This document discusses organizational resilience and introduces a five-part series on the Strategic Tensions Model for Organizational Resilience. The series will examine four approaches to organizational resilience - preventative control, mindful action, performance optimization, and adaptive innovation. This third article focuses on "mindful action" and uses an anonymized case study of a consulting and training organization (CTO) that failed due to overreliance on mindful action without also emphasizing performance optimization. The article describes key aspects of mindful action including decentralized structure, rapid response, and customized solutions, and notes potential blind spots when not balanced with other approaches.

1. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
Leadership
Change
Resilience
PROFESSOR SPEAKER ADVISOR
www.cranfield.ac.uk/oracl
www.daviddenyer.com
www.linkedin.com/in/daviddenyer/
STAT Part 3: Failure
at CTO (anonymized)
mindful action without
performance optimization
Professor David Denyer

2. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
STAT Part 3: Failure at CTO (anonymized)
mindful action without performance optimization
This article is the third of a five-article series on the Strategic Tensions Model for Organizational
Resilience. The Strategic Tensions Assessment Tool (STAT) is an online Organizational Resilience
survey. In this series of articles, I will discuss each of the four approaches to Organizational
Resilience (preventative control, mindful action, performance optimization, and adaptive
innovation). I will highlight key differences in terms of purpose, people, process, and product. I will
use real-world examples of organizational failures to reveal potential blind spots and risk factors. I
will also suggest areas for improvement.

3. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
STAT Part 3: Failure at CTO (anonymized)
mindful action without performance optimization
The case vignette
A consultancy and training organization (CTO - anonymized) had been a market leader in the UK
for over 30 years. CTO’s highly decentralized business units and culture of 'ask for forgiveness, not
permission' enabled creative problem solving and rapid response to client needs. CTO opened
multiple new business units in different sectors and geographic areas to respond to client
demands. The business units operated as independent entities, each with highly experienced,
autonomous staff meaning they could react more quickly to the specific needs of their clients.
Each group could decide what services to sell to particular industries or specific markets. CTO
offered services that were highly customized, personalized, and required a high level of resource
to undertake.

4. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
STAT Part 3: Failure at CTO (anonymized)
mindful action without performance optimization
The case vignette
In 2016, CTO faced declining revenues and a potential disaster. The environment in which CTO
worked was changing very rapidly. CTO faced a perfect storm of uncertainty in the business
environment combined with the emergence of new entrants in the market and growing international
competition. New competitors offered standardized, 'off the shelf' solutions that are available 24/7
and were highly predictable, consistent, and more efficient than CTO products. CTO found itself in
a situation of having high fixed costs in a volatile and uncertain market with competitors offering
lower-cost alternatives. CTO suffered financial losses unprecedented in its fifty-year history, and
15% of the workforce suffered redundancy.

5. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
STAT Part 3: Failure at CTO (anonymized)
mindful action without performance optimization
Failure at CTO - summary using the STAT

6. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
STAT Part 3: Failure at CTO (anonymized)
mindful action without performance optimization
Mindful Action
Summary: Organizational Resilience is typically created by people who use their experience,
expertise, and teamwork to anticipate and adapt to threats and respond effectively to unfamiliar or
challenging situations utilizing creative problem solving and improvisation. Mindful action is a
defensive strategy based on flexibility.
Purpose: Sensing environmental change and responding rapidly, creatively, and heedfully to
restore a relatively stable and functioning state. Building dynamic capabilities that can adapt
quickly to new challenges and opportunities while retaining the essence of 'what we do here,' 'what
our reputation is built on.' The focus is on 'bouncing back' rather than fundamental reinvention.

7. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
STAT Part 3: Failure at CTO (anonymized)
mindful action without performance optimization
Mindful Action
People: Individuals hold the belief that the future is unpredictable and volatile, and the only way to
cope with disruption is readiness and the ability to anticipate, notice, and respond rapidly to
problems. The resilience of the organization is not static but is regarded as something that must be
accomplished every day. Expertise is highly valued. People have a “healthy uneasiness” about
what might go wrong. Diversity of opinion is encouraged so that people can express different
ideas, perspectives, and solutions. People deal with threats and leverage opportunities, and they
mobilize quickly, are nimble, and empowered to act.

8. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
STAT Part 3: Failure at CTO (anonymized)
mindful action without performance optimization
Mindful Action
Process: The organization is relatively unstructured, informal, and decentralized. It has an
adaptive, flexible, or 'organic' nature, which enables groups to be responsive as new issues and
challenges arise. Because adaptation is created within known boundaries, it is easy to give people
with expertise the freedom to work creatively within those boundaries. The organization is
information-rich and makes deliberate attempts to create a complete picture of the work
environment.

9. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
STAT Part 3: Failure at CTO (anonymized)
mindful action without performance optimization
Mindful Action
Product: The core aim is to defend market share or position and/or profitability and/or maintaining
the current service levels. The organization delivers bespoke solutions and builds long-term
relationships. Segmenting and targeting markets precisely and then tailoring offerings to match
precisely the dynamic demands of customers.

10. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
STAT Part 3: Failure at CTO (anonymized)
mindful action without performance optimization
Mindful Action
At its best: Opportunities and problems are noticed, understood, and addressed quickly. People
are empowered to act. The shifting demands of customers, regulators, and other stakeholders are
rapidly addressed.
Blind spots and risk factors: Mindful action is weakened when organizations stop investing in
the competence of their people. If authority and boundaries are unclear, then the creative
responses of some individuals or groups can become disruptive. Without preventative control, the
lack of structure can lead to disarray and silos with individuals or groups acting independently.
Decision-makers can become so overwhelmed that they start making bad decisions. Without
performance optimization, the decentralized system can be inefficient, with much duplication of
resources and activities. Without adaptive innovation, people are always firefighting and do not
have time to be more forward-thinking, agile, and cutting edge.

11. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
STAT Part 3: Failure at CTO (anonymized)
mindful action without performance optimization
Mindful Action
Areas for consideration: Increase preventative control by clearly defined roles and
responsibilities; introduce a formal planning process with budgets and audits, and procedures that
are regularly monitored. Increase performance optimization by rethinking and redesigning the way
work is done to better support productivity, efficiency, and quality. Increase adaptive innovations by
exploring new markets, capabilities and technologies, and business models. Create safe spaces
for multi-disciplinary groups to create novel solutions and exploring new opportunities.

12. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
STAT Part 3: Failure at CTO (anonymized)
mindful action without performance optimization
The STAT Series
In the five articles in this series, I discuss each of the four approaches and will highlight key
differences in terms of purpose, people, process, and product. I will use real-world examples of
organizational failures to reveal potential blind spots and risk factors. I will also suggest areas for
improvement.
Articles in this series:
STAT Part 1: An Introduction to the Strategic Tensions Assessment Tool (STAT)
STAT Part 2: Failure at Thorp (Sellafield): preventative control without mindful action
STAT Part 3: Failure of CTO (anonymized): mindful action without performance optimization
STAT Part 4: Failure at Kodak: performance optimization without adaptive innovation
STAT Part 5: Failure at Uber: adaptive innovation without preventative control

13. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
David runs the Organizational Resilience and Change
Leadership (ORaCL) Group at Cranfield University, which
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14. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
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15. © 2019 David Denyer. All rights reserved.
PROFESSOR SPEAKER ADVISOR
daviddenyer@cranfield.ac.uk