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Application of Pyramid
Building in Organizations
Application
of Pyramid Building in Organizations:
Aligning Strategy, Processes, and People in Organizations
by Prasad Kaipa, Chris Newham and Russ Volckmann
Table of Contents
· What Is It All About?
· Introduction
· Achieving Alignment
· The Pyramid Building Approach
· What is Pyramid Building?
· Building the Enterprise Pyramid
· The Other Perspective
· Why Examine the 'Other' Side?
· Emergent and Foundation Perspectives
· How Has the Pyramid Building Approach Influenced Our Own
Work?
· Application of This Approach in Other Organizations
· Conclusions
What is It All About?
We have developed a powerful
multi-dimensional learning approach that works directly with client
issues while allowing reflection, dialogue and agreement on three
levels: Clarifying intentions, agreeing on desired outcomes and
identifying actions that allow us to get to those outcomes. Thirty
organizations including five Fortune 100 companies have used this
methodology successfully in designing strategy, clarify their mission,
design executive development programs in addition to designing books,
management CD-ROMs and five year strategic plans with built-in assessment
tools. It has four qualities that no other tool we have seen has:
1. It results in creating a
3-D model that fits in your hand and allows you to examine the model
from different perspectives and to understand it as a system.
2. The process of creating the model is interactive, inclusive and
allows for both head and heart to be deeply involved (the concepts
as well as the energy with which those concepts are presented are
important).
3. Reflection and action orientation are both included during the
creation as well as the implementation stages. It is possible to
look at the system, its parts and their interdependencies and relationships
separately and together.
4. The process of creating the model is generative and innovative.
The model, when properly developed, is simple and complex at the
same time. Its simplicity is expressed through its focus on three
levels. Its complexity can be discovered in the generation of individual
and shared meaning from those three levels.
5. The pyramid as a product represents explicit, tacit and unmanifested
(generative) dimensions. Explicit are our intentions, tacit are
our actions and unmanifested are outcomes that we hope to achieve.
In this article, we apply our approach to a specific issue: Bringing
alignment between strategy, processes and people in an organization.
While giving an example of our own, we help you to understand what
our approach is, how you design pyramid tool and apply it in your
situation, and what its potential is.
As with presentation of any new approach, it has applications beyond
what we have envisioned. The purpose of this article is to generate
interest in it and develop further applications in organizations.
We welcome your feedback!
Introduction
Most organizational change efforts
have produced, mixed results. Models, approaches, and concepts that
make sense in the beginning have often not produced desired outcomes.
Somehow, the structures put in place, the strategy that drives the
change effort, and the processes that bring about change leave people
drained of energy. We would like to re-energize this process in
a way that will engage people's vision and passion, and align change
strategies with the processes that fulfill them.
Achieving Alignment
Aligning an organization's strategy,
processes, and people is a challenge and almost unachievable in
most circumstances. When achieved, alignment greatly improves opportunities
for reaching desired outcomes. This challenge can be met where there
is integrity and a willingness to collectively face such questions
as:
o Can the individuals in our group agree on what we want to do?
o Can we devise a strategy to do it?
o What actions must we take to do it?
o When we're done, have we achieved the outcomes we expected?
Alignment includes learning about self and others through comparing
our perspectives with those of others. It requires unlearning, as
well as learning. And it is a nonstop, dynamic process within organizational
life that must coordinate individual intentions, collective means,
and desired results.
The Pyramid Building Approach
Our approach for aligning strategies,
processes and people explicitly allows organizations to clarify
intentions, take actions, and produce desirable outcomes. It is
particularly useful for revealing the relationships among critical
variables and for uncovering the implications for organizational
action and change. It provides a social context to discover values,
assumptions, and beliefs. Groups in thirty organizations in five
countries have used this approach to develop alignment for a wide
variety of purposes. Read an Interview with Tom Grant about Pyramid
Building in the Ford Motor Company.
These have ranged from an executive group of an international company
developing their shared vision, to a start-up group in a Fortune
100 company creating business strategies to a professional organization
building a framework for exploring their future. In this article,
we describe the Pyramid Building Approach and use a pyramid we built
for our own work as an example.
