Tag Archives: system thinking

The Price of Growth: Losing Our Edge, and the Impact(s) of Org Culture

We’ve all seen organizations change as they’ve grown. This is a part of any group’s natural evolution. With scale organizations encounter new demands, acquire new talent, and find ways to navigate the many new relationships that form. But what is lost in the process?

What are the forces that cause us to lose those advantages that entrepreneurs and small businesses hold dear?

Is an organization’s culture part of the answer, or part of the problem?

Important ideas are circulating here, very much aligned with our past few #orgdna conversations on cultural forces. Major thanks to #orgdna member Mark Britz for his recent blog post that’s helped us frame this topic. We’ve been viewing organization change and culture through a system thinking lens, to help us understand the dynamics. Along the way, we’ve started to apply a complex systems overlay to the dialog, to help us understand the interactions that happen with large groups.

Now we focus on the impact of scale.  Let’s take a look at some of the forces.

Span of Influence.  First, its worth reflecting that as organizations scale, the number of relationship multiples rapidly. The communication among leaders and members that is possible when very small starts to break down with growth. So intermediate sub-leaders are appointed, and specialization of roles and functions begins. There is a natural evolution of complexity as small organizations get larger. This challenges any leader to rethink their approach and processes, on all management topics ranging from motivation to communication to strategy setting.

Cultural Loopback.  Second, it helps to understand culture is both an emergent outcome of an organization, while at the same time providing a set of guiding principles back to that organization as it evolves.  That means culture is both influencing and influenced by the people that make it up. If that sounds complex, it’s no wonder. Linear cause and effect forces don’t work in large groups, because the dynamics are so intertwined as to make outcomes unpredictable. It’s why leaders usually struggle to drive transformation agendas. It’s why culture change is so difficult.

But this is just the starting point. Expanding relationships and the 2-way dynamics of culture are only two forces that occur with growth. There are likely many more.

In our M 9/19 9pm ET chat, let’s exlore the implications, expanding on some of Mark’s questions:

  • Q1. What are additional drivers of change, with growth? What else influences how an organization culture changes as it scales?
  • Q2. What signals change? How can we know culture change is happening?
  • Q3. Must we lose our edge? Can the benefits of small (e.g. being nimble and low-cost) survive inevitable growth that comes with success?
  • Q4. What must Leaders do? Complex forces can be paralyzing. What can/should leaders do to accommodate healthy growth and healthy culture?

Our group is a loose band of change-minded thinkers. We come together virtually and rekindle these discussions every 3rd Monday at 9pm ET. Simply add the #orgdna hashtag to your tweets, and join the conversation. We recommend a streaming app like Tweet Deck for the best real time experience.

From there, the rest is up to the group. The conversation will flow where you help us take it. It’s almost always a lively exchange. And watch for a PDF transcript here, after our chat, courtesy John Lewis of Holosoft.

Hope to see you online.

Chris (aka @sourcepov)