The document provides information on developmental phases and interventions for organizations to progress from having an external locus of control to a more internalized locus of control. It outlines 12 phases of development with 3 sentences describing the focus and recommended interventions for each phase. The initial phases focus on disconnecting sources of dominance and empowering the organization. Later phases encourage developing a sense of personal control through activities, championing of internal locus of control, and self-development programs. The final phases aim to stabilize personal control and create champions to role model internalized locus of control.

1. Organization Dynamic Zone Overall Score
mckbdemo Emotion Comfort Zone 3
Stage Stress Vs Personal Power and Morale Attitude
Stimulation Control Influence
Leadership(11)
Sustainable Comp. Advantage(10)
Competitive Advantage(9)
Sustainable Competitiveness(8)
Competitiveness(7)
Organizational Learning(6)
Organizational Change(5) 5
Destabalisation(4) 4 4
Stabalisation(3)
Critical Divergence(2)
Critical Dependence(1)
Insulation((N) P) 1 1
Inertia(0)
Black Hole((-N) P)
Construct: Stress Vs Stimulation
Diagnostic Result: Your organization has been diagnosed as operating at Stage4
Developmental Programme: Sustainable Development begins with Phase1B
Phase 1B
Disconnection
INTERVENTIONS: Engage in the most practical possible disconnect from the source(s) of Stress
RATIONALE: If the levels of stress in the organization are such that they pose a threat to or are draining the system, then a
more accurate diagnosis of the cause must be made and it must be disconnected from the system. This may be the work of an
independent professional. The term disconnect is loaded as it may not be possible to remove your only customer if they are
causing stress, but there must at least be a collective emotional disconnect which means not letting the demeaning aspects of
the situation get to people. There must be a cognitive disconnect also for the system, insofar as management must begin
searching for alternative customers. This phase ends when stress is either so contained or removed, or a believable
commitment is given by management to replace the stressor in the system (e.g., new customers).
Phase 1A
Incubation
INTERVENTIONS: Devise a vision of a stimulating environment, together with a plan to achieve it
RATIONALE: Once the sources of stress have been removed, this phase begins with commitment to remove resultant stress from
the system, and ends with a vision of an achievable stimulating environment together with a plan to achieve it by negotiating
the above phases. If the erstwhile source of the stress is understood, this re-generative activity can be planned and possibly
carried out without outside assistance depending on scale effects. The programme must obviously encompass a host of critical
constructs and involve all of the key people.
Phase 1
Critical Dependency
INTERVENTIONS: Turnaround Event and/or signal leadership input, Engagement of a Stress-Management Counsellor and
instigation of an Employee Assistance Programme
RATIONALE: If the burnout or over-stressed nature has been or is so chronic and/or is restraining growth, then the organisation
needs to take guidance from a trusted source and unite in a recovery programme. In order to build confidence and self-belief,
the phase-by-phase format of the Holignment programme is most appropriate. It may be necessary to do something
extraordinary to ignite the people and breathe life back into the organisation. A rush of feel-good may be required, and this
would be different across different situations: it may range from a corporate night out or week-end away to authorizing
individual-level treats, but the leader should be involved. It is very important that the gesture is not seen as a reward, and that
it is clearly packaged as a morale or team-building exercise that should lift spirits, and that there are expectations around full
involvement in recovery. Any sense that the gesture could be a reward for anything including loyalty, is self-defeating, as only
performance should receive reward. Obviously, someone needs to “be there” for people – this may be the leader for some
managers, but it is possible that a Stress-Management Professional needs to be engaged. The emphasis at this stage is
generating trust between the organization and its people. An Employee Assistance Programme (EAP) should also be considered.

2. Phase 2
Critical Divergence
INTERVENTIONS: Information-rich stimulation programme
RATIONALE: in this phase, the organisation needs stimulation and a systemic reawakening of personal capacity to act.
Personalisations of work-spaces, sports and social activities, incentives, etc. can be used. Variety is a key factor at this stage.
Any sense that the organisation is setting into a pattern is highly dangerous. This should be an information-rich time for the
organisation. It is the stage when people need to hear of a range of successful or potentially successful efforts of people in the
organization or in any case there should be excitement in the organisation. Variety of work or projects should be a function of
organisation development if the organisation overall is at this stage, so people should also get the sense that there are varieties
of opportunities or challenges at this time. Naturally, this period must be time-framed, as disillusionment from the perception of
misinformation, or physical fatigue from over-commitment will ensue. Another dimension of divergence, is for all management
to take a lead in being seen to act to reduce stress, and to give constructive re-enforcement, albeit perhaps on a fire-fighting
basis at this stage, but also perhaps under the coaching of a professional.
Phase 3
Stabilization
INTERVENTIONS: Install a Stress Management Programme; Time-frame organizational progress through any concurrent
strategic decision-making phase
RATIONALE: The people need a sense of the formation of a stable platform from which the organisation can re-shape itself. It is
important to on-board people with developments through workshops, communications, etc. Projects need to be analysed for
stress/return payback, and workload needs to be trimmed or resourced to what the organisation can sustain. In other words, a
stress-management programme needs to be installed that addresses all the system from resource allocation to reward
management and customer feedback. If stress is at this level, then it is likely that the organization is also at a deciding phase in
its strategic development. Again, time-framing is important as this is the level that is known in its chronic nature as the comfort
zone, so no patterns should emerge at this stage that it is alright for management to over-analyse – choices should be made
efficiently and with the widest information input, and people need to see this in action – and be assured that the time of taking
stock is being well used.
Phase 4
Destabilization
INTERVENTIONS: Resource and/or Pilot people with potential to champion a more assertive behaviour in line with organizational
strategy
RATIONALE: This is the phase of re-shaping and pre-framing the shift from stress to stimulation. People need to see that
initiative is rewarded and that the organisation is picking up on suggestions throughout the system. This is the beginning of the
involvement in a growth pattern, and the people must be fully engaged through good communications procedures. If they are
not engaged at this emergent period, they will descend into resentment and back-footedness into the Comfort Zone. Training
and Development needs to address discarding emotional baggage (collective and personal) and skill and position champions for
assertiveness.
Phase 5
Strategic Change
INTERVENTIONS: Basic organization-wide Performance Management Processes and Procedures, excellent Interpersonal and
Intrapersonal Skilling, and begin to embed Life-long Learning Culture
RATIONALE: This is the phase of systemic move from stress to stimulation. Given that emotional baggage is removed,
leadership and management are on board, champions are in place and people are skilled, everyone needs to be put under some
pressure to perform, given that growth is possible and presented in a visionary framework. This construct contributes to Early
Learning through the establishment and agreement of roles for people, and performance management that caters for goals,
rewards and trusted appraisal. Interpersonal Skilling needs to occur around communicating and teamwork; Intrapersonal
Skilling re. time-management, and goal-setting, etc. Full Change-Management Protocols should apply, and personal stimulation
from leadership is critical through this phase. The embedding of Life-Long learning should begin with the above in place.
Phase 6
Org’al Learning
INTERVENTIONS: Assertiveness Programme and high-involvement Goal-Setting Training, Competitive Performance-Mgt.
Constructs
RATIONALE: This phase is about systematizing the successes of the early learning or change phase. It consolidates stimulation
instead of stress. Highest-level training is introduced both technically and around Goal Achievement. Performance-management
constructs need to operate are competitive levels (the level above this) in order to provide sustainable change (systemic
learning) in stimulation.