What is Pyramid Building?
Pyramid Building is a method
for identifying critical variables in a complex system and mapping
their relationships and resulting interactions. The process relies
on brainstorming, dialogue, and decision-making to build alignment
among participants. The product of this process is a 3-D pyramid
with identified intentions, actions, and outcomes mapped onto the
corners, edges, and faces. The pyramid represents the clarity that
has been achieved about the system's variables and their relationships.
The meaning associated with each of these terms evolves and changes
as we experience, learn, and dialogue. Nevertheless, at any given
moment we are prepared to take action based on our understanding
of these terms at that time.
To be precise, we are creating
objects geometrically known as tetrahedrons, a pyramid with a triangular
base (see FIGURE 1 below).
Figure 1: A Tetrahedron
A tetrahedral pyramid has four
identical triangular faces, unlike an Egyptian pyramid which has
four triangular faces and a rectangular base. The Egyptian pyramid
is symmetrical only when rotated around a vertical axis. The tetrahedron,
by contrast, can be rotated around any axis and retain its shape.
Therefore, any corner can become the apex. Thus, there is no structural
hierarchy in the tetrahedron.
There are key advantages in choosing a tetrahedron over an Egyptian
pyramid as the 3-D object to map our model. Each face of a tetrahedron
connects with the other three faces and each corner similarly connects
with the other three corners. These inclusive connections are important
because they support the notion of connectedness between all elements
of a system. The tetrahedron permits us to see the interconnection
between various system elements and allows us to model and 'play'
with the whole system in a tangible form. In the following paragraphs,
we describe the process of building a tetrahedral pyramid through
an example.
Building the Enterprise Pyramid
The CPR Group comprises three
partners. When we explored the potential of partnership, we knew
that we have complimentary skills and shared interests that would
support our working together synergisticly, but we needed to clarify
how we could align our these in a way that would include and transcend
our individual work and orientations. Our major professional efforts
had been organization development, researching the nature of learning,
and management consulting, each augmented by a shared interest in
self development. At the core of these disciplines, we identified
four importance processes:
o relationship building,
o the learning process,
o organizing for outcomes,
o and changing our perspectives (world-view).
As our conversations progressed, we saw that we have been exploring
different dimensions of development and that we could identify our
intentions as Organization Development, Knowledge Development, Business
Development, and Self Development. These four intentions represent
our individual strengths and commitments, and together, they represent
key aspects of our organization. We chose those four intentions
as "cornerstones" and mapped them onto a pyramid, which
we now designated as our Enterprise Pyramid (see Figure 2).
Fig. 2: Our intentions formed
the cornerstones of our Enterprise Pyramid
This simple representation suggested
some lines of inquiry. Each cornerstone is connected to the other
three, so that each intention is forced into relation with the others.
For example, we began to ask ourselves:
o What is the relationship between business development and organization
development?
o How does the combination of business, organization, and knowledge
development best contribute to a change process?
o What are the implications of excluding self-development?
6. What are the likely outcomes of emphasizing only two or three
of the intentions to the exclusion of others?
Our reflection and dialogue
about the connections between pairs of intentions led to concepts
that 'bridge' the two cornerstones. While the cornerstones represent
our individual intentions, the edges represent the actions necessary
to arrive at collective, shared outcomes. Our actions not only connect
and balance our individual intentions but also 'include and transcend'
the polarity between them.
For example, we saw that strategizing
is where business development and knowledge development come together.
Knowledge is required to formulate a strategy for the business development.
The process of identifying strategies, in turn, focuses our efforts
in knowledge development. Strategizing does not have to include
organization or self-development directly and in many organizations
it doesn't!
Since edges represent actions, they are often most usefully represented
by action words; gerunds, which form the basis for assessment or
measurement of the strength of the connection (see Figure 3). Each
cornerstone or intention gets defined by three edges or actions,
through which it connects to the other three cornerstones. We found
(with some trial and error) that the actions we identified fulfilled
our intentions very well:
Self Development: visioning,
creating, realizing
Organization Development: visioning, valuing, learning
Business Development: valuing, strategizing, realizing
Knowledge Development: strategizing, learning, creating
In this process of validating
intentions and actions, we reaffirmed our commitment to find outcomes
that supported our intentions.
