Overview of the Organization Maturity Index (OMI)
Table of Contents
- Why understanding Organization Maturity is important?
- Organization Performance Transformation, Change & Improvement
- Capability Maturity Management ‘Next Generation Change & Transformation’
- The underlying Science that underpins Organization Performance, Learning & Behaviour
- Using The Organization Maturity Index to identify, assess and guide Transformation, Change & Improvement
- Summary Overview of the Organization Maturity Index (OMI)
- Summary of Dynamics & Constructs
- Productive Dynamic Capabilities
- Human Dynamic Capabilities
- Directive Dynamic Capabilities
- Goals Dynamic Capability
- Leadership Dynamic Capability
- Accountability Construct Capability
- Energy Type Construct Capability
- Knowledge of the Business Construct Capability
- Leadership Style Construct Capability
- Managerial Competence Construct Capability
- Personal Fit Construct Capability
- Relationship with Subordinates Construct Capability
- Response to Troublesomeness (RTR) Construct Capability
- Role Development Construct Capability
- Management Dynamic Capability
- Reward Dynamic Construct
- Strategy Dynamic Capability
- Macro Dynamic Capabilities
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At any stage to view OMI in detail, click on menu 'OrgCMF ' above select Bodies of Knowledge, and click on OMI Reference Model
Why understanding Organization Maturity is important?
Organization Performance Transformation, Change & Improvement
All Organizations are complex Human Systems, and most aspire to achieving the highest level of performance for their Stakeholders. There are however many different Stakeholders often with different Agendas’ and it is the role of Leadership and Leaders in the organization to align those Agendas in order to agree and achieve target goals & performance, and complete any Transformation or Change required to succeed.
The world organisations exist in today is more Volatile, Uncertain, Complex and Ambiguous (VUCA). This means there is a continuous flow of forces for change on most organisations and a higher degree of unpredictability in what those forces might be? when they will occur? how long they will last? and how they will behave?
Organisations are complex systems made up of many diverse elements that usually influence or impact on each other in different ways. We describe these influences or impacts as ‘The Inters’.
When we consider the points above it is easy to understand;
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Why many organizations fail to optomize their performance and stakeholder value creation,
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Why a high percentage of transformation and change initiatives fail to deliver on target outcome goals and,
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Why building Systemic Organization Agility has become an integral component for the Performance imperative.
Agility is “The ability to sense, think, comprehend, and act, easily and quickly”. In effect Agility is the ability to change. The concept is easy to understand but harder to achieve, because of the complex interdependencies and interrelationships within organisation systems and sub-systems.
The Functioning, Performance & Agility of any organization is ultimately determined by the range, relevance and level of its Capabilities.
Capability Maturity Management ‘Next Generation Change & Transformation’
Capabilities are most often defined as ‘The ability to mobilise resources to achieve an Aim’. This is quite a general description but it captures the essence of what a Capability is. The strength of understanding and managing Capabilities is that it can apply at any organisation group or level and, to any person or thing. From a Business & Management perspective we are mainly concerned about the Capabilities of:
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Organisations
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Functions
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Teams
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Processes
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Activities
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People
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Machines
The Maturity Level defines the Functioning Level of an Organisation, Team or Specific Capability which can be measured and stated as the existing habituated level (measured level). So, the Maturity Level describes the Functioning Level and explains the consequential Performance, Practices and Behaviours.
The Maturity Level also describes the ‘Learning Level’ for an Organisation, Team or Specific Capability. The ‘Learning Level’ may be described as the ability to change, in other words the nature, magnitude and frequency of change that can gain sustainable traction (In effect the Agility).
By understanding the Maturity Level of an Organisation, Team or Specific Capability we can understand why it performs at a specific level and its ability to respond to change. This is important because Transformation and Change Programs have performance targets and aims from a business perspective, and to attain those targets and aims usually requires building new capabilities and building the Maturity level of some existing capabilities. It must do this in order to achieve the target business and change objectives within the desired time-frames.
The underlying Science that underpins Organization Performance, Learning & Behaviour
Unitary Developmental Theory (UDT) identified 15 discreet and scientific levels of functioning (Maturity) an organisation or Capability can habituate. The specific ‘Traits’ of each level are specified in the Capability Maturity Reference Model. Each level is clearly labelled and described using Organisation Learning and Psychology nomenclature. (UDT) research identified some key rules that guide Leaders and Teams in design and execution of Transformation, Change & Performance Improvement at any level. These rules are embodied in the Organization Capability Maturity Framework (OrgCMF™) and its three Reference Models
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The Organization Maturity Index (OMI)
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The Team Maturity Index (TMI)
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The Digital Maturity Index (DMI)
The right-hand side 15 level UDT Maturity Scale is consolidated with maintained integrity on the left hand side to a more practical 7-level scale for use in OrgCMF with each Reference Model.