3. Phase 7
Competitiveness
INTERVENTIONS: Align behaviours with strategic needs of the organization through role-building, leadership, reward etc.
operating at phase 8 and ensure excellence in embedding customer-care culture
RATIONALE: An organization (like a sports team or any human system) can be described as competitively stimulated when its
performance is as good as it can be when measured by 1) existing results-based parameters around endeavours that have
emerged as strategically viable and contributing to organizational competitiveness and 2) the degree to which the expectations
of internal and external customers are exceeded. People are performing and adapting as well as they can by existing
benchmarks. If all of the training and systems are in place, stimulation is a matter of role-definition, leadership, multi-
dimensional reward, etc. These constructs need to be operating at the next phase for this phase of stimulation to take hold.
However, the customer-care excellence culture must be lived for people’s stimulation to traverse this phase, so excellence in its
embeddedness is important.
Phase 8
Sustainable Competitivenes
INTERVENTIONS: Ensure Systemic Connectedness for everyone from Environmental Scanning to task-force activities
RATIONALE: Given that people are operating competitively, the objective of this phase is to ensure that people are resourced
(intellectually, monetarily, emotionally, etc.) to the highest levels to continue such performance of their roles. Feedback loops
are vital so that success is systematised through procedures that are constantly updated, so that as much uncertainty is
removed from work patterns as possible. Connectedness is key, and people are resourced to connect with whoever is of use
both internally and externally. Rewards are also attached to contributions to competitiveness.
Phase 9
Competitive Adv.
INTERVENTIONS: Ensure an alignment of critical related organizational constructs to achieving Competitive Advantage and
facilitate creativity and self-expression
RATIONALE: Again, the process of stimulating people to competitive-advantage levels is a matter of other constructs operating
at this or higher levels. People are creatively stimulated by advanced product, reward systems, worthy goals, effective
leadership and management, with stimulating environment, and a worthy organization in general. Critically, stimulation yields
competitive advantage when people engage at the level of Self-Expression – in other words resolving issues on their own
empowered initiative, though again, this is contingent on the organization operating at such levels on critical constructs.
Phase 10
Sustained CA
INTERVENTIONS: Systematise creative input from all around the system and align organizational constructs to the sustainability
of Competitive Advantage
RATIONALE: The stimulation needs to operate now on a systemic basis. This means that input from everyone from customer
and supplier to all staff and leadership is processed systematically and with energy to keep the organization in anticipatory
mode.
Also, stimulation is an emergent property of a whole range of critical constructs, so they need to be maintained at this or higher
levels.
It is stimulation in particular, that suffers if critical constructs degrade and operate at lower levels or loose vitality. The building,
themed decor, etc. need to re-enforce responsible creativity.
It is important also, that the motivational framework is now driven by success and in particular at generating and sustaining
novel product and/or solutions. People are motivated by the feelings associated with being successful and carrying responsibility
for progress within their field, both within and outside the organization and feedback of this energy should be systematized.

4. Phase 11
Holignment
INTERVENTIONS: Generate and Maintain a culture of moral authority and Leadership
RATIONALE: People are stimulated at this level by the degree of leadership that they have earned the right to represent both
within and outside the organization. This involves generating and maintaining a culture of Moral Authority which appeals to the
highest levels of stimulation, that should, in the main, be emergent from the developmental patterns of the Holignment
framework. The key people should also give leadership in the broader environment that is mutually beneficial to the
organization and the macro system, and not contrary to internalised standards of moral leadership, while projecting a stimulating
and constructive approach. It is also important that such connectedness generates opportunities for the organization. This
means that there is always a (subtle) hustle agenda to stimulating connectedness in the macro-environment. To lose this edge
at these levels of functioning is dangerous for the organization. Ideally, giving such leadership in the macro-environment is a
function for all people of the organization.
Phase 12
Sustained Leadership
INTERVENTIONS: Re-invigorate the phases of organizational stimulation on a cyclical basis
RATIONALE: Re-invigorating the phases means that you ensure that the organization is rid of chronic stressors, revitalise a
worthy vision for resolving stressful issues, re-enforce trustworthy stimulating leadership and management, as well as
comradery. Maintain good stress-management programmes, training in assertiveness. Monitor results for sustained competitive
performance, and attend to those short of expectations. Re-invigorate all creative processes to be the stimulating personal
engagements that they should be, and ensure systematic connectedness that people give leadership in the sector and in the
broader world. Also, maintain mission-critical constructs at the highest levels, because stimulation is also an emergent product
of systemic functioning.