Fig. 3. Actions that include
and transcend our intentions
(portrayed on a pyramid opened at the Business Development apex
and laid flat)
We next examined the four faces
of the pyramid. They took on the meaning of the outcomes produced
by the actions of the adjacent edges and the intentions of the cornerstones.
Each pyramid face represents an outcome 'field' produced by the
interaction of three intentions and three actions. For example,
'Exploration' is the field that results from the actions of visioning,
learning and creating; and the intentions of Organization Development,
Knowledge Development, and Self Development (see Figure 4). Intention,
Transformation, and Diffusion are the names of the other three fields.
Each represents an outcome that is born out of a set of intentions
and actions.
Fig. 4. The Enterprise Pyramid:
intentions, actions and outcomes
This tetrahedron represents
the holistic development perspective that we share. Cornerstones
represent our intentions, edges the actions that we could take,
and the faces outcomes resulting from our interactions. Thus, using
the pyramid as a model of our collective interests, we developed
a shared view of the system that we comprise. We found ourselves
aligned, not just around components of the system, but around a
growing understanding of the dynamic relationships among them.
The 'Other' Perspective
Figure 4 nicely represented
our intentions and the actions that can facilitate specific outcomes.
This tetrahedron conveys a positive tone, because it represents
our aspirations; it has an emergent quality to it. Why? Because
we cannot predict what the result of transformation is going to
be before it takes place. Thus, we called this 'The Emergent Perspective'
But what was on the "other" side? We wanted to see how
this perspective relates to our experience with the current reality
of our clients' systems. We called this flip side 'The Foundation
Perspective.'
Let us examine what happens
in a business enterprise going through a change process. When people
are not in touch with their dreams and visions (shared or individual),
the context of change can feed resistance, anxiety and survival
behaviors. The organization becomes uninspiring and people lose
their energy and creative capabilities. But while people take change
efforts seriously and try to make them work, some also find ways
to avoid or even sabotage such efforts. While it is easy to let
go of such saboteurs, from their perspective, they may have a valid
reason to do what they do. Assuming that there is integrity in people's
resistance to change, we wanted to learn more about it. May be the
proposed change is too much a break from the past and may be the
organization is better served by focusing on continuous improvement
instead of transformational approach. Thus, our understanding of
the Enterprise would not be complete without examining 'The Foundation
Perspective' as well, and our ability to produce short-term results.
So we set about designing a complementary 'Foundation Perspective'
(see Figure 5).
Fig. 5. The Foundation Perspective
of Enterprises
Why Examine the 'Other' Side?
When an organization is running
smoothly and not undergoing rapid change, leaders focus on: Results,
Programs, Information, and Training. They reflect a pragmatic attitude
that is intended to sustain and grow the current organization. This
approach focuses on what works and avoids looking at why it does.
These four intentions are directly related to those on the Emergent
Perspective: Business Development is about producing sustainable
results. Organization Development has programs but also has an overall
design to it. Knowledge Development is more than just information
acquisition and brings an integrative and interpretive dimension.
Self Development, while providing training, supports people to take
responsibility for themselves and their work!
Results at the Foundation level
are pragmatic, e.g., continuous improvement is intended to solve
a problem or meet an immediate need, and is not involved in a revisioning
of the organization. Thus, a way of thinking about the difference
between results in the Emergent and Foundation Perspectives would
be to think of an athlete's performance. When an athlete conditions
and practices, her focus is on long term gains, developing her skills
and stamina over time. While there may be one major goal, an Olympic
Medal or a championship, there are many challenges along the way.
The conditioning and practice program is geared to meeting each
of these challenges with increasingly effective performance.
During the competition, however, the time for exploration is over.
She needs to respond to whatever comes up during her performance.
She must consider and react to differences in weather, 'field' conditions,
and must challenge her skills and talent. The focus is on immediate
results. This is what the Foundation Perspective offers in organizations.
