Red Tulip Press: Five Things to Know Volume 1, Issue 1

Welcome to Vol. 1, Issue 1 of the Red Tulip Press “Five Things to Know!”

Here are this week’s topics.

Topic One: The Galbraith Star Model for Organization Design

I’ll be honest, I have some affinity for the late great Jay R. Galbraith going in - he was an alumnus of two of my alma maters, Indiana University and the University of Cincinnati. Being an academic giant in the field of organizational theory, he went on to greater things outside of the Midwest at MIT and the Wharton school, and his most enduring legacy comes in the form of a lovely shape.

The Explanation

The Star Model is an ingenious framework for conceptualizing the design of an organization. Let’s start by walking through each of the elements, then I’ll share some conclusions I’ve drawn from studying and applying this model in past work.

Strategy

Note its position, at the top of the star. This is where everything begins - without a clear, well-defined strategic direction for the organization, the other points of the star become irrelevant. You can make as many changes as you want to, but without strategy at the forefront it’ll be like trying to drive a car without a steering wheel. And what does strategy entail? It includes an organization’s vision, mission, core values, strategic objectives, core products, and anything else that ties it into a cohesive whole with a clear picture of what it seeks to do, become, and accomplish. If this part of the star is not given adequate consideration, nothing that follows will matter.

Structure

Structure is basically what it sounds like - but let’s pause for a minute here because “structure” is commonly mistaken for “organization design.” Organization design in itself is much more than just what the organization looks like mapped out on an org chart or who reports to whom. Organization design touches every aspect of how an organization functions and creates value - essentially, all five points of the star taken together.

When we look at structure specifically in the context of this model, we can talk about more granular things like an org chart, which would fall under the sub-category that Galbraith refers to as “departmentalization.” However, there are other facets to structure that he includes as core elements of this point as the star, such as span of control (how relatively “flat” the organization is), the distribution of power (more centralized or more decentralized), and specialization (are job roles more generalized or specialized?) All of these components are part of the calculus of structure.

Processes

Process is so much more than just the mechanism between an input and an output! Processes are complex, dynamic, and subject to the larger systems within which they operate. While Galbraith specifically mentions two types (vertical, top-down processes like budgeting, and horizontal, lateral processes like fulfillment), processes are often multidimensional in nature. In the context of the star, processes can be thought of the whole complex, intertwined web of information flows that define how the organization operates, almost like its circulatory system.

Rewards

When you see the term rewards, you may think of tangible rewards like a paycheck, bonus, or award; or you might think of intangible ones, like the reward of praise from your boss for a job well done. Rewards in the sense of the star model encompass all of these types of rewards and more - it describes the entire system of rewards that interact and combine to ensure that the goals each individual employee is motivated to do achieve aligns with the same goals and strategic objectives at the level of the entire organization. Rewards must therefore be aligned, consistent, equitable, and motivating. And creating a holistic reward system that addresses all of these facets is no easy feat!

People

Last but certainly not least in our tour of the star, the people point refers in a concrete sense to the human resource function - but more than just the basics of hiring, firing, and policy-making. It includes all the disciplines of human resources that impact the employee experience, from recruiting and onboarding to training and development to career planning and well-being. In this area, Galbraith emphasizes flexibility as a core component of people development - a flexible, or to use the more modern term, agile workforce is better positioned to address challenges, navigate change, and keep the organization nimble and competitive.

The Synthesis

Now that we’ve explored the individual components of the star, let’s return to the model as a whole and what it can teach us about the principles of good organization design.

