Yin & Yang; The Culture and Strategy of Corporate Growth

The ancient philosophies of China, described in the ‘I Ching’ or Book of Change teaches Yin and Yang as the holistic principle of opposing forces. Applied to a corporate context, this suggests we focus our energies with balance on strategy and culture, and that failing to do so may limit the results of change

Yin and Yang defined

Yin and Yang has formed a cornerstone of Chinese philosophy for centuries and this principle of opposites was considered a universal phenomena that applies to all things. Yang describes the principles of maleness, action, control, and strategy. These are the evident and thrusting forces of growth. Yin describes the principles of femaleness, reflection, yielding and culture. These are the hidden and nurturing forces of growth.

It was believed that Yin & Yang worked together in a constant cycle, that the seeds of one were contained in the other, and that one could only exert temporary dominance over the other Thus, they considered a balanced and holistic approach was the natural requirement for healthy change.

Turning to corporate life, we can understand strategy as a Yang element, because of it’s driving and tangible nature to shape, focus and prioritise action. Culture is a Yin principle due to its subtle, intangible qualities that influence indirectly the behaviours and perceptions of people as they carry out their work.

So, what benefit is there in making these links between Chinese philosophy and the business world?

Culture or Strategy; Key Forces for Change

A basic premise of this argument is that organisational change is often motivated and centred around one domain, either Strategy or Culture. Whilst there is overlap, the underlying intentions and overt communication about the change give clues as to which of these are the predominant driver.

Consider the case of an international Telco who embarked on an extensive cultural change process, led through the establishment and reinforcement of a set of core values. The cultural element has been strong and has led to the emergence of a stronger, more energised and aligned culture. Other fast growing medium sized organisations have implemented strategic programs of change, using the Balanced Scorecard and other management tools to build more control and direction for their growth. These have helped the businesses implement strategy with more structure and discipline, and to measure performance accordingly.

Referring back to the Yin and Yang, it is possible to see that a change program driven primarily from one domain (eg. Culture) might be more balanced and reinforced with consideration and inclusion of the opposite forces (eg. Strategy)

The telco for instance may benefit from tools and methods that enable their culturally aware people to also develop more consistent and sustained focus on strategic priorities. The risk of not doing so is a vibrant culture which energetically innovates without a broader strategic framework to guide and align activity, thereby leading to diffused and wasted effort. Similarly, the medium sized firms, having established strategic processes may now be in a position to release energy and loosen their growing and sclerotic structure by creating a unique culture that is recognised and by it’s staff and customers. Without this, their original flexibility and responsiveness may be lost as the strategic disciplines and processes become ends in themselves.

Embarking on a New Change program

Apart from building on existing change, Yin and Yang philosophy can also be a useful reference point as a new change program begins. By reflecting on the impetus for change, we can determine whether there is a balanced set of drivers in play, or whether one of the two forces is primarily in play. An unbalanced change initiative can be less healthy from it’s design to roll out, and this often limits traction, sustainability and results.

1. Strategically driven change

There are many examples of programs that are triggered with a strategic emphasis but fail to achieve expected results. One large medical insurer were experiencing push back and waning enthusiasm for a Performance Management/ Balanced Scorecard implementation. With a historically hierarchical and control driven culture behind it, people feared that the new program was designed to control and monitor their work rates, without much upside for employees. The program was eventually shelved after many attempts to re-design the strategic tools themselves as leaders did not see, understand or act on the potential need for a cultural element to compliment. In this case, a suitable compliment may have been the development of leadership capabilities, particularly in the areas of coaching and relationship focussed leadership. This simultaneous stream could have been built in to the roll out, so that leaders could learn and act in ways that demonstrated a commitment to using the new tools as a facilitator of learning and collaboration, not just a tool for control.

Other examples abound of large consulting firms who have provided good quality strategic advice which is ultimately not implemented. In many cases, the desire to implement is hindered by cultural factors that were not adequately considered by the outside party as the strategies were proposed.

2. Culturally driven change

Less frequently a Cultural program is implemented without a Strategic emphasis or ‘raison d etre’. One of Australia’s leading financial institutions implemented an extensive leadership development program which was attended by hundreds of senior managers from the top 5 levels at a cost of millions of dollars. Whilst the program was initially lauded, enthusiasm began to wane. Questions were frequently asked such as "How does the program fit with the strategic direction?" & "Where are the links between the leadership behaviours espoused, and the priorities of the business?" The program was pulled once there was wide spread recognition of the mis-alignment between cultural and strategic intentions. With more holistic design, the program could have reinforced core elements of organisation strategy and provided more balanced content including tools and methods for strategic decision making and implementation whilst still delivering the intended benefits of leadership skill and cultural fit.

How Yin and Yang can help

Yin and Yang can guide us to consider our current change programs in place and gain clues about how to compliment and reinforce the current benefits attained. Alternatively, we can design more holistic change from the outset to maximise the traction and effectiveness of the program. Ignoring these opportunities may undo our best intentions or at best limit the results achieved.

The 'I Ching'(Book of Change) has stood the test of time for good reason. The principle of opposites is universal and encourages a holistic view. We might do well to give the Yin and Yang of our corporate life careful consideration.

by
David Pointon
DaPo Consulting

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DaPo Consulting provides coaching and facilitation services and products to support effective strategic and cultural change. A key element of value is added through holistic design and this has led to many effective long term change programs.