1Vermeulen.qxd


“Business will never be the same” – this seems to be the new

slogan for present and future Chief Executive Managers. The

fact of the matter is that the business environment is changing

at a frightening pace. The question is – “what can we expect to

happen in the business environment?” In an attempt to answer

this question authors such as Nadler and Tushman (1999);

Peters (1997); Grulke and Silber (2000); Davis (1988); and

McCrimmon (1997) identified important key characteristics of

business success in pursuit of competitive advantage in an

uncertain world. 

Inevitably, the rules of the business game are being redefined

as changes occur in the business environment. An interesting

topic of discussion thus is “what are these new rules now?”

and what will they be in the future. The challenge for CEOs,

as key element in organisational success in the new

millennium, is “How do I face the new environment and make

a success of my company?” Determining the performance

drivers of organisations, the rules, is nothing new. Many

authors have spent much time and effort on this topic. They

have expressed early warnings about change; given

explanations of the change process and how to make the best

of change; and also offered perfect 20-20 hindsight

explanations of why the change had happened and what can

be learned from it. The question, however, is what the new

rules are in the changing environment which will enable

business success and growth.

The use of the analogy of a “Genetic Code”, or sometimes

referred to as the DNA Code of organisations, shows some

promise of shedding light on the variables affecting business

success and growth. A genetic code provides the means by which

organisms can grow successfully in their environments. The

genetic code of any organism is the key to life. It is the means by

which genetic information is stored as sequences of nucleotide

bases in the chromosal DNA (Complete Wordfinder, 1993)

enabling (or disenabling) the organism to live and grow

successfully in its environment. It seems reasonable to argue

that if a Genetic Business Code for Growth could be developed

it would serve as a crucial enabler of business growth.

The concept of a Genetic Code for organisations is not new.

Cannon (1996) stated that the value of the genetic code of

organisations is shaped by the environment in which the

organisation has to attain success. He elucidated that such a code

largely prescribes how an organisation responds to conditions

and stimuli. This Code is deeply embedded in the enterprise and

rooted in the culture and values of the organisation. Identif ying

the basic genetics of successful organisations is the objective of

this research.

The concerted effort to grow organisations in volatile times

requires an understanding of the capabilit ies and

competencies of organisations, which are held together by

the organisation’s make-up (i.e. the way in which the

organisation is put together and held together to deliver value

on a sustainable basis). The CEO must have a very clear view

of the challenges that the organisation faces, but s/he must

also understand the genetic code for organisational success.

The ways in which these capabilities of the organisational

genetic code combine and interact with one another will

determine the success of the organisation. According to

Cannon (1996) this will create a competitive advantage for

the company. It is generally believed that the development of

a Genetic Business Code for growth will assist managers in

understanding business change and will dispel the

uncertaint y of how to deal with the changing business

environment. 

J.H. VERMEULEN

THEO H. VELDSMAN

GERT ROODT

WILLEM SCHURINK
Programme in Leadership in Performance and Change

in the Department of Human Resource Management

Rand Afrikaans University

ABSTRACT
As with each living organism, it is proposed that an organisation possesses a genetic code. In the fast-changing

business environment it would be invaluable to know what constitutes organisational growth and success in terms

of such a code. To identif y this genetic code a quantitative methodological framework, supplemented by a

qualitative approach, was used and the views of top management in the Transport Industry were solicited. The

Repertory Grid was used as the primary data-collection method. Through a phased data-analysis process an

integrated profile of first- and second-order constructs, and opposite poles, was compiled. By utilising deductive and

inductive strategies three strands of a Genetic Business Growth Code were identified, namely a Leadership Strand,

Organisational Architecture Strand and Internal Orientation Strand. The study confirmed the value of a Genetic

Business Code for growth in the Transport Industry.

OPSOMMING
Daar word voorgestel dat ’n organisasie, soos elke lewende organisme, oor ’n genetiese kode beskik. In die

snelveranderende sake-omgewing sal dit onskatbaar wees om te weet wat organisasiegroei en –sukses veroorsaak.

’n Kwantitatiewe metodologie-raamwerk, aangevul deur ’n kwalitatiewe benadering is gebruik om hierdie genetiese

kode te identifiseer, en die menings van topbestuur in die Vervoerbedryf is ingewin met behulp van die “Repertory

Grid” as die vernaamste metode van data-insameling. ’n Geïntegreerde profiel van eerste- en tweedeorde-

konstrukte, met hulle teenoorgestelde pole, is opgestel. Drie stringe van ’n Genetiese Sakegroeikode, nl. ’n

Leierskapstring, die Organisasieargitektuur-string en die Innerlike-ingesteldheidstring is geïdentifiseer deur

deduktiewe en induktiewe strategieë te gebruik. Die studie bevestig die waarde van ’n Genetiese Sakekode vir groei

in die Vervoerbedryf.

TOWARDS A GENETIC BUSINESS CODE FOR GROWTH IN THE

SOUTH AFRICAN TRANSPORT INDUSTRY

Requests for copies should be addressed to: JH Vermeulen, Department of Human

Resource Management, RAU University, PO Box 524, Auckland Park, 2006

1

SA Journal of Human Resource Management, 2003, 1 (1), 1-16

SA Tydskrif vir Menslikehulpbronbestuur, 2003, 1 (1), 1-16



AIMS

The first aim of this study was to identif y a Genetic Business

Code for Growth. Referring back to the changing business

environment it would indeed be a daunting task to determine

what “really” makes an organisation grow and prosper. Based on

scientific beliefs related to both positivistic and humanistic

philosophical assumptions, the second aim was to develop an

appropriate methodolog y to develop the Business Code.

Differently phrased, the challenge here is to apply qualitative

and quantitative methodological elements to gather relevant

data to develop the Business Code. The third aim was to use the

results of this study as a departure point to explore the

possibilit y of developing an assessment tool to assess

organisations; determine their current “Code”; and identif y gaps

for renewal interventions.

RESEARCH DESIGN

Research can be categorised into two distinct styles: qualitative

and quantitative. The former concentrates on people’s feelings

and emotions as expressed by, inter alia, words and observations

used to conceptualise social reality and attempt to describe

people in their natural situations or habitat. In contrast, the

quantitative approach grew out of a strong academic tradition

that places considerable trust, inter alia, in quantification by

means of numbers, frequencies and concepts or variables. I.e.,

indicators and measurements of people’s perceptions and

opinions. It goes without saying that when researchers opt for a

combination of these two approaches the study’s complexity

increases and clarif ying its approach becomes a crucial

responsibility of the researcher. This study used a mixture of

quantitative and qualitative styles.

It is difficult to find an unambiguous and definite statement of

what qualitative research compromises in business growth. This

is, inter alia, due to the fact that the vast majority of research

regarding success factors in business is quantitatively orientated.

However, the researcher surmises from this study, i.e. determining

the Genetic Business Code for Growth, that qualitative research

has, amongst others, the following features: carefully collecting

data that focus on naturally occurring, ordinary events in natural

settings; highlighting the complexity of growth in the everyday

business reality; providing ample “rich descriptions”, nested in a

real-life context, for interpretation; reflecting on the views and

experiences of CEOs and Executive Managers, these descriptions

can be studied, compared and analysed in the field of business;

and locating the meanings CEOs and Executive Managers place on

events and processes in organisations, because these constructions

are “lived experiences”.

The research in this study was, for the greater part, done within

a quantitative methodological framework, supplemented by a

qualitative approach. As far as the data collection process was

concerned, the study is quantitative since (a) a semi-structured

interview (the Repertory Grid) was used providing certain

themes (regarded as important by the researcher) to the research

participants; and (b) a definition of business growth was

presented in cases where the research participants needed

clarification. The collected data are qualitative because (a) the

research participants were requested to provide their views and

experiences of the topics freely, i.e. no structured answer

possibilities were provided (a qualitative characteristic of the

Repertory Grid); (b) the researcher spent some time with the

research participants in their natural habitat and at least played

some role in discussing their construction of constructs with

them; and (c) the perceptions of the research participants were

captured in relatively detailed field notes.

