​The Competing Values Framework (CVF), developed by researches Quinn and Rohrbaugh in 1981, serves as a robust model designed to assess organisational effectiveness through various dimensions. This framework revolves around two key dimensions - internal/external orientation and stability/flexibility. These two dimensions highlight the intrinsic trade-offs organisations must navigate to achieve success.

Understanding the Internal v External Orientations

Organisations face a fundamental choice between focusing internally on processes like development and co-ordination, or externally on market dynamics and customer needs. Each orientation offers distinct advantages - but require different approaches and resources.

Internally focused organisations thrive on integration and collaboration. These organisation aim for coherence and smooth functioning within them.

Externally focused organisations are agile, constantly adapting and realigning to market changes and external pressures.

The Balance Between Stability and Flexibility

Another critical aspct of the CVF is the "stability-flexibility' continuum.

Organisations orientated towards stability empahise planning, structured processes and predictability, assuming that the environment can be controlled and managed.

In contrast, those favouring flexibility adopt a more adaptable approach, recognising the inherent unpredictability of business environments and prioritising quick responses and flexibility of rigid structures.

Competing Values Lead to Distinct Organisational Cultures

By mapping the internal/external and stability/flexibility dimensions on a 2x2 matrix, the CVF identifies four predominant cultures:

• Create Culture (Adhocracy) - Dynamic and innovative, this culture encourages risk-taking and values creativity. This culture focuses on future possibilities and continuous innovation.

• Collaborate Culture (Clan) - Emphasising teamwork and cohesion, this family-like atmosphere values long-term relationships, with leaders acting as mentors or father-figures.

• Control Culture (Hierarchy) -With a focus on efficiency and reliability, this culture thrives on structured processes and formal rules, aiming for smooth and predictable operations.

• Compete Culture (Market) -Results-driven and competitive, this culture prioritises achieving targets and dominating the market. There is a strong focus on performance metrics and outcomes.

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Practical Applications of the CVF

The beauty of the Competing Values Framework lies not just in it's theoretical insights, but also in its practical application across various organisational types. Not-for-profits, sports clubs, even family settings, along with more traditional for-profit businesses, can gain valuable perspectives on what values dominate their culture, and how these influene the dynamics of business. It's a tool that helps leaders and managers understand the underlying values in their organisations and guides strategic decisions and cultural alignments.

The CVF and Organisational Change

Understanding the CVF can significantly aid organisations in managing change. By recognising their dominant culture type and the inherent trade-offs between competing values, organisations can better navigate challenges, align their strategies with their core values, and make informed decisions that drive growth and adaptation in a constantly evolving landscape.

Conclusion

The Competing Values Framework is more than just and academic model - it's a practical guide that helps organisations identify their core values and align their strategies accordingly. By understanding and applying the insights from the CVF, organisations can enhance their effectiveness, adapt to changing environments, and achieve sustained success. It encourages a reflective approach to organisational culture and strategy, making it a valuable tool for leaders aiming to foster a conducive work environment and drive organisational success.

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If you’d like to have a chat about the CVF and a tool we use to help you identify and align your organisational culture, please get in touch with Steven Nunn, Managing Partner APAC.