Introduction
The practical analysis of any organization is a key to its enhanced functioning and the ability to resolve the problems it currently faces. For this reason, numerous management tools and approaches are focused on identifying the current issues and factors that may impact the company and its opportunities for development. Furthermore, the transformation process of any unit begins with understanding the issues preventing it from growth and their analysis.
It will be helpful to construct a strategy that considers all existing drawbacks, eliminates them, and establishes the basis for further evolution and development. By utilizing primary analysis tools and models, it is possible to analyze the work of the Saudi Telecommunication Company (identify key factors affecting its operations, outline potential prospects, etc.) and establish the basis for further evolution and development. By applying the Organizational Congruence Model and other relevant approaches, it is possible to gain a deeper understanding of the company and identify the necessary changes.
Organization and the Need for Change
Thus, STC is currently the leading company in the Kingdom, with outstanding perspectives for development and stable growth. The organization offers mobile and data services, as well as cloud computing solutions, which are gaining popularity. Following the recent financial statement, STC continues to increase its revenue and global presence, which is key to its future success (STC, 2022).
According to its annual report, in 2022, the company remained profitable and diversified the number of services offered to people in the country and globally (STC, 2022). Furthermore, it plans to invest more than 1$ billion in the further digital transformation of the country, which indicates the scope of its activity and the importance of its work for the country and region. At the same time, the company’s work should be examined using Nadler and Tushman’s congruence model to identify areas that require change, thereby laying the groundwork for future improvement.
Thus, the model suggests that the transformation process encompasses several specific elements that should be considered. These include informal organizations, formal organizations, people, and work (Deszca et al., 2020). These aspects are typically linked to the company’s strategy and the external environment, which can be analyzed using PESTEL and similar tools, as well as input and available resources (Tushman & Nadler, 1986).
Thus, analyzing the current STC’s functioning, it is possible to admit that its strategy aligns with the external environment as the company succeeds and evolves (STC, 2022). However, the problem of limited client numbers arises as the low number of unengaged clients persists (STC, 2022). For this reason, the company should either penetrate new markets or diversify the services it offers to ensure clients are willing to pay and generate revenue. It stems from the idea that any organization should be able to create new capabilities in response to environmental change (Syamsuri et al., 2019). In this way, following the congruence model, the work to be done, formal structures, and other elements should be adjusted.
Necessary Changes
Thus, work refers to the central tasks an organization should perform as part of its strategy. For STC, the current approach to this factor is practical; however, to guarantee further growth, a change in the number of services and their delivery is required. It may also impact formal structures, as new departments responsible for the new offerings may be introduced (Deszca et al., 2020). It will require organizational change at the highest levels, and the CEO and top managers should act as the facilitators of change by cultivating new approaches and establishing new relations within departments (Deszca et al., 2020). The existing service system should also be reconsidered to add more diversity and include innovative technologies and offerings (Luo & Y, 2022). It would lead to increased demand and higher revenues.
Finally, working with people as the central figures of change is essential. It will cultivate awareness of the need for successful transformation and ensure it is attained (Hubbart, 2023). It also requires improving the informal organization, or the culture within the company, to create the idea of achievement and diversity as the core component of future success. This step opens the door to new practices that are appropriate for the desired transformation. These actions might help STC generate additional profit and remain competitive.
Limitations of the Congruence Model
In this way, the congruence model mentioned above is a powerful tool for investigating the organization’s work. It also acknowledges the role of congruence between organizational components and helps cultivate effective behavior patterns (Errida & Lotfi, 2021). However, the framework might also miss some crucial aspects that should be considered regarding the organization’s development.
First, it focuses on the internal environment of the company and the aspects that might impact its performance. At the same time, external factors and the need to adapt to them may remain underresearched (Deszca et al., 2020). At the same time, external factors significantly impact the organization’s work, making it essential to develop strategies based on this information (Luo & Y, 2022). For this reason, additional tools such as PESTLE should be employed. For STC, external factors are critical, as the company focuses on growth and experiences issues due to the limited number of potential clients who can help generate additional income. For this reason, it is essential to utilize additional tools and models that can help fill this gap and prevent mistakes in planning.
Sterman’s System Dynamics Model
Sterman’s system dynamics model can be considered another framework for analyzing the company’s work and initiating its transformation. The paradigm centers on the interplay of dynamic forces within the environment, managerial decisions, and actions taken by other actors (Deszca et al., 2020). This implies that managers should consider the dynamic nature of variables impacting an organization’s work when planning their decisions and designing strategies for future development (Deszca et al., 2020). Moreover, Sterman’s model emphasizes the importance of double and triple-loop learning, or the analysis of current data and possibilities associated with it (Sterman, 2002). As a result, the model may help focus attention on areas missed when applying the congruence model.
Regarding STC, applying the aforementioned paradigm facilitates the acquisition of specific information. First, the organization’s problem of the lack of clients can be considered a side effect of decisions made regarding the current goals (Sterman, 2002). The company’s vision entails expanding its client base to cover most of the state’s territory (STC, 2022). Thus, the given decision led to speedy growth, but with a lack of opportunities for finding new markets or customers. In this way, the peculiarities of the environment and the actions of other companies necessitate additional investigation to consider opportunities for further growth and new achievements.
Conclusion
Altogether, the effective management and transformation of an organization are complex issues. It requires collecting data about the current state of the company to plan a change and ensure it has a positive impact. For this reason, using various models is crucial for achieving desired goals and laying the groundwork for future evolution. Using the example of STC, it is evident that applying Nadler and Tushman’s congruence model can be a beneficial way to analyze the organization’s work and identify areas that require change. However, the model may have some limitations, suggesting that other tools should be considered.
References
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STC. (2022). Driving digitalization. Annual report 2022.
Sterman, J. (2002). System dynamics modeling: Tools for learning in a complex world. IEEE Engineering Management Review, 43, 8-25.
Syamsuri, R., Halim, A., & Sarkum, S. (2019). Organizational transformation: A review of the literature. International Journal of Scientific & Technology Research, 8(8), 688-693.
Tushman, M., & Nadler, D. (1986). Organizing for innovation. California Management Review, 28(3), 74–92.