OrganizationalReinvention

The organizational design shifts from inside-out process-driven to outside-in people-centric. 

Organizational structure reinvention refers to a fundamental redesign of how an organization operates, going beyond simple restructuring or redesign. 

Reinvention is a process where organizations respond to environmental changes that threaten their core business model, technologies, cultural values, and operational norms. Organizational reinvention often moves away from traditional hierarchical pyramids towards more fluid, self-managing structures.

Comprehensive change: Organizational reinvention involves a more dramatic and comprehensive change compared to restructuring or redesign. It often requires developing new capabilities and skills to implement a new business model and market approach. 

Ongoing journey: Unlike restructuring, which focuses on near-term problem-solving, organization reinvention is forward-looking and it’s a continuous journey aiming to create an organization that maximizes value for customers and investors.

Balancing preservation and change: Leaders must preserve some elements that made the organization successful while changing others that could render it obsolete if left unattended. Organization reinvention often involves understanding technology lifecycles, extending existing capabilities, and adopting new capabilities in response to new technologies. 

Innovative mindset: Leaders need to develop the right mindsets and team to engage in a reinvention effort. In reinvented organizations, actions are guided by the organization's evolutionary purpose rather than top-down directives.

The emergence of new structures: The broad types of self-managing structures have emerged in reinvented organizations: parallel teams, matrix structures, and nested circles. Reinvented organizations aim to be more responsive and energized, behaving like "complex adaptive systems" that can adapt to changing environments. 

Significant disruption: Reinvention requires creative disruption compared to simple restructuring and often needs a compelling case for change. The self-organizing organization is an organic system that can re-configure its structure and change its behavior during business execution, leading to progressive changes. Effective reinvention considers external demands and trends, work processes, roles, and support systems, rather than just changing the organizational chart.

Organizational structure reinvention is a complex process that aims to fundamentally transform how an organization operates, adapts, and creates value in response to significant environmental changes or challenges. The organizational design shifts from inside-out process-driven to outside-in people-centric.

Posted in: Business Process Management,Digitalization