existing business development models and matrices are particularly focused on enforcement and offer organizations mechanisms to increase the effectiveness of this process.

While our model is unique as an organization’s vision and culture are leveled with the importance of enforcement. Respectively, the approaches and mechanisms we offer envisage equally focusing on all three domains in the process of transformation.

We believe that an organization achieves its main purpose and best results only if there is congruence with these three domains (vision, culture, enforcement) and that they work in harmony. On the contrary, if an organization has dissonance in all three domains or if any of the domains are being neglected, the long-term perspective of this company is doomed for failure.
For example, if an organization does not have a vision or a determined mission, but has a good organizational climate and is effective in terms of enforcement, this means it is “a sad and demotivated” company.
If it has a vision and resources but does not have a culture supporting humans and a clear vision, then it is “an aggressive and exhausted” company.
And if a company has a clear vision and a supportive environment, but does not have respective resources, systems and is weak in enforcement, it will soon turn into “a frustrated and insecure company”.

III Permanence of Powers 

In organizational development, there is no phase whereby any of these three powers becomes less important or unnecessary.

We establish approaches that make an organization’s leadership think more and make decisions based on these three dimensions. In other words, POWER3® is not only transformational, but the management model of the organization assists leadership in making congruent, consistent, and effective decisions, which serve the sustainable development of the company.

POWER3® Methodology arrow

The working process of the POWER3® model consists of nine stages. Each stage has multiple components. Considering the size and degree of the transformation of the organization, a complete transformation cycle can last from six to 24 months.

THE POWER OF THREE® - Working Approaches

In the working process, ACT consultants and analysts are integrated in the organization’s transformative team as reliable and long-term partners. The main working format – team working sessions (1-2 or 3-4 day workshops) – involves every member of the transformational team. However, in some cases, considering the task, ACT consultants and analysists may need to cooperate with one of several members of the transformational team.

ACT’s main responsibility is to help organizations’ transformational teams in making effective decisions and implementing changes. The main measure of ACT’s performance is the success rates of companies. Respectively, our team is oriented on achieving very specific, tangible and measurable results.


On the one hand, we ask companies to adjust to rather long and consistent work (6-24 months) and on the other, we approach work in quite an agile way – we divide the process in short-term stages or “sprints”, define its goals, criteria of assessing outcomes and then focus on the success of the process.

Success achieved in short-term sprints empowers the client with the following: patience and energy required for transformation, a feeling of effectiveness and success, and the opportunity to better plan further steps.

These working principles in combination with the unique philosophy of THE POWER OF THREE® enable ACT to fulfill its special role of transforming good companies into great ones.

 POWER3®  Results – from Good to Great company 

Unique philosophy, model and working principles of THE POWER OF THREE® enables ACT to play particular role in the transformation of its clients. As a result of POWER3®, signs of organization’s transformation are vivid and clear and look as follows:

  • Leadership and employees lit with the feeling of mission 
  • Focus on consumers and creating maximal values for them
  • Agreed vision and priorities, effective decisions
  • Achieving the set goals, growth and development
  • Organizational values and norms of the conduct that are respective and shared by every employee
  • Establishment of self-confidence, development and success mindset in leadership
  • Boost in creativity and innovativeness
  • Improvement of financial indicators.
  • Processes for people and results instead of process for process

POWER3® is a power of changes that helps organizations become more resilient to new challenges, increases their readiness and openness to new opportunities. We believe that, exactly these qualities, paired with the feeling of exclusiveness of their mission, turn good companies into great companies.

POWER3® Diagnostics arrow

We believe that a clear vision of the company, a healthy organizational culture and the effective implementation of goals are a prerequisite for the success of any organization. If an organization fails in any direction, it simply won't be able to take advantage of new opportunities or effectively overcome existing problems. POWER3 Diagnostics is ACT's unique methodology that examines and diagnoses an organization's health in these three areas.

The POWER3® diagnostic is the first step in our POWER3® transformation model, but it also has value in its own right. This methodology includes both expert interviews and organizational research and business analytic approaches. Based on an in-depth analysis of the organization, a diagnostic report is generated that answers the following questions:


• How clear is the vision of the development of the organization from the management team of the company?

• To what extent are strategic priorities aligned? On what strategic issues is there full agreement, and where are there differing positions?

• How do people in the organization perceive the company's strategy? How clear is it to them where the company is heading? How coherent and cohesive do they perceive the management team to be?


• How healthy is the organizational climate - relationships, environment, the possibility of self-realization of employees

• How effective is the management and leadership style in terms of employee performance, engagement and implementation?

