Organizational Responses in a Covid-Changed World (Crisis Rebuild)

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Agile Normative Process for different scenarios facilitated through Dynamic Systems Maturity Theory (DSMT)

A Paper by Myles Sweeney BA (Psychol.), MBS (Finance), Ph.D (Business/Economic Psychology)

Executive Summary

Change Management practices were running at a consistent circa 75% failure rate since 1965, so like many practices, they must be reconsidered, because if they could not work in relatively good times, they are certainly not fit for purpose for current Volatility, Uncertainty, Complexity & Ambiguity (VUCA) and whatever ‘new normal’ emerges. This reinforces the demand that already existed for an enhanced model of Change and related tools that can reduce the legacy failure rates of Change Programs and address this new world that organisations’ face today and in the foreseeable future.

The more recent emergence of Dynamic Systems Maturity Theory (DSMT) has allowed a step change improvement of our understanding of how organisations function, why they behave and perform in certain manners and how to more effectively manage Change in this VUCA world. DSMT is the only science-based, peer reviewed, developmental methodology with equal validity and “unprecedented scientific depth” for all socio-economic systems – whether people, organizations or economies – to take organizations from the lowest levels of functionality to the highest levels of Agility, and it is primed and ready through www.orgcmf.com to guide Leaders into the new world.

The Covid-19 disruption to the Global Economy is catastrophic in terms of its abruptness and scope; and because people are shut out of their jobs, it is felt as such at the above described micro- meso- and macro-socio-economic levels. The only reference event is the Flu of 1918, but VUCA marks a different world for organizations, because sluggishness or missed-steps in re-building company activity could be damaging.

There is a lot of good advice being made available, but it is typically presented as elemental or dashboard in nature, rather than as clear guidance in a process which supports the required organisation re-building.

This paper organises material, including advice from leading authoritative sources; its own developmental, turnaround, Change-Management and Organization-Development prescriptions; and research on Post Crisis Management; into the DSMT process, so that in these unchartered waters, Leaders know where they are, what to avoid, the sequence their re-building steps should take or which should be missed for re-positioning, how to stagger re-building different capabilities using the same process, etc.

This process is outlined for each scenario of Lock-Down Mgt., Continuance, Re-Start and Responsive Re-Build. It is a reference model against which Leaders can check progress, sustainability, what needs to be skipped for later inclusion, etc. to supply the hallmarks of DSMT interventions – Traction, Sustainability, Systemic scope, Management through Human Nature, and Agility.

Furthermore, regardless of strategy, the Post-Lockdown organization is going to be functioning through Teams (Virtual & Hybrid, Existing & Newly Formed) like never before, and it is proven that teams will not succeed unless operating at the three higher Levels of the seven-Level model. The Team Maturity Index, also based on DSMT, provides the only normative process to build and sustain a Team Eco-System – members, teams and organizational capabilities – at these Levels and is also available at www.orgcmf.com for deployment.

This crisis has two main dimensions – Health and Economic: it is science that will get us through the health crisis, and science should lead the Organizational Re-Building.

Introduction

Dynamic Systems Maturity Theory (DSMT) is academically peer-reviewed as having “unprecedented scientific depth”, and excellent results in applications with different types of organization-development interventions from Digital Transformation to Cultural Turnaround.

This paper does not seek to claim to be the panacea for success in the post-Covid economy, nor be prescriptive with generic process: it simply presents the argument that all development needs to be conducted with its normative process in mind even as a reference model against which steps can be checked and back-filled if necessity causes omissions, because the DSMT theory is clear that long-run omissions undermine sustainability.

Let us start with some scientific honesty. We are all in unchartered territory with the Covid-driven Catastrophe, and no tool or methodology has been tested for such circumstances. Many sources offer elements of planning and positioning, but as with modelling for Change Management (CM) and Organisation Development (OD), the DSMT offers an organised process so, as with the Epidemic, there is surely advantage in being guided by science, and DSMT is by far the most scientific developmental model. While other sources give unstructured elemental advice, the DSMT approach allows Leaders to pull and grab from a structured menu, knowing where and how they are affecting the organization as a system.