5. Construct: Personal Control
Diagnostic Result: Your organization has been diagnosed as operating at Stage1
Developmental Programme: Sustainable Development begins with Phase1B
Phase 1B
Disconnection
INTERVENTIONS: Disconnect the source of dominance
RATIONALE: If people feel that power is held over them such that it is a threat to or is damaging the organization, the effect
on morale is unequivocally detrimental and the source must be isolated and disconnected if the organization is to achieve any
movement up the growth curve. If the source is a key person or leader, then the disconnect may be a disconnect from
offensive behavioural patterns, but a line must be drawn and the phase ends when a commitment is reached to begin the
process of empowering the organization. If the effect is cause by a leader, or even a leading person, this should be the work
of a professional outsider.
Phase 1A
Incubation
INTERVENTIONS: Generate and win commitment to an empowerment programme
RATIONALE: This phase begins with a commitment to empower the organization and ends when that has a vision that is
clearly desired by all key people, and there is a plan to achieve it. If there has been some disconnect in preparation for this
phase, then the independent consultant should continue to drive the process through this phase which ends when the
leadership takes accountability for empowerment in the organization.
Phase 1
Critical Dependency
INTERVENTIONS: A trustworthy Leader takes accountability for an empowerment programme
RATIONALE: In the event where people as a collective, feel that control over some fundamental part of their lives has moved
beyond their influence, a sense and pattern of control must be adopted from an outside source. Someone must give them a
sense of their value and purpose in what they do, and a sense of being willing to take the same journey to better times.
Better still if this person has made such a journey themselves and generates a sense of trust in relation to maturity,
competence, and will.
Phase 2
Critical Divergence
INTERVENTIONS: Visits to suitable internal LOC organizations, and/or visits by people who can recount experience of a more
internalised LOC culture; recruit people of more internalised LOC, to act as stimulation to others, etc. Key People champion
ILOC
RATIONALE: If there has been a period when people yielded their sense of control to a primary source of energy such as a
leader, it is vital that they must be now enabled to test reality under their own initiative. It may be too early in the system’s
development to undertake serious personal development initiatives, so the energy is still coming from the leader. Therefore,
there must be diligence instilled into the organisation. Hopefully, the leader has earned the right to push people into
undertakings that might be considered risky, and the vision must be clearly championed when looking for such effort.
Furthermore, this stage must be time-framed, or people will lose faith or suffer burnout.
Disciplinary procedures must be raised in awareness if there is dissent, but this is not a stage for micro-marshalling except in
mission-critical areas. It is important at some level that key people take on the responsibility from the leader of championing
ILOC
Phase 3
Stabilization
INTERVERNTIONS: Self-Development around Choice; anti-Externalized LOC programme, etc.
RATIONALE: It is vital that the organisation begin to give people a sense of control over their own destiny. Activities must be
brought within manageable levels. People must be aware that management are working towards both the organisation’s and
their own long-run interests. Some basic levels of personal-development programmes may be initiated around choice as a
significant basis of Self-Development, and in particular this should be championed by leadership and management who have
already undertaken the programme. People must become relaxed into performing in a regulated environment that seeks to
end bullying and other externalised-LOC-related maladaptive behaviour, and restore people’s rights.

6. Phase 4
Destabilization
INTERVENTIONS: Create champions of Internalised Locus of Control (ILOC)
RATIONALE: Some people will show capacity for personal initiative. These must be carefully vetted and those who are
considered worthy must be supported in leadership roles on projects. People must be meritocratically assigned to projects
that best serve mutual interests. Personal development should focus on goal-setting that should be implemented. For many
constructs this phase includes piloting and this may be useful for LOC also.
Phase 5
Strategic Change
INTERVENTIONS: Complete a General Personal Skills and Assertiveness Programme
RATIONALE: Everybody must be challenged and trained to take personal responsibility. Those who do not respond favourably
must be removed from the system The term removal from the system is more loaded than referring to simple dismissal. The
dismissal should be such that encounters between the removed and staff outside of the organisational functioning will not
undermine internalisation. This means that long-run people are brought ina constructive manner to legitimately feel
psychologically differentiated from those who will leave. Goal-setting becomes mutually important. Personal-development
should move to developing general personal skills such as team-work, leadership, presenting, etc.
Phase 6
Org’al Learning
INTERVENTIONS: Complete Role-Focused Specialised Personal Development; High-Involvement Performance Management
Processes and Procedures
RATIONALE: Organizational Learning for this construct means that because of what the organization is doing, everyone
internalises change to a responsible and effective constructive attitude for congruent benefit that is measured within the
organization as efficient performance.
Coaching is the management mode most suitable for the transition in behaviour. Watch for people taking advantage of
volatility. This is the time to push for real change in behaviour, and assertion of personal involvement, and this must be
facilitated by communications policy. Skilling for Personal Development must become more specialised to the tasks at
individual level that are strategic to driving the long-run fortunes of the organisation. To increase a sense of ownership of
goals, etc., involvement should be high in Performance-Management processes and procedures. This phase ends when
efficiencies allow managers to pull out of operations and focus on the competitive performance management of the next phase.
Phase 7
Competitiveness
INTERVENTIONS: Install the Core Value of “Responsibility” is systemically and personalise goals and success feedback
RATIONALE: Internal Locus Of Control behaviour is insisted upon at all levels and activities so that it has become internalised.
Responsibility is highlighted as a core value and reinforced in management behaviour, culture, images, etc. Personal
development moves to higher-values issues. Use the empowerment emphasis to attract the best people. Give feedback that
associates success with personal performance (rather than luck or situational factors). Personalising stretch goals is
important.
Phase 8
Sustainable Competitivenes
INTERVENTIONS: Proceduralize systemic empowerment
RATIONALE: Proceduralizing systemic empowerment means e.g., Messaging that champions assertiveness, communications-
cycles that engage everyone and respond to everyone, performance management that has a clear win-win focus, self-
development training is ad-lib, etc. People are encouraged to show leadership in their fields and make presentations rather
than leaving it to their managers, etc. Ground rules for meetings and all procedures systemically and explicitly reinforce good
LOC. Communications procedures must be such that every person feels that their voice is picked up in a transparent manner.

