Organization possibilities
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  • 1. Organize better
  • 2. Organization possibility # 1 Hierarchies. Organization possibility # 2 Hierarchies and use of social media within the company. Organization possibility # 3 Small innovation teams. Organization possibility # 4 Couples and friends. Organization possibility # 5 Cooperative networks. Communities of independent companies / people with strong social media use. Organization possibility # 6 Markets.
  • 3. Possibility # 1 Hierarchies
  • 4. Power for decision making is centralized at the top CEO CEO assistant Department B Department A Department C Department D
  • 5. Examples  Most large companies.  Many medium sized companies.
  • 6. Amazon’s hierarchy Level 12: Jeff Bezos. Level 11: Senior vice presidents. Level 10: Vice presidents. Level 9: Missing level. Level 8: Directors. Level 7: Senior managers with graduate degrees. Beginning at this level, employees often have to spend a few weeks every few years at a customer service call center or a fulfillment center to get trained in the nitty-gritty tasks of lower employees. Level 6: Senior product managers. Level 5: Program managers or product managers. Level 4: Generally describes a new hire, perhaps a recent graduate with a bachelor's degree. Levels 2 and 3: Manual laborers who work in the Amazon fulfillment centers and collect an hourly wage. Level 1: Missing level. http://mashable.com/2013/10/15/amazons-corporate-ladder/
  • 7. Creativity Curiosity Freedom Experimentation Values Equality Helpful Honesty Love Variation Friendship Daring Ambition Individualism Competition Dominance Control Power Forgiving Tradition Family Discipline Conformity Security Clean
  • 8. http://twotheories.blogspot.ca/2009/02/overview-of-social-evolution-past.html
  • 9. Closed system Rational actors Social actors Adapted from W. Richard Scott. Machine bureaucracy Open system
  • 10. Low degree of controlling detail High degree of controlling detail Many controlling layers Unmature Bureaucracy Mature Bureaucracy Few controlling layers Market Self control
  • 11. Benefit of one-way communication: Time savings  By commanding, assignments are coordinated fast.  By commanding, conflicts are ended fast. Malone, Thomas W.: The Future of Work, p. 53.
  • 12. Problem Organization charts do not show how outside collaborators connect to support key parts of the value delivery process. Source Kaplan, Saul. http://www.amazon.de/Business-Model-Innovation-Factory-ebook/dp/B007SIFI7C/, location 670.
  • 13. Possibility # 2 Hierarchies and use of social media within the company
  • 14. http://hbr.org/2014/01/ideos-culture-of-helping/ar/1 The larger the circle, the more times that person was named by someone else as a helper.
  • 15. http://hbr.harvardbusiness.org/2008/06/the-secrets-to-successful-strategy-execution/ar/1 Most effective traits for implementing strategy
  • 16. Today’s corporate model is the collaborative: The executive elite drive strategy and operations, but engage in an on-going and extensive process of consensus building as a central part of the narrative of enactment. http://research.gigaom.com/2013/12/todays-business-organization-is-an-oligarchy-and-that-needs-to-change/
  • 17. http://research.gigaom.com/2013/12/todays-business-organization-is-an-oligarchy-and-that-needs-to-change/
  • 18. Yammer tries to break down every silo and to replace opacity with transparency. http://research.gigaom.com/2013/11/the-new-visionaries-kris-gale/
  • 19. Today, the average manager in Google’s product-development group has more than 50 direct reports, and for some leaders the number tops 100. Source Hamel, Gary: The Future of Management, p. 111.
  • 20. Possibility # 3 Small innovation teams
  • 21. Increasingly high performing staff will demand greater autonomy, and not for selfish reasons, but to get things done quickly. http://research.gigaom.com/2013/12/todays-business-organization-is-an-oligarchy-and-that-needs-to-change/
  • 22. Organizational structure needed to initiate an innovation http://hbr.org/2000/03/meeting-the-challenge-of-disruptive-change/ar/5
  • 23. Zappos is made up of different circles. People can have any number of roles within those circles. http://qz.com/161210/zappos-is-going-holacratic-no-job-titles-no-managers-no-hierarchy/
  • 24. Examples of small units at Li & Fung Ltd. http://youtu.be/6OoFZG2s2E0
  • 25. Creativity Curiosity Freedom Values Equality Honesty Experimentation Variation Forgiving Love Friendship Daring Ambition Individualism Competition Dominance Control Power Helpful Tradition Family Discipline Conformity Security Clean
  • 26. P&G as well as Samsung both established innovation funds. Investments in development of ideas, that anyone has, are made independently of the traditional budget cycle. http://blogs.hbr.org/cs/2013/03/getting_crazy_ideas_off_the_gr.html
  • 27. Possibility # 4 Couples and friends making decisions through shared values
  • 28. Closed system Rational actors Social actors Adapted from W. Richard Scott, 1981. Couples and friends Open system
  • 29. http://twotheories.blogspot.ca/2009/02/overview-of-social-evolution-past.html
  • 30. Strengths of democracies  Individuals can participate in decision making, for example by voting.  Group decisions can force individuals to do things for the overall good. Malone, Thomas W.: The Future of Work, p. 70.