It is also worth stressing caution with the 5-easy step models which represent the very simplistic approach that perpetuates the same causes of high failure rates in CM/OD in reasonable times never mind the unknown environment around this current Catastrophe.

Non-believers in failure rates should read the introductory section of Burnes’s bible of Change Management which makes it very clear that the rates are consistently averaging 75% since 1965, and more recently 85% for ERP in non-tech-savvy companies.

Some other guidance offerings amount to vague conglomerates of opinion, and others present a mosaic of actuarial positioning of what should be in place; but none offer guided step-by-step process to use across the Capabilities of the system as their need arises. You have a choice – go with the mosaic of opinion with proven gaps and methods that failed in relative good times, or choose the chain of links that is forged of normative process!

Ultimately, the associated research for which DSMT is reviewed for both Psychology and Organizational Science, relates to Trauma Recovery, and the process guidance for organizations is the same as for any Turnaround, even though managing the process will be different when the Economy itself as Macro-System has suffered the same Catastrophic Lock-Down.

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Scientific names for Levels: Inversion, Chaos, Equilibrium, Operational, Complexity, Creativity & Leadership

The process was primarily developed to address increasing Failure Rates in the increasingly VUCA environment, and surely if as described by Prof. Joyce who led the Turnarounds in GE and GM, DSMT is “addressing the main problem of our times which is Complexity”, its process is best suited to the Complexity Shift that Covid has produced.

Learning the Process is the advantage that Leaders want in the competition to rebuild more successfully than competitors. Therefore, we are offering Leaders introductory Masterclass Webinars on Organizational Recovery from Catastrophe.

Above all, DSMT offers a process and the rebuild has a normative check against its progress – what is the next logical step, what was missed, what gaps need to be filled when time allows, what steps must the latest re-engagers go through to be caught up, etc.

For those unfamiliar with DSMT, the above Table 1 provide a brief introduction to the Phases of its normative developmental process and also to its organization of known habituation patterns which re-define and operationalise the heretofore nebulous concept of Culture and a paper detailing this considerable advance for Organizational Science is accessible here, which also introduces other dimensions of the model that are considered too theoretical for current purposes.

Points of note about the Table include reference to the Divisions Integrative and Disintegrative: any Capability measured in the lower half of the model has no, or very limited capacity for taking on board Change. Cross-referencing with research from numerous sources referenced in the above paper makes it clear that only 22% of organizations achieve the three higher Levels which are required for the kinds of Interventions that organizations typically want and produce Agility and related higher returns.

The main scenarios to emerge from an analysis of the prospects attending Post-Catastrophic Re-Building are as follows:

1) Continuation;

2) Lockdown Leadership;

3) Linear Re-Start;

4) Responsive Re-Build;

5) Future-Proofed Organization as Regenerative Eco-System

Continuation

Many organizations are not affected in their daily routines and have continued with the same staffing and production routines as usual. That may be great in the short-run. However, whether the leaders of such privileged organizations want to see it or not, this is a forced period of Innovation and the whole Eco-System is going to change radically. So, the trick is to avoid the Comfort Zone and stay Agile with Dynamic Learning. In fact, this may be harder because resources are caught up in day-to-day activities, but it must be done to be prepared for the post-Crisis world. In fact, all Levels should be kept activated and adapted to the situation, e.g., Level 5 Environmental Scanning to keep systemically informed of innovation and change; Phase 3a Social Platform of Recognition if staff are taking health risks in any way for the organization, and Peer Support monitoring if Leadership Support is dissipated; etc.

Lock-Out Leadership

It is vital that the Leadership keep in touch with all staff throughout the Lockout period both directly and through the Critical Network (CN) who are a network of people representative of different stakeholder groups throughout the system who have the credibility to engage in planning and champion change. This will pay dividends in the Responsive Re-Build situation: It will keep everyone in the loop; keep the emotional bond with the organization; undermine fake news, optimise Trust; give people a realistic sense of time-line to re-engagement; render the re-engagement as organic as possible; humanise the situation; etc. Of the Process, there are obvious steps that can be implemented during the Lock-Out.

