Tuning Organizational Structure to Improve Digital Ready-ness

Improving changeability: Everyone has a valuable contribution to make at whatever level in the formal hierarchy they happen to be placed, the goal for optimized organizational design is to get the mass collaboration, innovation through less hierarchy, cross-functional insight and adopt the robust processes designed for improving responsiveness and harnessing communication. Flatter structures will help speed up organizational response to changing markets. Digital means the increasing speed of changes, it means that the management needs to challenge convention and break down peoples' natural resistance to change or to new ideas; helping to deliver incremental improvements over time. So it is about individual mental set-up too, hence inter-dependency is a premium stage. This also helps improve quality, reliability and also productivity, which helps fuel sustainable growth and jobs too.
Increasing consciousness: At the organizational level, self-adaptation is faster if made with the full involvement of people in organizational change, starting from relations between people. One of the key determinants of whether an organization can move to new digital structures is the development level of the people: At the individual level, the “incremental consciousness” about our own potentials is changing the way we see ourselves, our roles into a community: a team or a company. Understanding the people and the organization through a common lens then makes it possible to turn organizational “theories” into tangible management processes that use “relations between people” as the loom on which to create management structures and processes that support self-adaptive problem-solving and build “recombinant” business capabilities. So part of this journey is to prepare people for the new structures and to recognize this is a crucial step, in order to master the change and drive the seamless digital transformation.

hanging organizational structure - either managerial hierarchy or information flow structure is an easy part. However, without considering the correlation of varying success factors of the businesses, change can flow on the surface whereas transformation needs to permeate into business vision strategy, culture, communication, process, etc., in order to manage a high mature business with digital-ready-ness.
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Published on January 22, 2017 23:16
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