7. Phase 9
Competitive Adv.
INTERVENTIONS: Train, empower, resource and reward Creativity and Self Expression
RATIONALE: This is the phase to move to individualisation and the leverage of engagement with people as self-expressing
people. For the organization this is not signalled by just taking responsibility for high performance and creativity, but for
recognising potential problems and leading to their resolution. The person is trained in personal creativity in the broadest
sense of the word. Each individual is encouraged to explore locus of control in their lives so that an individualised style will
emerge, and the organisation will reverberate with focused self-expression that will render it creative in dealing with
challenges and uncovering and harnessing opportunities. Reward is related to effects of behaviours at this level. This phase
ends when people can realistically feed this energy into creative structures such as Self-Directed Teams, Task Forces,
Continuous Improvement schemes, Brainstorming, etc.
Phase 10
Sustained CA
INTERVENTIONS: Systemise processes and procedures around responsible Self-Expression
RATIONALE: This is the stage for the organization to systemise around the highest levels of internalisation of LOC, and Self-
Expression, as well as Responsibility – hence maintaining the required balance between Discipline (Quality) and Creativity or
collective self-energised strategic progress. All Processes such as Meetings, task-force involvement, etc., should be evaluated
for Responsible Self-Expression, and performance-management procedures aligned accordingly, etc. This phase ends when
people have participated well in creative structures such as Self-Directed Teams, Task Forces, Continuous Improvement
schemes, Brainstorming, etc.
Phase 11
Holignment
INTERVENTIONS: Position the organization’s people and the organization itself as champions of human-rights or humanist
values internally and externally
RATIONALE: People are presented as role models to new recruits and in any related community activities such as personal or
business / entrepreneurial growth programmes in which the organisation is involved. This is the highest level of reinforcement
of LOC. Each individual is a champion of the organisation, and much work is done on aligning personal and organisational
values and purpose. Depending on the scope of the organization, it should champion empowerment and human rights in the
broader world, thereby gaining integrity within the organization and throughout the macro-system.
Phase 12
Sustained Leadership
INTERVENTIONS: Re-invigorate the phases on a cyclical basis, to sustain empowerment at the individual level throughout the
organization
RATIONALE: Ensure that antagonistic elements are disconnected from the organization – this means that people with High-
Dominance needs are not employed, etc.; that the leader and key people champion empowerment, that people are familiarised
reasonably regularly with the value of empowerment, that the systems function as best in class, use the established
empowerment to attract people with High-Achievement needs, facilitate Self-Expression and empower structures such as Self-
Directed Teams, associate product with empowerment and be seen to effect some leadership of empowerment and human
rights in the broader world.

8. Construct: Power and Influence
Diagnostic Result: Your organization has been diagnosed as operating at Stage1
Developmental Programme: Sustainable Development begins with Phase1B
Phase 1B
Disconnection
INTERVENTIONS: Diagnose and disconnect from source of damaging power
RATIONALE: If the use and experience of power is such that it is damaging or a threat to the organization, then the source of
this effect must be found and disconnected. This may be a behavioural disconnect if the source is a leading person, but a line
must be drawn on such behaviour, and a commitment made to progressive change. If the source is a leading person, this is
the work of an independent and qualified professional. If it is a customer effect, then a commitment must be made to seek
alternative product outlets, as dominance like this will not allow growth for the organization. If it is a financier effect, then
alternative financing will have to be arranged that is supportive of a long-run plan to sustainable competitive advantage.
Phase 1A
Incubation
INTERVENTIONS: Workshop(s) on generating an organization generating positive internal and external influence
RATIONALE: Depending on the degree of negative effect that maladaptive power has had, and where it came from, this phase
may require the direction of a qualified professional outsider. It begins with a group of key people whose power effects range
from neutral to positive. It ends with these people signing up to bringing to fruition a vision of an organization that earns the
right to exude positive power and influence internally and externally. Some training for key people should be incorporated into
the related workshop(s).
Phase 1
Critical Dependency
INTERVENTIONS: Leader asserts Authority
RATIONALE: People must rally behind a source of inspiration – typically a suitable individual, but an agreed plan or vision can
also lend a sense of power within a disenfranchised organisation. The organization must go through a short-run period of
strong leadership to realise that power rests with the leader as well as accountability and responsibility. If the person has
earned the right through generating trust for reasons related to skills, past performance, relationships, etc., this should be a
foundation period for the organization. If the person then applies drive and openness that growth will be dynamic and
sustainable. Particularly if the organization is in crisis, authority must rest with a simple decision-making device, and as the
situation improves, the next phase of delegation must be seen to begin.
Phase 2
Critical Divergence
INTERVENTIONS: Power and Responsibility is delegated to managers
RATIONALE: Power must eventually be dissipated throughout the structure, and this phase is about delegating it to managers.
These people must be trained in general and specific use of power as expeditiously as possible, because they too must assert
their authority and then begin to champion empowerment. This phase can be referred to as the phase of Positional Power,
because power rests with someone in proportion to the position they hold in the organization. The dissipation will cause some
chaotic effects. Obviously, while power and responsibility are delegated, accountability for the organization and its
performance remains with the Leader. It is important that the leader enters into a coaching relationship with the managers,
and does not allow bad power to antagonise organizational progress, and removes antagonists if necessary.
Phase 3
Stabilization
INTERVENTIONS: Build comradery and assess the use of power
RATIONALE: As long as the organisation is performing (albeit under an autocratic positioning of power) it must enter a period
of stabilization. This may mean that some comradery building is done, which should ideally be done around achievement of
some strategic success. The emphasis is on socialization so a large-group event such as a night out with some presentations
could be appropriate. This phase is also typically about taking stock, so the use of power must be assessed objectively.

