Which theory helps the business? The one that has utility.
Our world of work is full of theories. Everywhere.
We have theories that a matrix organisational structure is better than others. We have theories that tell us that this agile methodology trumps other models. We theorise that X marketing model is better than Y. We have theories about finance, hiring, people, management, communication and more.
It's never a case of theory or no theory, it's always a case of "which theory"?
What is a theory?
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:
This is an important set of words that we'll dig into later. Theory stems from the Latin and/or Greek word "theōria" which means:
"contemplation, speculation; a looking at, viewing; a sight, show, spectacle, things looked at,"
In other words, a theory is a way to make sense of our world of work (and I'm only really sticking to work related theories in this post).
A theory is a way to look at something, deduce meaning and communicate to others. If we devise a theory about our work, we can explain it, test it, prove or disprove it and articulate it to others.
We need theories to make sense of the mass of inputs, observations, opinions, data and impressions. How could we possibly make sense of work (or our own lives) without theories on how things should and could be? We would be overwhelmed to the point of never doing anything.
Take for example the classic case of work management.
We could theorise that a backlog of "work we could do" is important, and that we must prioritise this work and only work on the essential that meets some form of qualification or prioritisation.
We could theorise that "agile" ways of working would be the best approach. Or we could theorise that a random approach using sticky notes on a wall would be better. Or maybe we could line them all up in a gantt chart and just work through that. Or maybe we just print work items on sheets of paper and stack them up in the office - encouraging people to come and grab a sheet every day.
We have theories about the tech we use, the way we work, who should do what, the structure of the organisation and many many more.
Theories help us get things done.
However, we rarely take the time to be critical about our theories. We rarely take the time to break them apart and understand them deeply. We're often in the mix of operating within these theories, which makes it hard to see them, from a critical eye, as a whole. We're often bombarded with other people pushing new theories at us.
Which Theory Though?
The question isn't whether we should have a theory or no theory. That leads to overwhelm. The question is, should it be this theory or that theory?
Not all theories are created equal. Some are more plausible than others. Some sound plausible but don't stand up to simple tests. Some are more complicated than others. Some require a specialist language (jargon) which may not be understood by all. And some are merely sales pitches codified into a plausible sounding theory (ever worked with a major consulting company...). Some are just hot air pushed by people selling snake oil.
As such, we must be discerning and critical in our adoption of new theories.
One way to test our theories is to ask a few simple questions:
- Does this theory help us understand our business better?
- Does this theory help us deliver more value to our customers?
- Does this theory help to make our business a better place to work?
Each of the above could be measured, and of course, you could add your own qualifying questions.
In a sense we're trying to understand whether the theory we're embracing is helping to make things better.
- Does an agile way of working help us deliver more value quicker?
- Does running an employee engagement survey make our company a better place to work?
- Does a digital first marketing campaign increase our sales?
- Does implementing a new learning portal increase our capability and change behaviours?
- Is a matrix organisation helping us become a simpler business?
- Does implementing this new tool help us get more work done?
What matters is a theories utility.
Is it helping us? Does it help us understand more about our business, or make it more complex? Are our theories of how work should move through the business helping us get more done?
To do this we need to make the theory explicit. We need to understand how to measure and test the theory. We need to break it apart and understand why we're even interested in this theory in the first place.
I remember working in one company that had a classic top down hierarchy. They had problems like most businesses do, but that was mostly to do with the people in the hierarchy, not the hierarchy itself.
Some high paid consultants came in with a theory.
If the business moved to a matrix model and split apart the span of control, then they would create a simpler business with less risk.
The leaders liked the sound of this theory, it was well pitched. It was never questions, tested, measured, understood or challenged. There were no details provided, nor requested. There was no evidence supplied, no case studies referenced and no critical questions asked.
It was a monumentally poor decision and the theory did not help the business get "better". The business, when looking at sales, delivery, staff retention and ease of getting work done, tanked. It was harder to get anything done, more confusion set in and people now had two managers to report to.
I worked with one company who had hired in some agile specialists to bring scrum to the business. The theory being that "scrum" would solve the problems with clarity, alignment and action. Don't get me wrong, I'm a fan of scrum, but it didn't solve the problems. And cost them quite a few million in the process.
In all of these examples the leaders and managers had not taken the time to understand the problems they had. They had not followed the problems, measured the problems and understood the problems.
They were in a desperate place and were looking for a "rescuer" - someone they could pass the burden of business improvement to. And plenty of consultancy companies stepped up.
The leaders had taken a theory on face-value without breaking it apart to understand how it may help them.
Theory must have utility.
And to discover the utility one must understand the problems the theory solves, understand how to measure the theory and understand how to apply the theory in practice.
It's not uncommon to find theory overshooting practice, so to speak. A case of a plausible sounding theory being nigh on impossible to implement in practice.
The best theories are those that beg, borrow and steal from others, to solve the problems that your company is actually facing. When I am asked to implement "agile", I take the time to understand what problems need solving first. And then approach solving these problems with the appropriate theory that we can test, study, modify, tweak and put into practice.
Theory is a contest
There are theories all over.
It's a contest in the world of business between competing theories, and those that push them. Sometimes it's ideology at play, sometimes ignorance, sometimes it's simply about the money. Often times though, it's purely because one theory sounds more plausible than another.
But they are all theories that can, and should, be tested.
A good consultant will never recommend a theory without first understanding the problem - and even then, the theory will be tested and measured when implemented.
Good consultants, leaders and managers have a solid understanding of many theories - and they beg, borrow and steal from all of them to address their own contextual problems.
They fashion their own theory. They also understand that different theories may also get the same results. Other ways work, so they don't cling too hard to an ideology around one or two theories.
A theory is a way to explain a business, culture and structure. The best theories are ones that have been put into practice, dissected, understood, modified and morphed, and can be tested easily. They can also be clearly understood and communicated. They can be pivoted as they are implemented. They can be measured as to whether they are working - and useful. Remember, all theories must have utility.
In a sense, in a good company, the theories have been informed and developed alongside practice and work. It is not easy though, to implement a theory and deconstruct it at the same time. It's why reflection, good measures and tests, and a strong bias for observation are key.
And in my view, the best theories for your business are the ones that have been designed to solve the problems that your business has.
Any theory that cannot be tested easily should be shunned. Any theory that sounds like a sales pitch should be viewed with caution. Any theory that is couched as this way or nothing else, is dubious. And any theory that requires a degree in linguistics to understand it, is not suitable either.
You cannot NOT choose a theory - you are working in one right now. The question then is - "is it helping?".
A theory that helps you understand your business better, can be understood by all, can be tested and questioned, leads to better results AND makes your workplace all the more richer because of it, sounds like a theory worth investing your energy and attention in.
Just don't forget to keep an eye out as you put it into practice. Pivot, borrow from other theories and craft your own unique theory - and again, work out how to measure the impact of it.
And if have no moral compass - then package up what you end up with, give it a cool name and sell it as the only way to solve X problems..... Now, I'm just being cynical 😄