In this article, we discuss the place of the Nadler-Tushman Congruence model as a strategy tool in the business environment. First, the model identifies the problems around a company's performance and improvement solutions. Then, based on the insights from the model, business managers control the internal forces (Work, Structure, People, and Culture) that influence the company's performance.
What is it?
The Nadler-Tushman Congruence Model is premised on the notion that a company can only meet its goals if its four internal components are in alignment/congruence. It suggests that the failure or success of a company or its overall performance is primarily influenced by the presence (or absence) of unity between these four components: Work, People, Structure, and Culture.
Work
This refers to the tasks, operations, and activities to deliver a product or service. The quality of Work is defined by its efficiency, mode of operation, resource requirements, technologies, and processes that convert the input to output.
People
This refers to the workers that coordinate/execute all the actions in the company. They include those in management, production, marketing, and other areas of operation. Skills and knowledge define the quality of People.
Culture
This refers to the way by which the company operates. The quality of Culture is represented by the effectiveness of its ethics, working principles, core values, vision, and leadership.
Structure
This refers to the framework that presides over the company's matters. Structure quality is defined by the effectiveness of the company's policies, procedures, operations, management, and other administrative responsibilities.
When do we use it?
The Nadler-Tushman congruence model finds its most significant value when…
There's a lack of synergy between the company's Work, People, Culture, and Structure.
There's a failure of communication between management and the workforce.
There's growing dissatisfaction among workers regarding the working system and the conditions of their operating environment.
The company fails to reach its productivity goals, growth aspirations, or expansion targets.
The workers become increasingly disaffected with the work culture. And do not feel suited for the job they are assigned.
There's a problem with the company's organizational structure.
The company's systems/processes do not perform optimally.
What business questions is it helping us to answer?
Below are some of the questions it is designed to answer:
What are the challenges behind the business's productivity targets and the factors causing them? Specifically, are there problems with its People, Structure, Work, or Culture?
Are the working personnel the right fit for the job, or do factors outside their control hinder them?
Is there a problem with the company's organizational structure? Are there loopholes in the system or gaps between crucial operational processes?
Does the work culture encourage productivity? Is there a healthy working environment, or are there conflict areas that create friction between the company's values and its workers?
Is the business operating following its set values or standards? Is it working on its ideals or compromising its standard to meet targets?
How do we use it?
Below are a few steps to use the model.
Step 1
Examine the four components (Work, Culture, People, and Structure) by checking their attributes and contributions to the business.
Step 2
Establish the relationship between these components and define their point of connection. For example:
Work and People: Are the workers skilled and knowledgeable enough for the work to which they are assigned? Is the work designed to exploit the worker's biggest strengths, or does it meet their needs and expectations?
People and Structure: Are there policies and organizational systems that conflict with the workers' interests? Is there a healthy working environment for workers to thrive in?
People and Culture: Are the employees satisfied with the work culture? Do the business's operational values, beliefs, and systems clash with the workers?
Structure and Work: Are there quality resources and systems in place to encourage productivity? Do the company's policies, organizational framework, and operational system affect the quality of Work?
Culture and Structure: Does the company's organizational structure work within its work culture? Are there issues with the ethics and value system that the top management operates on?
Culture and Work: Is the company operating in line with its vision statement? Do the work conditions comply with ethical standards?
Step 3
Now that you've established the connection between each component, your next step should be deciding which measures to take to address the challenges that hinder synergy between the four components.
In the end, you should be able to implement a system that harmonizes the Work, Structure, People, and Structure to get the best out of them.
Practical Example
A beer manufacturing company seeks to use the Nadler-Tushman model to diagnose the cause behind its reduced product output.
Step 1
First, it assembles personnel in key positions to form a general evaluation team. It then assigns different groups to evaluate its four components per the Nadler-Tushman model — Work, People, Structure, and Culture.
Step 2
It then seeks to assess the unity between the components:
People and Structure: It defines a chain of command that connects those in management positions to the workers on the factory floor. It assigns team leads and sets up communication channels.
People and Work: It gets feedback from the workers on their choice of changes to the floor layout and provides advanced equipment training for them.
People and Culture: It seeks ways to promote employee diversity and develops social welfare packages for its workers.
Culture and Work: It adopts standard practices on safety, fiscal proprietary, and workplace welfare.
Culture and Structure: It sets up in-house policy watchdogs to keep the organization aligned with its vision statement. It also sets up an ethics commission to look into the alcoholic content of its drinks.
Structure and Work: It audits its top management executives and their inputs in procuring machines and equipment at the factory yard.
Step 3
After establishing congruence between these four components, it devises a plan to align their interests and make them work seamlessly together. The result is a company with improved efficiency and productivity.
Advantages
It is a simple strategy as it does not necessarily demand expert input to plan or execute
It can identify the issues behind a system's lack of efficiency and productivity. It can diagnose the problem areas and flesh them out.
It provides a holistic approach to problem finding as it can be applied simultaneously or in isolation across different areas of corporate interest.
It establishes the importance of interaction and collaboration between different components and sectors in a business and can help build synergy.
It aims to develop the best possible working environment for a company to be productive.
Disadvantages
Its focus on the internal environment means that you may have to use complementary tools such as PESTLE to analyze the influence of external factors.
It could be too rigorous to be implemented by multi-corporations with large employee sizes and business units.
It does not explicitly define a means to integrate group dynamics into positions of managerial influence.
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