For any organisation’s measured level of Maturity; its Performance and Rate of Change (Change Capability- Agility) are reflected. In other words An Organisation’s Measured Capability Maturity determines its Performance & it’s Agility.
The complex interrelated and interdependent elements that make up the system, which UDT calls ‘Dynamics – Dynamic Capabilities’ & ‘Constructs - Construct Capabilities’ can be Assessed/Measured in order to:
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Calibrate any change program action so it has traction and sustainability
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Improve its Change Capability by guiding its correct, next learning and development actions ‘Dynamics’ are in effect macro-capabilities and are underpinned by the building block ‘Constructs’
Using The Organization Maturity Index to identify, assess and guide Transformation, Change & Improvement
The first core Reference Model developed, tested and reviewed during UDT Research is the Organization Maturity Index (OMI) indicated above. Within that Model you can see the structure of all an organizations key capabilities:
• M1 Level The Primary Object; in this case an Organization or Organization Unit
• M2 Level Dynamic Capabilities grouped into key indices
• M3 Level Construct Capabilities that underpin each Dynamic Capability
The Organization Capability Maturity Framework was developed to operationalize UDT and make it a practical and useful tool for all organizations and their individual and group stakeholders. Each of the Three Reference Models (OMI, TMI & DMI) are presented in detail and are accompanied by a highly usable and configurable Maturity Assessment Tool which produces calibrated action guidance for those Capabilities selected for measurement & improvement.
For every Capability at every level (M1-M3) the OMI describes the traits (behaviours, practices,outcomes) for each of the 7 Levels of the normative maturity scale. It also provides calibrated action guidance at each of the 7-levels for every Capability.
Any good Organisation Maturity Model should provide a body of knowledge that not only allows measurement or assessment of maturity, but also provides development action guidance for each level from top to bottom as follows:
Why Capability Maturity Improvement is important for successful Change & Transformation ?
Summary Overview of the Organization Maturity Index (OMI)
This is the core reference model to address all 15 Organisation Dynamics (or selected dynamics as appropriate to the business or operational issue being addressed) that are central to the organisations operation and performance. The 15 Dynamic Capabilities are grouped in 4 Indices;
• Productive: The dynamics that relate to the physical environment and the work that an individual does, and how it is organised.
• Human: The dynamics that relate to individual and group behaviours, relationships and personalities and how they influence performance and growth.
• Directive: The dynamics that relate to setting, organising and achieving the aims and ambitions of the organisation and how they motivate performance and growth.
• Macro: The dynamics that relate to the business, environment and resources that influence or are leveraged to achieve the aims, ambitions and performance of the organisation.
Summary of Dynamics & Constructs
Productive Dynamic Capabilities
The dynamics that relate to the physical environment and the work and individual does, and how it is organised.
Physical Dynamic Capability
Physical experience of work is the most basic level of motivation influenced by the tangible assets of the organisation
Constructs
Buildings & Facilities Construct Capability
Buildings and/or the organizational facilities used can be either a hinderance to performance and growth or facilitate it. They influence communications, relationships and productivity.
Facility Socialisation Construct Capability
Facilities, Buildings, and Networks are considered to be more productive and human-friendly, the more they facilitate social interaction.
Security, Health & Safety Construct Capability
The most basic aspects of Physical Experience of an organization relates to whether it is safe, damaging to health, etc.
Technology Construct Capability
From chisels to software, Technology relates to the tools being used to build/deliver the product/services.
Time Management Construct Capability
Time is the ultimate finite resource, how efficiently & effectively time is planned& utilised can influence performance and stakeholder satisfaction.