Theoretical framework adopted

In order to meet the principle research objective, mainly to

describe and explain the views of CEOs regarding business

success, a research design was opted for that utilises both

quantitative and qualitative assumptions. Symbolic

interactionism provided a theoretical framework for this mixed

methodology since it describes in a meaningful, intelligible way

how research participants perceive and manage their business. In

addition, symbolic interactionism also enables researchers to

approach social reality by means of positivistic logic when they

implicitly or explicitly count and measure their data.

Denzin and Lincoln (1994) explain that symbolic interactionism

rests on three premises: Firstly, human beings act toward the

physical objects and other beings in their environment on the

basis of the meanings that these things have for them. Secondly,

these meanings derive from the social interaction between

individuals. Thirdly, these meanings are established and

modified through an interpretive process. Symbolic

interactionism requires that the inquirer actively enter the

worlds of people being studied in order to “see the situation, as

it is seen by the actor, obser ving what the actor takes into account,

obser ving how he interprets what is taken into account” (Mead,

G.H. & Blumer, H., as cited in Denzin & Lincoln, 1994. p. 56). 

The participants

The transport organisation that was selected to participate in this

study is a diverse national company, operating from all major

centres across the country with a turnover of R35, 8 billion and

employing more than 80 000 people.

In this study 22 people participated. Their characteristics can be

summarised as follows:

� Males dominated the sample, 18 males out of the sample of

22.

� Six CEOs, seven General Managers, six Executive Managers,

one Chief Operations Manager and two Senior Managers were

interviewed.

� 86% of the South African transport industry was represented

in this study.

� 231 constructs were developed.

� The average time spent on an interview was 90 minutes.

� 20 interviews were conducted in the natural habitat of the

research participant while two interviews were conducted in

the office of the researcher due to logistical reasons.

The breakdown of the sample in terms of designation, gender,

and industry representation is summarised in Table 1.

Data collection

The real challenge in this study was not to distinguish between

successful and less successful organisations, but to identif y those

capabilities that actually made the difference. The challenge was

to apply managerial subjectivity and perspective and to harness

them in such fashion that a realistic Genetic Business Code for

Growth could be produced. Therefore, what was required was a

tool to quantif y the “unquantifiable”. It was decided the

Repertory Grid presented such a tool.

The Repertory Grid is extremely valuable and enable managers

to give some shape to their vague ideas and notions about

business success and growth and help them to voice their

attit udes, beliefs, feelings and perceptions in a non-

threatening way. It provides a means of measuring and

representing how they view what is going on around them.

Together with a little creative thought, the Repertory Grid

became an excellent tool for identif ying the elements of the

Genetic Business Code for Growth. It is important to take note

of the quantitative, as well as the qualitative components of

the Repertory Grid. The quantitative components of the

Repertory Grid consisted of the selection of elements and

elicitation of constructs in a relatively strict environment,

which is central to the Grid process. The qualitative

component of the Repertory Grid involved the opinionated,

free-flowing perceptions, views and opinions that the research

participants produced, without being interrupted or restricted.

VERMEULEN, VELDSMAN, ROODT, SCHURINK 2



TABLE 1 

KEY FEATURES OF THE SAMPLE

Business Unit Industry Designation # Constructs Gender 

developed

Business Maritime CEO 10 Male

Unit 1

Business Not Executive Manager 10 Female

Unit 2 represented

Executive Manager 11 Male

Executive Manager 10 Male

CEO 10 Male 

Business Rail General Manager 10 Male  

Unit 3

General Manager 9 Male  

General Manager 11 Male  

General Manager 9 Male

General Manager 9 Male

General Manager 9 Male 

Business Maritime General Manager 15 Female  

Unit 4

Senior Manager 9 Male

CEO 9 Male 

Business Not CEO 13 Male 

Unit 5 represented

Business Rail Executive Manager 10 Male 

Unit 6

Business Freight Handling CEO 17 Female  

Unit 7

Executive Manager 9 Male  

Business Aerospace CEO 11 Female  

Unit 8

Chief Operations 9 Male 

Manager

Business Not Executive Manager 10 Male  

Unit 9 represented

Senior Manager 11 Male

Total # constructs 231   

The constructs listed by the research respondents were recorded

on specially prepared perception sheets. These perception sheets

displayed, on the left-hand side, all the similarities of the

elements and on the right-hand side all the differences. Between

them all the elements were listed, because the research

participants were asked to rank each of the constructs. Ranking

the constructs allowed one to see how each construct was used

and to compare constructs, if necessary. The ranking of the

constructs can be done in two ways, namely by using the Across-

method or the Down-method. 

Considering the above, the researcher decided to:

� Interview Chief Executive Officers and Executive Managers in

9 Business units of this transport organisation.

� Use the flowchart, as depicted in Figure 1 as guideline during

the data collection process.

� Use the Triads of Elements, and specifically the Minimum

Contest Card Form, as construct elicitation method because

of its simplicity and user-friendliness.

� Elicit the constructs by allowing the research participant to

develop his/her own views and ideas in a free-flow manner.

Therefore, the research participant was not influenced in the

elicitation process.

� Use the Across-method in the ranking of constructs because

this method leads to neater constructs – there is more

opportunity and incentive to re-define the construct in use

on the one hand, and to eliminate the perceived complexity

of the Repertory Grid on the other.

Data analysis

The Repertory Grid produced 231 constructs from 22 research

participants. The classification of these constructs involved

inductive, as well as deductive reasoning. In the inductive

reasoning the first-order constructs were scrutinised in order to

establish some sort of revealing pattern that would assist in the

classification of the constructs into Strands.

In the deductive reasoning existing findings, views and opinions

of scholars in the fields of leadership and organisational

management were used to assist in the clustering of constructs in

a particular Strand, and into different components. The strategy

was to use the views and opinions of current national and

international scholars, particularly in the Leadership,

Organisational and Human fields of study.

A flowchart of the data analysis process is given in Figure 2. This

process flowchart consists of ten different phases and each phase

will be discussed separately to facilitate understanding.

Phase 1: Data-gathering: All the constructs captured on the

final perception sheets were used. That is, all of the 231

constructs obtained from the 22 participants during the data

collection phase. 

Phase 2: Classification: This entailed the classification of

elements that were used in this study. As this study is interested

in the border between performing Business Units and non-

performing Business Units a range of Business Units were

selected that can be described as performers and non-performers.

To classif y these Business Units the Corporate Financial Office of

this transport organisation was requested to classif y the nine

Business Units in terms of performers and non-performers. The

formula that was used was not prescribed, but reflects the

generic formula of Net Operating Profit after financial cost for

the year 2001/2. The Business Units were classified in terms of

their percentage improvement. 

According to the classification the top performers were

identified as Business Unit 1, Business Unit 2, Business Unit 3

and Business Unit 4, all with positive improvement results.

These four Business Units will ultimately be used to identif y the

capabilities that will make up the Genetic Business Code for

Growth. The non-performers were Business Units 5,6,7,8 and 9.

These Business Units will be used to highlight the absence of a

Genetic Business Code for Growth (“negative code”). 

Phase 3: Data combination # 1: This phase involved the

following: The gathering of all constructs that were developed

for each business unit; as various research participants

developed these constructs, all the contributions were combined

into one table consisting of the second-order construct, as well

as the opposite pole of the construct. 

Phase 4: Data reduction # 1: This phase dealt with the

elimination of duplication. This procedure involved the

following: The physical listing of all the constructs that were

developed; the ident ificat ion of duplicated constructs

bet ween research participants; and the elimination of the

duplicated constructs.

The end result of this process was the compilation of nine

profiles of second-order constructs. 

A GENETIC BUSINESS CODE 3



VERMEULEN, VELDSMAN, ROODT, SCHURINK 4

Now I will give you another set of

three organisations and we will

follow the same process.