9. Phase 4
Destabilization
INTERVENTIONS: Implement findings of assessment and position replacements
RATIONALE: This phase is typically about implementing findings of assessments and challenging those who show potential.
Those who have used power inappropriately must be relieved of their privilege if caused by unsuitability, or removed from the
organization if caused by malice. The general population receives general training related to assertiveness etc. The
organisation must encourage the success of those who have used their power in the organisation’s best interests and shown
good return for their efforts. The organisation must bring a cultural definition to the role of power before expanding the power
base again. Specific training around power and influence with respect and purpose is introduced to everybody.
Phase 5
Strategic Change
INTERVENTIONS: Bring Key People into the Influence network and train everyone in Power and Influence
RATIONALE: The initial phase of organizational learning is about people changing and the next phase is about the organization
taking hold of the successful dimensions of that change. The organization moves into learning mode when power begins to be
more accurately described as influence and is seen to move from positional power that has been tempered with good relations
to people who can do what the organization needs to be done. This is called Expert Power. It is also important that the
organization has champions distributed throughout the organization. These are referred to as Key People or Leverage People
who through their street credibility in their area can influence their peers. In preparation for further dissipation of power, the
leader and managers must role-model the correct use of power. Everyone should receive training in Power and Influence.
Phase 6
Org’al Learning
INTERVENTIONS: Systematise those elements that effected sustainable adaptive change to an Expert-Influence Distribution
RATIONALE: The organization learns by taking hold of successful change. This means systematising what has proved effective
in bringing change. E.g., the best training course on Power and Influence is installed in the T&D programme; the involvement
of Key People is regularized; promotion criteria are established; reward mechanisms are proceduralized; etc. Management
performance is measured according to efficiencies, and effectiveness is shaped accordingly.
Phase 7
Competitiveness
INTERVENTIONS: Extend Expert Influence to marketing and interactions between everyone and the marketplace
RATIONALE: Although not exclusively so, but in terms of sustainable growth, all phases up to now have been primarily about
shaping internal power and influence. This phase is about extending what has succeeded to this level with the internal
customer, in order for the organization to succeed in a sustainable manner with the external customer. This means that
expert power and influence now guides organizational progress in the marketplace. Management and strategic processes
integrate intelligence, while marketing people effect sales, both in a manner that reflects relationship and rational dimensions
of the purchase choice in answering external demand as it has answered internal demand. Internally, given that sufficient
training has occurred effectively, everyone is empowered to respond to organizational needs as perceived from their roles
whether in relation to market success or internal efficiency.
Phase 8
Sustainable Competitivenes
INTERVENTIONS: Bring all relationships into supportive level of operating, and enshrine empowerment
RATIONALE: Sustained competitiveness is typically a phase of systematizing what has been successful in furthering
competitiveness. Beyond that this phase encompasses moves to establish external and internal positioning to protect
competitive positioning and as a foundation for the next level of operating – competitive advantage. For example, externally,
the market position of the organization is systematically monitored and adjusted until its competitiveness is sustained. All
external relationships (suppliers, financiers, etc.) need to have been brought into positions where they are at a level of
operating that is directly supportive of organizational progress (rather than the domineering power effects of earlier stages, or
promissory of later stages). In other words, profitability is such the relationships with financiers are that they would be happy
to fund developments that the organization are positioning to achieve competitive advantage. Internally, the stage is reached
where empowerment is automatic and taken for granted and staff and management are assessed for this effect. In other
words it has a cultural and values-based significance. If a person has a wish in the organisation’s interest they have the
licence (as well as the support of process and procedure) to further that wish along the appropriate and stress-free path to
fruition.

10. Phase 9
Competitive Adv.
INTERVENTIONS: Create a full-system extension of power that empowers people to Self-Expression; generate a culture
scoring at Stage 9 or better to attract and retain the best people; and generate new market awareness of the competitive
advantage of the product
RATIONALE: The power that yields competitive advantage is twofold in nature: externally it is that of leading expert power
influencing the market and the organization’s product performance in the marketplace; internally, it is systemic empowerment
to apply responsible creativity. Internally, this phase is about the full-system dissipation of power and this is expressed by
Empowerment in a human system. It is realised in Self-expression, and role design and reward will reinforce the demand that
everybody contributes both creatively and towards solving problems. Again, the leader and management retain responsibility
for results, but the power to activate what is required to achieve those results is dissipated to all roles in the organization.
Because creativity is a social exercise, power is a matter of political skills in networking and involving the right level of people
to yield competitive advantage. It is obvious that power moves from the blunt coercive or positional power of lower levels to
the power of persuasion at these levels. This power to attract cutting edge people in a sustainable manner depends on the
leverage your culture has achieved in the labour market, and how attractive an organizational environment you offer to
leading people. This is an emergent quality of the organization operating at this level and higher.
Phase 10
Sustained CA
INTERVENTIONS: Systemise power and influence
RATIONALE: Sustainable CA is a matter of operating internal and external process at this level. Internally the organization
must come through on rewarding people for contributions to competitive advantage that motivate continuance; cultural
advances in support systems; etc. Power is given to R&D and the Self is championed as a vital leverage for success. Power is
also moved from personality (which is prone to bias) to systems. E.g., the dilemmas of strategic choice are managed through
tools like portfolio management. The power of the organization becomes its ability to manage complex structures and
relationships with members, e.g., systemic networking and complex organizational structures. Given the systemic and
personalised levels of empowerment that are reached, the organisation should have no difficulty in aligning its power
structures to its strategic will or intent.
Externally, those like suppliers, who traditionally might be positioned as adversaries are engaged as partners who are drawn to
the advantages of sharing to some degree, sustainable returns from the organization’s competitive advantage.
Phase 11
Holignment
INTERVENTIONS: Be seen to use the macro-positional power of sectoral leadership to steer the sector in mutually beneficial
and worthy directions
RATIONALE: Power is one of the most transformational constructs, because the move now completes from being coerced in
the lower levels to leading the sector and beyond by higher-level functioning related to expert power, networking power,
politcal power, leadership power, and to a certain degree positional power – leveraging the market position of the organization
and its products. The goal of that power is to lead the market and as much of the macro-environment as possible in mutually
beneficial and worthy directions.
Phase 12
Sustained Leadership
INTERVENTIONS: Re-invigorate empowerment throughout the organization by energising the phases on a cyclical basis
RATIONALE: Protect the use of power by the organization both internally and externally. Protect the construct by revitalizing
its phases on an ongoing basis. With vigilance, rid the organization of effects that would coerce the direction of the system or
exert antagonistic influence on staff; re-examine that direction in regular workshops; examine leader performance and the
efficacy of delegation; take feedback on the comradery of relationships and how they are challenged; re-skill in influencing;
revitalise the processes and procedures of external influence that support competitiveness and competitive advantage; and
the use of visible influential leadership in the broader environment.

