Monday, September 9, 2019

Fair Reasons to Fine-Tune the Organizational Structure

Fine-tuning underlying business structure and processes is a critical step for improving digital business fluidity, flexibility, and overall digital fit,

The digital organization is an integral business system with policies, cultures, work climates, people (employees, customers, partners, etc.) and processes. To keep digital fit, the organization has to keep optimizing its functional or structural design and management pyramid to achieve a high level of autonomy and the state of digital equilibrium. The whole business ecosystem needs to communicate, negotiate and cooperate with each other for catalyzing changes and harnessing innovation. Here are some fair reasons to fine-tune the organizational structure for streamlining digital flow and improving the organizational maturity.

Change in a strategy requires realignment of resources and fine tuning the organizational structure: With increasing speed of changes, the degree of business responsiveness depends on how business systems and subsystems interact with each other, flatter organizational structures will help to speed up the organizational response to changing markets. In the industrial age, many organizations are running in silos, with the top down organizational structure and overly restricted hierarchy which slows down the speed of changes. Limited hierarchy works best in a creative environment where the free flow of ideas and their prompt implementation is a key element of business success. Forward-looking organizations work proactively to dismantle business bureaucracy, experiment with different types of organizational structures to enforce business alignment, enablement, communication, and collaboration, design for trust, and improve the adaptability and maturity of the organization.

Disappointing customer satisfaction results give the management a sense of urgency to fine-tune the organizational structures or processes: The digital era upon us is the age of customer centricity. The challenge for the business across vertical sectors is to fine-tune a successful organizational structure that delivers what customers what and architect an organization to bring value to customers while also creating value for the business itself. To fine tune a customer-centric organization, they need to break down silos, keep information and ideas flow frictionlessly, and manage knowledge holistically so that they can capture almost real time customer insight, tailor customers need, meet their expectations, and adapt to changes with faster speed.

The adoption of new technologies provide companies great opportunities to fine-tune the organizational structure and reinvent the business: In a world that has been transformed by technology, many old and powerful hierarchies became “commoditized.” The latest digital technologies and collaborative tools provide great opportunities for the business to optimize business design, fine tune organizational structures, and improve business maturity. New generations of digital technologies are highly powerful but nimble and lightweight to bridge functional silos and provide omnichannel communications, enabling not only the structured processes of the past but also the unstructured processes of the hyperconnected digital enterprise. Thus, any organizational restructure effort should leverage the emerging digital technologies and platforms for improving cross-functional communication, mass collaboration, and harnessing innovation.

The organizational structure tuning helps to create the chemistry that has a significant impact on productivity, performance and creativity: Organization structure and its impact on business culture could play either a positive or negative impact. The digital workplace needs to be designed to help employees at all levels within an organization, from top leaders to front-line employees, understand and develop their creative capacity to solve problems and explore opportunities in innovative ways. An organization can approach the flow zone when positions in its hierarchy have clear and accountable tasks. Thus, the challenge for any business is to fine-tune a successful structure that helps to empower people and enforce business relationships to unleash the collective potential. The management should do their best to make sure that their personnel is educated, accepting, and eventually investing in that change themselves.

Restructure organization to drive digital transformation: Leading digital transformation is like navigating a ship on the sea, you have to make the timely adjustment for adapting to the changing climate, otherwise, it perhaps causes fatal damages. It’s about setting out goals and working at them in a systematic way for proactively disrupting outdated mindsets, organizational structures, processes, technologies, or cultures. Traditional organizations are often silo-based and strictly hierarchical. The large scale business transformation often requires to fine tune the underlying organizational structures, functions, or culture, etc. Digital leaders are eager to set stages, fine-tune organizational structures that allow the growth mindset and digital culture to bloom so that the business can stretch out in every business dimension for driving a full-fledged digital transformation.

Fine-tuning underlying business structure and processes is a critical step for improving digital business fluidity, flexibility, and overall digital fit, and drive a frictionless, immersive, and relentless digital transformation. The ultimate business goal is to unlock latent expertise, scale innovation, amplify digital impact, and streamline business flow across the organizational ecosystem. Ideally, the digital organizational structure needs to be solid enough to “keep things in order,” but also fluid enough to interact with the expanded digital ecosystem seamlessly.


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