Sunday, December 16, 2018

The Monthly Organizational Structure Tuning: Deepen the Understanding of the Organizational Hierarchy Dec. 2018

To understand the digital business or the world as a complex adaptive system requires an understanding of how things have come together, being 'built.” 

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 by the deep understanding of the organizational hierarchy?

  

Deepen the Understanding of Organizational 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.

Tuning Organizational Structure from Hierarchy to Circular for Achieving Fluidity, Flexibility, and Fit With the 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.

How to Leverage System Understanding to Managing Change and Tunning Digital Organization? Everything is all connected. There is flexibility, abstraction, and pliability in the concept of a system and system of systems. Businesses are systems. The digital organization is a complex ecosystem with the blurring line between functions, organizations, and geographic locations. To understand the digital business or the world as a complex adaptive system requires an understanding of how the things have come together, being 'built,” as well as how to leverage the system understanding for fine-tuning the business to get digital ready.

How to Mind the Gap between the Industrial Age and Digital Age Organizations large or small are on the journey of digital transformation. It is the transformation that is reshaping our thinking and recasting the way we view ourselves, the systems of which we are the part of the environments in which we live, and the way we think and solve problems. There are multitudes of gaps between the industrial age and the digital age, understanding the digital business development is multifaceted, and it is the paradigm shift which needs a well-thought-out planning and takes a multidisciplinary approach.

How to Apply Maslow’s Hierarchy to IT management Abraham Harold Maslow was an American psychologist, who stated that people are motivated to achieve certain needs and that some needs take precedence over others. Maslow’s hierarchy of needs is a motivational theory in psychology comprising different tiers of human needs, at the bottom is the basic "surviving" needs to the middle tier for" belonging" to the top tier of "self-actualization." In fact, it is an invaluable theory not only for understanding and managing people with empathy but also for providing insight to the multitude of modern management discipline. Nowadays, organizations rely more and more on technologies, IT organizations have more and more to offer, it also has a lot of obstacles to overcome for achieving the high level of business maturity. So, CIOs as “Chief Improvement Officer”: How to apply Maslow’s hierarchy in IT management?


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