The document discusses transformational organizations and how they are able to constantly meet organizational objectives, societal expectations, adapt and grow, and survive over the near future, intermediate future, and distant future. It describes how transformational organizations balance internal and external focus with structural flexibility and control. The effectiveness of organizations depends on having shared core values, maximizing production while minimizing costs, clear authority, and employee satisfaction to achieve goals in the near future, while also being adaptive, developing capabilities, and ensuring long term survival.

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Presented By:
Nuraslina Zainal Abidin
Group Managing Director
Genaxis
nuraslina@genaxis.com.my

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Our Business – The Life of The Trapeze
I spend my life hanging on for dear life
to my trapeze-bar-of-the-moment. It
carries me along at a certain steady rate
of swing and I have the feeling that I'm
in control of the act.
Every once in a while as I'm merrily (swinging
along, I look out ahead of me into the distance
and I see another trapeze bar swinging toward
me.
It's empty and I know, in that place in me that
knows, that this new trapeze bar has my name
on it. It is my next step, my growth, my
aliveness coming to get me.
In my heart of hearts I know that, for me to
grow, I must release my grip on this present,
well-known bar and move to the new one.

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Each time, I am filled with terror. I
am each time afraid that I will miss,
that I will be crushed on unseen
rocks in the bottomless chasm
between bars.
I do it anyway. Perhaps this is the
essence of what the mystics call
the faith experience.
No guarantees, no net, no
insurance policy, but you do it
anyway because somehow to keep
hanging on to that old bar is no
longer on the list of alternatives.
Transformation of fear may have
nothing to do with making fear go
away, but rather with giving ourselves
permission to "hang out" in the
transition between trapezes.
Transforming our need to grab that
new bar, any bar, is allowing
ourselves to dwell in the only place
where change really happens.
It can be terrifying. It can also be
enlightening in the true sense of the
word. Hurtling through the void, we
just may learn how to fly.
From the book Warriors of the Heart by Danaan Parry.

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TRANSFORMATIONAL ORGANIZATION – WHO ARE THEY?
From a mineral, they began
selling sandpaper, then
masking tape, then “Scotch
Tape”, and today they sell
over 55,000 different products
including everything from car
care products to touch
screens.
Founded in 1892 by David
Abercrombie and Ezra H.
Fitch, Abercrombie & Fitch
started as a sporting goods
shop and outfitter. Now a
clothing company with
international chains
Colgate was originally
founded in 1806 by a
soap and candle maker
named William Colgate.
They started by selling
soap, candles, and
starch. Now into
personal dental hygiene

5. Apple and Google the two most
innovative companies. Apple has held
the op spot since 2005.
Source: Innovation 2010, BCG
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6. APPLE’s Innovation Takeaways
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• Build Products that are cool, intuitive, simple to use and
provide the most amazing experience
• Take calculated risks and boldly enter new markets. E.g.
iPod, iPhone
• Change the playing field by creating new business models.
E.g. iTunes. Capture the changing landscape and
ecosystem of the markets and buyers
• Grow the market share with buyers as they grow and their
needs grow from kids, teenagers, young adults, adults,
parents....

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Alison Lewis
Creative Innovator
Switch Craft
An illuminated wedding dress and RFID
teacups that can control videos are just two
of Alison Lewis's tech-infused DIY projects
• 21 female Fortune 500
CEOs
• 4.2% of the chiefs of
fortune 500 companies
• Highest record ever
• No longer in retail,
cosmetic or consumer
based
• Concurring technology,
O&G i.e HP, Yahoo, IBM,
Lockheed Martin.

8. HOW THEY GO ABOUT DOING IT?
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THE FORMULA = EFFECTIVENESS X CHANGE READINESS
Effectiveness is a function of:
• CORE VALUES THAT IS SHARED AND EMBRACED
• PRODUCTION MAXIMIZATION, COST MINIMALIZATION,
TECHNOLOGICAL EXCELLENCE
• CLEAR AUTHORITY AND DISCIPLINE WITHIN AN
ORGANIZATION
• PRODUCTIVITY RESULTING FROM EMPLOYEE
SATISFACTION

9. TRANSFORMATIONAL
ORGANIZATION
ABILITY TO CONSTANTLY:
• MEET ORGANIZATIONAL OBJECTIVES,
• MEET PREVAILING SOCIETAL EXPECTATIONS IN
THE NEAR FUTURE,
• ADAPT AND GROW IN THE INTERMEDIATE FUTURE,
AND
• SURVIVE IN THE DISTANT FUTURE
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10. NEAR
FUTURE
INTERMEDIATE
FUTURE
DISTANT
FUTURE
TIME
DIMENSION
Approx.
1 year
Approx.
4- 5 years
EFFECTIVENESS
CRITERIA
Your company
must be:
1. EFFECTIVE in
accomplishing its
purpose(s)
2. EFFICIENT in the
acquisition and use
of scarce resources
3. A SOURCE OF
SATISFACTION
to its owners,
employees,
customers and
clients, and
society.
Your company
must be:
4. ADAPTIVE to
new opportunities
and obstacles
5. CAPABLE OF
DEVELOPING
the ability of its
members and of
itself
Your company
must be:
6. CAPABLE OF
SURVIVAL in
a world of
uncertainties.
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Approx.
2- 3 years

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Creativity begins with asking questions…
Innovation happens when you find answers…
No questions, no answer…
More questions, better answer.

12. THE BALANCING ACT OF THE 2 DIMENSIONS
Focus: whether dominant values concern issues that are
internal to the organization or external to it.
• Internal focus reflects management concern for well-being and efficiency of
employees.
• External focus reflects an emphasis on the well-being of the organization
itself and its“fit” with its environment.
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Structure: whether stability versus flexibility is the dominant
structural consideration.
• Stability reflects a management value for efficiency and top-
down control,
• flexibility represents a management value for learning and
change.

13. Effectiveness Quadrant
Structure
Flexibility
Control
Focus
Internal External
I II
III IV
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Human Relations Model Open Systems Model
Internal Process Model Rational Goal Model

14. Human Relations Model – internal Focus and flexible
structure.
• Management concern is on the development of
human resources.
• Employees are given opportunities for autonomy
and development.
• Management works toward sub-goals of cohesion,
morale, and training opportunities.
• Organizations using this are more concerned with
employees than the environment.
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Quadrant I

15. Quadrant II
Open Systems Model – Combination of external focus
and flexible structure.
• Management’s goals are primarily growth and
resource acquisition.
• Sub-goals are flexibility, readiness, and positive
evaluation by the external environment.
• Dominant value is establishing a good relationship
with the external environment to grow and acquire
resources.
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16. Quadrant III
Internal Process Model – Reflects the values of
internal focus and structural control.
• Seeks a stable organizational setting that
maintains itself in an orderly way.
• Well established in environment and just wish to
keep their current position.
• Sub-goals include mechanisms for efficient
communication, information management, and
decision-making.
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17. Quadrant IV
Rational Goal Model – Reflects Management values
of structural control and external focus.
• Primary goals are productivity, efficiency, and
profit.
• Organization wants to achieve output goals in a
controlled way.
• Sub-goals include internal planning and goal-
setting, which are rational management tools.
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18. IT’S A
The idea of trying to characterize a whole
organization as
totally effective or ineffective is TRICKY. In any
company
there may be parts of the company that function
well and suggest effectiveness while other aspects of
that same organization perform poorly.
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It’s a balancing act……
The idea is to
strike a
BALANCE in
our every move!

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