Saturday, January 26, 2019

The Monthly Organizational Structure Tuning: Tuning Organizational Structure to Get Digital Ready Jan 2019

The future of digital organizations would be complex enough to act intelligently and nimble enough to adapt to the change promptly.

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 to harness innovation?


Tuning Organizational Structure to Get Digital Ready

Tuning Organizational Structure to Improve Digital Ready-ness? Organizations across the vertical sectors and geographical boundaries are on the journey of digital transformation. New generations of digital technologies such as digital collaboration platforms and tools are enabling not only the structured processes of the past but also the unstructured processes of the digital enterprise. The future of digital organizations would be complex enough to act intelligently and nimble enough to adapt to the change promptly.

How to Design Organizations to Maintain Viability Digital organizations are a complex ecosystem with the blurring line between functions, organizations and geographic locations. How to design organizations to maintain viability and deliver tactical actions for strategic effect, given weak, noisy and evolving feedback signals due to systemic adaptive complexity in its environment? What would be an inclusive set of theories to accommodate a complex system? How would such a set be integrated? How would be an organization experiencing that type of feedback know it's viable? How would it or its parts know it needs to change itself? How would it or its parts know what to change?

What is the ideal Digital Organizational Structure? Due to the hyper-connectivity of digital nature, the trend toward softer and flatter organization structure is clear. And surely it is the right direction, as speed is a key imperative these days and “silo” mentality as a product of rigid hierarchy hinders flexibility. However there are certain limits from an organizational design perspective, and there is a long way ahead of building a high performing digital organization with an optimized organizational structure.

The “Digital Way” of an Organizational Structure and Beyond Organizations large or small are on the journey to digital transformation, and there are different theories of organizational structure evolution and continuous brainstorming about the concept of self-management, the format of future of the organization etc. The whole point is how to build a more creative and productive working environment in which the employees’ talent can be unleashed; and business as a whole is more optimal than the sum of pieces, in order to adapt to the change with the accelerating speed? Ultimately, what's the digital way to run a business?

How to Fine Tune the Digital Organizational Structure Tuning the organizational design and structure to achieve the high level of autonomy is the symbol of the digital maturity. Majority of organizations are designed to improve functional efficiency in the industrial era. But digital masters move a few steps ahead, focus on shaping changeability, innovation, and people-centricity. However, the digital transformation won’t happen overnight, organizations need to have an in-depth understanding of gains and pains of organizational design and development, follow the digital principles to plan, experiment and scale up for improving strategic responsiveness and structural flexibility of their business.

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1 comments:

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