Here are my thoughts on this:

• First, note that every point on the star is interconnected. Each element influences all of the others. This means that, from the strategic perspective, decisions about any one of these points should never be made in a vacuum, but rather in the context of how they will impact all of the others.
• Second, note that the star is balanced. While we’ve talked about strategy as the starting point, it doesn’t overshadow the other elements in terms of importance. The star is symmetrical - if it’s out of balance, if some points are stronger or weaker than others, then it will no longer look like a star and those crucial connection points between the elements may not hold. Each part should be considered as equal to the others - it may be easy to wrap our minds around on the more concrete pieces like structure and process, but it doesn’t negate the crucial impact of those that seem less tangible, like rewards and the intrinsic motivation of people.
• Lastly, it’s key to realize that the star is not a solution in itself, but a jumping-off point. It’s a relatable, easy-to-grasp model that can and should inspire discussion about both the current state and desired future state of an organization. By describing the current landscape of an organization in terms of these five points, we can easily begin to see where we might be out of balance; which connections are stronger and which are weaker; and where we may have outright gaps to address. This then becomes the catalyst for change in one or more of the points, with close attention paid to how any changes that are made influence the other points of the star, either deliberately or as the result of unintended consequences. But even if we tweak and adjust the points of the star to bring an organizational design into balance, it certainly shouldn’t be perceived as the last and final word. Remember that the star is framework - as the organization changes, so too do our choices in each area. We keep revisiting this framework as we change, as we develop, as we grow as an organization, to maintain alignment and balance.

The Nutshell

Galbraith’s Star Model of organization design is a framework to help map an organization’s design along the dimensions of strategy, structure, process, rewards, and people. It enables an understanding and evaluation of the organization’s current state which can inspire discussion and decisions around organizational change. When each element of the star is in balance and operating in harmony with its counterparts, you have the recipe for an effective organization design.

Further Reading

https://www.jaygalbraith.com/images/pdfs/StarModel.pdf

https://www.strategyzer.com/library/implementing-your-business-model-with-the-galbraith-star-model

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Topic Two: ADKAR

I certainly couldn’t inaugurate this little endeavor without one of my favorite topics in change management - ADKAR! For some background, ADKAR was developed by Jeff Hiatt, the founder of leading change research organization Prosci. It’s one of the most widely used change management frameworks. And if you’re thinking that you could use another acronym to remember like a hole in the head, I promise you that this one is worth getting to know.

The Explanation

ADKAR is a model for mapping the change journey of an individual. The best part is that you don’t have to be in change management, or HR, or business, or even in the working world to get value from ADKAR. It applies just as readily in your personal life as it does in the context of an organization. Let’s begin by walking through each letter of ADKAR and how each step in the journey leads logically to the next one.

Awareness

If you’re not aware of a change that needs to be made, either in your own life or in that of your organization, how likely are you to do anything other than continue to operate in your status quo? It may sound obvious, but literally no change can take place without awareness. And awareness is about much more than just identifying a need for change, like a bad habit you want to break or a new way of working that needs to be introduced. It’s about the why behind the change. Not only do we need to provide compelling reasons—either to ourselves to those individuals who will be the recipients of change—that change is needed, we also need to understand the risks of not changing, and we need to communicate transparently, honestly, and openly about these risks and reasons. Without this foundational work of awareness-building, there is little to no hope of moving to the next phase of the journey.

Desire

Sure, you can mandate change. You can order it from the top-down, and technically, that’s creating awareness. But when was the last time you felt motivated to comply with a blind order to simply “CHANGE!” with no explanation or reasoning behind it? That’s why the next stop on this journey is about building desire. As you might imagine, the starting point for desire can fall along a spectrum ranging from fully on board with the change without any further convincing, to heels-dug-in fully resistant. One of the cornerstone principles of change management is that there is no organizational change (or, if you prefer, collective change) without individual change. That’s why during the Desire phase, we need to work hard to pinpoint, all the way down to the individual level, what situations, motivations, or other factors may be contributing to a person’s starting level of desire, then work to remove any barriers that may be in the way of their supporting their change.

Knowledge

This is where many mistakenly start “change management” - just tell people how to do something new, then make them do it! But hopefully you’re starting to see how each stage of ADKAR is a prerequisite for moving on to the next one. If you have no idea why or what the change is all about, you won’t have any innate desire to support it, and if you don’t support the change, how likely are you to be enthusiastic about learning new skills or behaviors? But if we’ve taken the time upfront to create awareness and build desire, we’re much more likely to have be successful in the delivery of knowledge.

