Boundaryless introduces two organisational models, contract-based and unit-based, offering improved agility and engagement. Contract-based organising allows flexibility and adaptability, with teams formed around specific projects. These teams disband once the project is completed, and members move onto new tasks, promoting a dynamic work environment. Contracts detail the team’s objective, roles, and expected outcomes, ensuring clarity and accountability.
On the other hand, unit-based organising enables teams to form around a particular function or product, fostering in-depth knowledge and expertise. This model promotes a sense of ownership and a deeper understanding of the product or service, leading to improved decision-making and problem-solving skills.
Both models have their strengths and weaknesses. Contract-based organising can lead to a lack of continuity and potential knowledge gaps, while unit-based organising may result in siloed teams and reduced adaptability. The key is to find a balance between the two, using contracts to provide clarity and flexibility, and units to foster expertise and ownership. By understanding and leveraging these two models, organisations can create a more agile, engaged, and productive workforce.
Go to source article: https://boundaryless.io/blog/primitives-of-contract-based-and-unit-based-organizing-for-better-agility-and-engagement/