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Global CEO Magazine:
Flexibility, thy name is prudence?
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Numerous experts have attempted at defining the word organization and came up with various definitions according to their understanding and observation. Though the observations were grossly similar, various definitions certainly added value to the understanding of the term. This article is another humble attempt to redefine the term with reference to various dimensions like flexibility, contingency planning, and organizational structural.

No business can function without flexibility. Rigidity is the property of inert objects. A business is a living entity. In fact, it is said to have perpetual life. An entity that has perpetual life cannot inherit rigid rules and plans. A dead body is rigid. Every limb of a living body is flexible. Flexibility denotes two things, viz.,sensitiveness to the receipt of stimulus and immediate response to the stimulus received. Just as a living body constantly and continuously receives stimulus from the environment and reacts to it instantly, a business which is also a living entity should be receptive to stimuli and should act on the stimulant inputs received instantly. This is the way to survive and the living organisms that survive on earth are the proof. Unless the stimulus response mechanism to environmental inputs is sharp and instantaneous, the business will acquire ailments.

e may call the ailments by terms like sinking-profits, reducing-sales, employee turnover, industrial sickness, declining phase, etc. But, all such ailing symptoms have their roots in poor stimulus response mechanism. The culprit can be immediately traced back to the rigid plan that an organization has relied on, on the false premise that business cannot survive the competition without such a plan. True, a business needs a plan of action, but not an inflexible one that will kill the efficiency of the stimulus response mechanism. This is why contingency planning has received attention.

The contingency approach to planning is based on the premise that there is no one best method to solve a problem and that the right approach to solve a problem depends on the situation. Most plans, both long-term and short-term rest on environmental conditions. Since environmental conditions often change rapidly, an organization cannot have rigid plans for a certain time horizon. Too much of formal planning will not only consume time, but will also prove useless in view of the continuously changing environment. This is why it is well said that the golden rule of business is that there are no rules.

 
 
 

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