In the last part of this blog series, we identified five fundamental layers of Adaptable Organizations
and detailed out how Adaptive Ecosystems are The Key to Staying Competitive.
?In this part of the blog series, we uncover how work is organized in such Adaptable organizations. The key is moving away from deep hierarchies and silos towards a network of multi-disciplinary teams.
In times of predictable change, traditional organizational hierarchies characterized by clear decision-making and functional silos, served their purpose well. However, the rapidly evolving landscape we face today demands a shift towards more adaptable organizational models.
- ?The Need for Adaptability: Traditional organization charts fail to capture the fluid nature of modern work environments. These charts overlook the informal networks—relationships, power dynamics, and communication channels. These informal networks often play a more significant role in influencing behavior and driving outcomes. Many successful organizations today succeed despite their formal structures, not because of them. In an Adaptable Organization, value creation hinges on understanding and leveraging these informal structures. This approach aligns formal and informal networks around customer-focused missions, driving innovation, experimentation, and idea generation. By organizing work around how people naturally interact, organizations can foster a more collaborative and happier workplace.
- Rethinking Teams and Structures: Traditional functions on an organization chart don’t reflect how work actually gets done. Instead, many organizations operate through cross-functional communities that cut across these formal boundaries. An Adaptable Organization recognizes the power of these informal networks and uses them to assess how individuals and teams align with customer missions. To navigate the complexities of modern business, teams in an Adaptable Organization are organized along a spectrum of efficiency and adaptability:
** Shared Services: High-efficiency teams focused on standardized, transactional tasks.
** Resource Pools: Moderately adaptable teams of specialized workers who collaborate across projects based on demand.
** Cross-Functional Teams: Highly adaptable teams that are decentralized, collaborative, and mission-focused, often driving innovation.
- The Power of Networked Teams : The design of an Adaptable Organization relies heavily on teams, not just in terms of who they report to, but who they collaborate with. Networked, cross-functional teams connected by specific missions enable diverse thought and problem-solving approaches, leading to more successful outcomes.
- Flexible Governance and Decision-Making : To support an Adaptable Organization, governance structures must also be flexible. Minimal bureaucracy, decentralized decision-making, and transparent roles help drive the organization forward, ensuring it remains responsive to changes in the environment.
In today’s complex environment, an Adaptable Organization is not a luxury but a necessity. By aligning formal and informal structures, leveraging the power of networked teams, and embracing flexible governance, organizations can better navigate the challenges of exponential change and drive sustained success.
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