Workplace Theories must have utility: How to Choose the Right Model for Business Success

Theories at Work: Which One Actually Helps?

The world of work is awash with theories.
We’re told that a matrix organisation is better than a hierarchy. That this agile methodology trumps all others. That one marketing model will outperform another. Finance, hiring, management, communication — there’s a theory for everything.

It’s never really a choice between theory or no theory. It’s always a choice between which theory.

What is a Theory, Really?

Dictionary.com defines a theory as:

“a coherent group of tested general propositions, commonly regarded as correct, that can be used as principles of explanation and prediction for a class of phenomena.”

The word itself stems from the Latin/Greek theōria —

“contemplation, speculation, a way of looking at.”

In essence, a theory is a lens. It’s a way to look at work, extract meaning, and communicate that meaning to others. Once you have a theory, you can explain, test, prove, disprove and refine it.

Without theories, work would be chaos. We’d be paralysed by competing data, opinions, and impressions. Theories give us structure. They help us decide how to organise tasks, who should do what, and what tools or processes we use.

The Trouble with Theories

The problem is, we rarely stop to critically examine the theories we adopt. More often than not, we’re operating inside them without realising it. Or worse, we’re bombarded by new ones — often dressed up as silver bullets, complete with a hefty consultancy fee.

Not all theories are created equal. Some are tested and reliable. Others sound convincing but collapse under scrutiny. Some require jargon and specialist language that exclude most people. Others are little more than sales pitches packaged as wisdom.

So the real question isn’t do we need a theory? It’s which theory is useful? It's Which one has utility?

Utility: The Only Test That Matters

A theory must have utility.

Ask yourself:

• Does this theory help us understand our business better?
• Does it help us deliver more value to our customers?
• Does it make our workplace better for the people inside it?

If you can’t answer “yes” — or if the theory can’t be tested and measured — then it’s not helping.

When Theories Go Wrong

I’ve seen leaders adopt theories blindly, with painful results.

One company I worked with replaced a traditional hierarchy with a matrix model after consultants told them it would “simplify” the business. It did the opposite. Sales slumped, delivery slowed, staff left, and everyone had two managers instead of one. The theory was never tested, questioned, or adapted.

Another company brought in agile specialists convinced that SAFe would solve all their alignment and delivery problems. It didn’t work. Millions were spent, yet the problems remained, because nobody had taken the time to fully understand the real issues in the first place.

In both cases, theory overshot practice. Leaders in crisis grabbed the nearest “rescuer” — and paid the price.

How Good Theories Emerge

The best theories don’t arrive as ready-made solutions. They are forged in practice. They are borrowed, adapted, and stitched together to fit the unique problems of a business.

A good consultant will never impose a single “grand theory” without first understanding the context. Instead, they beg, borrow, and steal from multiple models, test them in practice, and refine them as they go. They craft something bespoke — a theory of your business.

Theories worth keeping share some qualities:

• They can be clearly explained and understood, ideally in simple visuals to help move people into motion.
• They can be tested and measured.
• They can be modified and evolved.
• They make the workplace richer and simpler, not more complex.

And crucially: they help you get more done and cultivate a positive workplace.

The Contest of Theories

Business will always be a contest of competing theories. Some are useful, some are ideological, and some are just snake oil. You can’t avoid theory — you’re operating within one right now.

So the question becomes: is it helping?

If a theory helps you understand your business better, deliver more value, and create a healthier workplace, it’s worth adopting – and adapting further. If not, discard it, or reshape it into something more useful.

And if you’re feeling cynical — by all means, package up what you’ve learned, give it a catchy name, and sell it back to the world as the “only way.” (But I wouldn’t recommend it. 😄)

👉 What’s the most useful (or most disastrous) theory you’ve ever seen at work?