Workplace Layout Construct Capability
How the buildings, workstations, etc., are configured can be either a hinderance to performance and growth or facilitate it. They influence communications, relationships and productivity
Work Dynamic Capability
The activities that require mental or physical effort to deliver a result/output carried out by individuals and teams. Work includes the activities or tasks carried out by men or by machines controlled by men. Work relates to what the people actually do. Constructs
Feedback Construct Capability
How people receive and react to appreciation and advice in relation to themselves and their work
Work Identity Construct Capability
The degree of meaning, the work an individual has, for them, and the recognition of their contribution by others
Work Integration Construct Capability
The degree of concern for the impact of an individual's or team's tasks, activities and outputs has on each others
Work Resourcing Construct Capability
How projects & activities are resourced with time, people, technology, materials, for the benefit of the individual, teams and organisation.
Work Significance Construct Capability
The actual and perceived significance of each role and its contribution to the organisation and its performance and reputation
Work Variety Construct Capability
The mix of tasks, actions and skills required in a role has meaning for the individual
Human Dynamic Capabilities
The dynamics that relate to individual and group behaviours, relationships and personalities and how they influence performance and growth.
Cognition Dynamic Capability
Cognition is the mental action or process of acquiring knowledge and understanding through thought, experience, and the senses by individuals and in organisations the process of data & information capture, analysis, decision making and response by individuals and groups.
Constructs
Communications Construct Capability
Communications relates to the quality and flow of information in all directions
Decision Making Construct Capability
An important individual and team capability to set out the facts and information , that lead to options to be chosen from, that guide actions, to chart progress that should be seen throughout the organization
Mindset Construct Capability
Mindset is culture at the level of the individual and determines engagement level with the organizational functioning
Problem Solving Construct Capability
Removing obstacles to progress and finding solutions for complex issues.
Training & Development Construct Capability
Structures, activities and interventions that build individual, team and organisation competence to achieve strategic aims.
Emotion Dynamic Capability
Emotion is the feelings experienced by individuals and groups as a result of circumstances, mood and relationships in the organisation and it influences productive & unproductive behaviours
Constructs
Attitude Construct Capability
Attitude is the orientation of motivation as between destructive or constructive.
Morale Construct Capability
Morale describes emotion, attitude and motivation as it relates to the work environment. Morale influences every aspect of an individual and a team’s performance and satisfaction.
Personal Control Construct Capability
The ability to influence behaviour or the course of events. Based on Locus-of-Control (LOC) research, autonomy is correlated with higher performance.
Power & Influence Construct Capability
The capacity or ability to direct or influence, but that direction or influence can have both positive and negative consequence. Empowerment is an important driver of growth and performance.
Stress Construct Capability
Stress describes Psycho-Physiological response patterns to demands outside perceived normal parameters
Interpersonal Dynamic Construct
Interpersonal relates to the ability of individuals to communicate and interact and the related behaviours, practices and relationships prior to, during and after the interactions. This Social Dynamic is most important as basis for co-operation, and functioning as an organization
Constructs
Boundaries Construct Capability
Boundaries are recognised as division lines within systems that limit growth but may support organization of activities.
Culture Construct Capability
Culture is the collective equivalent of mindset and determines how the collective behave in recognised patterns
Politics Construct Capability
Organizational Politics describes how people and the system deviate from strategic purpose and turn inward or outward with the purpose of benefiting from activities undertaken to change personal-level status or power
Relationships Under Stress Construct Capability
The strength of Relationships is important glue to cement progress
Social Atmosphere Construct Capability
Atmosphere is how people feel the temperature or growth potential of groups. Its how they experience the culture.
Teams Construct Capability
Teams are the vital mini-systems designed for output greater than that of the sum of their parts
Personal Dynamic Construct
Personal is about the individual and their feelings and posture towards, their job, their stakeholders and the organisation.
Constructs
Career Management Construct Capability
The degree to which the person feels their career aspirations are supported and progressed by the organization for mutual benefit.
Response to Troublesomeness Construct Capability
The patterns of responses from People under Pressure determine resilience and how much change they can take on board
Role Congruence Construct Capability
The Process builds towards getting the right people doing the right things, in the right roles for the right reasons, etc. Having people in roles for which they are not suitable is unproductive all round.
Self-Esteem Construct Capability
Self-Esteem measures the Psychological energy of the individual as a measure of self worth.
Work-Life Balance Construct Capability
Many people gain high-level fulfilment from work, but generally, whether there is all work and no life, or work that is in balance with broader life determines their levels of performance for the organization.
Directive Dynamic Capabilities
The dynamics that relate to setting, organising and achieving the aims and ambitions of the organisation and how they motivate performance and growth.
Goals Dynamic Capability
Goals are the object of a person's , group's or organisation's ambition or effort; an aim or desired result. Goals focus the energy of the organization into measurable achievements.