The pragmatic attitude is vital, for example, if products are not
selling, someone needs to take the risks of making practical, hard
decisions to get the organization back on track.
We could also see the actions
that routinely take place in the organization: planning, controlling,
improving, analyzing, presenting, and imitating (we generously call
it benchmarking). These are all actions that support smooth functioning
of an organization and support the pragmatic approach.
The outcomes on the Foundation side of the pyramid are built on
its cornerstones and actions. Negotiation is the process by which
we present information, control the programs and plan for the results.
Intervention takes place when we find a reason to control the programs
we offer and analyze the training so that we can improve the results.
Modification and Solution support imitating, planning, and presenting
to get the desired results.
This Foundation Perspective
helped us to see what creates stable organizations that focus on
continuous improvement. They have clear ground rules and a nurturing
(albeit somewhat controlling and more mechanical) culture. Expectations
and/or performance criteria are known. There is consistency for
routine activities. This is the Foundation on which emergent perspectives
can develop!
Building the Foundation Perspective exposed another criterion for
pyramid development. Not only must cornerstones, edges, and faces
be consistent amongst themselves on one Perspective, but each must
correspond with its counterpart on the opposing Perspective. In
this way two processes are described, the Emergent Perspective's
forward-looking Intention --> Exploration --> Transformation
--> Diffusion cycle, and in the Foundation Perspective we discovered
the survival focused Intervention --> Negotiation --> Modification
--> Solution cycle. Both cycles are necessary in organizations
to support and sustain development; they are like two sides of a
coin. One cannot exist without the other. When the Emergent and
Foundation Perspectives build on and support each other, an organization
engages in a learning and developing process. It becomes sustainable
because continuous improvement and transformation are simultaneously
supported (see Figure 6).
Figure 6: Emergent and Foundation
cycles
Emergent and Foundation Perspectives
It is possible to look at both
perspectives as polarities. When taken to an extreme, The Emergent
perspective reveals self-organizational characteristics including
uncertainty, creativity, generativity, and new possibilities. Similarly,
when the pressure is on, the Foundation perspective could reveal
mechanistic, control-focused routines, rules and regulations that
only support changes around expediency and refinement. When we look
at these two perspectives as contrasting and complimentary as the
two sides of the same coin, the whole Enterprise Pyramid models
an environment of both chaos and immediacy. In an organization that
embraces both perspectives, change is self-generated and transformational,
both practical and aspiring. Exploring both perspectives and their
relationships creates a developmental approach to organization building
and alignment (see Figure 7). In such organizations, it is possible
to look at long term strategy and be flexible and dynamic while
taking short term actions.
Foundation
Perspective
|
Emergent
Perspective
|
Training
Improving
Analyzing
Imitating
|
Self
Development
Realizing
Visioning
Creating
|
Results
Planning
Improving
Controlling
|
Business
Development
Strategizing
Realizing
Valuing
|
Programs
Analyzing
Presenting
Controlling
|
Organization
Development
Visioning
Learning
Valuing
|
Information
Imitating
Planning
Presenting
|
Knowledge Development
Creating
Strategizing
Learning
|
Emergent and Foundation Perspectives
Figure 7. Contrasting
and complementary perspectives of development in enterprises
An emergent approach (with intentions
of business, knowledge, organization and self development) allows
for clarity of vision and values, vision based strategy, creativity,
and learning leading to the realization of enterprise goals. A foundation
approach (with intentions of results, information, programs and
training) allows for workable plans, good market analysis, meaningful
presentations, good control structures and focus on continuous improvement.
Emergent approaches which ignore
requirements for short term gains, structures and systems and only
pay attention to creativity, fluidity, flexibility and individual
responsibility can self-destruct. One company, Virtual Reality Systems,
was started with very little seed capital. In order to secure more,
the owner put his patents up as security. Lenders foreclosed and
took the patents. The owner lost out. More effective attention to
the foundation might have saved his position.
If there is inadequate attention
to the tactical and short term, leaders can lose support from key
stakeholders or simply lose track of the bottom line. When people
stop creating and the market is no longer enthusiastic about its
products and services, an emergent organization without suitable
control mechanisms in place becomes unable to deal with new market
realities and disappears. Our innovations need the support of our
structures. Our structures need to support our innovations.