• How loyal are employees and how high is their involvement in the activities of the organization

• What is the level of collaboration within microteams and between teams?

• What important values define the culture of the organization?

• What counterproductive behaviors within the organization are contrary to core values and damaging to the culture?


• How effectively and consistently does the company implement the decisions made?

• What is the degree of responsibility of employees within their competencies and responsibilities?

• How efficient and adequate are the resources (human, time, financial, technical) planned?

• How effective is the current management system and organizational structure in terms of management and employees of the company?

• How effective are individual areas of the organization (eg HR, operations, finance, sales, marketing, etc.) and why?

• What opportunities for efficiency improvement do the company's management see?

As part of the POWER3 diagnostic, you will be able to see the organization through the eyes of its management and employees; Find similarities and differences in their opinions. Clearly see the aspects of improving the management of the organization and the potential for its development.

In addition to in-depth analysis, the unique tool developed by the POWER3 Diagnostic Institute will provide you with several important organizational metrics that will enable you to track and evaluate the progress of your organization after the diagnosis. These indexes are:

  • The POWER3 Index is a measure of the overall strength of an organization.
  • Vision Clarity Index - An index of the clarity of the organization's vision.
  • Culture Health Index - an index of organizational culture health.
  • Execution Effectiveness Index - an indicator of the effectiveness of enforcement mechanisms.
  • Leadership Effectiveness Index - an index of the organization's leadership effectiveness.
  • Employee Engagement Index — employee engagement index
  • Collaboration Index - an index of collaboration between individuals and teams.
  • Alignment Index — alignment and coordination index
  • Consistency Index - an indicator of the consistency of decisions and actions

POWER3 diagnostics take 4-6 weeks depending on company size. In addition to diagnostic work and analytical report, his methodology also includes a one-day strategic seminar with the company's management. Our experience shows that members of the organization's management often see organizational reality in different ways - existing problems, their prerequisites and ways to solve them. This is natural, because a leader in a different position sees the organization from a different angle, in addition to the prism of his professional or personal experience. It is this different perception of reality that causes resistance and tension between members of the team, as a result of which the development of the organization is hindered. The main goal of the POWER3 Diagnostics Workshop is for senior management to discover these differences, "fix focus" based on objective data, agree on one reality and next steps.

We call this stage "business momentum". Because it is at this seminar that the management team of the organization realizes a problem or a specific opportunity - a “momentum” that pushes it to significant changes and transformations.

Featured Insights

Have you ever thought that a cup of coffee with a colleague in the office in the morning, questions about yesterday evening's news or plans for the day can affect your efficiency during the day?

What answers do we get when we ask our team members about the behaviors and actions the company uses to improve the organizational environment and improve employee performance? Most of you will probably answer: team building that took place last year or is planned in the near future, monthly meetings to check the current status of projects, corporate events, trainings, etc.

Despite this, few employees will be able to name rituals that exist undeclared in the company. Using them, smart executives effortlessly:

  • Increase employee engagement and efficiency
  • Create strong bonds between company team members
  • Stimulate desired behavior
  • Reduce stress levels

Increasing Engagement

Rituals help team members translate values into their daily activities. Returning to the coffee cup example, having an honest conversation with a colleague early in the day about plans or tasks for the day can be an incentive to be more active and bold in group discussions throughout the day, as well as being more receptive to other people's opinions.

Organizations that incorporate their declared values into daily rituals attract people whose values these rituals correspond to. On the contrary, interaction problems often arise in organizations where declared values are not embodied in rituals.

Building Strong Relationships

People who feel connected work more effectively together. Shared rituals help bring together a diverse workforce and reinforce the culture of an organization.

Rituals increase the sense of belonging and trust between team members. This is especially important in organizations where there is relatively less communication between different departments and positions.

A well-known example of corporate culture is the Grundfos Olimpics Olympic Games, where Grundfos periodically brings 1,000 employees from 55 countries to Denmark to participate in the "Olympics". During this period, employees from different countries live with their Danish team members, which greatly contributes to the deepening of interpersonal relationships.


Stimulate desired behavior

The implementation of small, even insignificant rituals often has a significant impact on improving the effectiveness of the organization.