I’m going to turn each of the bipolar

constructs that you have developed

into a 5-point scale and ask you to

rate the nine organisations in terms

of that particular construct.

Anything else organisations 1&2

have in common that differs from 3?

What you are saying is that

organisation 1 & 2 are the same

because of the following constructs.

And organisation 3 is different

because of the following constructs. 

Write down perceptions

Does this apply to organisation # 3?

Write down perceptions

On what basis are they alike? (Why?)

Decision is made

Which two organisations are alike

and why?

Give 3 cards

Explain the objective of the

interview, as well as the area of

concern – that is Business Growth

Process flowchart of the 

Repertory Grid

R: Can I give you another set of cards that depicts

different business units?

R: On that specific construct I will put the business

units that you identified on the “one” of this Likert

type scale and the third business unit as “five” on

the scale. Please rate each of these other business

units on the Likert-type scale.

R: Any other similarities between business units

one and three?

P: No, it is only Leadership style.

R: Can I reflect that your first construct is one of

Leadership style, in particular the people approach

to employees?

P: Yes, that is what I said.

R: What do you mean with “Leadership Style”?

P: Everyone in those organisations respect their

leaders because of their personal approach to

people.

R: How does this differ from the third business

unit?

P: The leader of this unit is not a “people’s person”. 

R: Which two business units are similar and

different from the third?

P: Business unit one (Transport industry) and three

(Esselenpark) are similar.

R: Why are one and three similar?

P: Both of these business units are successful

because of the Leadership style.

R: I will give you a combination of three cards. 

On each card is the name of one business unit.

Your job is to select two of those business units,

which are similar in some way, and different 

from the third.

R: There are nine business units that were

identified as the elements in this study. 

R: Welcome to the interview and thank you for

your time. The objective of this interview is to

obtain your own thoughts and perceptions on

what makes organisations successful.

Example of the free flowing opinionated

perceptions of the participant

Figure 1: The Repertory Grid procedure (Key: P=Participant; R=Researcher)



Phase 5: Data combination # 2: This phase included the

identification of the constructs with the highest ranking given

by the research participants (ranking of 1). 

Phase 6: Data reduction # 2: This phase encompassed the

identification and elimination of all duplication of the compiled

profiles developed in the previous phase. The end result of this

phase was four profiles of the highest-ranked constructs without

duplication.

Phase 7: Data combination # 3: This phase dealt with the

compilation of an integrated profile of first- and second-

order constructs. 

Phase 8: Data reduction # 3: This phase included the

identification and elimination of the duplication between the four

profiles. The end result of this phase was an integrated profile of

first-and second-order constructs, without duplicated constructs. 

Phase 9: Data classification # 1: This phase involved the

classification of the constructs into “themes”. The procedure in

this phase involved the scrutinising of the constructs and by the

inductive way of reasoning underlying similarities or themes

were identified. The constructs were then classified into specific

themes based on the underlying meaning and themes.

Phase 10: Data finalisation: This phase dealt with the

identification of components within the identified Strands

through inductive and deductive reasoning.

Table 2 summarises the results of the data analysis reduction

process (i.e. Phases 1 to 6).

RESULTS

The Integrated Profile

The integrated profile was the result of Phases one to eight in the

data analysis process and consisted of 207 constructs. After three

processes of data reduction it was evident that the “business

language” of the research participants in this transport

organisation was relatively similar. This was substantiated by the

fact that 120 duplications were eliminated to produce the final

integrated profile of just 89 constructs. The integrated profile

with the first- and second-order constructs is given in Table 3.

The first-order constructs listed are the “raw” constructs as

identified and developed by the research participants, as they

conveyed them to the researcher. In clarification of some of these

constructs the Laddering method was used as described by

Stewart and Stewart (1990). It is obvious that there are

comprehensive similarities between the first- and second-order

constructs. The researcher did not add ideas or change constructs

in order to make sense of the final constructs.

The constructs that were most frequently duplicated were:

“alignment of business processes”; “clarity of purpose”; “integration

of processes”; “innovation”; “leadership”; and also people issues,

such as “people development” and “retention of talent”. 

The identification of Strands

Within the 89 constructs given in Table 3 lies the Genetic

Business Code for Growth. These 89 constructs are the views and

beliefs of 22 research participants of what makes an organisation

successful. In the identification of the first Strand the 89

constructs of the integrated profile were scrutinised using an

inductive strategy in order to establish meaningful relationships

or patterns. The field notes were also scrutinised to assist with

the establishment of relationships, resulting in 22 constructs

that showed a strong relationship with respect to the leadership

dimension (the first order constructs 1 to 22 in Table 3). In fact,

the construct leadership was one of the most duplicated

constructs. These constructs also showed similarities in terms of

human behaviour, ethical behaviour, in fact all the “soft”

capabilities and competencies that are expected of leaders. 

In the deductive approach specific efforts were made to obtain the

views of specialists regarding leadership, ethical behaviour, as well

as the different components of leadership. These views are

summarised in Table 4. It is a fact that the “under-performance of

organisations, nations, families and sporting endeavors can be directly

ascribed to ineffectual leadership” (Charlton, 2000, p. 29). Charan

and Tichy (1998), Garratt (2000) and Maxwell (1998) support the

complexity of the Leadership dimension. In order to catagorise the

developed constructs even further into different components of

Leadership, the components indicated by literature as given in

Table 4 are used to guide the classification process. 

A GENETIC BUSINESS CODE 5

Clustering of constructs within the

different allocated Strands into

themes

Classification of constructs into

Strands

Identif y & eliminate all duplication

of constructs in the Integrated Profile

Compile an Integrated Profile of

constructs

Identif y & eliminate all duplication

between constructs of the four Top

Performers

Identif y & combine all constructs

with highest rating. (Rating of 1) for

the Top Performing Elements

(business units)

Identif y and eliminate Construct

duplication between research

participants per Element

Identif y and combine all constructs

per Element

Classification of Elements (business

units) in terms of successful and less

successful

Start using the collected information

in the final response sheets
Data

gathering

Phase 

1

Phase 

2

Phase 

3

Phase 

4

Phase 

5

Phase 

6

Phase 

7

Phase 

8

Phase 

9

Phase 

10

Data

classification

#1

Data

classification

#2

Data

finalisation

Data

combination

#1

Data

combination

#2

Data

combination

#3

Data

reduction

#1

Data

reduction

#2

Data

reduction

#3

Figure 2: The data analysis process



By using these views it seems that the following components of

Leadership can be identified: Purpose; Personal competence;

Ethical competence; and Transformational competence.

The identified 22 constructs (constructs 1 to 22 in Table 3)

showed similarities with the above-mentioned classification. The

constructs that supported this classification are given in Table 5.

The following meaning can be attributed to the identification of

these constructs:

� It is clear that the research participants ranked the following

constructs very high: clarit y of purpose; strategic

partnerships; sensitivity towards the environment; and

leadership. This view is indicative of what is happening in

this environment at this stage. 

� The construct “understanding the global environment” seems

out of place, but if the first-order construct is studied, it is

clear that this construct belonged to this dimension.

� The emphasis on values and the management thereof in this

organisation can be attributed to the leadership style of the

Managing Director and the Board. It is also evident that very

few research participants identified specific values. This can

be attributed to the lack of consensus with regard to specific

values. In the recent past some very high-ranking individuals

in this organisation had been disciplined. This also has send

a very clear message regarding certain values.

� The constructs, “innovation culture” and the “predisposition

to change”, dominated the transformational competence

component. In this environment the introduction of the

Balanced Scorecard as a management tool focused business

units with regard to four perspectives, namely Financial

performance, Customer satisfaction, Internal Business

Processes, and Innovation and Growth. Innovation and

transformation is presently very visible because of the

measurable criteria linked to it in the Balanced Scorecard.

The visualisation of the Leadership Strand is given in Figure 3.

