Many of the large organisation may have not consulted Ms. Wheatley but I am sure they will agree with Meg’s point. As the markets are globalized and world goes flat organizations have to establish decentralised market based structure that will enable to take local decisions that not only quick but correct and relevant. The traditional pyramidal structure of command and control does not work in such situations as it is too focused, functionally divided and has time consuming decision making processes. This creates new challenges for budget allocations when field force has to make adjustment and variances based on market demands
In these troubled, uncertain times, we don’t need more command and control; we need better means to engage everyone’s intelligence in solving challenges and crises as they arise – Meg Wheatley
Though bringing efficiencies in traditional models can help to get the feel of the market transmitted to top of the pyramid yet the response may be too delayed. So what could be solution, how an organisation will organize itself to react to such challenges.
You can take some inspiration from drip irrigation strategy. What it essentially means each every unit is nurtured with minimum set of guidelines, values and principles that group stands for. A standardized set of templates, processes and procedure i s kept as guideline and an autonomy is given to customise it to make it effective, useful and meaningful for that unit. If there are some learning the same can be used group wide.
This kind of model is followed by companies like SEMCO SA, Tata Group etc. How does it help.
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This kind of mesh organisation is easy to say but difficult to implement, it impacts when Command office has to relinquish control to let the local units plan and decide checks. It is also difficult to implement when local units do not have resources or/and have ability to decide the goals which when attained can be rewarded locally. These kind of model very helpful for organizations that operates in various industry vertical to create an group identity still not stifle business with watertight regulations and procedures.
Today services is an important differentiator for products, drip irrigation strategy helps organization to empower the local units to feel and react to local customer service demands, this feedback can brought in the product development as well. More than that it can be institutionalised to be brought into standard templates if it help all the business unit of the group. This structure gives resilience, agility and stability to market facing units and increases innovation index in the organization.
I think it resembles something like a mesh of pipes in Drip Irrigation. What do you think?