Flexible Structures
In the past, most organizations were designed for efficiency and effectiveness, leading to complicated and siloed organizations. The resulting business models, which were based on predictable commercial patterns, are unsuited to an era of unpredictability and disruption. Instead of mere efficiency, successful organizations must be designed for speed, agility, and adaptability to enable them to compete and win in today’s global business environment.
An important part of designing for adaptability is a shift away from hierarchical organizational structures toward models where work is accomplished in teams. Leading companies are pushing toward a more flexible, team-centric model.As organizations make this transition, they find that smaller teams are a natural way for humans to work. This is why the organization of the future is a “network of teams” (see figure below).
OUR PERSPECTIVE:
Top companies are built around systems that encourage teams and individuals to meet each other, share information transparently, and move from team to team depending on the issue to be addressed. Different networks can have different specialties, such as innovation or getting to market quickly, but the principle is the same.
WHAT WE OFFER:
Protect the core and disrupt at the edge
Select an area where immediate success is needed
The incubated group cannot be “too far” from the core.
Focus the incubated team on pace, use the minimal viable mindset for all decisions
Ensure the surrounding conditions for success are in place (the appropriate budgets/leadership attention, etc.).
Unleash the networked teams
Define objectives and customer needs
Redefine work based on cross-functional outcomes
Adopt a flatter design
Build on core principles of agile management
Evolve leadership style to deliver team autonomy
Adopt a collaborative systems mindset
Strive to constantly think beyond your immediate function,
Have the courage to make decisions that benefit the whole organization
Shift your focus to outcomes, always thinking about the customer or end user
Leverage the wisdom of crowds in problem solving
Recognize that the most effective teams operate as collaborative units
Reinforcing metric and reward system
Leaders need to model the behaviour
Create the conditions for a flexible organization
Purpose creates a common vision and shared culture
New leadership mindset makes the model work
The new workforce provides the right talent that scales
Collaboration and technology platforms bring the new design to life
Processes should allow for the opportunity to fail
KEY INSIGNTS:
BOOK
McKinsey on Organization
by McKinsey
The first book focuses on Agility and Organizational Design. It covers cutting-edge research on how to design effective, nimble organizations capable of addressing the intense pace and complexity of business challenges in the 21st century
PERSPECTIVE
Unlocking the flexible organization
by Deloitte
This paper explores the four main elements for building a flexible, team-based, networked organization that is capable of competing effectively in a complex environment and adapting quickly to an uncertain future.
ANALYSIS
Organizing to thrive
by Deloitte
Many companies, however, are typically effective at redesigning their organizations for just one of these pursuits—cutting costs. The challenge now is to develop a value-driven organization design that both reduces costs and enables growth at the same time.
