Getting organizational redesign right. “If at first you don’t succeed, try, try, try again.” If W. E. Hickson, the British author known for popularizing that familiar proverb in the mid-19th century, were alive today, he might easily be applying it (disparagingly) to the efforts of modern corporations to redesign their organizations. Recent McKinsey research surveying a large set of global executives suggests that many companies, these days, are in a nearly permanent state of organizational flux.
One plausible explanation for this new flurry of activity is the accelerating pace of strategic change driven by the disruption of industries. Frustratingly, it also appears that the frequency of organizational redesign reflects a high level of disappointment with the outcome. The good news is that companies can do better—much better. Why redesign the organization? When do executives know that an organization isn’t working well and that they need to consider a redesign?
Avoiding the pitfalls 1. 2. 3. 4. 5. 6. 7. 8. 9. Holacracy – A complete system for self-organization. The Organization As a Network of Projects. Recurrent and non-recurrent activities in an industry can be seen as “projects”. Whether we seek to improve the speed at which we manufacture products, install new equipment, organize shipments or file quarterly closing, we need the coordinated efforts of many different competencies.
Deploying these competencies in a logical sequence is relatively easy. However, breaking assumptions about the way performances should be controlled and measured seems to be a true cognitive ordeal. The measurement of performances seems to be inextricably connected with a local, i.e. functional indicator while we all know that what matters is the global bottom line of the company. How do we come out of this seemingly irreconcilable conflict? We do it by asking ourselves what company functions are for, and uncovering the obvious truth that functions should house competencies, not power. Engineers, accountants, scientists, subject matter experts, should not be considered members of a “company function”.
Managing beyond the organizational hierarchy with communities and social networks at Electronic Arts. Image by opensource.com How do you manage a very large, very complex organization that is geographically disbursed in many different countries around the world? You already know that the outdated hierarchal organizational structure won’t work and if you are like many companies you are probably beginning to realize that the matrix type structure (where each employee reports to both a task manager and a resource manager) has its own limitations. Electronic Arts (EA) established cross-company virtual communities that provide the benefits of coordinated decision making while preserving the independence required for creativity and innovation. These communities are supported by a unique governance structure and a fun and engaging technology platform.
Context Electronic Arts Inc. is a leading global interactive entertainment software company. Recently EA underwent a transformation like it had never experienced before. Triggers Key Innovations & Timeline An overall community steering committee. 3. 10 Principles of Organization Design. A global electronics manufacturer seemed to live in a perpetual state of re-organization. Introducing a new line of communication devices for the Asian market required reorienting its sales, marketing, and support functions. Migrating to cloud-based business applications called for changes to the IT organization.
Altogether, it had reorganized six times in 10 years. Suddenly, however, the company found itself facing a different challenge. Because of the new technologies that had entered its category, and a sea change in customer expectations, the CEO decided to shift from a product-based business model to a customer-centric one. That meant yet another reorganization, but this one would be different. It had to go beyond shifting the lines and boxes in an org chart. This situation is becoming more typical. Today, the average tenure for the CEO of a global company is about five years. The chief executive has to get the reorg right the first time; he or she won’t get a second chance. 1. 2.
Creative Organizational Design - COD - Articles - Psychology In The Workplace. Using psychology to facilitate leadership, teamwork, profitability and workplace satisfaction. Erik Erikson was a famous Danish psychologist who developed a very useful theory about how we mature. He talked about leadership, getting along with others and making sense of our world. Although every psychology student knows about Erikson, the business world has been slow to realize that his theory also applies to the workplace. Erikson said that at each one of eight stages we learn how to master a specific task. If we are successful, this leads to the development of a lasting strength or ability, which helps us deal with our world and those around us.
In the first stage we learn either to trust or mistrust people. How does this apply at work? In the next stage, Erikson suggested that we learn one of two things — autonomy or to feel doubt when we assert ourselves. Erikson's third stage involves learning to either show some initiative or feel guilty when you do. Re-printable with permission. A Guide to Matrix Management. The McKinsey 7S Framework - Strategy Skills from MindTools.com. Ensuring That All Parts of Your Organization Work in Harmony Learn how to use the 7-S Framework, with James Manktelow & Amy Carlson. How do you go about analyzing how well your organization is positioned to achieve its intended objective? This is a question that has been asked for many years, and there are many different answers. Some approaches look at internal factors, others look at external ones, some combine these perspectives, and others look for congruence between various aspects of the organization being studied.
Ultimately, the issue comes down to which factors to study. While some models of organizational effectiveness go in and out of fashion, one that has persisted is the McKinsey 7-S framework. The 7-S model can be used in a wide variety of situations where an alignment perspective is useful, for example, to help you: The McKinsey 7-S model can be applied to elements of a team or a project as well. The Seven Elements Let's look at each of the elements specifically: Strategy: SIX-BOX MODEL - Welcome to MarvinWeisbord.com. For several years I’ve experimented with “cognitive maps” of organizations. These are labels that would help me better describe what I saw and heard and understand the relationships among various bits of data. I started this endeavor when I realized that though I knew a lot of organization theory, most theories are either (1) too narrow to include everything I wished to understand, or (2) too broadly abstract to give much guidance.
These notes represent a progress report on my efforts to combine bits of data, theories, research, and hunches into a working tool which anybody can use. For want of a more elegant name, I call this tool the “Six-Box Model.” This model (Fig. 1) has helped me to rapidly expand my diagnostic framework from interpersonal and group issues to the more complicated contexts in which organizations are managed. Figure 1 provides six labels under which one can sort much of the “funny stuff” that goes on in organizations, both formal and informal. The Marvin Weisbord Six-Box Model (Weisbord’s Model) | Reflect & Learn. Organizational Diagnosis & Six Box Model.