1a Creative Disruption

Certainly, the CN needs to be kept buzzing. E.g., the time out is an opportunity to take stock of Organizational issues that might not otherwise be addressed. It is a wonderful time to research what is out there in new technology, opportunities, etc., and/or cause some Creative Disruption by coming up with some Innovative ideas to be pursued and planned for. This Phase is also associated with the basic Physical attributes, so any health-related issues re. Covid like Sanitization, Contactless engagement, etc., should be optimised.

1b Disconnect

In the cool recess of the Lockout, it may be possible to organise a Disconnect to issues to which people were too closely attached to see them as problematic. [Reactivating Supply-Chain etc., will need to be responsive also and follow the same Re-Building process].

1c Incubation

Primarily, though, Planning should be taking place for the various scenarios of outcome to the Catastrophe. Although the standard elements of good Planning need to be adhered to [realistic assessment of present circumstances, etc.], these Plans will have to have responsiveness to different events or milestones built into them, so that e.g., if customer numbers good or bad hit certain levels, pre-planned operations can be quickly implemented. Depending on a number of variables, it is advisable to have such Teams prepare such Plans for different dimensions of the organization.

2a Critical Singularity

The Critical Singularity should see the Leadership visible in the internal and external worlds of the organization, whether it is contributing to the debate about economic outlook, etc., or taking a lead in some way dealing with any dimension of the shocks to the broader socio-economic system. Also, the Leader needs to take a personal interest in the Contingency Planning Teams. Critical Leadership means a centralised decision-making capability that is delegated as the crisis recedes and the organization regrows – taking Leadership through the DSMT Phases. In general, the Leader needs to adopt a Regenerative orientation to all Reports and walk the talk for a Coaching Style of Leadership in the organization to re-enforce Agile culture.

2b Critical Diversification

The Critical Diversification Strategy could entail some Re-Purposing which is evident across all sectors where e.g., plastic sheet manufacturing is suddenly in the PPE business, etc. Managers need to take accountability for the dedication of the Contingency-Planning Teams and their outputs. It applies across all Capabilities to bring diversification to e.g., Supply-Chain stressing both local and international supply where applicable. In general Managers need to relinquish any legacy of Control-Management philosophy and position this shift with the new more Agile-focused culture – see Training section of Level 4 when people are on-boarded with the plan in Level 3.

3a Stabilization

The Social Phase of the Socio-Emotive Level could take many forms: e.g., for the Stabilization Phase, exceeding expectations regarding safety, health and well-being for onsite workers; organising online occasions, concerts, etc. for online workers, etc. It is important to bolster Relatedness for everyone – that they are all part of the Teams and the Organization, and message the worthiness of the organization as much as possible. Social Supports are important to implement as a basis of the Social Contract with staff. In the absence of commercial achievements, use Social Platform to give Recognition to Life Events of Staff

3b Destabilization

It is critical to deal with the Emotive issues, especially those related to fears starting with the most basic related to fear of aggression or exploitation etc. For Destabilization, certainly, it is an opportunity for people to shine and be rewarded if they take up a challenge. This is a signal to others that the Regenerative Eco-System is alive and well.

4a Operational Learning

The next Phase Operational Learning offers very obvious re-build tactics for staff who are furloughed. It is an unprecedented opportunity to upskill people – to use the “gift of time” for Training, Personal Development, etc., especially focusing on future orientation and more Agile Organization. Train Management for the shift to Remote Working focusing on Self-Determination Theory, Trust based on Warmth, Competence (E.g., of Soft Competencies are Conscientiousness, Consistency, Proactivity, Humour, etc.), etc., as Agility is forced on old Control structures. Critical to maintain 1-1 meetings online and engage a Coaching approach in constructive friendly feedback. Be supportive, check on ways to resource role. Give autonomy for timelines proven more effective than imposed; etc. Job design also focus on the SDT components of Competence, Autonomy, Purpose and Relatedness; aware that 70% of Motivation comes from Intrinsic or fulfilment actualization factors rather than Extrinsic such as money. All staff should be trained on Trust which requires Experiential Learning focusing on both difficulty winning Trust but also on relative ease with which it is lost.

