Organizations as Open Systems That Need Purpose and Integrated Thinking

• Date: 01 March 2017
• Author: Victoria Hurth
• Published date: 01 March 2017
• DOI: http://doi.org/10.1002/bl.30069

ALSO IN THIS ISSUE

Food For ThoughT ................. 2

Toward a requisiTe Board

CompeTenCies maTrix ............... 5

NUMBER 150, MAR.–APR. 2017

www.boardleadershipnewsletter.com

(continued on page 2)

Organizations as Open

Systems That Need Purpose

and Integrated Thinking

by Victoria Hurth

The world is changing more rapidly than ever. Here, Victoria Hurth, Associate

Professor in Marketing and Business Sustainability at Plymouth University UK,

discusses the extent to which the role of the organization has to change within it.

BOARD LEADERSHIP

INNOVATIVE APPROACHES TO GOVERNANCE

View this newsletter online at wileyonlinelibrary.com

Board Leadership • DOI: 10.1002/bl • Mar.-Apr. 2017

It is becoming impossible for organiza-

tions to sustain an isolationist view and

many are arguing that we need to com-

pletely revise how we see organizations

in order to maximize their performance.1

In this article, I will be arguing that orga-

nizations must see themselves as part of

dynamic environments that they affect

and that affect them through rapid feed-

back as well as emergent, longer-term,

and unexpected consequences. Increas-

ing complexity, changes relating to the

various capitals businesses rely on, and

increasing global consciousness require

organizations to view themselves as part

of a wider system rather than as isolated

units that decide when and how to

engage with others. Operating as mem-

bers of a system requires organizations

to be reflexive and clear about what

they are trying to achieve in the system.

In particular, they need to understand

their dependence on others within the

system to achieve their goals. Using

integrated thinking and being purpose

driven are two systemic approaches that

organizations can use to address the

challenges they face and turn them into

massive opportunity. Adopting these

approaches, however, requires profound

change, and realizing their potential

rests heavily on boards as the groups of

people who are ultimately responsible

for the governance of organizations.

Why Organizations Must Relate

to Their Environment

The VUCA Environment

Organizations have never operated

in a vacuum. However, we (particularly

in Western thought) went through a

period of time where we attempted

to pretend that we could contain and

control organizational interactions

with the outside world. This view of

isolated organizations can be seen as

strongly linked to the liberal “scientific”

approach of understanding the world

by breaking things into smaller parts,

which in effect serves to distance these

parts from the interconnected whole;

June 22–24, 2017

International Policy

Governance® Association

(IPGA) Annual Conference

— San Diego, California, USA

A variety of opportunities

for learning and networking

for board members, CEOs, and

board administrators using the

Policy Governance system to

determine and fulfill their orga-

nizations’ purpose, as well as for

International Young Governance

Professionals and others explor-

ing good governance. Early bird

discounts available.

For more information go to

www.policygovernanceassociation

.org.

oCToBer 19–20, 2017

BoardSource Leadership

Forum

— Seattle, Washington, USA

Plenary sessions, workshops,

discussions, presentations, and

networking for nonprofit board

members, chief executives, staff,

and nonprofit professionals to

learn how to guide their organi-

zations toward greater impact

and mission

For more information go to

www.boardsource.org.

EVENTS