In creating an “outside-in” people-centric business, it is a question of re-engineering, reinventing, it requires fine-tuning organizational structure and cross-disciplinary efforts.
The emerging digital era upon us is about the exponential growth of information and rapid changes. The overly rigid organizational hierarchy with a silo setting creates friction and decelerates business speed.
Organizational design & strategic alignment: The organizational design issue is really about how to build the best mixture of organizational elements that enable organizational strategic alignment and harness agility through less hierarchy, frictionless collaboration. The premium organizational design should be fluid enough to streamline information flow and flexible enough to improve business autonomy and flexibility. If the strategic intent can be understood across the organizational scope and the strategic alignment becomes harmonized, the actual configuration of the organizational strategy is a consequence of organizational design and business strategy management.
Organizational design & process management: Organizations are transforming from inside-out operation-driven to outside-in people centric. There are structural and unstructural processes which are enabled by digital technologies. It’s important to keep optimizing business processes to fit the purpose of the business. Limited hierarchy with some “unstructured processes’ ‘ works best to build a creative environment in which people can work flexibly and co-solve problems cross-disciplinarily. The successful process improvement initiatives should have representation and input from organizational design; Enforcing mutual respects between organizational design and business process management can lead to effective business transformation.
Organizational design and partnership development: From an organizational structural perspective, the overly rigid organizational hierarchy will stifle innovation and decelerate business flow. With enterprise collaboration platforms and tools, cross-functional communication becomes the new normal, traditional hierarchical lines will phase out, the functional, business, or industrial territories are blurred, so the large group of people can interact, form, and amplify collective capabilities to deal with business challenges and achieve common goals. A collective of ecosystem business partners will emerge working collaboratively to co-solving problems frictionlessly.
The structure of the organization is varying. Different companies are at different stages of the business growth cycle and evolve digital transformation with different speeds. In creating an “outside-in” people-centric business, it is a question of re-engineering, reinventing, it requires fine-tuning organizational structure and cross-disciplinary efforts. The design of a digital organization will have a significant impact on enforcing the very characteristics of digital business – hyperconnectivity and people centricity to reach the state of flow and harmony.