4b Formal Operations

Instil all Process and Procedure, Legal Contracts, and other Formalizations to support Agile Culture, Remote Work, etc. To avoid Bureaucratic Habituation, ensure they all have performance-management process that embeds autonomy and success-related reward and recognition; that IT supports Remote Work, etc.

5a Competitiveness

Competitiveness as Complex Adaptive Learning is exemplified by both Crisis and Contingency-Planning Teams need to exemplify Dynamic Learning insofar as they are keyed into the broader world and integrate intelligence from Environmental Scanning into their Plans. This will very importantly apply to the post-Lock-Out environment.

5b Sustainable Competitiveness

Formal Environmental Scanning for Recovery Consumer sentiment, retail sales, commodity futures, and Purchasing Managers’ Indexes are tried and true leading indicators. Customer sentiment, supplier feedback, and industry-specific indicators, such as freight indexes and manufacturing capacity, should also be used to develop timing scenarios.

6a Advantage

This may be totally unintuitive, but Innovation cannot be allowed to cease during Lockdown. Intelligence from the Environmental Scanning will shape a new horizon that will emerge and each organization must prepare accordingly based on newly shaped demand criteria

6b Organizational Advantage

An organization that has systemised itself to the degree that it is engaged in Innovation and Autonomous working that is also performing at these levels is in a state of Organizational Advantage and at the penultimate Level of Agility

7a Integrative Leadership

Maintain connection with the customer and the marketplace and as far as strategically possible maintain their Trust in your capabilities to lead in mutually-beneficial direction that accounts for the dawn of the new normal and adapts accordingly by ensuring all of the Phases are functional and producing requisite novelty. Above all, organizational Leadership is seen to be driving change in Integrative fashion for the betterment of all concerned.

7b Regenerative Leadership

Given that the competitive Eco-System has been maintained in terms of maintaining a lead on what is going on in the sector and beyond, the organization must be prepared to release new ventures as Start-Ups to address new opportunities; engage in Mergers and Acquisitions to pool resources in requisite fashion; and above all, refresh the system by cyclically running the developmental process starting with assessing prevailing Capabilities with the new horizon in mind, Disconnecting problematic Solutions; Planning Re-Generation of Capabilities; etc. etc.

Linear Lock-Out / Re-Start

If the Re-Build is a linear event insofar as one day everyone is off work and the next, everyone is back at work, then that can be simply called a Re-Start, and the standard DSMT Change-Management process would be sufficient for a Re-Start. This will start with Canvassing CN for generating new or re-calibrating goals and go through the Phases of getting everyone on board, etc. However, as with the Continuation scenario, Leaders and Staff must use the Lock-Down period to maintain intelligence of what is happening so that the Re-Start process is fully informed and perhaps will have changes to lead the way, that have been organized during the Lock-Down.

Responsive Rebuild – The Dynamic Regenerative OD Process

However, if the re-building is going to be a matter of following demand – in other words a Responsive Re-Build, then the process is more complicated. Even each Team or Division may have to re-build in such responsive manner and at different rates to each other. There may be a Backward Cascade effect as front-line staff grow faster than support staff, etc. It is important in this instance that the above Internal-Fitness Strategy is being implemented all along, so that staff-in-waiting are engaged with the organization in social, training, etc.

At the same time, the Empowerment policy should always be in place, so that if non-recalled staff come up with ideas that will recall them, their teams, etc., can be established.

Furthermore, as investment in adapting to home-working has been substantial both commercially and emotionally, it is likely that the Re-Build will have to accommodate this re-structuring for the longer run.

It is important to grasp that the following is not a linear process. A good organization should have all of the following in place before the Re-Build. It is also an important check-list of what needs to be in place for different Levels of Functionality and Future-Proofing.

