Organizational Transformation - THE POWER OF THREE®
Organizational Transformation - THE POWER OF THREE®

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 -

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



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THE POWER OF THREE® - Philosophy & Model


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 Power of Three ( PWR3). 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) enforcement – 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 



II 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, PWR3 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.




THE POWER OF THREE® - Working Process  


The working process of the PWR3® 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.




1. Business-Momentum arrow

Any transformation starts with the realization of a need of that transformation. This is the first stage of our model – when organization becomes aware of the problem or the specific opportunity, it forces the organization to make important changes or transform. In our vision, initiator of the transformational process is the client himself, while our role is to thoroughly study and conduct diagnostics of the organization. Based on that client makes a decision whether to start the complex process of transformation in its organization or not.

2. Formation of a Team arrow

Transformational team is a union of leaders who take responsibility on necessary changes in the organization, decisions and implementation. Success of organization’s transformation depends on how effective they are. This is why, ACT’s management consultants and coaches assist the client to form and build transformational leadership team.

Reaching an agreement on transformation vision and goals, realization and acknowledgement of role and importance of each team member in the transformation process, agreed working rules and formats – these are must preconditions for effectiveness of the team. Thus, ACT focuses on these issues at the given stage.

3. Renewed Vision arrow

Third stage of transformation is a crucial stage as this is when organization’s vision, mission and its existing business-model is being re-evaluated and renewed or completely changed in the transformational perspective. This is also the stage when we work on formation of strategies relevant to the organization’s new vision and renewal of value system. The decisions made on this stage define contents and main direction of the transformation.

4. Management Remodeling arrow

Renewed vision and strategy usually require remodeling of management systems. On the fourth stage, ACT’s strategic consultants, specialists of organizational development and HR professionals help the client in transformation of organizational order and its management structure. This is the stage when organization’s structural units and their subordination are being evaluated, functions and duties of key management circles, existing compensation and incentive schemes are being re-assessed / developed.

5. Road Map arrow

This is when ACT’s consultants help clients to develop consistent action plan to fulfill organization’s aspirations, its new vision and strategy, strategic allocation of resources and incorporating effective enforcement mechanisms (success measures (KPIs), monitoring indicators, reporting formats). This completes the transformation modeling phase and implementation of changes starts in the organization.

6. Preparing the Ground arrow

Before commencing implementation of the large-scale changes, it is important to prepare the organization for changes. This implies strengthening leadership on every step of the organization and preparing it for transformation (assessment and development programs, team and individual coaching, trainings). As the experience shows, apart from formal leadership, informal opinion leaders play a rather important role in organization’s transformation. With itunique tools, ACT helps clients to discover this resource inside the organization and recruit them into “ambassadors of changes”.

7. Communication of Changes arrow

Communication of the planned changes is a crucial part of organizational transformation. Even the most positive changes if being ineffectively communicated may result in big resistance and protest of employees. In order to minimize employee’s concern towards “unknown future” and to engage then in the planned changes, ACT helps their clients:


  • To develop clear and stimulating message-boxes on the concept and importance of the planned changes
  • To prepare effective communication strategy and campaigns
  • To choose internal communication channels and platforms
  • To carry out consistent, systemic and reciprocal communication.
8. Reforming arrow

On the eights stage of the transformation, the organization is being re-shaped and entire team gets involved in changes. This is when planned structural and staff changes take place. In addition, organization’s new vision and altered structure inevitably require update of the existing systems or formation of new systems. ACT helps its clients in audit of the existing processes, their optimization and renewal, if needed, digitalization as well.

9. Implementation arrow

On the ninth and final stage of transformation, organization implements the planned strategy in compliance with the action plan and gets the first outcomes of the transformation. During this stage, ACT’s main role is to facilitate prompt and effective decisions. Later on, based on necessity, to make corrections in the existing plan. At this point, ACT offers companies its senior-consultants as temporary member of the management board. This way, our client gains long-term, impartial and competent partner in the form of ACT, which provides support along the way of transformation full of challenges.

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.


THE POWER OF THREE® - working approaches

In the working process, ACT’s consultants and analysts are integrated into the company’s transformational team as its reliable and long-term partners. Main format of work – team working sessions (1-2 day or 3-4 hour workshops) involving every member of the transformational team. In addition, in some cases, considering the task, ACT’s consultants and analysts may need to collaborate with one or more members of the transformational team.