VERMEULEN, VELDSMAN, ROODT, SCHURINK 6

TABLE 2 

RESULTS OF THE DATA REDUCTION PROCESS

Constructs awarded by Constructs awarded by

Business Units itself other Business Units  

Business Unit Research Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Examples of

Participants Performance Combination Final set of # of highest- Final set of typical constructs

Status of constructs constructs per ranking constructs

element constructs 

1 1 Successful 10 10 66 48 Leading by example

Innovation

Clear direction

Customer focused

Retention of talent

Training and development

Alignment of processes

2 4 Successful 41 28 88 54 Leadership

Customer centric culture

People/intangibles

Process alignment and 

integration

3 6 Successful 57 42 103 63 Clarity of purpose

Innovation

Customer centric culture

Business process integration 

and alignment

4 3 Successful 33 25 76 42 Values

Market growth

5 1 Less successful 13 13 Not done Not done Clear organisational 

purpose

Reaction to change

Direction update 

frequently

Fast reaction to new 

opportunities

Development of human 

capital 

6 1 Less successful 10 10 Not done Not done Leadership

Clear direction and focus

Speed of decisionmaking

Heavy investment in 

people

Cutting-cost culture

Re-engineering capability

7 2 Less successful 26 20 Not done Not done Innovation

Customer 

People

8 2 Less successful 20 17 Not done Not done Values

People

9 2 Not classified 21 19 Not done Not done Customers

(participants used 

as substitutes) 



A GENETIC BUSINESS CODE 7

TABLE 3 

THE INTEGRATED PROFILE

First-order constructs Second-order constructs 

1 It is not so much the change but the reaction to it and the ability to handle Ability to handle change 

it. Ability to handle change is a characteristic of a good leader.

2 The ability to communicate issues to lower levels is crucial. Ability to share information

3 Business acumen competencies are crucial. Business acumen competencies 

4 A compelling strategy is to have a clear vision. Clarity of purpose 

5 This environment is known for its strong Leadership. Leadership Competent Leadership 

creates Impact.

6 You need to instill values in the organisation. Show me a successful business Entrench values in the organisation

and I will show you Values, the opposite is painfully also true.  

7 One of the challenges is the flexibility in decision-making. Flexibility in decision-making 

8 Focus on intangibles. Focus on intangibles 

9 The Leader will focus on operational efficiency in this way he will Focus on operational efficiency

influence its profitability, by transforming the present operations. 

I believe that no organisation has ever changed without being efficient first.

10 This is sometimes the only decision the CEO can take to survive, it is Forming strategic partnerships

to ensure existence. This is a strategic decision taken by the CEO. I would 

expect a Leader to take such a decision. Sometimes an organisation 

cannot exist without strategic partnerships. It is a characteristic of a good 

leader to instill direction.

11 Loyalty is important. High levels of loyalty 

12 Honesty is a sign that values are managed. Honesty as a value 

13 In today’s world you need to be innovative. If your EXCO is innovative Innovation culture

everybody will be – people are scared of innovation. You can only transform 

if you innovate. You need to nurture that competency.

14 This value is according to me the most important value to consider. What Integrity clearly visible

People do not realise is that values is a top-down approach and not 

a bottom-up approach

15 By setting an example you are leading by example. If you lead by example Lead by example

you are passionate.  

16 As there is ongoing change you must have a predisposition to change. Predisposition to change 

They have a predisposition to change. 

17 The reaction to change will make the difference and how the leader will Reaction to change crucial 

react to change. Change transforms people, as well as organisations 

18 To re-engineer means you are not satisfied with the status quo, you need Re-engineer systems to improve service delivery 

to transform your business. 

19 Environment is a strategic decision; it should come from the top. Sensitive towards environment 

20 A people orientated business, you need to be sensitive towards people. Sensitive towards people component 

21 Solid understanding of the industry is crucial. Solid understanding of the Industry 

22 In the world of globalisation the understanding of this environment is Understand the global environment

crucial for success. The leadership must understand the global environment.

24 Alignment will create value. Alignment will improve productivity. Integration Alignment of operational processes

to gain competitiveness. Integration of process is a seamless approach.

25 They have alternatives in delivery. Alternatives in service delivery 

26 Otherwise the customer will not get to know you. The image drive is for Build a strong image 

the customer. Image is important for the retention of the market.

27 Not the clarity of the Vision but clarity of the mission. If you are doing Clarity of their mission 

the wrong things you will never get to your destination 

28 They have complex internal business processes. Complex internal business processes 

29 They innovate services in order to operate better. Innovation in terms of Consistent innovation of services 

service delivery.

30 To integrate your processes is a seamless approach. Integrate processes to gain Consolidate & integrate business processes 

operating efficiency

31 If you don’t cut costs you will not survive. They are managing the cost Cost-driven 

structures, in order to operate better.

32 A customer focused culture. You need to delight the customer. The airline Customer centric culture 

industry is more sensitive towards clients. This how they are doing business.

33 It is just evident that some organisations develop strategies in this regard, Drive a strategy to grow the market 

to improve their customer profitability. It will ensure their existence.

34 People development is crucial. People development is a priority. Should Drive people development 

drive this trough SDF’s and budgeting processes. The development should

be a strategy. The opposite is bankruptcy. 

35 They drive performance management as a process. Drive performance management within business 

36 These are driven by economic principles Driven by economic principles 

37 An empowerment culture exists. Knowledge grows people. More productive Empowerment culture  

employees.

38 Engineering driven solutions makes a difference will improve operational Engineering-driven solutions

efficiency.

39 If you are too big for your own shoes you need to go across border. But Expansion strategies across border 

it is strategic decision, can influence your purpose. 



VERMEULEN, VELDSMAN, ROODT, SCHURINK 8

40 If your marketers cannot decide you’re dead. Otherwise you will close Fast decision-making speed 

your doors.

41 Fast reaction to new opportunities. Fast reaction to new opportunities 

42 Speed to customer counts. Fast response time to customer 

43 They focus on a limited number of products. Focus on a limited number of products 

44 This decision was made on a strategic level. Focus on core business processes 

45 This is a monopolistic regulated environment. Highly regulated environment 

46 These are in a competitive environment. In a competitive environment 

47 The internal communication is good. Internal communication excellent 

48 Internal relationships with people are stable. You can grow in this Internal relationships with employees very stable 

environment. Stable environment grows people.

49 Introduction of technology to improve business processes. Introduction of technology in business processes 

50 Invest in operational infrastructure. Invest in operational infrastructure 

51 There should be a very strong learning capability. Learning capability 

52 The safety drive is prominent. Safety as an integral business process. Manage safety as integral business process 

53 They have multiple opportunities for personal exposure Many opportunities for personal exposure 

54 They have a monopoly in the market. Monopoly in the market 

55 These businesses optimise their logistics offering. Optimise logistics offering 

56 You got to play to your strengths, outsource. Outsource non-core business. Outsource non-core processes 

57 The ownership of the infrastructure is a competitive advantage. Ownership of infrastructure is a competitive advantage 

58 The competency lies with people, you need to be people orientated. People-oriented businesses 

59 They are perceived to be for the common good. Perceived to be for common good 

60 They recruit talented people. Recruit talented people 

61 Will improve service delivery and effectiveness. Redesign business processes

62 You need to re-evaluate your operating assets. This is a strategic decision. Re-evaluation of operating assets in terms of their life cycle 

63 Extensive training and the refocusing of training and development are Refocus training and development 

important. You got to refocus your training. 

64 The environment will allow you just that much, you need to reposition Reposition to market  

yourself to the market. 

65 The planning of processes made a difference. Require strict planning of internal processes 

66 They retain customers because of their strategies. Retention of customers as a strategy 

67 These businesses are retaining talent. The management and retention of talent. Retention of talent 

68 You can manage cost structures by ringfencing the business. Ringfence the business to identif y the cost-drivers 

69 Pursue a short-term agenda Some organisations pursue short-term agendas Short-term agenda 

for strategic reasons.