Constructs
Buy-in Technique Construct Capability
Buy-in techniques are important because they underpin the psychological contract between the organisation and its people and contribute to self driven performance improvement.
Goal Setting Construct Capability
There are clear steps to good Goal Setting that must be adhered to for success
Integration at Individual Level Construct Capability
Goals need to integrate individual and organizational growth paths for best outcomes
Involvement Construct Capability
People perform better when they have a sense of ownership through involvement in goal-setting
Management Discipline Construct Capability
Goal Setting is useless without discipline and consistency from management to see them achieved
Leadership Dynamic Capability
Leadership is a process of social influence, which guides and inspires the efforts of others, towards the identification and achievement of an Ambition and Goals which have merit in the context of any situation or priority. Leadership gives direction and confidence, and it represents the single most significant Dynamic in the Organizational System
Constructs
Accountability Construct Capability
Accountability means the motivation that arises from publicly taking ownership of outcomes good or bad, and Leadership must be seen to take accountability of initiatives if they are to succeed.
Energy Type Construct Capability
The Leader is the ultimate provider of energy in a system, so it has to be good for people
Knowledge of the Business Construct Capability
Knowledge of what the organization does (Commercial, Technical, Operational, Stakeholders etc.)
Leadership Style Construct Capability
The manner and approach of providing direction, implementing plans, and motivating people as seen by the employees, it includes the total pattern of explicit and implicit actions performed by their leader. It can vary from derogatory to regenerative with very different outcomes in the long run.
Managerial Competence Construct Capability
Many people emerge into Leadership positions from earlier roles based on their knowledge of the business or technical areas, without their deficit in Management skills being a problem. However, for the organization as a whole, Management technique and systems, interpersonal skills, etc., are an important Leadership Capability
Personal Fit Construct Capability
Leadership is a drag or a benefit depending on whether their skills and experience fit requirements of the role and organisation.
Relationship with Subordinates Construct Capability
Leadership relationships are the most critical in the system
Response to Troublesomeness (RTR) Construct Capability
How the leadership handles difficulties is a very important trust marker for everyone
Role Development Construct Capability
How advanced is the Leader in Leadership itself and the development, application and adaptation of techniques and skills.
Management Dynamic Capability
Imgur Management is the process and practice of forecasting, planning, organizing, commanding, coordinating, and controlling and activity , people and/or an organisation with a view to achieving a stated or desired outcome/Result.
Constructs
Cooperation Construct Capability
Cooperation between managers is the relationship behaviour that releases organizational potential or kills it.
Influence Construct Capability
The ability of an individual or team to achieve a desired reaction for another person, team or organisation. Scope and type of Influence is important for managerial effectiveness
Managerial Competence Construct Capability
Learned interpersonal skills as well as training in management techniques can determine the effectiveness of a manager
Management Philosophy Construct Capability
There are a known number of types of Mgt. Philosophy or Style that facilitate or limit growth in predictable ways.
Management Systems Construct Capability
Management Systems are the framework of people, policies, processes, procedures and tools used to achieve operational and strategic goal, and how each interacts with the others.
Technical Competence Construct Capability
Ideally, the manager should have a good working knowledge of what the organization does as it relates to its product, technologies, market, business, operations, ecosystems & environment. They should have a strong knowledge as it relates to their functional role.
Reward Dynamic Construct
The benefits derived to individuals and teams for their contribution to the organisation. Reward Dynamic is the personal output of significant influence.
Constructs
Basis of Reward Allocation Construct Capability
What strategic or tactical intent is being leveraged by the Reward System
Organization Motivation Construct Capability
What level of Motivation is achieved through the Reward System by the organization as a whole
Personal Motivation Construct Capability
How motivated are people by the Reward System
Reward Benchmarking Construct Capability
How does the Reward System compare to peer organizations
Reward Personalization Construct Capability
How personalized to each person's desires is their reward structured
Strategy Dynamic Capability
Strategy involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions, often under conditions of uncertainty. A strategy describes how the ends (goals) will be achieved by the means (resources). Strategy Dynamic relates to where the org. is going, and how it is going to get there.
Constructs
Involvement (INV) Construct Capability
The effectiveness of involving people across all levels in the organisation appropriately in setting and executing the strategy
Mission Construct Capability
The motivational clarity in defining and communicating the organisation's intent and differentiation.
