Tuesday, June 20, 2017

Tuning a Flexible Digital Organization

Ideally, the two structures, hierarchy, and relationship structure wrap around each other to ensure responsibility, to keep information flow and the creation of power.

Compared to the traditional organizations with an overly rigid hierarchy or strictly pyramidal structure, digital organizations today are flatter, hybrid (the mix of physical building and virtual team setting) and more adaptable to changes. These companies are becoming more flexible, able to navigate changes and the complexity of the present business world via creative problem-solving and innovative management practices.


The organizational design should be tuned to enforce flexibility: A flexible organization is a complex social system starting to appreciate attributes such as 'readiness,’ 'ownership,' ‘integration,’ 'open communication,’ customized structuring as well as developing 'partnerships. Because digital platforms and technologies break down the rigid functional silos and enable unofficial structures forming to keep information and idea flows. Ideally, the unofficial structure that has emerged over time is the formal structure you should have. The “organizational design problem” would be to build the “best” mix of organizational elements that enable the organizational interdependence, enforcing cross-functional communication and collaboration. What works and what doesn´t, depends on the nature of the organizational interdependence that needs to be enabled. After all, where you presently stand determines the path you have to take to get to where you want to be. The digital balance to human nature will need to have some combinations of structural design and incentives, and going forward, it may well require changing both official and unofficial structures into a hybrid organizational structure that can support an innovation journey in the direction you are heading, rather than where you have been.

Be flexible to explore alternative ways to solve problems: Running the business is fundamentally about solving business problems to win customers and achieve business results. Never assume you know what the problem is. Never think there is a short list of solutions you can pick from. And there is no need to look at it in a reactive mode as a ‘problem,’ but it would be desirable to look at it proactively,  set the updated business ‘policy,’ and digital principles. Test every assumption. A solution should match a problem and with that in mind, the one thing change would be to have a phrase at the heart of everything the organization does.  So the best way in which Change Management would help in a vertical sector, and would be tangible as well, would be to bring about technical changes in organizational design to reduce complications and optimize cost for achieving the tangible business value and develop a business process improvement initiative and incorporate change into it.

The business change objectives depend on the human objective: Digital means the fast pace of changes. Because organizational change becomes common practice within an organization, it needs to be treated as a strategic function to reach its full advantage. Irrespective of whatever strategy is selected, all change objectives (business, technical, service, safety, performance) depend entirely on the human objective. With time and increased understanding of Organizational Change Management (OCM), there is an acknowledgment that the best fit for OCM is at the strategic level. Organizational development needs to manage the conflict between classic style and digital style of management. The management system needs to be the alerts you put in place that act as tuning forks to enable you to view the timing, tempo, and harmonies going on, or not. Ultimately, the goals for the organizational change is to increase employees’ engagement, productivity, improve customers’ satisfaction, and the overall business performance and maturity.

Change is a continuum and either for the individual or the business, once you accept that life will be a constant shift going on around us, then you are able to seek ways and means of adjusting your perspectives and those around you. From organizational structure and change management perspective, digital favors hybrid solutions. Ideally, the two structures, hierarchy, and relationship structure wrap around each other to ensure responsibility, to keep information flow and the creation of power. Thus, it is important to keep tuning a flexible digital organization to get digital ready.



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