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Organizational Design Will Be Challenge Everywhere

Published on November 22, 2017

Organization design, including structure, roles, talent mobility, and the role of leadership, must become flexible and adaptive-changing many elements of HR.

Today, in the world of rapidly changing markets, and digital products and services, the traditional concept of "scale" and "efficiency" no longer apply. Thanks to the cloud and the Internet, barriers to entry have been lowered. You cannot "keep your market" just because you are big or efficient-someone else will likely reinvent it before your eyes, and then his / her company may disrupt yours in only a few years.

Organizational Design Will Be Challenge Everywhere

As John Hagel, director of Deloitte LLP's Center for the Edge in Deloitte stated, Today, the key to organizational success is not "scalable efficiency," but "scalable learning." You, as an organization, must be able to experiment, put prototype products in front of customers, rapidly learn from your competitors, and stay ahead of your marketplace, industry, and technology trends. This means your whole organization has to focus on customer-centric learning, experimentation, and time to market.

The solution is often easy to understand, but hard to implement. We should break our functional groups into teams-teams focused on product releases, customers, markets, or geographies. These teams should be smaller, flatter, and more empowered-and leaders should focus on hands-on leadership, not leadership from behind a desk.

In the past, most organizations were designed for efficiency and effectiveness, leading to complicated and siloed organizations. The resulting business models, which were based on predictable commercial patterns, are unsuited to an era of unpredictability and disruption. Instead of mere efficiency, successful organizations must be designed for speed, agility, and adaptability to enable them to compete and win in today's global business environment.

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