Organizational Design at iQmetrix: The Holacracy Decision SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Organizational Design at iQmetrix: The Holacracy Decision
Software development company iQmetrix Software Development Corporation (iQmetrix), headquartered in Vancouver, Canada, had enjoyed success and growth for over two decades. In July 2017, iQmetrix was confronted with the challenge of managing this growth while maintaining its organizational culture as a non-hierarchical, innovative, and open place to work-a place where the best ideas could come from anywhere and where people shared ideas openly and transparently with all. iQmetrix was considering the implementation of holacracy, an organizational design based on the fluid structuring of roles and teams and broadly shared leadership. As the company's five executives prepared to meet, they needed to consider whether the organization could adopt such a radical organizational form and whether this would foster the continued success of the firm.
Authors :: Chris Street, Ann C. Frost, Clayton Caswell
Swot Analysis of "Organizational Design at iQmetrix: The Holacracy Decision" written by Chris Street, Ann C. Frost, Clayton Caswell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Iqmetrix Holacracy facing as an external strategic factors. Some of the topics covered in Organizational Design at iQmetrix: The Holacracy Decision case study are - Strategic Management Strategies, Organizational structure and Organizational Development.
Some of the macro environment factors that can be used to understand the Organizational Design at iQmetrix: The Holacracy Decision casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, geopolitical disruptions, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%,
there is backlash against globalization, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Organizational Design at iQmetrix: The Holacracy Decision
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Organizational Design at iQmetrix: The Holacracy Decision case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Iqmetrix Holacracy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Iqmetrix Holacracy operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Organizational Design at iQmetrix: The Holacracy Decision can be done for the following purposes –
1. Strategic planning using facts provided in Organizational Design at iQmetrix: The Holacracy Decision case study
2. Improving business portfolio management of Iqmetrix Holacracy
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Iqmetrix Holacracy
Strengths Organizational Design at iQmetrix: The Holacracy Decision | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Iqmetrix Holacracy in Organizational Design at iQmetrix: The Holacracy Decision Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Iqmetrix Holacracy in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Iqmetrix Holacracy is one of the most innovative firm in sector. Manager in Organizational Design at iQmetrix: The Holacracy Decision Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Iqmetrix Holacracy is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Iqmetrix Holacracy in the sector have low bargaining power. Organizational Design at iQmetrix: The Holacracy Decision has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Iqmetrix Holacracy to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Iqmetrix Holacracy has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Iqmetrix Holacracy has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to recruit top talent
– Iqmetrix Holacracy is one of the leading recruiters in the industry. Managers in the Organizational Design at iQmetrix: The Holacracy Decision are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Iqmetrix Holacracy are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Effective Research and Development (R&D)
– Iqmetrix Holacracy has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Organizational Design at iQmetrix: The Holacracy Decision - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Organizational Design at iQmetrix: The Holacracy Decision Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Organizational Resilience of Iqmetrix Holacracy
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Iqmetrix Holacracy does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Iqmetrix Holacracy has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Iqmetrix Holacracy to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Iqmetrix Holacracy is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Chris Street, Ann C. Frost, Clayton Caswell can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses Organizational Design at iQmetrix: The Holacracy Decision | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Organizational Design at iQmetrix: The Holacracy Decision are -
Interest costs
– Compare to the competition, Iqmetrix Holacracy has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to strategic competitive environment developments
– As Organizational Design at iQmetrix: The Holacracy Decision HBR case study mentions - Iqmetrix Holacracy takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Capital Spending Reduction
– Even during the low interest decade, Iqmetrix Holacracy has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Organizational Design at iQmetrix: The Holacracy Decision, it seems that the employees of Iqmetrix Holacracy don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Low market penetration in new markets
– Outside its home market of Iqmetrix Holacracy, firm in the HBR case study Organizational Design at iQmetrix: The Holacracy Decision needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Iqmetrix Holacracy has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Iqmetrix Holacracy even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Organizational Design at iQmetrix: The Holacracy Decision, in the dynamic environment Iqmetrix Holacracy has struggled to respond to the nimble upstart competition. Iqmetrix Holacracy has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Organizational Design at iQmetrix: The Holacracy Decision HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Iqmetrix Holacracy has relatively successful track record of launching new products.
Lack of clear differentiation of Iqmetrix Holacracy products
– To increase the profitability and margins on the products, Iqmetrix Holacracy needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Organizational Design at iQmetrix: The Holacracy Decision that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Organizational Design at iQmetrix: The Holacracy Decision can leverage the sales team experience to cultivate customer relationships as Iqmetrix Holacracy is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Iqmetrix Holacracy needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Opportunities Organizational Design at iQmetrix: The Holacracy Decision | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Organizational Design at iQmetrix: The Holacracy Decision are -
Building a culture of innovation
– managers at Iqmetrix Holacracy can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Iqmetrix Holacracy to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Iqmetrix Holacracy to hire the very best people irrespective of their geographical location.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Iqmetrix Holacracy to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Iqmetrix Holacracy in the consumer business. Now Iqmetrix Holacracy can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Iqmetrix Holacracy can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Low interest rates
– Even though inflation is raising its head in most developed economies, Iqmetrix Holacracy can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Iqmetrix Holacracy is facing challenges because of the dominance of functional experts in the organization. Organizational Design at iQmetrix: The Holacracy Decision case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Leveraging digital technologies
– Iqmetrix Holacracy can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Creating value in data economy
– The success of analytics program of Iqmetrix Holacracy has opened avenues for new revenue streams for the organization in the industry. This can help Iqmetrix Holacracy to build a more holistic ecosystem as suggested in the Organizational Design at iQmetrix: The Holacracy Decision case study. Iqmetrix Holacracy can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Iqmetrix Holacracy can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Iqmetrix Holacracy can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Buying journey improvements
– Iqmetrix Holacracy can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Organizational Design at iQmetrix: The Holacracy Decision suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– Iqmetrix Holacracy can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Loyalty marketing
– Iqmetrix Holacracy has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Organizational Design at iQmetrix: The Holacracy Decision External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Organizational Design at iQmetrix: The Holacracy Decision are -
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Iqmetrix Holacracy can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Organizational Design at iQmetrix: The Holacracy Decision, Iqmetrix Holacracy may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Iqmetrix Holacracy in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Consumer confidence and its impact on Iqmetrix Holacracy demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing wage structure of Iqmetrix Holacracy
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Iqmetrix Holacracy.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Iqmetrix Holacracy can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Organizational Design at iQmetrix: The Holacracy Decision .
Stagnating economy with rate increase
– Iqmetrix Holacracy can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Iqmetrix Holacracy.
High dependence on third party suppliers
– Iqmetrix Holacracy high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Iqmetrix Holacracy will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Iqmetrix Holacracy business can come under increasing regulations regarding data privacy, data security, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Iqmetrix Holacracy in the Organizational Development sector and impact the bottomline of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Iqmetrix Holacracy needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Organizational Design at iQmetrix: The Holacracy Decision Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Organizational Design at iQmetrix: The Holacracy Decision needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Organizational Design at iQmetrix: The Holacracy Decision is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Organizational Design at iQmetrix: The Holacracy Decision is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Organizational Design at iQmetrix: The Holacracy Decision is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Iqmetrix Holacracy needs to make to build a sustainable competitive advantage.