70 You got to build an Infrastructure base. Spent time to build infrastructure base 

71 This is a regulated industry where the laws govern. Subject to regulation 

72 Teams prosper in this environment. Teams prosper 

73 They unbundled their processes. Unbundle their processes 

74 These businesses understand customer needs. Understand customer needs 

75 They use excellent service as a differentiating strategy. They differentiate Use excellent service as a differentiating strategy

themselves in terms of service delivery.  

76 You must lift the bar of performance. The utilisation of intellectual capital Utilisation of intellectual capital 

gives you that advantage.

77 Identif y the contributions in the value chain. Value chain focus 

78 Where there is passion there is success. Passionate leaders. Passion in people. Business drive and passion visible 

79 This is a mind thing – you cannot accept your direction for very long. In Direction updated frequently

the changing environment you cannot accept your direction for very long.

80 There is a drive towards efficiency to optimise value through competitiveness. Drive towards efficiency to optimise value through competitiveness 

81 This is an interesting one, if the majority of the people are committed and High commitment of employees 

are passionate the chances are that their business is successful. This is 

according to me a distinguishable characteristic. 

82 Intrapreneurship capability is more prominent. Intrapreneurship 

83 Inventing your future is a predisposition to change, look at the Transport  Invent their future 

industry, they make things happen.

84 It is a concerted effort to make happen what you believe in. You got to Manage own destiny 

manage your own destiny as a person first and then it will rub off on 

everyone else.

85 This is very much a spiritual thing. Personal insight 

86 You do a reality check. You cannot accept that everything will stay the Reconsider identity 

same. I know it is difficult for some people to frequently check and 

re-check, but you must do it. 

87 They were forced out of their mental state of being a parastatal – they had Redefine purpose 

to redefine their purpose. 

88 I see this as a state of mind of people. You are knocked down and you keep Resilience & renewal 

coming up, keep improving your services this is resilience and renewal

89 Improved service offering means a sustainable commitment to excellence, Sustainable commitment to excellence

this is a drive.  



TABLE 4 

LEADERSHIP COMPONENTS INDICATED BY LITERATURE

Component Authors 

Personal competence Bennis and Mische (1995); Covey (1997); 

Garratt (2000); Kotter (1995); Maxwell (1998);

Veldsman (2002) 

Ethical competence Bennis (1997); Cannon (1996); Charan and 

Tichy (1998); Garratt (2000); Kotter (1995); 

Maxwell (1998); Veldsman (2002)

Purpose Bennis (1996, 1997); Bennis and Mische 

(1995); Cannon (1996); Senge (1990)

Transformational competence Bennis (1989); Charan and Tichy (1998); 

Veldsman (2002) 

The motivation for this study states that the findings of this

study could be utilised for future renewal and redesign

exercises within this transport organisation. Linked to this is

the practical contribution, of this study, the development of a

tool, as one of the major outcomes of the proposed research.

To achieve this objective it was decided to apply the opposite

construct pole in the same manner as with the Leadership

Strand to visualise the opposite dimensions and components.

With this approach a clearer vision of leadership, as it was

developed in this study, would be created. As this opposite

pole indicates several deficiencies in leadership as it was

developed in this study, this Strand was aptly named the

Leadership-deficiency Strand. Given space constraints this

Strand could not be included in the article but it is available

in Vermeulen (2002, p.65). Figure 3: The Leadership Strand

A GENETIC BUSINESS CODE 9

TABLE 5

LEADERSHIP COMPONENTS SUPPORTED BY CONSTRUCTS

Component Construct # Respondents Typical comments 

Purpose Clarity of purpose 14 participants “This is sometimes the only decision a CEO can

Forming strategic partnerships 8 participants take to survive. It is to ensure existence”

Sensitive towards the environment 2 participants “This is a strategic decision taken by the CEO. I 

would expect a leader to take such a decision”

“It is a characteristic of a good leader to instill 

direction.”

“It is not really a new thing, it is a very old principle 

to be sensitive towards the environment. It should 

come from the top, it is a strategic decision.”

Personal competence Ability to handle change 1 participant “Leadership creates impact”.

Ability to share information 1 participant “A people orientated business, you need to be

Business acumen competencies 1 Participant sensitive towards people.”

Competent leadership 11 Participants “This environment is known for its strong

Flexibility in decision-making 1 Participant Leadership.”

Focus on intangibles 2 Participants “Business acumen competencies are crucial.”

Sensitive towards people component 1 Participant

Solid understanding of Industry 1 Participant

Understand the global environment 2 Participants

Ethical competence Entrench values in the organisation 6 Participants “This value is according to me the most important

High levels of loyalty 1 Participant value to consider. What people do not realise is that

Honesty as value 1 Participant values is a top-down approach and not a bottom-up

Integrity clearly visible 2 Participants approach.”

Lead by example 1 Participant “Show me a successful business and I’ll show you 

values. The opposite is, painfully, also true.”

Transformational Focus on operational efficiency 1 Participant “The reaction to change will make the difference and 

competence Reaction to change crucial 1 Participant how the leader will react to change. Change 

Predisposition to change 4 Participants transforms people, as well as organisations.”

Innovation culture 12 Participants “You can only transform if you innovate”,

Re-engineering capability 1 Participant “Innovation needs to be built as a competence in the 

organisation”

“The leader will focus on operational efficiency, in 

this way he will influence its [the organisation’s] 

profitability, by transforming the present operations. I

believe that no organisation has ever changed without

being efficient first.”

“To re-engineer means you are not satisfied with the 

status quo, you need to transform your business.”

Purpose

� Clarity of purpose

� Forming strategic partnerships

� Sensitive towards environment

Personal Competence

� Ability to handle change

� Ability to share information

� Business acumen competencies

� Competent leadership

� Flexibility in decision-making

� Focus on intangibles

� Sensitive towards the people component

� Solid understanding of the industry

� Understand the global environment

Ethical Competence

� Entrench values in the organisation

� High levels of loyalty

� Honesty as a value

� Integrity clearly visible

� Lead by example

Transformational Competence

� Focus on operational efficiency

� Innovation culture

� Predisposition to change

� Reaction to change crucial

� Re-engineering capability



The same methodological approach was followed in the

development of the second Strand. By using an inductive

approach the first- and second-order constructs were scrutinised,

and based on the meaning the research participants gave to these,

55 constructs were identified that showed certain similarities with

business processes in an organisation (constructs 23 to 77 in Table

3). Processes such as performance management, cost management,

and decision-making were mentioned. Where the previous

constructs focused on the “soft” issues in an organisation, these

constructs focused more on the “hard” aspects of an organisation. 

A deductive approach was followed in identifying the components

of the organisational architecture environment. “After all we have

said about the characteristics of the 21st century Corporation and the

drivers of change, the new markets, the information technology, the

stakeholders, and so forth, what can we say about what the new

corporation looks like? What’s its architecture?” (Wind & Main, 1999.

p. 301). On the same subject Veldsman (2002) emphasises that,

“Architecture is one of the most important means to bridge the

strategic gap between the organisation’s present and desired future

positions. Decisions regarding architecture determine how the

organisation interfaces with its markets and clients, where the

organisation focuses its energies, influences the deployment of

resources, facilitates or constrains the accomplishments of work,

motivates various types of job performance, and shapes the pattern of

formal and informal interactions and relationships that unfold over

time” (p. 103). The components indicated by literature are

presented in Table 6 to guide the classification process. 