11. Construct: Morale
Diagnostic Result: Your organization has been diagnosed as operating at Stage4
Developmental Programme: Sustainable Development begins with Phase1B
Phase 1B
Disconnection
INTERVENTIONS: Disconnect the source of antagonism and win commitment to growth from a critical mass of key people
RATIONALE: If morale is so low that it is damaging the organization or is even a threat to its survival, then the cause needs to
be identified and disconnected from the system. At the very least, this must be done on an emotional level; e.g., if the cause
is a critical customer, then management need to make a commitment to staff that they will source alternative outlets in a
reasonable time frame and that the damaging relationship will be short-term. In this way, people can live with the discomfort
in the short-run. If the cause is feared to be internal, then even the diagnostic process should probably be the work of a
qualified independent outsider. This phase ends when enough critical people are committed to correcting this situation.
Phase 1A
Incubation
INTERVENTIONS: Devise a plan to achieve a high-morale organization
RATIONALE: This phase begins with a group of key people committed to generating a growth organization, and ends when a
vision of a high-morale organization and a strategic path to achieve it. If there has been an internal disconnect from a source
of antagonism, this phase may well benefit from the team-building skills of a qualified independent outsider. Although morale
is often seen as emergent of performance and growth effects, at these levels, it needs singular attention, and organizational
strategy needs to factor in a morale-building programme independent of organizational growth.
Phase 1
Critical Dependency
INTERVENTIONS: Decide on a sustainable source of morale for the whole population. This might be a leader, customer,
product, etc., but it should be profiled for maximum morale-boosting effects
RATIONALE: People must draw on whatever source of morale that is available – a trusted individual, an idea of self-worth, a
worthy vision, a shared value or purpose can even bring people to a sense that they are greater around such a value or
purpose than as disjointed, disheartened or disillusioned, etc. It is not necessary or helpful for the general population to go
digging for reasons for the state of low morale at this stage: what is needed is movement, and the energy for that movement
should come from a reliable source.
Phase 2
Critical Divergence
INTERVENTIONS: Achieve divergent sources of critical morale, engage in individuation exercises and energise the system
through e.g., sports and social activities
RATIONALE: This phase is typically characterised by delegation and some chaotic energy. Along with other key people
championing morale, everyone might benefit from a sense of their individualism by for example getting somebody with street
credibility and responsibility to speak their mind. Exercises can be carried out in farming ideas from small groups in full
system meetings, for example.
If the stage is system-wide, then much of the organisation is going through a trying out or opportunistic period. People at this
level of morale also benefit from stimulation of variety of experience. It is important that the stage is marked by an increase
in energy to the organisation, albeit that it is time-framed to avoid relapse which could be catastrophic. Sports and social
events can achieve this effect, but it is important that the event is not seen as any sort of reward, because only results are
rewarded. These events should be framed in terms of how things could be in the successful future.
Phase 3
Stabilization
INTERVENTIONS: Exit and replace those who have persisted as low-morale people
RATIONALE: At this level, morale is bound to be dependent on organizational performance. This should be the real basis of
stabilization. However, the organisation must also stabilise around its useful people and trim those who are a threat to morale
on a systematic basis. It may not be possible within organisational constraints to be humane with them whereby they might
be coached to a better level of morale. However, one must always consider the systemic effects of the attitude displayed in
pruning those who are misaligned with organisational purpose. Such people should ideally be out-grouped (shown and
accepted to be offside re. the common good) before separation.

12. Phase 4
Destabilization
INTERVENTIONS: Establish morale champions around the organization
RATIONALE: Morale champions should be established. Such people would need to have real credibility. These may not be the
leadership people that leverage change around the organization, as morale is primarily an emotional construct. Therefore,
people who naturally raise the spirits should also be positioned to leverage morale. Such people may benefit from some pilot-
type training - ahead of the rest of the population, whom they may join on the systemic training.
Phase 5
Strategic Change
INTERVENTIONS: Initiate Sports & Social programmes, Train re. Personal Development
RATIONALE: Leadership should engage in initiatives aimed at general mobilisation of morale. This may involve organisational
days away, or other general interventions. The aim is that the good feelings will find fruitful expression in the organisational
drive that is taking shape. This is the phase where initial strategic systemic training and personal development takes place in
line with strategic requirements, but this phase should be about cutting links with the past and shedding low morale
emotionally, and replacing this with worthy goals. Specific functions that are related to Morale should be properly resourced
(people, planning, etc). These include Sports and Social programmes. Proper change-management protocols should be
employed, and assumptions should not be made that such initiatives would be automatically welcomed.
Phase 6
Org’al Learning
INTERVENTIONS: Proceduralize systems around morale development
RATIONALE: People are engaged in exercises around change and comradery through change, etc. People need to be engaged
in projects around adaptive change. These must be clearly up to the mark, and leave the distinct impression that the
organisation is moving into activities in an organised manner where it will be competitive with its peers. All related
programmes – training and development, Sports and Social, Reward, etc. should be at least at this level of being as good as
the competition in relation to procedures and content, and in preparation for being as effective and have organization-wide
support.
Phase 7
Competitiveness
INTERVENTIONS: Measure performance against competitors and feed back into morale-building process
RATIONALE: The competitiveness of morale is only validly measured from results. If the organization is performing
competitively, then the corollary can be made that morale is competitive, however, the assumption cannot be made that it will
stay competitive. Obviously, the achievement of competitive results must be fed back into the morale building process.
Morale feeds competitiveness to the degree that each person is being as effective as they can be in their role and again, this is
something that should be ascertained by performance-measurement techniques. The key is to determine whether the
performance is due to self-alignment with the organization (a long-run effect) or some short-run effect(s) such as reward,
pressure, etc. The visible commitment of key people is important in generating competitive morale, as is the promise of
competitive reward for competitive results.
Phase 8
Sustainable Competitivenes
INTERVENTIONS: Ensure that all related Dynamics and Constructs are operating at this level at least
RATIONALE: Because high morale is largely something that emerges from other constructs operating at high levels, to sustain
morale at this level involves continued competitive organizational performance and the advanced functioning of systems
around morale building, which means that all related Dynamics and Constructs such as Reward, Personal Development, Career
Development, Leader, Communications, etc. are operating at least this level at least.

