Module 07 · 20 min

Measuring Capability

Culture with process maturity built in

The other side of the equation. The pendulum, the nine-level management culture spiral with its Capability Maturity Model equivalents, and the Organisational Capability Indicator.

Why capability, not just change management

Organizations that concentrate on the technological aspects of ERP and ignore the softer components of implementation often fail. ERP is about people, not just technology.

Gartner, Five Key Factors for Successful ERP Implementations

There is little success in the practice of change initiatives, mainly due to the difficulty of changing the basic ways of thinking within the organisation.

Senge, 1999

Each of the functional heads wants their piece of the pie and nobody wants to spend on someone else's need to have data from their world. They aren't focused on what's good for the whole.

CIO, healthcare provider — Forrester

None of these are project problems. They are standing properties of the organisation that the project inherits on day one.

The Organisational Culture model

Culture here is not values on a poster. It is the observable management style: how decisions get made, how information moves, and how much discretion people actually have. Underneath every level of it sits one tension — between the organisation and the individual.

The pendulum: the tension between the organisation and the individualORGANISATION‘External’ axisNeeds and directionSystems and processesEfficiencyTHE INDIVIDUAL‘Internal’ axisCulturePerceptions and motivationsEffectivenessPOINT OF BALANCEThere is an underlying tension between individuals and the organisation
The pendulum. The 'external' axis is the organisation: its needs and direction, its systems and processes, its efficiency. The 'internal' axis is the individual: culture, perceptions, attitudes, motivations, aspirations — effectiveness. Management culture swings between them, and the point of balance is where both are served at once.

The pendulum does not simply swing back and forth. Each time it passes through balance the organisation has moved up a level, so the swing traces a widening spiral. That gives nine levels of management culture, arranged around the two axes: levels 1, 5 and 9 sit on the point of balance — the 'pragmatist' positions — while the others sit out on the organisation side or the individual side.

The Organisational Culture model: a nine-level spiral around the external and internal axes1Pragmatist / Anarchic2Structuralist3Dialectic4Aligned5Pragmatist / Aligned6Empiricist7Imaginist8Systemist9Pragmatist / EmpoweredEXTERNAL AXIS (ORGANISATION)INTERNAL AXIS (INDIVIDUAL)The spiral widens as the pendulum swings: levels 1, 5 and 9 are the points of balance.
The Organisational Culture model. The spiral starts at Level 1 in the centre and widens outward through all nine levels, crossing the external axis (the organisation) and the internal axis (the individual) in turn.
The nine culture levels as a step-by-step climbLEVEL BY LEVEL — NO STEP CAN BE SKIPPED1Pragmatist / AnarchicResults count; people do as they like as long as they deliverBALANCE2StructuralistRules, devolved authorities, formal procedures — and silosORGANISATION3DialecticPeople and shared knowledge are valued; change is consultativeINDIVIDUAL4AlignedStaff values and aspirations line up with strategyORGANISATION5Pragmatist / AlignedManagers trust staff; decisions are made close to the customerBALANCE6EmpiricistReal-world information flows across the organisationORGANISATION7ImaginistLeaders are out of fire-fighting and think long-termINDIVIDUAL8SystemistA visible CEO champions change and steers from behindORGANISATION9Pragmatist / EmpoweredPeople are fully empowered within a supportive cultureBALANCE
The same nine levels read as a sequence. Use the spiral to understand the swing; use this to locate where your organisation actually sits.

Now walk the levels one at a time. Each one is written to you, describing an organisation you either recognise or don't. The external axis is process maturity, so each level also carries its equivalent from Watts Humphrey's Capability Maturity Model rather than being assessed separately.

The Organisational Culture model — level by level

Level 1Pragmatist / Anarchic

CMM: InitialPoint of balance

In your organisation, it's the results that count.

Management is arms-length and rewards success, so individual members of the team are left to do more or less what they like, as long as they achieve results.

There are some laid-down procedures, but people only follow them or take up a new initiative if they see benefits for themselves in doing so.

On the process side: Processes are ad hoc and applied inconsistently — success depends on individuals.

1 of 9

The Organisational capability Indicator

The INPACT model: organisational capability as culture and process around the projectORGANISATIONAL CAPABILITYCultureProcess£THE PROJECT
The INPACT model. Organisational capability is management culture and process management capability moving together — the two sides that carry the project.

Because the external axis of the culture model is process maturity, one score covers both. The question is not to score every dimension separately, but to pick the single level that sounds most familiar. That level is your Organisational capability Indicator — an assessment of this organisation's ability to manage change and take advantage of modernisation and transformation investment. Use the tool below to place yourself, then carry the score into Module 8.

Interactive tool

Where would you place your organisation?

The nine levels are described above. Pick the one that sounds most familiar — that single level is your Organisational Capability Indicator.

Which level sounds most familiar?
Capability score

3 / 9

Dialectic

People and knowledge-sharing are valued; networking is encouraged and change is consultative.

Rule of the spiral: each level is only achievable when the levels below it are genuinely in place — on the process side as well as the people side.

Key takeaways

  • capability is one scale: management culture with process maturity built into it, from Initial to Integrated.
  • Culture levels are cumulative: you cannot skip levels on the spiral.
  • capability is inherited by the project, not created by it.

Take it back to work

  • Ask three people at different levels of your organisation to score the culture. How far apart are their answers, and what does the gap tell you?
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