An example of such a ritual in the research and consulting company ACT is the so-called “Muda Competition” (Muda), which is based on the principles of Lean Management. This competition is held periodically and serves to reduce, and in the best case, eliminate unnecessary costs (including time, human resources, etc.) in the organization. Its main idea is to improve the existing system from the bottom up, at the initiative of those people who have to deal with this or that process in their daily activities and most objectively assess the shortcomings in them. Accordingly, all employees take part in the competition. The competition provides for various nominations - "The chosen Muda for exile", "The most original Muda name", "The most reasoned explanation" and "The simplest solution to the Muda issue".

The winning teams of the competition are rewarded with various prizes, and the reduction in identified costs is reflected in an increase in the overall efficiency of the company.

Reducing stress levels

In a rapidly changing environment, organizations need to remain as flexible as possible. Often this adversely affects their results. In the midst of ever-changing economic, political and other changes, it is important to maintain the strength of organizational culture.

Rituals help to ensure the internal stability and resilience of the organization. They help team members stay focused on the main goal, despite difficulties, and not fall into despair. Rituals have proven to be a guarantee of organizational health for many organizations during the COVID-19 pandemic. Examples of such rituals are virtual holidays and Happy Hour.

Organizational rituals are often found in the cultures of well-known companies such as Google, Zoom, Zappos and others.

For example, an example of such a ritual at Google is the weekly open meetings (so-called TGIF) with high-ranking executives, where company employees from all over the world can ask questions on topics of interest to them and get comprehensive answers.

Zoom's organizational culture is distinguished by its focus on people. The management encourages employees to bring family members to the office, which helps to preserve the health of the team, on the one hand, and the personal life of employees, on the other.

Zappos stands out for its creative organizational rituals. The “strange talent show”, which has become a symbol of the company, serves not to discover stars, but to reveal individualism. Each employee is given the opportunity to enjoy their uniqueness and share their strange or uncomfortable talents with team members.

At the end of this article, I will share with you some undeclared rituals, some of which may already exist in your company, and you can learn about the benefits they create for your company:

Morning coffee meetings - every day in the company should begin with the phrase - "Hi, how are you?". Each of us needs to relax and wake up, which allows us to talk on general topics. A 5-10 minute conversation with an employee often turns into a discussion of plans for the day. Such dialogues often end with the questions “What are you working on today, what are you going to do today?”, which creates a general idea of \u200b\u200byou or your colleague's plan for the day.

15-minute stand-up meetings with team members - sharing information about plans for the day and their projects - one of the most important rituals that creates a general idea of what stage the team is at, whether additional resources have been freed up somewhere or whether anyone needs Any help to complete the project on time.

Circle of acquaintance - the team forms a circle and shares with each other information about themselves that the rest of the team does not know. The existing ritual is often performed in conjunction with the coffee ritual, but in a relatively small circle, the latter requiring the participation of the entire team. This creates a kind of bond between team members, which helps in the coordinated execution of common projects.

Adaptation of a new employee. All new employees must adapt to the work environment and team. Change is not easy for everyone, so it makes sense to plan some type of team-initiated activity with a new employee, one of the simplest examples of which is organizing a Pub Crawl evening.

Knowledge sharing - team members periodically meet and share their experiences (mistakes and positive experiences), which contributes to the overall growth of team members. Also, team members realize that mistakes, to a greater or lesser extent, can make everything, which leads to a decrease in the level of stress caused by the fear of mistakes.

Perhaps some of these rituals have already entered your daily life. In addition, think about what other rituals exist in your company? How do they affect the efficiency of you and the company as a whole? When or who created them? The main thing to remember is that rituals are not created by themselves, but are created, strengthened and initiated by people.


Ancient Chinese merchants were among the first entrepreneurs. They have found a unique way to manage risk in international trade. They distributed their goods for sale on several ships and released at sea. Thus, if one ship was sunk or became a victim of pirates, the rest had a chance to survive. In this way, Chinese merchants safely transported most of their goods to the market of the neighboring city and avoided serious financial losses.

In the 21st century, the export-oriented business is no longer threatened by pirates, but it continues to face other challenges. In today's world, the political, economic and social environment is changing so rapidly that the most difficult task for any company is to find and retain a loyal customer.

The main conclusion that a business must make in the current reality is this: Chinese merchants learned this centuries ago - they realized how much risk the principle "Put all your eggs in one basket" contains. Inspired by an old adage, this concept perfectly explains the importance of market diversification. Its relevance is growing day by day for international marketers and it is clear that Georgian companies are no exception. The Russian-Ukrainian war once again showed us what we have already witnessed many times - how dependence on the market of one country interferes with business.