The following offers the Normative Re-Build Process based on DSMT’s standard Phases. (The scientifically-definitive and standard elements of those Phases are in parenthesis).

1a Creative Disruption (Sedition, Canvassing Support for Change, Causing Disorienting Dilemma as basis for need to change, Building towards Team called Critical Network of credible representatives of all types of stakeholders)

The Leadership must cause a Disorienting Dilemma in people so that they accept the gravity of the situation to do whatever it takes to be well-prepared for the Re-Build and to engage in it.

Another activity that qualifies as this Phase and is sorely needed in a crisis is to Experiment, though this can be done at any Phase as needed, but ideally, it starts as a Creative Disruption and can grow systemically through the Phases. Experimenting is all about people trying new things and ways to do things. It is done in the manner of learning how to adapt and create new ways of working.

The current crisis has forced businesses to act very quickly, sometimes in the space of a day. As a result, more conservative companies may find themselves dragged into this new business reality kicking and screaming and some leadership-level candidates may emerge while others may not be able to be so Agile. But by learning from the way they are doing things now and constantly tweaking them, organisations will quickly discover what works best for them and their people. In doing so, they will not only be better prepared to face this crisis head-on, but they will emerge a stronger, more resilient business for the future, too.

Even moving the workforce online is typically carried out with much learning as you go, rather than necessarily investing in new tech. and moreso using existing tools in different ways.

1b Disconnect (Decisive Collective Agreement to Change)

This Phase will take many parts. Above all, the organization must not habituate in the Disconnect that the Crisis has perpetuated. Moreover, people must Disconnect from their previous expectations and even roles, comfort zones, etc. to generate Personal Flexibility through e.g., Cross-Training, Organizational Agility, etc. This calls for strong Leadership and dynamic facilitation.

1c Incubation (Facilitated Collective Planning of Change)

Incubation defines much of what the organization is doing during the pre-re-build period. However, unlike the one-off Planning of normal OD, this planning will be Dynamic insofar as many of the functions mentioned will be done at different stages of the Rebuild.

Also, unlike most planning, it is determined by external change so 2 dimensions are required – Formal Environmental Scanning and Risk Management

Formal Environmental Scanning for Recovery should monitor measures such as Consumer sentiment, retail sales, commodity futures, and Purchasing Managers’ Indexes are tried and true leading indicators. Customer sentiment, supplier feedback, and industry-specific indicators, such as freight indexes and manufacturing capacity, should also be used to develop timing scenarios.

Planning can be enhanced by Cognitive Risk Sensing that enhances the resiliency of a rebound program through augmenting an organization’s risk sensing capabilities beyond what is readily available through ERP systems and supplier attestations. Digital risk sensing solutions provide locational intelligence on emerging risks (such as a secondary wave of outbreaks) in real-time.

Establish clear product priorities in collaboration with the supply chain function. Replenishing inventory across the supply chain back to normal levels, aligned to revised demand projections, will take time and require product priorities to be clearly agreed to. Production substitution logic and rules need to be defined, and product relationships need to be clearly understood (i.e., if you need two products to complete a job, having only one in stock won’t help). In many cases, not all packaging sizes, colours, flavors, or fragrances are required immediately to provide customers and consumers with access to the products that they need.

Manage and reduce product portfolio complexity. This may be an appropriate time to review the overall product portfolio and look for opportunities to rationalize Stock Keeping Units and reduce complexity. Experience shows that consumer preferences change after a crisis or in an economic recession. Different products may perform better in the next post-COVID-19 business cycle. Re-evaluate value propositions in light of these changes.

Synchronize efforts between product management, sales, and operations to accelerate/deprioritize product roadmaps as needed. Simplifying the product portfolio and clarifying product priorities can help enable a faster supply chain rebound as these priorities are clearly communicated to your operations team, to their direct suppliers, and across the extended supply network.

