Organisation design has a fundamental flaw; it is inherently static while organisations require dynamic structures to thrive in a rapidly changing environment. Traditional design, which arranges people into functional silos, fails to facilitate collaboration and adaptability. Instead, it encourages bureaucracy, slows decision-making, and stifles innovation.
A new approach to organisation design is proposed, one that is adaptive, flexible, and customer-centric. This approach, known as the ‘adaptive organisation design’, creates cross-functional teams that work together to deliver value to customers. It enables organisations to respond quickly to changes in the business environment and fosters innovation by encouraging collaboration and experimentation.
The adaptive organisation design is not a one-size-fits-all solution. It requires a shift in mindset from command and control to trust and empowerment. It also necessitates the development of new capabilities, such as systems thinking, collaborative problem-solving, and the ability to learn and adapt quickly.
The transition to an adaptive organisation design can be challenging. It requires leaders to let go of control and trust their teams to make decisions. It also demands a willingness to experiment and learn from failure. Despite these challenges, the adaptive organisation design offers a promising solution to the problems of traditional organisation design. It provides a path for organisations to become more agile, innovative, and customer-centric.
Go to source article: https://medium.com/nature-of-work/the-problem-with-organization-design-bb446757d795?ct=t(Newsletter_11_21_2016)&mc_cid=6b4fc5c310&mc_eid=4d4a6f4308#.etjkd6wco