PROCESSES @ RISK

Process is a particular course of action intended to achieve a result.

Dictionary

Processes are how work is done in many companies.  The traditional process structure was a pyramid with the Chief Executive Officer at the top.  Work flowed down and across the organization.  Technology, new business models, globalization, customer’s expectations, automation have created new business models and work processes:

  • Organism. The organic organization is a current hot idea.  Michael Rothschild in Bionomics:  Economy as Ecosystem describes organizations, industries, teams, and even Gaia earth as organisms.  The internet is an example of an organic organization.  What characterizes these organizational organisms?  The organism merges, melds, and morphs to fit external requirements.
  • Federalist structure. Federalist describes a structure of separate companies or individuals loosely clustered into an informal collaboration.  The companies are grouped and matrixed around businesses, products functions, regions, type, software,  or customers instead of the hierarchal pyramid.
  • Core process. A common business wisdom is to focus on core processes and competencies or in other words, stick to your knitting.  In this way, key process team and individual skills are developed that differentiate one company from another.  Large companies and startups follow this model so they can replicate and scale.
  • Project work. Lean startups and companies are organized around tasks and projects.  Highly focused teams do a specific job and when the project is finished, the team disbands.
  • Ever changing organization. Traditional or Newtonian business model doesn’t fit well in COVID time. Organizations don’t have time to react to reestablish stability.  The stable state is evolving to the current norm – the VUCA organization that goes through continual digital transformations.

Work Lesson EarnedIs there one best structure?  Companies and startups are trying to figure out what’s the best work structure in COVID time.  Probably not. A flexible, lean structure satisfies stakeholders using the fewest resources.

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