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ABCE Model for Organizations
Three different types of information are available on the Holonomic Cube. The first is the ABCE model for organizations. The second is the six Desired Organizational Characteristics of an Organizational Hologram. The third is the 12 Holonomic Processes which work jointly to produce the Desired Organizational Characteristics.
There are levels of expert use for the Holonomic Cube. The novice can make preliminary diagnoses of organizations using the every-day, general interpretation of each phrase. This common sense level of use is sufficient for a "quick study" diagnosis. Novice users can at least verify the feasibility of such a preliminary analysis. Inevitably, the preliminary diagnosis leads the user to want a more precise understanding of each phrase embodied in the Holonomic Cube.
As the user becomes more expert in operating the Holonomic Cube, the definitions and descriptions of the information become crucial. This is especially true if the user elects to share his or her diagnosis and conclusions with other members of the organization.
Expert level users find the full description and development of the model of the Organizational Hologram essential. Basically, the more expert you become in operating the Holonomic Cube, the more knowledge one will require and desire.
The ABCE Model of Organizations
Figure 3.1 illustrates symbolically the ABCE model and consists of four parts. Part A represents the strategic direction of the organization. Part B represents the Implementing Organizational Technology of the organization. Part C depicts the results produced by the organization. Finally, Part E represents the external organizational environments. The organizational environments provide the context in which the organization operates. Organizational environments have a dramatic effect and impact on the strategic direction. Furthermore, the selection of a strategic direction helps to define which environments are relevant. The organizational environments affect the Implementing Organizational Technology and the organization results. In fact, all four parts of the ABCE model are interdependent. The strategic direction, A, should define the Implementing Organizational Technology, B. The operation of the Implementing Organizational Technology generates the organization results, C. And all of this takes place within the context provided by the organizational environment, E.

The general idea of the ABCE model for an organization is that an organization needs to find a way to manage the fit, harmony or congruence among these four parts in order to be effective. The ABCE model provides the practitioner with a set of probing issues for the overall strategic management of an organization. For example, is the strategic direction congruent with the results produced? Is the strategic direction congruent with the Implementing Organizational Technology used to convert it to the organization results expected?
Part A, strategic direction, is shown on the following page in Figure 3.2. Part A is the organization's theory-in-use about how it plans to take advantage and operate in its environments. This involves selecting its environments and defining how to implement them. The strategic direction begins with organizational assumptions, of which there are five basic types. There are assumptions about environments, resources, basic strategy, basis for organizing, and technologies. Fundamental to any strategic direction is the ethics or core organizational philosophy which drives its vision and mission. The vision describes what the organization hopes to become. Its organizational mission is its reason for existing. The mission implies goals for achieving each of the components of the mission. The goals are translated into strategies and tactics for success. The goals and strategies are, of course, based on the strategic assumptions. The organizational assumptions and the organizational goals and strategies become operationalized in the organizational plans. Also flowing from the vision and mission are organization-wide policies, guidelines, and practices.

The plans of an organization are frequently given a time horizon such as long-range strategic plans, tactical plans, and annual operating plans. For such organizations, the annual plan is the first year of a longer (about 3 years) tactical plan, and the tactical plan is the first part of long range strategic plans (about 10 years).
The Implementing Organizational Technology, B, is the means for achieving strategic direction. In the ABCE model, the Implementing Organizational Technology is subdivided into its own elements shown in Figure 3.3.
The Organizational Process Systems include the Organizational Logic, the Organizational Architecture, and the Organizational Rewards Systems. The Organizational Logic defines the work processes of the organization. It is an organized description of the many task processes, various intraorganizational interdependencies and the task resources and their characteristics-in-use. The latter includes the people, technology, and other characteristics of a task involved in its performance, as listed in Table 3.2 at the end of this chapter. The Organizational Architecture describes the "official" organization. It includes position descriptions, organizational charts, and forums for meeting to solve problems and to coordinate actions. Finally, the Organizational Rewards Systems consist of performance standards, performance measures, and incentives to encourage performance to meet or exceed the standards.
The Technological Support Systems include the strategic technologies by which the organization expects to implement its strategic direction. These strategic technologies include: (a) process and production technologies, (b) materials, and (c) information movement and management systems.
The third block in the Implementing Organizational Technology, represents the actual organizational process and deployed technological support systems. This is the part of B that describes how the organization actually operates. It should be no secret that it is extremely rare for any organization to operate as it is officially designed. The actual organization is significant because this is what actually produces the organizational results. A quarter century of organizational design consulting has taught the author that it is rare for more than 50% of the organizational activities to operate in the way they are supposed to as defined in the "official" organization.

Part C of the ABCE model is the organizational results. Organizational results are split into current results and expected future results, as shown in Figure 3.4. The distinction between current and expected future results is helpful in formulating a strategic plan. Current results are compared to goals and expected future results to the mission and vision. In rapid change, an organization may have great current results but is facing a disaster because of fundamental market or technological change. Conversely, an organization in a "turn-around" solution may have lousy current results but much better future prospects.

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