Ability

Knowledge and ability might sound similar, but they are two very different concepts! It’s one thing to know the “how” of something - how to perform a new procedure, how to use a new piece of software, how to train for a 5K - but it’s entirely another thing to put the knowledge you’ve gained in a “controlled” environment, like a training room, video, or simulation, into practice in the real world. The real world, with its unpredictability and challenges, is where we truly synthesize our knowledge and ingrain it into our suite of skills and capabilities. Therefore, the journey doesn’t end at knowledge - we must carefully monitor the “live” environment, addressing gaps in knowledge, removing barriers to implementation of knowledge, and providing resources and support to strengthen ability until what’s new and different starts to click into place and become our steady-state or “business as usual.”

Reinforcement

You’ve just been through a massive change journey - you deserve to be celebrated! Rewarding people might be the first thing that pops into your mind when you think about reinforcing change, and it certainly is ?a good thing to do - but it’s not the only way to make change “stick.” When we do reward people, it should be in ways that are meaningful and directly connected to what has been accomplished. But reinforcement also means that we continue to provide supporting resources, that we continue to monitor for any gaps or challenges in adoption or utilization of the change, and that we take steps to prevent people from backsliding into old habits or finding “workarounds” to continue operating in the previous, pre-change state - and believe me, people will find those loopholes if they exist! But at the end of the day, it’s about trusting that you’ve done what you can to drive this change and finally letting go, placing accountability into the hands of others to maintain for the long term.

The Synthesis

Now that we’ve covered each of the letters in ADKAR, let’s look at some of the value that the tool as a whole can bring to whatever change journey you may be leading others on or embarking on yourself:

Here are my thoughts on this:

• First, ADKAR is valuable because it places the individual at the heart and center of change. When we employ ADKAR in an organizational context, we’re acknowledging not only the value of each individual’s contribution to collective change, but we’re actively taking steps to meet their wherever they are in their change journey.
• Second, ADKAR has value in all parts of your life. You can use it to map your progress through a change you’re either seeking to make in your personal life or know you need to make but feel hesitant about. You can use it as a lens through which to view others around you—friends, family members, coworkers—when they are experiencing change; by understanding where they might be on a change journey, you can become more empathetic and find effective ways to offer support.
• Lastly, ADKAR is universal. Once you begin looking change, in any form, through the perspective of ADKAR, you won’t be able to go back and see it any other way. The beauty of ADKAR is truly in its simplicity and logic, its relatability, and its power to connect individuals embarking on change.

The Nutshell

ADKAR is a model for conceptualizing an individual’s journey through change. It describes the logical series of steps that individuals take when moving through change, starting with building awareness of the change and desire to participate in it, to gaining knowledge of how to change and the ability to implement it, and finally to reinforcing change to make it stick. ADKAR frames change through the lens of empathy and individuality and places people at the center of change.

Further Reading

https://www.prosci.com/blog/why-the-adkar-model-works

ADKAR: A Model for Change in Business, Government and Our Community by Jeff Hiatt

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Topic Three: Business Structures

This is a topic I revisited recently while perusing a course on LinkedIn Learning. You probably have a pretty good idea of the different ways that businesses can be structured from a legal and taxation perspective, but this review is a good reminder that there are several less-common types that we should still be aware of - plus it never hurts to have a refresher on the basics!