  • 31. Weaknesses of democracies  Much communication required.  Everyone’s opinions count equally - even when some people may be more competent than others. Malone, Thomas W.: The Future of Work, p. 70.
  • 32. Sources http://www.scribd.com/doc/36200010/questions-to-discover-your-values http://www.scribd.com/doc/34862800/Values
  • 33. Possibility # 5 Cooperative networks. Communities of independent companies / people with strong use of social media
  • 34. Closed system Open system Rational actors Social actors Adapted from W. Richard Scott, 1981. Networks
  • 35. http://twotheories.blogspot.ca/2009/02/overview-of-social-evolution-past.html
  • 36. http://research.gigaom.com/2013/12/todays-business-organization-is-an-oligarchy-and-that-needs-to-change/
  • 37. The emerging corporate model is cooperative The company is a non-hierarchical network, where a constitution defines the rights and responsibilities in a relational model, and influence is social. All members are owners, in some degree, based on time in service, cash investment, and levels of responsibility. The power structure is decentralized, and a laissez-faire model prevails, since people work in voluntary associations, largely autonomously. http://research.gigaom.com/2013/12/todays-business-organization-is-an-oligarchy-and-that-needs-to-change/
  • 38. In any Web forum there are some individuals who command more respect and attention than others - and have more influence as a consequence. Critically, though, these individuals haven’t been appointed by some superior authority. Instead, their clout reflects the freely given approbation of their peers. On the Web, authority trickles up, not down. http://blogs.wsj.com/management/2009/03/24/the-facebook-generation-vs-the-fortune-500/
  • 39. Filesharing
  • 40. Social networking
  • 41. http://nform.com/publications/social-software-building-block
  • 42. http://www.valvesoftware.com/company/Valve_Handbook_LowRes.pdf Method to working without a boss
  • 43. Tasks are chosen, not assigned The Web is an opt-in economy. Whether contributing to a blog, working on an open source project, or sharing advice in a forum, people choose to work on the things that interest them. Everyone is an independent contractor, and everyone scratches their own itch. http://blogs.wsj.com/management/2009/03/24/the-facebook-generation-vs-the-fortune-500/
  • 44. What if many tasks currently done by large companies were done instead by temporary combinations of small companies and independent contractors? Taking this idea further, what if most businesses consisted of one single person? Malone, Thomas W.: The Future of Work, p. 74.
  • 45. Possibility # 6 Markets
  • 46. Closed system Rational actors Social actors Adapted from W. Richard Scott. Open system Markets
  • 47. Markets of independent companies / people
  • 48. Low degree of controlling detail High degree of controlling detail Many controlling layers Unmature Bureaucracy Mature Bureaucracy Few controlling layers Market Self control
  • 49. Examples  Fruit and vegetable markets.  Internet platforms using which people buy and sell products and services.  People to people services, for example help with IT to elderly people.
  • 50. http://twotheories.blogspot.ca/2009/02/overview-of-social-evolution-past.html
  • 51. http://www.jd.com/ http://www.alibaba.com/ http://www.taobao.com/ http://www.tmall.com/ http://www.paipai.com/
  • 52. http://99designs.com/ https://www.atizo.com/ http://www.threadless.com/ http://www.fixmystreet.com/ https://www.innocentive.com/ http://www.topcoder.com/
  • 53. Creativity Curiosity Freedom Experimentation Daring Values Equality Helpful Honesty Love Variation Ambition Individualism Competition Dominance Control Power Forgiving Friendship Tradition Family Discipline Conformity Security Clean
  • 54. Weaknesses of markets  Incentive problems Agreements that would be good overall often don’t happen because they are not in the self interests of the parties involved.  Communication needs A lot of communication is usually needed. Malone, Thomas W.: The Future of Work, p. 106.
  • 55. Strengths of markets  Efficiency People move to assignments where they generate value for others.  Flexibility Anyone can work on any aspect of the problem.  Motivation High autonomy to decide things individually make people work hard. Malone, Thomas W.: The Future of Work, p. 106.
  • 56. As economists like Ronald Coase and Oliver Williamson have noted, markets work well when the needs of each party are simple, stable, and easy to specify, but they’re less effective when interactions are complex. http://hbr.org/2011/12/first-lets-fire-all-the-managers
  • 57. Further sources http://www.slideshare.net/frankcalberg/questions-about-organization http://www.slideshare.net/frankcalberg/organization-rethinking http://www.slideshare.net/frankcalberg/inputs-to-become-more-agile
  • 58. Thank you for your interest. For further inspiration, feel welcome to visit http://www.frankcalberg.com Have a great day.