On the other hand, the foundation
approach based organization has difficulty adopting to rapid changes
in the marketplace. For example, Diablo printer company was one
of the premiere companies supplying daisy-wheel printers connected
to personal computers in the 1980s. They had excellent quality products,
world class manufacturing facilities and the support of Xerox behind
them. Markets moved on and the laser printers and (later) ink jet
printers took over the market leadership and all their quality did
not save them from extinction.
From this brief analysis we
learned that each perspective has to respect and support the other.
Without the support of the one, the other collapses. When both perspectives
are supported in an organization, it could truly become a learning
organization even though we are still to find one such company in
reality. We were quite pleased that our pyramid building led not
only to a organization design framework but also created shared
strategy, processes and, most importantly, shared meaning with deeper
alignment among the three of us.
How Has the Pyramid Building
Approach Influenced Our Own Work?
The Emergent Perspective is
very useful in identifying where resistance and potential lie for
future development. We have learned to include and transcend self
development as an integral part of business, knowledge and organization
development activities.
The Enterprise Pyramid helped
us focus our attention on critical issues. We ask ourselves in engaging
with each other and with our clients, questions about our intentions
(Why are we engaged in this process?), the topics for exploration
(Is it necessary to follow this path or should we approach the problem
differently?), the possibilities for transformation (Does this process
include all the parties and transcend their goals and objectives
or is it a stop-gap process to reduce damage while we find an alternative?)
and the means for diffusion (Did we include suitable communication
processes and structures to let our clients learn and use what they
learned with us themselves?). We have used the Enterprise Pyramid
to help us clarify our relationships and roles with clients, as
well as to explore client-centered activity. Building this pyramid
has helped our collective enterprise development strategy by including
and transcending our individual approaches in addition to clarifying
our individual strengths and interdependencies. It has helped us
clarify our aspirations and attend to the immediate needs of our
association.
Application of This Approach
in Other Organizations
In over four years of using
this approach in a wide variety of contexts and for a wide variety
of purposes, our clients have found it to be a stimulus in confronting
complexity and integrating diverse perspectives. In building over
fifty pyramids in organizations, we could see that this approach
has much broader application than we originally intended. We found
the Pyramid Building Approach to be useful in developing shared
meaning and alignment. It is also valuable in helping clients to
o think systemically,
o explore ideas and build alignment,
o surface and explore differences,
o communicate and share understanding,
o focus efforts,
o design strategies, and
o evaluate results.
Conclusions
The pyramid building approach
provides a fresh way for thinking about complex systems and for
dynamically aligning people, processes, and strategy for purposeful
action. We found that this approach is very useful in developing
agreement and alignment in not only a three-person team like ours,
but also in the complex, ambiguous, polarized, and high-tension
environments found in large organizations. At the root of this utility
is the approaches' potency in supporting individuals and teams in
clarifying their intentions, the actions necessary for carrying
out these intentions, and the outcomes they wish to achieve.
Clients have reported major
benefits in using Pyramid Building. They have structured their work
more effectively, developed strategies, organized action in a complex
context that has become more understandable to them. Whatever their
purpose for using the Pyramid Building Approach, the end result
included clarity of intention, strategy for action, and alignment
in teams. Learning and discovery become more lucid. Most importantly,
the members of their teams, organizations, and stakeholders have
become more aligned in their work together.
Organizations need to continue
to develop models and methods that enable them to understand dynamic
relationships among complex sets of variables. Change efforts risk
being cosmetic or inadequate unless organizations are able to account
for the complex web of influences among strategies, processes, and
people. The Pyramid Building Approach (both as a systems model and
holistic method) supports heightened awareness, increased clarity
of perspective, and alignment among organization members in the
face of complexity.
E-Mail: Prasad Kaipa, pkaipa@selfcorp.com,
Chris Newham, crnewham@aol.com, or Russ Volckmann russv@ix.netcom.com
You can send any comments or suggestions by clicking here: comments@selfcorp.com
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