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Key principles describing the organisation of the future


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A survey of trends indicating what the organisation of the future looks like across multiple comparative dimensions.

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Key principles describing the organisation of the future

  1. 1. What the Organisationof Tomorrow Looks © 2012 Copyright Bryan FenechLike?Bryan FenechFounder and Director, Building the Organisation ofTomorrow
  2. 2. About Building theOrganisation of TomorrowBuilding the Organisation of Tomorrow aimsto increase awareness of progressiveorganisational models and managementpractices as pre-requisites to success in the21st century knowledge economy, © 2012 Copyright Bryan Fenechdramatically improving commercial, social andecological outcomes for organisationalstakeholders.Connect with me and join the Group on Bryan FenechLinkedIn – Founder and Director – Buildingfenech/2/23a/730/ the Organisation of TomorrowFollow me on Twitter –
  3. 3. Key themes• Why we need a new form of organisation?• What does the organisation of the future look like?• What are the implications for us now?• Areas for further research © 2012 Copyright Bryan Fenech
  4. 4. The greatest crisis in history• A critical flaw in basic organisational design increasingly exposed by 21st century technological and socio-economic developments• Managerialism and bureaucracy – the smartest guys in the room keep making really dumb decisions – degradation of © 2012 Copyright Bryan Fenech organisational performance and destruction of value• Externalising and obscuring costs – exploitation and inequality, environmental degradation, and animal cruelty as a result of shifting costs from the balance sheet to governments, the public, and the environment• Over concentration of power – manipulating markets and democratic processes – stifling debate
  5. 5. Organisation of the future• Research across a Determines • Environment and Context number of • Enterprise Logic dimensions to get a Frames comprehensive © 2012 Copyright Bryan Fenech • Strategic Imperatives picture Requires• A comparative study Facilitated by • Key Capabilities to give context – • Governance, Leadership and traditional versus Enabled by Social Practices future organisation • Structure
  6. 6. Environment and contextTraditional Organisation Organisation of the FutureA socio-economic era built on the A socio-economic era built on thetechnological breakthroughs of the technological breakthroughs of the ICTindustrial revolution revolution (and now robotics and © 2012 Copyright Bryan Fenech biotech)Increasing globalisation – opening up Unprecedented globalization –of vast new markets for products and competition, dynamic and volatileservices markets, short product lifecyclesA world of unlimited resources to be A world of limited resources to beexploited – the New World, Africa, conserved and sustainedIndia, China and the EastPositivism as the dominant worldview Constructivism as a challenge to the dominant positivist world view
  7. 7. Enterprise logicTraditional Organisation Organisation of the FutureRaison d’etre – a vehicle for achieving Raison d’etre – a vehicle forpersonal financial wealth and power achieving social as well as financial value and meeting a broad range of © 2012 Copyright Bryan Fenech objectivesBeneficiaries – a narrow set of Beneficiaries – a broad range ofshareholders, the capitalist project stakeholders, the social enterprise project
  8. 8. Strategic imperativesTraditional Organisation Organisation of the FutureStandardisation and repeatability – Differentiation and innovation – massmass production customisationSize and stability Nimbleness, flexibility and © 2012 Copyright Bryan Fenech responsivenessA relentless managerial focus on cost A relentless leadership focus oncontainment, reducing unit costs investment in new products and servicesEconomies of scale Economies of scope“Sweating” value from tangible assets Creating value in intangible assets –– property, plant and machinery knowledge and the social capital that underpins itBeating the competition Building strategic alliances and partnerships
  9. 9. Key capabilitiesTraditional Organisation Organisation of the FutureStrategy formulation Strategy implementationOperational management Project managementDevelopment and application of The commoditisation of specialist © 2012 Copyright Bryan Fenechspecialist technical knowledge technical knowledge and the need to dynamically reconfigure and apply collaborative knowledge resources – “dynamic capabilities” and “absorptive capacity”Management – causal rationality, from Leadership and entrepreneurialism –a pre-determined goal and given set of effectual reasoning, from a given set ofmeans identify the fastest, cheapest, means allow goals to emergemost efficient etc contingently over time
  10. 10. Governance, leadership andsocial practicesTraditional Organisation Organisation of the FutureApplication of principles of command Application of principles of marketand control economics to internal economics to internal organisation –organisation – central control of devolving of power and decision © 2012 Copyright Bryan Fenechresources and planning making and free flow of resourcesManagement practices embedded with Leadership practices embedded withthe strategic intent of command and the strategic intent of empowermentcontrol and facilitationRules based on rational legalistic A negotiated order based on principlesprinciples – sine ira ac studio of community, and renewal practices required to manage sustainability and successCentralised leadership Distributed leadership
  11. 11. StructureTraditional Organisation Organisation of the FutureBureaucracy, hierarchy Networked, cellularSegregation of labour by discipline into Integration of labour into autonomousfunctional silos multi-disciplinary teams © 2012 Copyright Bryan Fenech
  12. 12. Ideas for further research• 3 things to consider • The Organisation of Tomorrow as an emergent and political phenomenon • The signification of hierarchy with structure as a justification for retaining layers of management – the “semi-structured © 2013 Copyright Bryan Fenech organisation” • Ambidexterity and matrix organisation as reactionary expressions