TABLE 6

ORGANISATIONAL ARCHITECTURE COMPONENTS

INDICATED BY LITERATURE

Component Authors 

Strategic direction Clegg and Birch (1998); Garratt (2000); 

Ghoshal and Bartlett (1995); Longenecker, 

Simonetti and Sharkey (1999); Sunter (1992)

Customer centricity Hamel (1990); Nadler and Tushman (1999); 

Porter (1979); Prahalad and Wilson (1999)

People effectiveness Garratt (2000); Ghoshal and Bartlett (1995); 

Huang (2001); Kaplan and Norton (1996); 

McCoy (1996); Veldsman (2002)

Operating efficiency Beer and Nohria (2000); Kaplan and 

Norton (2001); Nohria and Ghoshal (1997); 

Owen, Mundy, Guild and Guild (2001); 

Porter (1987)

By considering the results of the inductive and deductive

reasoning, and for the purposes of this study Organisational

Architecture will be seen as a series of related processes that

focuses on the achievement of strategic direction, customer

centricity, people effectiveness and operating efficiency. 

Table 7 reflects these components as supported by the constructs.

In order to attach meaning to these elicited constructs the

following comments are appropriate:

� The majority of constructs were developed in the customer

centricity, people effectiveness and operating efficiency

components. This can be ascribed to a degree of uncertainty that

exists in this environment with regard to strategic direction. 

� It seems that the majority of research participants identified

the following constructs: “build strong image”, “customer

centric culture”, “drive a strategy to grow the market”, “fast

decision-making speed”, “fast reaction to new opportunities”

and “reposition to market”. The first-order constructs were

scrutinised and the source of these constructs seemed to be all

of the Business Units. This result could be ascribed to the

introduction of the Balanced Scorecard in this environment. 

� The “people effectiveness” component was dominated by one

Construct, namely “drive people development”. The source of this

component was all of the Business Units involved in this study.

� The constructs “internal relationships with employees” and

“empowerment culture” were the only two constructs that

were not that obviously related to the development of people.

The first-order constructs, however, indicated that these

constructs definitely belonged to this component.

� The fact that the majority of research participants identified the

“people development” construct, but few broke it down into other

components can be attributed to the fact that in this environment

heavy emphasis is currently placed on human development.

� The constructs “recruit talented people” and “retention of

talent” indicated the urgency in this organisation to manage

talent. This could also indicate the undersupply of

appropriate talent in the Transport Industry.

� The fact that the “alignment and integration of processes”

received so much attention, whereas the construct “introduction

of technology” received so little attention, was difficult to

explain, as this environment is strongly technology driven. 

� With regard to “safety” and “cost-driven” the source of these

constructs was only one Business Unit. This seemed

acceptable as especially the safety issue is of the utmost

importance to this Business Unit as several accidents had

influenced its image during 2000/1.

Taking the above-mentioned into consideration, the second set

of constructs were classified as the Organisational Architecture

Strand. This Strand is visualised in Figure 4.

Figure 4: The Organisational Architecture Strand

VERMEULEN, VELDSMAN, ROODT, SCHURINK 10

Strategic direction

� Ability to implement restructuring

� Clarity of their Mission

� Expansion strategies across border

� Focus on a limited number of products

� Focus on core business processes

� Outsource non-core processes

� Ownership of infrastructure is a competitive advantage

� Re-evaluation of operating assets

� Short-term vs Long-term agenda

Customer centricity

� Alternatives in service delivery

� Built a strong Image

� Customer centric culture

� Drive a strategy to grow the market

� Fast decision-making speed

� Fast reaction to new opportunities

� Fast response time to customers

� Reposition to market

� Retention of customers as a strategy

� Understand customer needs

� Use excellent service as differentiating strategy

People effectiveness

� Drive people development

� Empowerment culture

� Internal relationships with employees

� Learning capability

� Opportunities for personal exposure

� People orientation

� Recruit talented people

� Refocus training & development

� Retention of talent

� Team work

� Utilisation of intellectual capital

Operating efficiency

� Alignment of operational processes

� Built infrastructure base

� Consistent innovation of services

� Consolidate & integrate business processes

� Cost-driven

� Drive Performance Management

� Engineering-driven solutions

� Internal communication

� Introduction of technology

� Invest in operational infrastructure

� Manage Safety

� Optimise logistics offering

� Planning of internal processes

� Redesign business processes

� Ringfence businesses to identif y cost drivers

� Unbundle processes

� Value chain focus



The opposite Construct pole was applied in the same manner as

with the Leadership Strand to visualise the contrasting

dimensions and components. As this opposite pole indicates

confusion with regard to direction, a total lack of movement (or

speed) and a lack of pro-active decision-making it was decided to

name the opposite strand the Dinosaur Strand. Clegg and Birch

(1998) also refered to this type of characteristics as “dinosaur”

characteristics (see Vermeulen, 2002, p.74 for a visual

representation of this Strand).

The identification of the first two Strands paved the way to

classif y the rest of the constructs into a third Strand. The field

notes were scrutinised to assist with the establishment of

relationships. Twelve constructs showed a strong relationship

with respect to a mental attitude that is needed to ensure growth

(constructs 78 to 89 in Table 3). It seems that these constructs

indicated that, besides the behavioural competencies and the

organisational capabilities, a third “theme” was necessary to

ensure organisational success. This “theme” included an

“attitude” or “personality” that individuals possess and impose

onto their respective organisations which made a difference. 

An inductive way of reasoning was also used in order to classify the

identified constructs into components. Charan and Tichy (1998)

mentioned that the one factor that distinguishes organisations that

grow from organisations that cannot grow is not the businesses

they are in, because there are losers in growth industries or

markets, and winners in declining ones. Neither is it the tactics

they use. It is rather “a state of mind”. This “state of mind” seems

to be the “third” element that ensures sustainable growth. De Geus

(1997) proposed that it is “the innate spirit that moves and propels a

company”. He explains that an organisation is not just a bundle of

individuals or a combination of assets and individuals. Each living

being has an undifferentiated wholeness, with its own character,

which can be called its “Persona”. Zohar (1997) calls this “one

factor” the “instinct” of an organisation. She explains that deep

transformational change requires that one literally rewire one’s

brain, that one grow new neural connections. 

A GENETIC BUSINESS CODE 11

TABLE 7

ORGANISATIONAL ARCHITECTURE COMPONENTS

SUPPORTED BY CONSTRUCTS

Component Construct #Respondents Typical comments 

Strategic Ability to implement restructuring 2 participants “They implement restructuring efforts.”

direction Clarity of their mission 1 participant “Not the clarity of the Vision but clarity of the Mission

Expansion strategies across border 1 participant If you are doing the wrong things you will never get to your destination.”

Focus on limited number of products 1 participant “If you are too big for your own shoes you need to go across border 

Focus on core business processes 2 participants But it is strategic decision, can influence your purpose.”

Outsource non-core processes 2 participants “This decision was made on a strategic level”

Ownership of infrastructure is a 1 participant “You got to play to your strengths, outsource.”

competitive advantage “Outsource non-core business.”

Re-evaluation of operating assets 1 participant “You need to re-evaluate your operating assets. This is a strategic decision.” 

Long-term vs. Short-term agendas 1 participant “Pursue a short-term agenda. Some organisations pursue short-term 

agendas for strategic reasons.”

Customer Alternatives in service delivery 1 participant “They have alternatives in delivery.”

centricity Build a strong image 7 participants “Otherwise the customer will not get to know you.”

Customer centric culture 17 participants “The image drive is for the customer. Image is important 

Drive a strategy to grow the market 7 participants for the retention of the market.”

Fast decision-making speed 5 participants “You need to delight the customer.”

Fast reaction to new opportunities 3 participants “It is just evident that some organisations develop

Fast response time to customer 1 participant strategies in this regard, to improve their customer

Reposition to market 4 participants profitability. It will ensure their existence.”

Retention of customers as a strategy 1 participant “If your marketers cannot decide you’re dead.”

Understand customer needs 1 participant “Speed to customer counts.”

Use excellent service as a differentiating strategy 1 participant “The environment will allow you just that much, you 

need to reposition yourself to the market.”

“They use excellent service as a differentiating strategy. 

They differentiate themselves in terms of service delivery.”