Continually, Focus on end-to-end supply chain constraint management. It is crucial to proactively identify possible constraints in each area of the supply chain, be it an internal limitation, such as workforce availability, or raw materials and production availability.

Create alternative inventory deployment options to cope with expected volatility. Anticipate flux in logistics such as freight, etc. Re-assess cost structures in existing agreements due to inevitable change Gain access to alternate diversified sources of supply

2a Critical Singularity (Crisis Leadership, Totem Victory e.g., Flagship client, new Product success, etc.)

In early stages of Crisis Resolution, the Leader takes more Responsibility than normal for decision-making and this can be delegated as the Re-Build takes hold. However, this Phase is also about gaining visible Totem Wins; motivating each person and/or team; etc. Motivation in this situation is about personal contact and transmitting to every single person the “You are Scandinavian Airlines” effect. Jan Carlson telling each person this line had dramatic impetus effect in turning that company around in the early 1980s.

2b Critical Diversification (Delegation, Opportunism)

With as much preparation as possible under the circumstances, install small, trusted, multi-disciplinary task forces at the local level (e.g., office, plant, distribution centre) to drive efforts in the rebound and ramp up period and enable rapid adaptation to changing local circumstances. It is important to ensure that the right decision is made at the right time and by the right layer within the organization. It is also important to have a timely escalation process so that other team members are empowered to make decisions based upon agreed-to responsibilities.

Deal with all the socio-emotional issues that arises and, in particular, Stress through Employee Assistance Programs, etc.

Also, ensure leaders are presenting as sources of Empathy, checking in regularly with teams (at all levels), and being more transparent than ever to help their communities come back together at work. Work towards embedding this Capability into the Maturity of the organization as long-term people strategy.

Above all create and maintain a sense that we are all in this working together. Staff working remotely may start to feel disconnect from the business and their colleagues and this is of course an Inversion to Stage 1b to be avoided at all costs. Plot diary time for team meetings, workshops, etc., so that e.g., leadership can connect regeneratively with everyone through offering support where needed and provide organizational updates.

Maintaining Connectivity of various lines of communication is vital for the virtual workplace. In fact, organisations may even find that they can continue to innovate, or start new projects. Some use the term hyper communication, going so far as to support phone and email conversations with video, etc. Although there may be an Inversion point, organizations should try – in the absence of physical face-to-face contact – to work on the basis that the more complementary communication channels in use, the more interactions and better ideas will materialise. It should be noted that this process is at this Phase only if it is internal, because if such Dynamic Learning is occurring with the Customer’s involvement it is a Competitive Level activity and needs a little more formal support to hold onto such learning, such as legal rights etc.

On the Socio-Emotive level also for Remote Working, Teams need to have social interactions through e.g., virtual coffee breaks; and managers need to change from the ‘always-on’ approach, instead figuring out blocks of time when people are at their most productive from understanding their domestic circumstances.

3b Destabilization (Unstable Equilibrium, Deal with Emotional Issues, Pilot, Resource emergent Opportunities)

Take stock of where the lead performances are and resource accordingly; Pilot etc. Get Feedback loops going. Success in building Agility comes from listening to customers and employees. Also, allow time for retrospection and experiment with the solution. Remember the rule of the Internal Customer is that if something doesn’t work for your employees, it won’t work for your customers or business either.

4a Operational Learning (Training and Development)

Build Flexibility with Cross-Training. Develop operational scaling plans for “must have” services/roles, including temporary and permanent succession plans. Consider staggering return dates based on prioritization, adjusting shift schedules, and/or working hours to meet evolving operational needs. Adjust or establish approaches to workforce forecasting, in collaboration with unions where applicable, that use strategic scenario planning to account for both real-time and anticipated future change to workforce requirements. With consideration for constraints re. IT and Time, build Autonomy or Self-Learning rather than “telling” into training programmes without losing deadline focus, and provide Coaching support.

