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Pyramid. However, it must be noted here that the “formatting”

of Linkedin unfortunately does not permit a Pyramid shape to be shown correctly;
rather, it typically distorts that shape. The actual Pyramid representation of the
model can be seen in Flamholtz, 1995 and Flamholtz and Randle

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2016. Accordingly, the reader is asked to visualize or imagine that the six key
“strategic building blocks” or variables shown below are in a hierarchical Pyramid
shape, with “Markets” at the base and “Culture” at the top.

 Culture
 Management Systems

 Operational Systems
 Resources
 Products (services)

 Markets

It should also be noted that the Pyramid shape is not intended not imply that the

key tasks are carried out independently. All six tasks are vital for the health of the
firm, and must be built simultaneously. However, the relative emphasis on each
task or level of the Pyramid will vary according to the organization’s stage

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of growth.
It should also be noted that the top four levels of the Pyramid (resources,

operational systems, management systems, and culture) form the “infrastructure”
of the firm. Generally, however, although competition between firms takes place at
all levels, long-term sustainable advantage is primarily found at the top three

levels, because there are the least susceptible to are less susceptible to imitation
and, accordingly, provide the basis for long term sustainable competitive
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advantage.

56 See Eric G. Flamholtz (1995). Managing Organizational Transitions: Implications for Corporate and
Human Resource Management. European Management Journal, 13 (1), 39-51.and Eric G. Flamholtz
and Yvonne Randle, Growing Pains: Building Sustainably Successful organizations, Fifth Edition,
Wiley, 2016
57 See Eric G. Flamholtz (1995). Managing Organizational Transitions: Implications for Corporate and
Human Resource Management. European Management Journal, 13 (1), 39-51
58 Ibid.

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