Wednesday, July 11, 2018

The Monthly Organizational Structure Tuning July 2018

The more nonlinear, interconnected, and interdependent the environment, where uncertainty and emergence become more prevalent, the less likely ordered hierarchical systems are to be the answer due to the rigidity.

Digital makes a significant impact on every aspect of the business from people, process to technology, both horizontally and vertically. Digital becomes the very fabric of high performing business, being outside-in and customer-centric is the new mantra for forward-looking and high mature digital organizations today. From an organizational structure perspective, how can you fine-tune the digital dimensions of your organizational development?

     

The Alternative Organizational Structure with Metaphors


Tuning Organizational Structure from Hierarchy to Circular for Achieving Fluidity, Flexibility, and Fit? With increasing pace of changes, hyper-connectivity, and interdependence, organizations across vertical sectors are at the turning point, take the multidimensional approach to make the digital paradigm shift. From the organizational structure perspective, the overly rigid pyramidical organizational structure forms communication gaps, encourages silo mentality, creates the performance bottleneck, also decelerate business speed. Therefore, fine-tuning underlying business structure and processes is a critical step for improving digital business fluidity, flexibility, and overall digital fit.

An Alternative Organizational Structure Digital is the age of options. The option to build business physically or run virtually; the option to serve customer via traditional counter or digital channel; the option to work in the large building or the remote office; the option to be the titan industry leader or the fitting niche player? How about organizational structure, what’s an alternative organizational structure, to differentiate from the command-control pyramidal hierarchy?

Is Hierarchy Good or Bad for Systems?
As complexity is pushing the boundaries of the thinking and traditional systems, what we do know is "those larger and more complicated systems" do not have the requisite agility to adapt to more complex and adaptive environments. The more nonlinear, interconnected, and interdependent the environment, where uncertainty and emergence become more prevalent, hence accelerated rates of change, the less likely ordered hierarchical systems are to be the answer due to the rigidity. Hence, we need to adapt to the Systems Thinking and reimagine the digital organizational structure. Systems Thinking is the ability to think the "whole," and understand the interconnectivity of its parts as well.

Digital Shift: A Living Organization With increasing speed of change and exponential growth of information, the hierarchical organization is no longer effective enough to adapt to the changes, how to design an organization of futures to run in digital speed with ultra-modern leadership style, and how to build up a dynamic, adaptable and anti-fragile digital business?

A Hybrid Organization
With the fast pace of change and emerging digital technologies such as social, mobile and cloud, companies large or small are brainstorming the next generation of organizational design, how to take advantage of the new digital tools, how to improve productivity and enforce creativity & collaboration cross-enterprise ecosystem?

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