Organization Structure For The Future

3 Keys To Organization Survival

Organization StructureNo organization is exempt from the unending challenges to avoid extinction.

What does an organization need to do to avoid extinction when the world around it is changing exponentially?

Exponential is now the new normal. But, how do you create an organization that will adapt to change as rapidly as change itself?

What does an organization need to do to deal with unpredictable and disruptive competition? Competition from literally any place in the globe! If innovation is a key to avert extinction, how do you make everybody’s job be innovation – every day?

In the foreseeable future, information may well become a commodity. In that competitive environment exactly what is required to unleash the creativity initiatives and drive that will help to ensure survival?

Few organizations have the resources to meet all their capital needs on every front. How can organizations use the resources they have to extend their existence?

Can the solutions to today’s disruptive changes even be implemented in time to avoid extinction?

Tackling the challenges

Gary Hamel, considered to be one of the top 50 management gurus in the world, suggests you can only deal with the challenges to extinction if you are prepared to do 3 things:

Aim high – Don’t relax until you’ve done everything you can do to make your organization as resilient, inventive, inspiring, and accountable as it can be. Ok, what does that mean? The answer to come.

Destroy the status quo – Hamel suggests that the vast majority of organizations are governed by principles conceived before 1920. Principles intended at organizing labor to complete tasks. A clear command and control mindset.

Discover the fringe – the notion is that creativity does not come from main stream functions, only at the fringes. Creativity and innovation starts on the edges where there isn’t as much oversight and control.

Can the old survive

Can the management structures of the early 1920’s be versatile enough to address the exponential rate of change organizations face? Is the purpose of these structures – standardization, focus on specialization and a chain of command and control – relevant today?

Without a doubt, that model has created global prosperity. However, the driving forces of these old structures are at odds with today’s world wide competition.

At odds primarily due to information technologies and the access to information delivered by the world wide web. When information is a commodity and readily available to anyone, does a hierarchical structure add value to the decision review and approve process?

The evolution of information technology has leveled the playing field for competitors and flattened management structures.

Organizational Challenges

Amazon, an e-commerce start up in 1995, has challenged the existence of many brick and mortar stores.

Kindle and other internet based publishers are accelerating the extinction of hard copy publishers.

Business history shows numerous seismic shifts that have transformed the competitive landscape. Such mega shifts confront organizations with the challenge of extinction. Some survive, some don’t.

These “break through” transformations will not only never go away, they will continue to accelerate.

Is your organization ready?

It it time to radically re-think just how the people and resources in organizations are structured to meet competitive challenges of tomorrow?

Microsoft CEO Satya Nadella recently informed employees that Microsoft’s organization structure will be flattened and leaner business processes developed. Microsoft, a dominant industry leader, signaling it needs to change, be more efficient, more responsive, more inovative, more and more.

Coping with change in your market as well as inside your company, even if you are a market leader, can no longer be considered a choice or “nice to have” skill set. It has to be a core competency in order to avoid extinction.

What is your company doing to avoid extinction? Lets talk!

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