Wednesday, March 3, 2021

Variety of Hierarchy

 It’s important to enforce desired hierarchy, create business synergy, maintain viability, and make strategic effects. 

The digital transformation is now spreading rapidly to enable organizations of all shapes and sizes in varying sectors to reinvent themselves to get digital ready. In fact, the digital organization is a living thing with the ability to continually change as the world changes. Thus, the overly rigid organizational structural pyramid becomes the very obstacle that stops the digital flow and stifles innovation. 

In the emerging digital age with the nature of hyperconnectivity, nonlinearity, and interdependence, it’s important to break down the outdated hierarchy, enable innovative types of digital hierarchies, build a creative working environment and develop high intelligent, high mature workforce step-wisely.

“Learning Hierarchy” (Learn-Share-Relearn-Create) smoothly: With the mixed bag of new information and outdated knowledge, digital organizations and their people must learn through their interactions with the business environment continually. The pervasive digitization requires the balance of “old experience” and “new ways to do things.” Top seasoned leaders or high professionals become aware when some of the long-acquired knowledge are no longer applicable in certain situations. You have learned to no longer apply that knowledge in those specific cases, and then, relearn the updated knowledge for gaining unique insight on the changing circumstance accordingly. In fact, the digital workforce today has to learn and relearn all the time and then apply those lessons to succeed in new situations, climb the “learn, share, relearn, and create” hierarchy step by step.

Practically, a learning organization is the one in which leaders encourage learning-acting-improving as an iterative business continuum. The problem is that knowledge doesn’t always inform you of true understanding and it must keep flowing and refreshed to generate the value. You have to keep updating knowledge, create new knowledge and become the knowledge value creator. You need to apply  learning, act, observe the consequences of their actions, make inferences about those consequences, and draw implications for future actions.

Intelligence hierarchy:
The intention of Eco-Information Management Life Cycle is to build a high-intelligent organization by processing and refining insight for making the right business decisions timely and bringing profits to the organization for the long term. The synchronicity of the information management cycle enables the organization to improve business speed, generate ideas, make decisions, catalyze innovations and improve organizational maturity. Business professionals need to climb the Data-Information-Knowledge-Intelligence-Insight-Wisdom pyramid continually.

In present days, we cannot separate knowledge and creativity if we want to stay competitive on the market. Knowledge can be taught, but insight is a unique perception which needs to be gained by each individual. By having an active learning and thinking cycle, over time, you develop an effective set of filters that help you find new information interests you and refine them into valuable insight. Knowledge is gained via the learning process, but insight is the integration of learning and thinking scenarios. Hence, knowledge can be taught, but insight is a unique perception which needs to be gained by each individual.

System hierarchy: Due to the “VUCA” digital new normal, today’s business is often operational in crisis and conflict environments. Digital organizations are dynamic systems. System hierarchy provides the system stability and resilience. Organizations leverage systems principles to introduce different concepts of hierarchy, in which systems evolve and interlink to create larger systems, within even larger systems, and so on, and these systems of systems can forge or alter a myriad of relationships/alliances. To improve the organizational maturity, what can be unifying is looking at each function in the enterprise as a subsystem and then finding a unified means of looking at the essence.

System hierarchy is different from the command and control hierarchy. In system scenario, the hierarchy can be viewed as onion-like layers rather than the command and control hierarchy, though this is not to say they must be mutually exclusive. An organization with system intelligence can approach the flow zone when the positions in its hierarchy have clear and accountable tasks. Balance is key. There must be enough central control to achieve coordination toward the large-system goals, and enough autonomy to keep all subsystems flourishing, and functioning for achieving high-performance results. The healthy planning-adjusting-evolving digital refinement cycle creates the business synergy to strive vigorously in leading digital transformation.

Modern digital organizations are not just the sum of functional pieces, but an integral whole. To run a highly functional digital business, the business hierarchy must balance fluidity, freedom, and responsibilities of the substems (functions) and the total system, to enable information fluidity, workforce creativity and management holism. It’s important to enforce desired hierarchy, create business synergy, maintain viability, and make strategic effects. The desired outcome is to assess the employee's contribution and ability at the different levels of the organizational hierarchy to fulfill tasks and objectives in line with the organizational goals and unlock collective potential.


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