Evolution towards network of teams
92 percent of companies treat redesigning their organization important. Their current structures hinder effective work. This is the result of research made by Deloitte in 2016. Businesses are reinventing themselves to operate in the network structure which works better in a fluid, unpredictable world often called VUCA environment (short for volatility, uncertainty, complexity, and ambiguity).
In the past 10 decades companies have structured hierarchically. Work was divided into business functions (e.g. sales, IT, customer service). The org charts were alike hierarchical pyramids. This is “how things were” according to Deloitte. Vertical divisions from the past usually slow the work down. Nowadays the work is more complex and requires close cooperation between teams and people from different business functions.
Network structure & culture
“How things are” org charts are more alike networks - say Deloitte experts. In such a structure divisions are not divided but connected. People with different specialization cooperate to make things done. More and more tasks require someone with outside expertise.
The organizational chart of the future goes one step further. It is the structure organized as the network of teams according to Deloitte. This is “how things work”. This new mode of organization - with a high degree of empowerment, strong communication, and rapid information flow - is now sweeping businesses and governments around the world- they say.
So how things work in such a structure? Teams are organized around mission, product, market, or integrated customer needs rather than business function. Teams have their own goals and make their own decisions within the context of a wider company strategy. They are led by domain experts rather than managed by managers. And finally, people move from team to team as needed. The challenging issue is how to encourage people to work and cooperate across teams. Hence, it’s worth to make cooperation paths between teams visible as well as find best connectors in every team and make them points of contacts.