4b Formal Operations (Process and Procedure, Formalization of agreements, Plans, Legal basis for all staff)

The COVID-19 crisis will have reverberating risks throughout the rebound. Cognitive risk sensing enhances the resiliency of a rebound program through augmenting an organization’s risk sensing capabilities beyond what is readily available through ERP systems and supplier attestations. Digital risk sensing solutions provide locational intelligence on emerging risks (such as a secondary wave of outbreaks) in real-time. Other Foci: Maintain focus on Cash Flow, Anticipate Bankruptcies and other Disruptions within the macro-eco-system, secure financing to support first-mover advantage, enhance continuous scenario analysis capability, begin to prepare for the next crisis

5a Competitiveness (Complex Adaptation, Local & Individual responsibility for Customer Care, Individual-Case Adaptive Learning from the marketplace)

Visibility will be critical to managing through the recovery—providing the best and most timely information available to support timely and confident decision-making. Consider implementing “control towers” to provide right-time data visibility, proactive alerts, prescriptive insights, and self-driving execution. In some cases, these control tower solutions may need to be quickly pulled together. World-class control towers will be enabled by artificial intelligence and machine learning (AI/ML) and advanced analytics and ingrained in business processes through change management. Some examples to consider in managing through this crisis re.: Supply Network, Customer Service, Logistics, Factory, Quality Control.

Prioritize serving your most loyal and important customers. Although all customers are important, inventory may not be sufficient to meet all demands during the rebound and recovery period. It may become necessary to determine which customers to serve first, and in a structured manner, and how inventory will be fairly allocated. Proactive customer communication is crucial as supply networks re-emerge, often with less than a full complement of products. This pandemic has affected everyone, and customers will be generally understanding as impacts are felt across supply chains—provided they are kept informed.

Enhance extended sales channel visibility to demand and inventory. Demand signals can be distorted as channel inventory is replenished by customers. During the recovery, it will be important to have visibility to ultimate customer/consumer demand to properly synchronize supply chains. It will also be essential to have visibility to inventory positions across customers to optimize inventory replenishment or allocations as supply chains rebound.

5b Sustainable Competitiveness (Adaptive Complexity, Customer Care Culture, Adaptive Learning Proceduralized, Complex Structure e.g., Matrix)

Shape demand with a view to ability to supply. The characteristics of the rebound will likely vary by region and industry. In some cases, there may be a sharp rebound or drop-off in demand immediately coming out of this crisis before returning to normal—or, the “next normal”—levels. Organizations should consider various techniques (e.g., pricing, incentives, promotions) to dampen these bullwhip effects and enable supply networks to efficiently come back to synchronization. In markets where demand has been lost (especially hard-hit regions or sectors such as hospitality and leisure), organizations should develop and execute plans to re-stimulate demand, with a focus on what can be supplied as operations and supply chains re-start.

Manage and reduce product portfolio complexity. This may be an appropriate time to review the overall product portfolio and look for opportunities to rationalize SKUs and reduce complexity. Experience shows that consumer preferences change after a crisis or in an economic recession.

Different products may perform better in the next post-COVID-19 business cycle. Re-evaluate value propositions in light of these changes. Synchronize efforts between product management, sales, and operations to accelerate/deprioritize product roadmaps as needed. Simplifying the product portfolio and clarifying product priorities can help enable a faster supply chain rebound as these priorities are clearly communicated to your operations team, to their direct suppliers, and across the extended supply network.

Revisit pricing and customer contracts. Few markets will be spared pricing disruption—some of it long term— during the rebound. Some areas, such as logistics and freight, may see sharp price increases due to capacity constraints during the rebound.

Other markets, particularly those where customers have diminished liquidity or sustained reduced demand, may require creative pricing or payment terms to get business moving. Pricing and associated commercial terms should be carefully considered to reflect fair sharing of cost increases and decreases with customers and suppliers.

Businesses and consumers are likely to punish sellers who are seen to be taking advantage of their market power as markets rebound—a challenge for businesses facing working capital constraints. This means the decisions organizations make during the rebound can set a good or bad precedent for future customer and supplier interactions, so plan carefully.