Organization Structure Construct Capability
The lines of authority, communications, rights and duties of individuals and teams, and the empowerment and agility in adapting to meet the needs of the business.
Strategy Generation Construct Capability
The process for developing and maintaining an effective organisation strategy
Values Construct Capability
The beliefs and behaviours important to your organisations brand and value proposition.
Vision Construct Capability
The motivational effectiveness in graphically setting out the "future state" of the organisation as a function of aims, ambitions, and values and communicating to stakeholders
Macro Dynamic Capabilities
The dynamics that relate to the business, environment and resources that influence or are leveraged to achieve the aims, ambitions and performance of the organisation.
Customer Dynamic Capability
The individuals and groups/organisations who influence, buy, use or are impacted the organisations product and services.
Constructs
Customer Expectations Construct Capability
A measured or experienced level of benefit by the customer in their engagement with the organisation its people and the consumption of the product. It is a significant influencer of growth.
Customer Knowledge Construct Capability
Informed Customers place greater trust, clearer demands on the organisation and have realistic expectations.
Customer Relationship Construct Capability
The Level of mutual interest, care, concern and respect (Relationship) determines level of sustainable growth.
Involvement (IDP) Construct Capability
The degree to which the Customer is engaged in designing for themselves and their market. Their involvement in Design, Development and Production.
Market Description & Positioning Construct Capability
Organisation direction and focus, as well as product competitive positioning and communication of value proposition, strengthen sales performance
Finance Dynamic Capability
Financial Profile reveals the economic health of the system. Financial ability facilitates the mobilization of resources and efficient exploitation of resources.
Constructs
Financial Information & Control Construct Capability
The decision making process, impact tracking and systems, as they relate to income, costs, profit, ROI and the efficient and effective use of funds can significantly influence performance and growth..
Financier Relationship Construct Capability
Your financier, whether a bank or some other financial organisation, plays a crucial role in the operation and success of your business..
Pricing Power Construct Capability
All the Levels from Price-Taker from e.g., poor process to deliver strategy, transparency, overcapacity, to Price-Maker where these are reversed, directly determine Profitability.
Sources of Funds Construct Capability
At lower Levels, types of source can cause organizational distress and drain Profitability, at the higher end, they are resources.
Strategic Uses of Funds Profile Construct Capability
This can range from exploitation to re-investing and so impacts organization progression.
Macro Environment Dynamic Capability
The macro environment encapsulates those aspects where the organisation considers, engages and influences or is influenced by external individuals and entities through its people, products and reputation.
Constructs
Compliance Construct Capability
Compliance as a cultural value strengthens the brand in markets and ecosystems. Generally falling Compliance standards lead to deterioration in performance.
Eco-System Effects Construct Capability
Given the broadest scope for eco-system to encompass Physical, Cultural and Socio-Economic environments, a destructive or constructive eco footprint differentiates Reputation which has recognised collateral value (Sample ecosystems, Business (supply, customer, regulatory, financial etc), Technology (service provider, infrastructure, Platform etc), Talent (Recruitment, professions, training etc).
Employer Status Construct Capability
The Status as an Employer determines the quality of people the organization can attract.
Environmental Scanning Construct Capability
Keeping informed of external change is vital to organizational effectiveness as is its response to available information.
Local Community Effects Construct Capability
The local Community is especially vulnerable to negative effects, as it is beneficiary of positive effects which again affects reputation and relationships.
Recruitment Pool Construct Capability
Whether the org. can get the right people or not will determine its success.
Product Dynamic Capability
Product Dynamic can be a force for Innovation, Obsolescence, Pride in one's work, behind the curve, leading the curve, etc. For convenience, the term Product includes output that would be classified as Services.
Brand Status Construct Capability
The Product and Organization are invested in the status of the Brand and the meaning it has with all stakeholders as regards value.
Customer Engagement Construct Capability
The degree to which the Product is influenced by, and engenders loyalty among customers.
Demand Curve Position Construct Capability
Market position relative to change in demand.
Life Cycle Construct Capability
At what stage of a conventional life cycle is the product, and what about regeneration potential.
Life Span Construct Capability
Managing the planning horizon around Product.
Market Advantage Construct Capability
Internal Sources of Advantage create, Market Competitive Advantage which result in, The Customer experiencing value leading to, Stakeholder Value Creation.
Supplier Relationships Construct Capability
Regardless of everything else, if supplier relations and performance are not good, life cycle management will be negatively impacted.