ACT’s main responsibility is to help the company’s transformational team make effective decisions and enforce changes. Main indicator of ACT’s effective work is company’s success rates. Respectively, our team is oriented on achieving very specific, tangible and measurable results.


On one side, we ask companies to be prepared for quite long and consistent work (6-24 months), on the other side, we apply agile approach to the work – we divide the process into short-term states – “sprints”, define their goals, criteria for assessing results and then focus on the success of this sprint.


Success achieved in short-term sprints equips our client with patience and energy necessary for transformation, feeling of effectiveness and success and opportunity to better plan further steps.

 

PWR3®  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 PWR3, 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


PWR3® 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. 



Product
Our Team
Featured Insights
24.08.2020

Our new reality is very much alike if you get up 15 minutes earlier to work day, go to “home office”, work, mix personal and work time, head over to your own kitchen during lunch, come across with shopping list when working on projects and mostly spend your weekends on the balcony. New reality makes our behavior and work principles homogenous. In the environment where homes are turned into offices a circle is formed where routine is repeated every day for everyone. How is it possible under these circumstances to keep your work motivation or even increase it?


When speaking about motivation, we most definitely need to mention Abraham Maslow, founder of motivation theory, whose pyramid cannot be avoided by any organization. On initial stage of keeping employees motivated, Maslow considers basic needs: physical environment and safety, following level is taken by psychological needs: belonging, love, recognition and finally, he sees the need of achieving one’s full potential and self-actualization.


According to Maslow’s hierarchy, organizations that fully meet employees’ needs from basic needs to top level, significantly increase their motivation. However, this classic model was altered by the pandemic. Now, employees who had their physical environment covered in terms of basic needs, have an upside down situation: they make stocks of food, pile up hygiene and medical products, stay at home and take care of their own and family member’s health. Under these changes, pyramid is completely altered and it becomes necessary to discuss changed tactics of employees’ motivation.


In Georgian reality, “upside down” pyramid appeared to be most simply adaptable for those companies whose organizational strengths became transferable into remote service as they already had digital processes well-established. To motivate employees, these and other companies had to make decisions based on the stage where large portion of their employees were at.


We are sharing an example of our organization – ACT, how it manages to preserve the bottom level of pyramid so that based on the central part, it supports lower and upper levels and respectively, increases employees’ motivation.


Love, friendship, family, belonging – central part of the pyramid, psychological factors largely affect motivation of employees. As far as ACT’s management follows direct, consistent communication, uses open, free, less bureaucratic approaches, acceptance of their decisions is already quite high. In addition to this, the majority of employees has long history of working for the company, thus, the feeling of love and belonging, supporting each other stands high on psychological level. A feeling of belonging is enhanced during a crisis, when people love to be united, to be in the same boat, this strengthens them mentally and simplifies acceptance of novelties, new initiatives. Being united against the problem from the company’s perspective is perceived as ultimate motivator, while being united around the idea is a powerful tool in the pursue to achieving goal. 


Physical environment – new fears emerged in terms of physical level: preserving a job, salary, mobilization of finances for meeting basic needs, physical place to effectively do your job. These fears compromise lower level and to terminate this, organization needs to have timely and right communication with employees. To address this problem, ACT made certain changes in terms of staff/salary, which resulted in preserving jobs for every employee. This decision, on one side eliminated fears in terms of safety and physical environment and on the other side, on central level, built level of basic needs on membership of one big family. Employees became motivated to create safe working environment for them and their colleagues, thus, the company shortly became entirely digitalized.


Self-actualization – some of ACT’s employees were on the level of meeting the need of self-actualization, while part of them, with right allocation of resources, were given a chance to show off their “hidden” skills during the crisis. Opportunity to demonstrate their potential additionally motivated people to receive recognition from colleagues and level up to the last step of pyramid where by fully realizing their skills, they could turn the challenge into an opportunity. Clear demonstration of this is a new consulting platform of ACT – www.act-strategist.ge formed with the idea of supporting other businesses under corporate responsibility.


When evaluating the steps we made, organization was able to obtain a larger picture through a feedback tool (internal study), based on which motivation of employees has remained the same for 57% during crisis considering the decisions made by management while motivation increased for 33% of employees. Inquired staff members also believe that changes will not affect company’s work: on expectation level, they perceived that company would work in regular regime, while they feel optimistic towards the future operation of ACT. As verified by this example, if psychological needs are met, organization culture and feeling of being united is in place, building values on them becomes quite easy, which is particularly important during crisis.


Author: Gvantsa Tolordava

Research Manager / ACT Business