Tuesday, July 23, 2019

The Monthly Organizational Structure Tuning: Tuning a Flexible Digital Organization July 2019

A digital organization is an organic living thing with attributes such as open communication, “ownership,” “flexibility,” and “creativity,” etc.

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 a Flexible Digital Organization

Building a Digital Organization with Strategic Flexibility With rapid changes and fierce competitions, forward-thinking organizations today aim to move into a more advanced stage of digital deployment by tailoring their own unique strength and business maturity. Running a digital organization means high-responsiveness, high-performance, and high-innovativeness. Because the ways of doing business and meeting customer expectations both tend to be more adaptable than the siloed industrial age. The reality is that organizations that do not respond to external environmental changes will quickly outcompete as nimbler and more adaptable companies catch up and take their customers. How to build a digital organization with strategic flexibility?

A Flexible Organization Digital is the age of choices; just like consumers have more options to shop via multi-channel platforms; organizations also have more opportunities (and risks as well) in scaling or innovating their businesses. Today, "flexible organizations" are on the digital way to drive business success. These companies are able to "navigate" the change and the complexity of the present business world via creative problem-solving and continuous innovation practices.

Tuning a Flexible Digital Organization? Compared to the traditional organizations with an overly rigid hierarchy or strictly pyramidal structure, digital organizations today are flatter, hybrid (the mix of the physical building and virtual team setting) and highly 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.

How Can Digital Characteristics Brighten the Shadow of Bureaucracy Traditional organizations have a pyramidal hierarchy and overly rigid organizational structure and processes, which often enforce silo thinking and business bureaucracy. Generally speaking, bureaucracy is a system based on a hierarchy of authority and division of workforce functioning in a routine manner. Bureaucracy is criticized by its inflexibility, inefficiency, silo, stagnation, unresponsiveness, lack of creativity, etc. It is correlated with a mechanistic view of the organization and reductionistic management discipline. With increasing rate of changes and fast growing information, the organization needs to be adapted in a digital way that it can respond effectively to the dynamic changes and to the variety in the environment. But more specifically, how can emergent digital characteristics brighten the shadow of bureaucracy to improve management effectiveness and organizational maturity?

Three Aspects to Build Flexible Digital Workplace Compared to the traditional organizations with the overly rigid hierarchical setting and classic management style, the digital workplace is more dynamic, flatter and engaging. A digital organization is an organic living thing with attributes such as open communication, “ownership,” “flexibility,” and “creativity,” etc, as well as the hyperconnectivity with its digital ecosystem.

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