People Drive people development 14 participants “People development is crucial. People development is a priority.

effectiveness Empowerment culture 2 participants Should drive this through SDFs and budgeting processes. The development

Internal relationships with employees 2 participants should be a strategy. The opposite is bankruptcy.”

Learning capability 1 participant “An empowerment culture exists. Knowledge grows people. More

Opportunities for personal exposure 1 participant productive employees.”

People orientation 1 participant “Internal relationships with people are stable. You can grow in this 

Recruit talented people 2 participants environment. Stable environment grows people.”

Refocus training & development 1 participant “There should be a very strong learning capability.”

Retention of talent 2 participants “The competency lies with people, you need to be people orientated.”

Team work 1 participant “These businesses are retaining talent. The management and retention

Utilisation of intellectual capital 1 participant of talent.”

Operating Alignment of operational processes 5 participants “Alignment will create value. Alignment will improve productivity.

efficiency Built infrastructure base 1 participant Integration to gain competitiveness. Integration of process is a

Consistent innovation of services 1 participant seamless approach.”

Consolidate and integrate business processes 8 participants “You got to build an Infrastructure base.”

Cost-driven 1 participant “They innovate services in order to operate better. Innovation in terms 

Drive performance management 2 participants of service delivery.”

Engineering-driven solutions 1 participant “To integrate your processes is a seamless approach.”

Internal communication 1 participant “Integrate processes to gain operating efficiency.”

Introduction of technology 1 participants “If you don’t cut costs you will not survive. They are managing the cost 

Invest in operational infrastructure 2 participants structures, in order to operate better.”

Manage safety 1 participant “They drive performance management as a process.”

Optimise logistics offering 2 participants “Engineering-driven solutions make a difference will improve operational

Planning of internal processes 2 participants efficiency.”

Redesign business processes 2 participants “The internal communication is good.”

Ringfence business to identif y cost-drivers 1 participant “Introduction of technology to improve business processes.”

Unbundle processes 1 participant “The safety drive is prominent. Safety as an integral business process.”

Value chain focus 1 participant “Will improve service delivery and effectiveness.”

“You can manage cost structures by ringfencing the business.”

“Identif y the contributions in the value chain.” 



TABLE 8

INTERNAL ORIENTATION COMPONENTS INDICATED BY LITERATURE

Component Authors 

Spiritual core Cavanagh (1999); De Geus (1997); 

Hock (1999)

Mental core Charan and Tichy (1997); Hock (1999)

Emotional core Charan and Tichy (1997); Cooper and 

Sawaf (1997) 

Drive and Passion Charan and Tichy (1997); Clegg and Birch 

(1998); Collins and Porras (1998); 

Levicki (1998) 

In order to catagorise the developed constructs even further, the

components indicated by literature is presented in Table 8 to

guide the classification process. 

By following inductive and deductive strategies a third Strand

was identified. This Strand for the purposes of this study will be

classified as the Internal Orientation Strand. This Strand

consists of the spiritual, emotional and mental core with drive

and passion as foundation. The supporting constructs are

depicted in Table 9. 

The following observations regarding the identification of

this Strand are relevant: To establish meaning was difficult in

the case of this Strand, as not enough constructs were

developed. The inabilit y of more research participants to

recognise drive and passion, whereas the people component,

and especially the “people effect iveness” component,

received so much attention is difficult to explain. An

indication could be that the majorit y of the research

participants believed that the influence of drive and passion

was minimal. Another reason for the apparent lack of more

constructs in this component could be that the sample of 22

research participants was just not enough to ident if y

sufficient similar constructs.

The Internal Orientation Strand is visualised in Figure 5.

The opposite-construct pole was applied to develop the opposite

of the Internal Orientation Strand. This opposite Strand was

characterised by a general absence of a “spirit” in the organisation

and the absence of mental and emotional competencies. As the

term “zombie” refers to the absence of “spirit” in general, it was

decided to call this Strand the ”Zombie Strand” (see Vermeulen,

2002, p. 79 for a visual representation of this Strand).

Figure 5: The Internal Orientation Strand

VERMEULEN, VELDSMAN, ROODT, SCHURINK 12

TABLE 9

INTERNAL ORIENTATION COMPONENTS SUPPORTED BY CONSTRUCTS

Component Construct #Respondents Typical comments 

Spiritual core Manage own destiny 2 participants “It is a concerted effort to make happen what you believe

Personal insight 1 participant in. You got to manage your own destiny as a person

Reconsider identity 1 participant first and then it will rub off on everyone else.”

Redefine purpose 2 participants “This is very much a spiritual thing.”

“You do a reality check. You cannot accept that everything 

will stay the same. I know it is difficult for some people to 

frequently check and re-check, but you must do it.”

“They were forced out of their mental state of being a 

parastatal – they had to redefine their purpose.”

Emotional core Invent their future 1 participant “Inventing your future is a predisposition to change,

Resilience and renewal 1 participant look at the Transport industry, they make things happen.”

“I see this as a state of mind of people. You are knocked 

down and you keep coming up, keep improving your 

services this is resilience and renewal.”

Mental core Direction updated frequently 3 participants “This is a mind thing – you cannot accept your direction

High commitment level 1 participant for very long. In the changing environment you cannot

Intrapreneurship 2 participants accept your direction for very long.”

“This is an interesting one; if the majority of the people are

committed and are passionate the chances are that their 

business is successful. This is according to me a 

distinguishable characteristic.”

“Intrapreneurship capability is more prominent.”

Drive and Passion Business drive and Passion clearly visible 1 participant “Where there is passion there is success. Passionate Leaders.

Drive towards efficiency to optimise value 1 participant Passion in people.”

Sustainable commitment to excellence 1 participant “There is a drive towards efficiency to optimise value 

through competitiveness.”

“Improved service offering means a sustainable 

commitment to excellence, this is a drive.”

Spiritual core

� Manage own destiny

� Personal insight

� Reconsider identity

� Redefine purpose

Mental Core

� Direction updated frequently

� High commitment level

� Intrapreneurship

Emotional Core

� Invent their future

� Resilience and renewal

Drive & Passion

� Business drive and passion

visible

� Drive towards efficiency to

optimise value

� Sustainable commitment to

excellence



DISCUSSION AND APPLICATION OF FINDINGS

Based on the above findings an Integrated Genetic Business

Code Model is proposed (given in Figure 6) which depicts three

strands with the Internal Orientation Strand in the centre. (In

contrast the Genetic Code for all known organisms has two

strands and is therefore refered to as the “double helix”).

According to Zohar (2000) when individuals use their spiritual

intelligence, they see things from the centre of their being. It can

therefore be argued that the Internal Orientation Strand acts as

the “spinal cord” of the Genetic Business Code. Charan and

Tichy (1998) highlight that the genetic code embodies the

leader’s ideas, values and emotional energy. According to

Charan and Tichy (1998) this strand indicates how everyone

thinks, acts and behaves. Ideas for Growth will originate from

the centre strand, namely the Internal Orientation Strand, and

values by the ethical component of the Leadership Strand. 

The “constituting” role is the function of the Internal Orientation

Strand, whereas the “structuring” role is the function of the

Organisational Architecture Strand. The “acting” role is the

function of the Leadership Strand. The horisontal and vertical

characteristics of the Model highlight the interdependency and

interrelatedness between these Strands, as well as their

components. A deficiency in one component will consequentially

influence the total alignment and functioning of the Model. 

As all of the research participants identified constructs for each

Business Unit, relatively “thick” descriptions are available of those

capabilities and competencies for business success. The application

of the findings is focused by specific Business Unit, as seen by the

research participants. Although based only on the views and

perceptions of the research participants, these profiles can be

presented with the objective of establishing patterns and exploring

the possibility of developing an assessment tool that would indicate

possible areas of intervention or renewal. A pattern represents

different combinations of the three Stands developed above.