13. Phase 9
Competitive Adv.
INTERVENTIONS: Highest-level of team structuring, training and Self-Expression
RATIONALE: The level of morale required for a systemic competitive advantage is quite distinctive. Team effects emerge such
as “the extra-man effect”, whereby sports teams feel as if they have an extra player. Whether this level of morale is
transferred into results is the function of other Dynamics and Constructs such those relating to Product, Market, etc.
Obviously, team building is paramount as is training related to creativity and highest-level personal development. The
hallmark of this level is Self-Expression. Definitively, this means that people feel free to express opinion and take
responsibility for recognising resourcing and resolving problems encountered in their roles. Self-Directed Teams should be
viable with this level of morale, and would be important for the next phase of sustaining it.
Phase 10
Sustained CA
INTERVENTIONS: Self-Directed Teams, high-level value systems
RATIONALE: This phase is primarily about systematising what works to generate competitive advantage. Also, it is important
that management respect the level of integrity that the people have achieved and this should be systemically enshrined so
that people can be reassured of their stature and the stature of organisational purpose and its success. Although it may have
been always in the background, the emphasis also moves to the honour and justice of what the organisation is about and what
is being required of its people. Functional Self-Expression should result in Self-Directed Teams, where the balance of quality
and innovation is critical. Like other Emotion constructs, morale feeds sustainable Competitive Advantage in many ways, such
as attracting high-morale people into the organization.
Phase 11
Holignment
INTERVENTIONS: Establish a Leadership Culture
RATIONALE: The Leadership phase of the morale construct is about everyone being a leader. This means establishing a
leadership mentality for everyone in work and in life in general – in other words a leadership personality. This requires high-
level training and support systems, as well as a humanist culture. The result is a leadership culture. Furthermore, this must
be projected systemically in a mutually beneficial manner into the macro-environment. The organization becomes a high-
moral leader for the sector and beyond.
Phase 12
Sustained Leadership
INTERVENTIONS: Protect Organizational Morale by re-invigorating the phases on a cyclical basis
RATIONALE: Re-invigorating Organization Morale means re-invigorating all of the phases on a cyclical basis: Keep the
psychologically negative people out, establish solid singular and multiple pillars of morale such as leader, product, mission,
etc., position champions of morale, train and proceduralize morale building, feed-back competitive performance measures into
morale-building process, build Self-Directed Team structures and enshrine Self Expression, and establish a Culture of moral
leadership that projects and leads in the macro-environment.

14. Construct: Attitude
Diagnostic Result: Your organization has been diagnosed as operating at Stage5
Developmental Programme: Sustainable Development begins with Phase1B
Phase 1B
Disconnection
INTERVENTIONS: Disconnect the source of destructive attitude and generate a commitment to generate a constructive
attitude
RATIONALE: If attitude in the organization is so bad as to constitute a threat to the organization, then the source of this must
be recognised and the effect eliminated. This means an emotional disconnect from the cause. The cause may be well known,
but if not, the diagnosis is work for a qualified professional outsider. This person should also train key people in areas of
letting go negative emotions and attitude. This phase ends with a disconnect and if necessary replacement people in place
with a collective commitment to turn the attitude around throughout the whole system.
Phase 1A
Incubation
INTERVENTIONS: Devise a plan to achieve constructive attitude for the whole organization
RATIONALE: This phase begins with commitment from all of the key people to generate constructive organizational attitude
and it ends when there is a plan devised to achieve this through all of the phases of growth. If there has been a traumatic
dissolution to clear the decks, this phase is probably the work of a qualified professional outside. Workshops should include
some related personal development and training for key people.
Phase 1
Critical Dependency
INTERVENTIONS: The leader visibly takes accountability for the process of generating constructive attitude for the
organization
RATIONALE: In the organizational situation, the basics of building positive attitude aims towards replacing negative attitude
with an orientation of following a leader’s positive attitude with basic logical and emotional reinforcement. There is in a sense,
a requirement for an attitude whose description can range from obedience to a leap of faith. Certainly, there is no time for the
niceties of “getting to know you”, the emphasis must be on generating momentum, and people’s attitude will orient enough to
follow a leader who ideally, has in some way earned the right to lead – either by demonstrating skills, track record,
personality, etc., but taking visible leadership of this process is a critical first step. It is critical that the leader models
expected behaviour to key people, and instigates training for them if necessary.
Phase 2
Critical Divergence
INTERVENTIONS: Foster an opportunistic environment and key people should be seen to model constructive behaviour and
attitude
RATIONALE: People must be left with some freedom to explore the application of this new attitude. Their collective attitude
will still be in large determined by the respect of the leader, or primary source, but the organisation should begin to champion
fertile shoots of adaptive productive constructive attitude, as good people come to grips with a new more opportunistic
approach to progress. A critical dimension of this phase is that managers and key people also take accountability for attitude
in their interactions with each other and among their people.
Phase 3
Stabilization
INTERVENTIONS: Sell Constructive Attitude to the Internal Customer as critical to a worthy strategic plan, and generate the
sense of a caring as well as progressive organization
RATIONALE: Stabilization of the Attitude-Generation process involves a number of dimensions. Firstly, constructive attitude
must make sense and this means that it must be sold as part of a strategic plan that will achieve real and sustainable growth
for the organization. Secondly, the attitude must be grown as a dimension of a caring organization and not some asylum for
gung-ho cowboys hitting targets and leaving piles of dead bodies behind them as might be the case if the opportunistic phase
is poorly managed or lasts too long. Some attitude training around goal setting can be implemented to set up the next phase.

