Model of excellence

The focus of the model of excellence is on individuals. A semi-strong and strong market test would have needed a much more developed model for testing.

However, the weak market test can be implemented through the projects in the market test. The case organization has built a competence-based model for its project management, which is implemented alongside the model of excellence. The comments of its management are considered in the weak market test.

For being successful on the projects, resource allocation must pay attention to the value- and norm-driven sides of the model of excellence. The project’s resource allocation must address the necessary competences and know-how as widely as possible. The case organization has developed competences related to the roles on

the project. These competence groups are shown in Figure 30. Resource groups from the project can be divided into four sections: steering group, owner, project manager and project group.

Figure 30. Skills and competences related to project management

Strong business competence is emphasized on the steering group. Business competence includes knowledge about the organization’s strategy and long- and mid-term vision, in turn representing the goal for the organization. Individuals on the steering group must have a strong strategic vision of the organization’s future direction. From the model of excellence point of view, these individuals’ strategic frameworks should be as close as possible to that of the organization.

People on the steering group are expected to have strong decision-making ability, since they must be able to make decisions in response to escalated problems from the lower level. Creativity and passion are desirable characteristics from among the individuals on the steering group. These include innovative thinking and passion to drive the project towards its goal. These can be seen as examples of leadership competences. Competences and their weighting for the steering group are shown in Figure 31.

Figure 31. Steering group competences

When focusing on the owner of the project, skills and competences in leadership are the most-wanted characters. It must be noted that, on the steering group, there can be many individuals, while the role of the owner can only be given to one

individual. Passion is the most important characteristic for the owner according to the model of excellence. It can be said that the owner must have so much passion for the project that they are willing to make the success of the project a personal goal. The owner must be hungry for achieving the goals of the project and the organization’s job is to find this kind of individual. Passion is on the top level of the model of excellence, which is the characteristic that can deliver the best results for the organization. The owner should also have some business competences but not as many those individuals on the steering group. The owner’s competences are shown in Figure 32.

Figure 32. Owner competences

Competence requirements related to the project manager focus strongly on project management competences. These include understanding project management methods and know-how, as well as the ability to implement them in practice. The main task of the project manager is to drive the project towards its goal with the given resources. They are also required to be able to detect possibilities and risks and highlight those in a proactive manner to the steering group and the owner.

Good project managers set examples to their project team. Successful projects in the market test show that the project manager must work closely with the project team. This includes demonstrating initiative and exercising an executive grip as the project manager, which can be seen as a competence related to leadership.

Project manager competences can be found in Figure 33.

Figure 33. Project manager competences

Individuals from the project team are expected to have competences from the norm-driven side of the model of excellence. These individuals must show obedience and diligence towards the project. They must also be intelligent and understand the content of the project because the project team implements the project as well. Competences for the project team are shown in Figure 34.

Figure 34. Project manager competences

Conversations with the management revealed that the model of excellence flags up the right things to be talked about. Balancing between norm- and value-driven sides is essential for dynamic capabilities. This is, however, a challenging task for the organization. It is clear that the organization’s culture and the basic elements of the current business environment have an impact on striking this balance.

Concentrating only on developing the norm-driven side is easy and some of the conversations suggested that this tends to be commonplace. In practice, this means writing instructions, drawing processes and making regulations. People and their values are forgotten if the organization is only centered on the norm-driven side. One manager said that, in a norm-norm-driven organization, things meet each other, not people.

Building the value-driven side takes a lot of time on the part of the organization.

The culture must be changed if the norm-driven side is too domineering. When talking about changing the culture, this also takes a lot of time and a deep commitment, especially from the management team, which must last as long as the cultural change requires it.

When introducing the value-driven side and innovative thinking to the organization, this comes with pressure and change drivers. For instance, the organization must tolerate and encourage diversity. In practice, this means that it must be able to address its current operations, processes and actions. This demands a great deal from the organizational culture, which must encourage different kinds of thinking, while different views must be welcomed. The organization must be able to put these opportunities and ideas into practice

because sustaining an innovative culture means that ideas and different views must be heard, as well as actively implemented. To estimate the organization’s innovativeness level, it is necessary to ask two simple questions. The first is, do you think the organization is innovative and does it support innovative ideas? The second is, how can this be observed in everyday operations? Many organizations might say that they support innovative thinking. But, on close inspection of everyday operations, innovative actions cannot be found.

From the market test projects, it is clear that innovative thinking is needed when the organization is taking step away from the current way of thinking. Project 3 is a good example of that. Being successful needs innovative thinking and actions, in contrast to normal operations. The organization has had to tolerate the fact that some things have been done in a different way on this project. People involved in this project said that implementing it also changed the culture and way of operating. In other words, the value- and norm-driven sides in the model of excellence had to change.

When talking about the role of individuals, the organization sees that it must be able to spot talent from the resource pool, as well as support knowledge development, provide opportunities and leadership, listen to the sensing from individuals and also give feedback. An interesting question is, what needs to be done for those individuals whose values, actions and know-how are in conflict with the organization? This problematic is acknowledged in this study as a phenomenon when the strategic frameworks of individuals and the organization differ from each other.

Theories of dynamic capabilities stress the role of management, which is seen as an enabler of dynamic capabilities. The market test in this study confirms this observation. When talking about the organization’s management, that is team that is able to make actual resource allocations. The market test also showed that dynamic capabilities need certain types of individuals for building and maintaining them in the organization. This means that the organization must understand the role of model of excellence in its operations. The test also revealed that the organization needs both sides of the model. When starting the building process for dynamic capabilities, the organization must identify those individuals who feel passionate about this building process; otherwise, there is a risk that the building process will not be carried out or will be a one-time, ad hoc activity.

5.5.3 Strategic partnership as a source of competitive advantage