Structure is not organization.
Robert Waterman, Writer
Organizations are often described in terms of mechanical systems or a Newtonian universe. In this model, work consists of highly structured, linear processes and projects. Everything runs like a Swiss watch. Action begets reaction. Customers generate sales, income, and employment. People are interchangeable. Organizations are structured in terms of vision, mission, principles, strategies, tactics, plans, policies, procedures, and work instructions. Processes and projects are stable, controlled, and improving. The organization is managed by exception. If there is a hiccup or deviation in the stable organization, this is immediately corrected and stabilized. Everything is assumed to run smoothly. The reality is far from this.
The Newtonian business model doesn’t fit well in today’s chaotic, Brand U marketplace. It’s being questioned as change occurs so fast that organizations don’t have time to react to reestablish stability and tranquility. Brand U employees can leave with their best ideas on an IPO impulse. The stable state is evolving to the current norm – the chaotic state. This has become the rationale for continual organizational transformations.
In the last 20 years, several organizational structures have been introduced. These include traditional-hierarchal, matrix, virtual etc. Is there one best structure? No. The key is a flexible structure. The most effective organizational structure is one that works but must be flexible enough to change on a dime.