Microsoft WorkLab has discovered patterns hidden within organisational charts, offering insights into how work is done. Analysing data from Microsoft 365, it has identified three distinct patterns: centralised, distributed, and modular.
Centralised organisations have a few key individuals who hold significant influence and responsibility. They’re efficient at executing defined tasks but can struggle with innovation.
Distributed organisations, on the other hand, spread influence and responsibility widely. This pattern fosters innovation and resilience, but can lead to inefficiency and a lack of clarity.
Modular organisations strike a balance, with semi-independent teams that can adapt quickly. They are good at both execution and innovation but can suffer from a lack of cohesion.
The WorkLab team also found that these patterns shift over time. Companies often start as centralised, become more distributed as they grow, and then modular as they mature. Understanding these patterns can help leaders make more informed decisions about their organisational structure.
In addition, the team found that the pandemic has accelerated the shift towards more distributed models. Remote work has made it easier for influence to spread, leading to more resilient and innovative organisations.
Finally, the team found that organisations with more women in leadership tend to be more distributed, suggesting a link between gender diversity and organisational resilience.
Go to source article: https://www.microsoft.com/en-us/worklab/patterns-hidden-inside-the-org-chart