15. Phase 4
Destabilization
INTERVENTIONS: Integrate personal goal-setting and attitude development
RATIONALE: The Destabilization phase is typically about challenging within relatively safe parameters, in other words it is a
foundation-building function rather than stretching people to breaking. This is the phase where goals are made personal, and
the potential reward is also made both personal and organizational. This phase ends when everyone accepts their goals with a
constructive attitude. This is based on an individual basis and is based on 360° relationships. When these are relatively
secure, the system must move quickly on to the next phase which is about building the required attitude on the basis of the
relationship between individual and organization.
Phase 5
Strategic Change
INTERVENTIONS: Instigate full Learning-Attitude Training for everyone and monitor and reinforce constructive attitude
RATIONALE: Real general training must be given to everyone around attitude – from dumping negative mindsets and
emotions, etc. to constructive attitude, Self-Belief, assertiveness, etc. Training around responsibility and constructive
environments should be paramount. Procedures need to be introduced to monitor and reinforce constructive attitude in
meetings etc. The later phases which involve disciplinary reinforcement, etc., should be pre-framed to people. Watch out for
people with A-Type attitude, because without individual help, they will never change to a learning attitude, but rely on their
destabilization techniques.
Phase 6
Org’al Learning
INTERVENTIONS: Integrate attitude monitoring into procedures related to discipline, grievance and appraisal
RATIONALE: Constructive individual responsibility must be reinforced at all times and be visible in ground-rules for meetings,
procedures, as well as being enforced by disciplinary procedures, while grievances are properly proceduralized also, etc. This
phase can be said to be traversed when the organization and its people have moved to a learning mode where individuals
embrace change, and the organization has procedures that can change and where adaptive change will be held onto despite
losses and it will not be lost. When people are aware of this, the competitiveness will have greater momentum than if
adaptations had to be reformed again and again. In other words, this level of organization can acts as a secure foundation for
the cut and thrust of systemic competitiveness. Cross-functional Learning Fora are important to underpin organizational
learning attitude: in other words, when people know what is really going on in another department, then their attitude will be
more constructive towards them.
Phase 7
Competitiveness
INTERVENTIONS: Train for, install and monitor adaptive attitude and the relationship with performance levels on other critical
constructs
RATIONALE: Competitive attitude is about being prepared to do whatever is necessary to be as good as you can be based on
prevailing parameters and adapting to changes in the environment as quickly as the competition (rather changing based on
internal experience which is the lower learning level; the next level –the creative – is about shifting those parameters and
causing such changes in the environment). This must be distinguished from the attitude for which beating the opposition is an
end in itself. This can be called Contest Attitude and is associated with “A-Type” behaviour which never grows beyond the
Destabilization phase, and eventually degenerates to the lowest level in a bitter loneliness that acts as a drain on all around.
HR need to be vigilant about this. As with other emotional constructs, higher levels of attitude are somewhat emergent from
the higher levels of performance on other constructs. In other words, the product leadership, management, organizational
systems etc. are all operating at higher levels, attitude will also be raised. However, sustaining it is dependent on training for
this phase and successfully negotiating the next phase of this construct.

16. Phase 8
Sustainable Competitivenes
INTERVENTIONS: Monitor and reinforce adaptive attitude at the collective level and structure the organization around units
with their own integrity such as Self-Directed Teams, Task Forces, etc.
RATIONALE: This phase is about moving from having an organization of competitive people to having a competitive
organization. If this development does not occur, then the competitiveness of individuals will degrade. This means that
procedures, leadership, culture, communications, etc. all generate competitiveness. Corporate attitude must be visible in all
its dealings by all of its people – in particular its key leverage people in their dealings within and outside the organisation.
Once people are competitive, organizational competitiveness is reinforced by measurement and feedback through trusted
systems. These systems must inform of the changes in the environment (environmental scanning) and re. product
performance and organizational adaptation. Attitude must be constantly monitored at the collective level of e.g., team – again
reinforced by socialisation, meeting procedures, etc. Teams should be of the Self-Directed level and monitored (in as practical
a manner as possible) as entities in their own right – somewhat like SBUs.
Phase 9
Competitive Adv.
INTERVENTIONS: Reinforce a mature Creative Attitude
RATIONALE: The attitude that is associated with Competitive Advantage is a creative attitude – an orientation to initiate
changes in the environment rather than react to them. A creative attitude that is useful to an organization involves risk
aptitude, open-mindedness, leading-edge knowledge, information-rich environment, leadership culture, individual maturity,
creativity oriented reward policies, etc. People do not typically reflect all of these, so training and support systems must
compensate. E.g., a mature risk-attitude must be trained and reinforced, and then monitored by portfolio-management
techniques. Every successful creative endeavour from role-specific problem solving to product innovation should be
highlighted and rewarded. People will not contribute at this level unless they have been diagnosed as having what has been
defined as Achievement Need. The other levels of this familiar framework devised by McClelland, are Affiliation Need (which
contributes fundamentally at a level of support rather than driving creativity), and Power Need which if people are
constructive, contributes to leadership attitude (see above). The constructs of the Personal Dynamic should therefore be
operating at these levels to align recruitment to long-run organizational needs at these levels. Attitude generation should aim
to generate the same attitude towards the organization and its product from both internal and external customers.
Phase 10
Sustained CA
INTERVENTIONS: Configure the organization to support the attitude of mature creativity and global citizenship
RATIONALE: The organization must now be configured to support the attitude of mature creativity. Constructive positivism
must be enshrined as a Value in the culture and lived by its people. Other humanistic values reinforce this. Maturity is the
hallmark of attitude at this level. People should implicitly trust others in every way, and a global citizenship characterises
behaviour that is admired within and beyond the organisation. The attitude of both internal and external customer should be
monitored and found to be the same to both organization and product.
Phase 11
Holignment
INTERVENTIONS: The organization’s key people must be seen to act with Leadership Attitude both within the organization and
in the world at large
RATIONALE: The level of Responsible Attitude that underlines Leadership is described by a willingness to see matters in terms
of the issues involved and to deal with them strategically and drawing on all previous levels of personal and organizational
growth. Leadership attitude addresses issues by prioritizing them in terms of Significance (re. importance and time-frame),
and Actabililty (re. degree of resolution possible, probability of success, etc.). Holignment for this construct is about being
seen to engage such leadership attitude internally and externally, but only having earned the right to do so as leadership is
always a 2-way psychological contract. Therefore, key people must advocate and profile leadership attitude both internally
and externally. All aspects of the organization (product and its advertisement, to people) must reflect responsibly creative
attitude.

17. Phase 12
Sustained Leadership
INTERVENTIONS: Protect the Attitude of Creative Responsibility in the organization by re-invigorating the phases on a cyclical
basis
RATIONALE: The organization must be recycled or refreshed through the phases on an ongoing basis. Causes of negative
attitude must be discovered and disconnected, the organizational vision must be revitalised and its worthiness resold, the
Leader, key people and managers must portray the highest levels of leadership attitude, the organization must reinforce a
sense of challenging comradery, individuals must adopt a life-long attitude that reflects learning, creativity and leadership, the
organization must be configured to support all levels of continuous growth, and all public aspects of the organization must
reflect leadership and/or responsibly creative attitude, ranging from product and its advertising to people.