We’ll start with small and work our way up:

• Sole Proprietorship: As the name implies, this type of business is owned and operated by a single individual and is the easiest to form. In this format, one’s personal assets are not separate from the business; in other words, the owner is personally liable for all business debts.Example: Freelance writer
• Limited Partnership (LP): Nope, that’s not a typo! It’s different from an LLP. In this format, one partner holds responsibility for all liabilities, while the other partner(s) have limited liability and control. Profits from this business format get reported on each partner’s personal income taxes, but the partner with unlimited liability must also pay self-employment taxes.Example: Venture capital firm
• Limited Liability Partnership (LLP): In this format, each partner has a degree of limited liability, which protects each partner from any legal action take by the other partners. You are probably most familiar with this format in professional groups like law firms or accounting firms.Example: Financial services firm
• Limited Liability Corporation (LLC): This format is structured as a combination of a partnership and corporation. Profits and losses taxed to or incurred by members of the LLC, but the owners’ personal assets are protected from bankruptcy and legal action.Example: Nike
• C Corporation: By far the most common corporate format, a C corp is its own legal entity separate from its owners. Profits therefore belong to the corporation, the corporation is taxed as its own entity, and the corporation is liable for any actions taken against it. Aside from these legal protections for owners, the traditional C corp is a popular business format because it is relatively easy to raise capital from the sale of stock.Example: Apple
• S Corporation: The primary difference between an S corp and other corporation types is in the regulations around taxation. Essentially, the S corporation acts as a pass-through entity; profits and losses are passed on to shareholders, who report these on their income taxes. This avoids the phenomenon of “double taxation” with the C corp format, in which both the corporation and shareholders are taxed. S corporations are more likely to be smaller businesses.Example: Local retail store
• B Corporation: In terms of taxation, there are no differences between a B corp and C corp. The primary differentiator of a B corp is that it has declared that it exists to perform a public good and is driven by both mission and profit. Shareholders are responsible for holding the company accountable to both produce profits and its stated public benefit.Example: Patagonia
• Close Corporation: Typically owned by a small group of shareholders, a close corporation is similar to a B corp but with fewer governance requirements.Example: PwC
• Non-Profit Corporation (501c3): Non-profit corporations are established for the purpose of providing a service, such as charity, education, religious, literary, or scientific work. They do not pay taxes on any profits earned, but are required to follow special IRS guidelines regarding what can be done with the profits they do earn.Example: American Red Cross

Further Reading

https://www.sba.gov/business-guide/launch-your-business/choose-business-structure

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Topic Four: Ashtanga Yoga

I love yoga, but I have to admit I’m rather ignorant about the terms and styles of yoga. That all changes now! Today we’re exploring a style of yoga that, if you’re someone who practices yoga either casually or regularly, may still be pretty unfamiliar although it’s likely you’ve heard the name. So with that said, let’s learn about Ashtanga yoga.

The word Ashtanga comes from the Sanskrit for “8 limbs” - this refers to the 8 limbs of yoga outlined in the nearly two-thousand year old Yoga Sutras of Patanjali. Ashtanga as a specific discipline of yoga was created in the early 20th century and introduced to the West in the 1970s. It is a high-energy, athletic style of yoga designed to increase muscle strength, flexibility, stamina, and mental clarity. Through its fast-paced movements, it aims to purify the body and cultivate a deeper connection to the self.

An Ashtanga class is rigorous and will follow a specific sequence of poses done in the same order each time; they are unlikely to use props or modifications of poses. There is usually no calming background music like you might encounter in a “gentler” class - instead, an Ashtanga class usually begins and ends with Sanskrit chants.

There are six “series” of Ashtanga, each with its ?own specific sequence of poses. The primary series is the most beginner-friendly; practitioners then progress to an intermediate series and four subsequence levels of an advanced series. While some classes are led by an instructor cueing each pose, others are held in a “Mysore” style, in which students move through the sequence of poses at their own pace, with the instructor offering individualized instruction and adjustment.

Interested? Here’s a class you can try!

Further Reading

https://www.yogabasics.com/learn/ashtanga-yoga/

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Topic Five: A Quote from Rudyard Kipling

Apparently this is a pretty famous quote but I just recently ran across it while watching Indra Nooyi’s leadership masterclass. It’s clever, it’s succinct, and it speaks to the importance of asking questions and staying endlessly curious - which I think makes it a fitting end for this first newsletter. I hope you’ve enjoyed it!