To achieve a truly agile organisation, an organisational structure must allow for flexibility, alignment and autonomy. One approach is the tribe model, developed by Spotify, to scale their organisation while still keeping small, autonomous teams to develop the product. The tribe model uses a structure of squads, tribes, chapters and guilds to coordinate work and particular roles to assign responsibility […]
The Thomson Reuters case study demonstrates how a large corporation has adapted to the new reality of the modern workplace and achieved significant business benefits from moving away from the traditional corporate ladder, towards embracing a more networked organisational structure (‘lattice’) and more flexible ways of working.
WHO A subset of the company that has interest in developing an organisation’s strategy. The volunteer army should include management/leadership, but the majority should be employees who are keen to be involved and take on additional responsibility. A volunteering army arise from a small group of individuals who take initiative and form a guiding coalition […]
Guiding Principles should be used to lay out assumptions about how individuals and teams should work together. The technique is used by companies such as Favi and AES Corporation to make expectations explicit to associates. Guiding principles are useful for both onboarding processes and as a general reference point, either as a stand-alone document or included in a company’s Culture code […]
Autonomous Business Units System is a radically different organisational model by which an organisation is viewed as multiple independent businesses which are coordinated by contractual relationships and bound together by common brands, strategic goals, values and internal organising principles. The aim of an Autonomous business units system is to orchestrate a company-wide system of intrapreneurship, which brings market dynamics and competition […]
Circle Structure is a software-integrated approach to organisational design. The structure is derived from the organisation’s purpose and the circles of multi-disciplinary skills needed to execute for that purpose. There is the main circle, which is responsible for carrying out the overall purpose but can delegate sub-purposes to sub-circles. The sub-circles will then support the main circle […]
Dual Operating System is an organisational design which optimises for both efficiency and strategic innovation by separating the organisation into two operating models. While the logic of a Dual operating system could apply to various structures, the original theory advocates having an existing hierarchy and an emergent network in the form of a volunteer army. Rethinking an organisation in a […]
Situational Hierarchy is a mechanism that can replace reporting lines of a traditional hierarchy and instead empower all associates to step into the role of a leader, depending on the situation. It is a flexible approach to organisational design, so roles and responsibilities are modified depending what the situation requires.
Heterarchy is a form of organisational design in which elements are unranked (non-hierarchical), or where they possess the potential to be ranked a number of different ways. Heterarchy encapsulates the underlying logic of methodologies that advocate for networks as a way of structuring organisations. The benefit of Heterarchy is that it allows for relationships to form between employees and leaders without the […]
This is a strategic model for redesigning an organisation. The underlying logic is that strategic decisions should be driven to the lowest level possible and teams/individuals should be rewarded according to their performance, which is expressed through four key values: Zero-distance to customer Entrepreneurial employee (self-driven, Self-managed, self-innovation) Unified commitment & process to customer and results Sharing value with customer and […]
This is a concept that emerged from the crypto-tech revolution. A decentralised autonomous organisation is governed by code, rather than people, and in its purest form operates with no management control or intervention, although people can both work for DAOs and buy into them as shareholders. Typically, a DAO is governed by the recording of transactions and contracts […]
Market-Driven versus Driving Markets refers to two significantly different approaches to market orientation. A market-driven approach focuses on understanding and reacting to customer preferences and market behaviours. A ‘driving markets’ approach adopts a shaping strategy to influence market(s) in a direction that will support the company’s competitiveness.
In many organisations, employees are reluctant to take on tasks that have not been formally allocated to them. Often, this is because the culture discourages people from volunteering, or because employees do not have additional capacity. Innovation time off is a top-down intervention to provide employees with permission, encouragement and space to work on projects outside their responsibility, which in turn […]