Implement dynamic sales and operations planning (S&OP) processes. Originally focused on matching supply and demand, sales and operations planning must now facilitate organizational alignment between business goals and plans, while enabling quick responses to continuously changing business conditions.

6a Advantage (Self-Expression, Individual Autonomy, Innovation)

From the Dynamic Interaction and Dynamic Learning of the previous Phase, there should arise new opportunities across Capabilities whether they are Product, etc. If the previous Phase of Boundaryless Organization is in place, enable people to be Self-Expressive and Assertive to ensure that they connect to whoever is required and that these opportunities are harnessed.

6b Organizational Advantage (Autonomous Structures e.g., Self-Directed Teams, Collaboration)

Organise around the emerging new opportunities. Organize the processes that turn them into sustainable advantage. Also, if the Self-Expressive Culture is real, then greater Collaboration and Virtual Team structures will prosper. E.g., Teams deployed in various client sites joining forces, sharing individual success stories, highlighting tools and techniques that are proving successful and may be replicated in other businesses also.

7a Integrative Leadership (Win-Win positioning with all Stakeholders – to org’s sustainable advantage; Brand positioning; etc.)

Re-Calibrate the Win-Win positioning with all stakeholders to secure an advantageous Business Model into the future. Re-establish Brand Integrity in congruence with the new normal. Ensure that all Leaders are seen to maintain Authentic-Leadership profiles both inside and outside the immediate organizational system. Trust is to be treated and measured as a commercial resource that anchors the system through the turbulence.

7b Regenerative Leadership (Regenerative Eco-System internally refreshing Capabilities through cyclical Developmental Process, and externally, Disruption, Enabling Spin-Off Enterprises, Engaging in Joint Ventures, M&As; etc.)

Ideally, the organization is at this Leadership Level when it engages in these Disruptive engagements, so that they are engaging from a position of strength and internal maturity. However, in a crisis situation, these strategies such as Joint Ventures may be needed quite quickly to develop this or some other types of strategic diversification or buying growth, in which case, the build process should ideally take the DSMT development route through the Phases. In both instances, the process is not mechanistic insofar as Phases may have to be missed to avail of opportunities. However, these Phases or Maturations of Structure need to be established to optimise Sustainability of Change and Agility.

All Leaders must engage in a strictly Coaching Style of management of their staff. This is regenerative insofar as it allows the individual Self to engage the new learning rather than in Mentoring where the production of linear mindset and clones is the objective. The former is required for Remote Working where the linear chain of command is weakened.

Team Maturity Index (TMI)

It goes without saying that the prevailing crisis is going to be felt by people at Team Level more than any other level due in particular to changes in work practices that the disciplines of the environment have wrought on people. Remote Working in particular renders the requirement for Maturity in Team Systems as defined by DSMT as essential.

The TMI Body of Knowledge brings the same DSMT model to bear on developing the Team System to support the levels of autonomy and agility required in the modern world and prevailing environment. It offers process to guide a) the required development of people themselves, b) how the Team interacts as a system, and c) how the organization supports that system.

A summary of how the TMI works here.

Conclusion

DSMT was designed originally to address catastrophic short-comings in Developmental Paradigm process across Psychology, Organization Development and Macro-Economic Development. It is the first normative scientific modelling of Socio-Economic Development that applies across all levels of Socio-Economic System.

The Application of DSMT is through the Organisation Capability Maturity Framework (OrgCMF™) reference models , The Organisation Maturity Index (OMI), and The Team Maturity Index (TMI). These models enable each individual organisation Measure/Assess what Maturity Level they habituate? What steps they may have skipped? and calibrate the specific change and improvement actions for both traction and sustainability while building through the roadmap towards regenerative leadership overall, at an organisation, Team or specific set of relevant Capability level.

This science is available for use in managing the current crisis. It is time this world got over a simplistic attachment to leadership and advice that is little more than simplistic opinion and case-limited experience that proved useless in relatively stable times. Science will get us out of the Health Crisis, and its time that Leaders used Science to get organizations through this crisis and make them fit for the 21st century.