No one disputes that market diversification is the best solution for risk insurance. However, the implementation of this principle in the modern world requires much more effort than "several cargo ships". Even in the case of the local market, there are many challenges - finding a relevant target customer, winning and maintaining his loyalty. It is even more difficult to fulfill this mission in the international arena. So when we discuss reducing risk and increasing capacity for export-oriented enterprises, the question is not what? but the question is - how?

How companies can better find and develop an unknown market or, at best, markets? It is obvious, and it can be seen with the naked eye, that it will be difficult to succeed only by watching the trends. The most effective tool for planning an international marketing strategy is market research, and consumer research occupies one of the main places in this process.

Well, if you are a business owner and want to expand, open up new markets, consumer research can be the most necessary and useful tool for you.

opportunities for consumer research:

  • Find out who your customer is and what they want.

The number one task in the process of finding a new market is to find out if the buyer needs the offered product or service at the offered price. For a company, entering a new market without consumer research is like wandering through a maze. Obviously, a business can have a rough idea of the needs of foreign customers, that is, of where and to whom it will be profitable to export this or that product. However, these ideas are largely based on intuition and may well not correspond to reality. After all, any foreign market is unique and differs in many ways from the local market - its buyers live in a different geographical area, speak a different language, have special requirements, opportunities and preferences. Accounting for all these factors is a prerequisite for success, in which consumer research can be of great help.

The survey provides the business owner with detailed information that:

  • in what segments of the population there is a demand for this product;
  • What is the consumer behavior of the specified segment
  • What preferences, explicit or hidden desires do users have;
  • Who are the competitors and what is their marketing strategy;
  • How does the buyer feel about the price.

This is not an exhaustive list of the knowledge that can be obtained through consumer research. If it is analyzed correctly, the business will have the opportunity to get to know the new market well and find the right target segment - the client who is most likely to buy his product or service. In this case, the decision to enter a new market is made on the basis of evidence, not assumptions, which significantly reduces risks.

ACT actively helps Georgian and foreign companies to develop foreign markets. One example of this is a consumer survey conducted in Yerevan commissioned by a supermarket chain. ACT has conducted a study of consumer preferences and consumer basket in Armenia. Analysis of the research results allowed the customer company to offer the client a product that takes into account the needs of the target segment. Thus, consumer research helped the business to insure the risks, due to which it established itself rather painlessly in the new market.

  • Grab the attention of the target use.

Finding a target customer is the first step in entering a new market. The next and no less important task is to attract the attention of potential customers. To do this, the business needs to properly pack the product and deliver it to the customer in such a way that it arouses his interest. The role of research is also important at this stage of the development of an unknown market. Research, in addition to the rational motives of human behavior, also reveals what topics potential customers react emotionally to, what excites them, likes or annoys them. Having received this information, the business will be able to offer the product to the buyer, taking into account his wishes and develop an effective way of advertising.

A good example of this is the entry into the Georgian market of several foreign shopping centers. By their order, ACT conducted a study - studied the consumer behavior of Georgians, brand preferences and consumer attitudes towards the proposed product. According to the results of the study, the companies adjusted their marketing strategy, offered the buyer a product that meets his requirements, and earned the location of the target segment. Thus, research-based solutions ended up being effective for them.

  • Constantly keep abreast of the user.

The key to the success of any business is a satisfied customer. As soon as a customer buys a product or service, a timer starts. The business really wins if the customer comes back to buy again and again. This will be a sign that the brand has received the most important award - customer loyalty. However, loyalty is not permanent. People's tastes change every day, new needs and desires arise. In fact, the success of a business depends on how well it listens to its customers. An effective tool for maintaining their loyalty is customer research. This allows the company to constantly keep abreast of the buyer - not to miss a single change in his mood and always be aware of trends.

This consumer research opportunity was successfully used by one of the representatives of the banking and financial sector from Georgia. ACT conducted several stages of consumer research for him in Uzbekistan, Central Asia. In order to identify the preferences of local consumers, the study was conducted both before and after entering an unknown market. As a result, the company managed to take a worthy place in the financial sector of the foreign market.

As we can see, consumer research is a necessary and useful step for a company that wants to expand and open up new markets. This allows business owners to make informed decisions, which greatly reduces the risk of opening, exploiting and maintaining new markets. However, businesses should not forget that the “stopwatch that starts when entering a new market” runs continuously while the company operates in this market. Thus, entering the market of a foreign country is not a one-time decision. Business must constantly be in the process of research and analysis of experience.


