A Dynamic Organization Principle #8

Fluidify the Organizational Structure

The flow and accessibility of information is critical in complex organizations, especially those with global reach. The best structures are those that avoid rigidity. Community-based organizations are structured to optimize collaboration between horizontal units while requiring minimal input vertically. Their network structure facilitates the flow of information and task allocations diagonally, leading to maximum adaptability.management_of_change

The level of localization or decentralization depends on the conditions necessary for self-learning. The goal is to allow a structure to emerge that optimizes the ability to make rapid and relevant decisions. These structures will evolve over time as the organization grows and diversifies. Decision making is delegating to the front line with a mechanism for self-learning. Management does not set the goals and means. Rather, it sets the overall aim and allows each organizational unit to determine its own path through communication and collaborative decision making.

These tactics facilitate the development of a fluid structure with in a learning organization:

  • The creation of multilevel project teams supports a community-based structure. Senior management should delegate resources and objectives to the lowest possible level. Performance should be measured on both a team and an individual level.
  • Continually changing demands can lead to unclear reporting relationships. To facilitate learning, the organization should clearly define accountabilities while tolerating some lack of clarity. This becomes more natural as companies experience the value of community-based structures. Specific objectives and defined responsibilities lead the process while maximizing flexibility and learning.
  • Horizontal information flow and communication is very important. Within community-based organizations, information flows freely. Interconnectedness is facilitated by a plethora of communication devices. Therefore, the challenge is moving from information availability to discretion and relevance.

Come back for the next 2 Principles on Leading a Dynamic Organization! Feel free to comment with questions, insights, or additions to this post. To receive alerts when the next blog is published, subscribe in a reader or through your email at the right of this page.

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Christopher Laszlo and Jean-François Laugel, Large-Scale Organizational Change (Boston: Butterworth Heinemann, 2000).

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