Applying the Sigmoid Curve to Datavision
Successful organizations are constantly thinking about change and innovation even when things within the business are going as planned. Charles Handy uses the concept of the Sigmoid Curve to demonstrate “where one should begin changing, and where it becomes obvious that one needs to change”. (44) By examining the pattern of success over time, the S-shaped curve can be thought of as having three stages, each of which is related to a phase of growth; the learning phase, the growth phase, and the declining phase. Although the phases can vary in length depending on the organization, it is crucial every organization is aware and knows where on the Sigmoid Curve they lie to ensure its success. According to Handy, the best time to introduce change is at point A when the system is still growing and before it has reached its peak and flattens in maturity (45). By anticipating change prior to the system reaching its peak allows an organization to ensure they have access to the right resources to pursue the change, and/or develop existing opportunities to grow the business. However, in contrast, Handy points out that most organization tend to pursue change at the decline phase (point B) when it is too late for the organization to be able to reap the benefits of implementing change without experiencing a loss first (44).
Applying the logic of the Sigmoid Curve to the Datavision case study, it is reasonable to suggest that the organization pursued change at the declining phase (point B). Although Datavision was flourishing in the early stages of growth and development, it was not until they began experiencing a lack of team building that they considered the realignment of the organization’s strategy. Troubled with a decline in company profits, high turnover, and an eroding backlog, Datavision’s lack of decision-making policy contributed to the company’s regression. As a result, this attributed to low employee moral and a lack of cross-organizational collaboration as management was beginning to lose trust within each other and demonstrated conflicting managerial styles (5 of the case). Had Datavision had adequate decision-making procedures in place, change would have been pursued at a time of success when company profits were flourishing, employee moral was high, and the organization possessed a competitive advantage in the marketplace (point A) as opposed to when the organization was experiencing reduced sales, employee conflict, and a lack of team cohesion (point B). At point B of the Sigmoid Curve leaders have lost credibility, resources have been depleted, and creative thinking is at an all time low and implementing change at this stage can be more detrimental than