Over time, the icon of the businessman has emerged in the public perception as serious men dressed in suits, with huge responsibilities, working in a stressful environment and applying a constructive dialogue format. Does such a perception of a business leader correspond to modern trends? It is essential that all businessmen speak the diplomatic language?

In the postmodern world, a businessman’s role was transformed, which influenced the style of communication accordingly. Business leaders are increasingly trying to position themselves as a part of society and use humor to communicate. This obviously is associated with positive emotion, having an immediate effect on a person’s attitude leading at the same time to a long-term effect. Consequently, strategic humor has become a trend in business communication.

What Is the Meaning of Strategic Humor?

Humor is a simply understandable spoken language focused on key messages. Jokes are easy to remember, while being spread quickly throughout the community they can easily relief a crisis situation. (Meyer, 1990). Result of humor can be instantly seen due to its indicator – an unmistakable emotion - a smile. The humor makes easy to harvest the desired feedback in the target audience, while the emotion received gives us the clear answer to the question of how the set strategy worked. (Hudson, 1979).

The unique qualities of humor and the fact that humor can have a serious influence on a person's attitude shape it into a convenient tool for communication.

Consequently, the area of application of strategic humor is quite wide. It is used in different fields for different purposes:

შესაბამისად, სტრატეგიული იუმორის გამოყენების არეალი ფართოა. მისი გამოყენება ხდება სხვადასხვა სფეროში სხვდასხვა მიზნით:

  • Diplomats apply the strategic humor to conduct successful negotiations;
  • Presenters use it to make interactive, productive and interesting presentations;
  • Leaders use it to demonstrate their self-confidence, high emotional intellect and humanity (Sourcehumor that works).

What Is a Purpose of Using a Strategic Humor by the Leaders?

"If we make people happy, they will write stories about us, so we will not have to spend a lot of money on advertising," said Elon Musk, one of the most influential businessmen and innovators of the XXI century.

Lately, Elon Musk's eccentricity and the way he is applying strategic humor is clearly observed by everyone. The use of contextual humor for a specific mission has become an authentic style for Musk. Creativity expressed in humor and simple way of communication make him one of the most popular persons of our times. Musk's laconic jokes can change a public agenda and make a business clock move counterclockwise.

Could you name another famous person who can just with a five-word joke bring financial benefits to a business, affect the currency exchange market, and/or significantly change the share value of the companies?!

Use of strategic humor and unique communication style makes Elon Mask:

1. The Strongest Business Influencer

The power of Musk's humor is translated into financial indicators. He can establish effective communication with customers, increase sales and share the value of the company at minimal costs. In addition to his own business, he manipulates the global business sector as well using strategic humor. Specifically, Musk's broken heart emoji significantly reduced the market value of the world's first cryptocurrency (see Twitter 1), and the price of one of the least known cryptocurrencies, Dogecoin, rose from 0.1 cents to 72 cents in 5 months (see Twitter 123). ). (Source: economictimes). In supplement, Twitter has also become the target of Musk's satirical humor. Posts on the social network significantly reduced the market value of the platform and eventually led to its acquisition. (See Tweet 12).

2. An Informal Political Leader 

Sharp wits give Elon Musk charisma along with his popularity, which makes him a strong political figure in the eyes of the public while valuing his other characteristics as a leader. Elon Musk can make political weather, as evidenced by recent developments. Musk played an important political role in the Russia-Ukraine information war, where he of course did not forget to use humor. Musk responded to the threat of Chechen President Ramzan Kadyrov against him with humor, and in response to the way he was addressed by Kadyrov, changed his name to Ilona on Twitter.

3. Optimistic Entrepreneur

It is worth mentioning that being one of the top entrepreneurs he is never discouraged even in case of failure and affords to ease the tense situation with creative humor. He is accustomed to acknowledging his own mistakes and looking at them in humor, while others may perceive them as a tragedy. (See Tweet 1)

What Conclusions Can We Draw from Musk's Example?

Humor is acknowledged as a universal form of easily perceived communication that positively affects a person and creates a positive mood. Consequently, the strategic use of humor by a businessman can increase trust in him and supports in winning people's sympathy. All this leads to a positive effect not only on the personal image of the business leader, but also on his business activities, which ultimately helps to increase awareness and sales.

Considering that the use of strategic humor can bring a lot of benefits to a business leader, it is important to remember that it needs to be used correctly and contextually, as joking about sensitive topics can turn positive emotions into negative ones and lead to bad reviews.

In conclusion, we can say that simple and creative language of communication can establish an emotional connection with the audience and build the perception of a strong, successful business leader.