In order to establish patterns, the highest-ranking constructs for

each of the Business Units was used to compile a profile for each

of the nine Business Units. These profiles were compared to the

respective strands of the Genetic Business Code for Growth (see

Figures 3,4 and 5) and the fit was expressed as a percentage.

With these profiles certain patterns were identified as given in

Table 10. From studying Table 10 it was evident that Business

Unit 3 has the highest fit (77.25%) followed by Business Unit 2

(64,6%), Business Unit 9 (61,25%), Business Unit 1 (57,5%),

Business Unit 7 (47,8%), Business Unit 8 (47%), Business Unit 4

(41,4%), Business Unit 5 (41,1%) and Business Unit 6 (22%).

Figure 6: The Integrated Genetic Business Code Model

A GENETIC BUSINESS CODE 13

TABLE 10

SUMMARY OF PERCENTAGE FIT BETWEEN PROFILES FOR THE PARTICIPATING BUSINESS UNITS

Business units

(From performing to underperforming) 

Strands Components Business Business Business Business Business Business Business Business Business 

Unit 3 Unit 2 Unit 9 Unit 1 Unit 7 Unit 8 Unit 4 Unit 5 Unit 6

Leadership Purpose 100 100 100 100 66 66 100 100 60  

Personal competence 55 33 55 55 44 55 77 33 22  

Ethical competence 100 80 60 60 20 40 60 60 20  

Transformational competence 100 60 100 60 80 80 40 60 20 

Organisational Strand Strategic direction 77 77 33 44 33 66 55 33 11  

Architecture

Customer centricity 54 72 90 54 63 63 45 36 54  

People effectiveness 45 81 63 54 36 36 54 36 36  

Operating efficiency 70 41 52 64 41 41 41 70 23 

Internal Spiritual core 60 50 50 50 75 25 25 0 25  

Orientation Strand

Mental core 66 66 66 66 33 60 0 33 0  

Emotional core 100 50 0 50 50 0 0 0 0  

Drive and Passion 100 66 66 33 33 35 0 33 0 

% Fit 77,2% 64,6% 61,2% 57,5% 47,8% 47,0% 41,4% 41,1% 



Business Units 1,2 and 3 had been identified as high performers

in the initial classification of the Business Units. Business Unit

9, although not participating in the study, was highly ranked by

the research participants. This exercise showed a high

correlation with the initial classification of the Business Units in

terms of hard performance measurements (Phase 2 of data

analysis). The validity of the Strands is therefore confirmed by

the high relationship bet ween the classification of the

participating Business Units in terms of performance measures

and their profiling in terms of the Strands.

The performance averages on the different strands is depicted in

Table 11.

In order to develop patterns it is essential to look at the average

performances in the different Strands. Only two Business Units,

namely Business Unit 2 and 3, performed well in all the Strands.

It is believed that if less than 50% of the components of the

Genetic Business Code for Growth are present it shows a

weakness in that specific Strand, and if more than 50% is present

it indicates adequate representation. All possible permutations

were present in the sample, namely a fit with all three Strands

being adequately present; secondly two Strands being adequately

present; thirdly only one Strand being adequately present; and

lastly no Strands being adequately present. These four types of

combinations were used to establish patterns. 

As this method of classification has not yet been tested

extensively to establish its validity and reliability, it is difficult

to assess which of the Strands are relatively more valuable in

predicting organisational success. However, it is hypothesised

that the Internal Orientation Strand will be the first Strand to

show a weakness when an organisation is faced with a challenge,

because this Strand provides orientation and strength towards

problem solving. The second Strand to show weakness will be

the Organisational Architecture Strand, followed by the

Leadership Strand.

As the classification showed that Business Units 2 and 3 were

adequate in all three Strands (see Table 11) the pattern typif ying

these Business Units were entitled as Wealth Creators.

Organisations that displayed such a balanced profile usually

create wealth in the environment in which they operate. This

type of organisation has all the potential to unlock the vision

level as described in the discussion of the Integrated Genetic

Business Code Model (see Figure 6). Because there are creative

resources available, the organisation moves effortlessly to the

collective human energy level that enables the organisation to

use individual drive and passion to apply strategic thinking.

Both these Business Units were rated relatively high on the

Organisational Architecture Strand, which means that they are

perceived to have clarity with regard to their strategic direction;

that the majority of the employees are sensitive to the customer;

and that the people are effective and the processes efficient. The

perceived strength of both these Business Units lie in the

Leadership Strand.

Business Units 1,8 and 9 were classified as manifesting the

Wealth Inhibitor pattern. All three Business Units were

perceived to be insufficiently strong in the Internal Orientation

Strand. Although these Business Units displayed a certain

amount of purpose, personal competence, ethical competence

and transformational competence (i.e. Leadership Strand), the

weak link, were that they lack the Internal Orientation Strand

that produces creative ideas for growth; the collective human

energy; and drive and passion for application. The value of the

Internal Orientation Strand was evident in this case. If this

deficiency is not addressed the chances are that these Business

Units could lose momentum in the quest for success because

this distinct pattern hinders or restrains action.

Business Units 4,5 and 7 displayed the Wealth Terminator

pattern. The characteristic of this pattern is that it destroys the

organisation from the inside. All three these Business Units were

perceived to have certain leadership competencies. Although

there seems to be purpose supported by certain personal, ethical

and transformational competence, the “constructing” and

“structuring” functions were absent. This means that the

organisational environment is not conducive to leadership

influences, resulting in the lack of unleashing the

transformational leadership competence. Although the workforce

might understand the purpose, there is not enough drive, passion

and collective human energy to apply transformation. In turn,

this influences the Organisational Architecture Strand with a

subsequent underperformance in customer centricity, people

effectiveness and operating efficiency. 

The last distinct pattern was named the Wealth Demolisher

pattern. This pattern depicted an organisation that is under-

performing in all three Strands. Business Unit 6 was perceived

by the research participants to be in this category. This pattern

is characterised by the total breakdown of essential processes,

competence and ideas. It is believed that the majority of the

workforce would be frustrated in this type of environment. No

vertical and horisontal alignment would exist between the

Strands because of the breakdown in trust. In this type of work

environment people would just doing enough to stay out of

trouble, resulting in an under-performing organisation. 

CONCLUSION

A quantitative methodological framework, supplemented by a

qualitative approach was used to identif y a Genetic Business

Code for Growth consisting of a Leadership Strand, an

Organisational Architect ure Strand and an Internal

Orientation Strand. 

The development of a Genetic Business Code for the Transport

Industry described above, could add value in terms of:

� performance improvement: the introduction of the Code can

assist organisations in improving their financial performance,

delivery and customer satisfaction;

� establishing a holistic approach to business growth within

organisations, in this way establishing systemic thinking;

� developing an assessment tool to identif y strengths and

weaknesses regarding their Genetic Business Codes; and

� assisting Business Units in developing appropriate

measurable criteria for inclusion in their respective 

Balanced Scorecards.

VERMEULEN, VELDSMAN, ROODT, SCHURINK 14

TABLE 11

PERFORMANCE AVERAGES ON THE DIFFERENT STRANDS

Strands Business Business Business Business Business Business Business Business Business 

Unit 3 Unit 2 Unit 9 Unit 1 Unit 7 Unit 8 Unit 4 Unit 5 Unit 6

Leadership Strand 88 68 78 68 60 52 69 63 30 

Organisational 61 67 59 54 51 43 48 43 31 

Architecture Strand

Internal 81 58 45 49 29 47 6 16 6

Orientation Strand



The major strengths of the study are that a Genetic Code of

Business Growth was developed, applied empirically and

validated; the research design adopted a combination of

qualitative and quantitative research; and the opportunities

the study opens up for future research. The major weaknesses

are that the study was limited to a single organisation

dominating a single industry, hence the generalisation of the

findings is limited at this point in time; and the unfamiliarity

of the researcher initially with a qualitative research approach

may have hampered the optimal execution of the study. All in

all it is believed, however, that the strengths of the study

outweigh its weaknesses.

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