Saturday, October 27, 2018

The Monthly Organizational Structure Tuning Running a “Boundaryless” Digital Organization Oct. 2018

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 dimension of your organizational development?

Running a “Boundaryless” Digital Organization

Running a “Boundaryless” Digital Organization? Today’s digital businesses are nonlinear, volatile, interdependent, and uncertain. Digital blurs the geographical, functional, organizational, and even industrial borders nowadays. It means that organizations today need to be fast and flexible, have less boundary but better abilities for dots connections Tso that the business can adapt to changes effectively and innovate continually. Here are three aspects of running a “boundaryless” digital organization.

Three Critical Underpinning for Running a Digital Organization Organizations today are hyperconnected with their business ecosystem because today, the geographical, functional, business or even industrial borders are blurring. Digitalization is not just about the single dimensional technology upgrading, it has to expands to almost every dimension of the business. At the high maturity level, companies need to embed digital into the very fabric of the business and explore digital transformation in a structural way. Here are three critical underpinning for running a digital organization.

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.

Three Perspectives of Debureaucratization
The root of the word "bureaucracy" is: bureau(fr) = desk and kratos(gr) = rules/ power. The larger the organization and inputs, the larger the amount of 'rules' necessary for its function and to keep dependent variables and outputs delivery stable. However, too many rules will stifle innovation, outdated rules will stop the business from moving forward with accelerated speed. And the overly restricted hierarchy will cause silo, discourage cross-functional communication and collaboration. Hence, dismantling bureaucratization is inevitable because of the ever-increasing speed of changes and expanding interdependence. Here are three perspectives of debureaucratization.

Fine-Tune Organization Structure to Get Digital Ready Due to the “VUCA” nature of digitalization, the business complexity is unavoidable. Organizations that are skilled at managing complexity can gain advantages by pushing the boundaries of a more complicated business mix that provides opportunities to create inter-business value. From an organizational structure perspective, how to fine tune the digital dimensions of your organizational structure development to get digital ready?

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