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Organizational Structure Archives - Ideas for Leaders

Super-Fluid Companies Keep Pace with Customer Needs

Many companies struggle to keep up with today’s supercharged, constantly evolving competitive markets, where customers needs, products and technologies change at ever-increasing speed. An in-depth study of the global telecom equipment leader Huawei Technologies by researchers from Cambridge University’s Judge Business School and China’s Zhejiang University’s School of Management offers a detailed lesson in what […]

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Ignoring Collaborative Demands Sinks Agile Teams

The concept of agility — an approach to innovation and development based on shorter project timeframes, focused targets and ‘sprints’ — was first conceived in software development companies. Metaphors such as SEAL teams are used to describe these fast-moving, nimble project teams.  This attractive concept is spreading to more traditional companies and industries, although with […]

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The World of Work in 2028: The Dilemma of Balancing Big vs. Small, Digital vs. Face-to-Face

New technologies and new attitudes about the role of business in society have rendered obsolete the business models, routines and processes rooted in the industrial world, according to a recent study entitled Work 2028: Trends, Dilemmas and Choices. The study was conducted by the Henley Centre for Leadership at the Henley Business School in collaboration […]

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Aligning Your Organization for the Digital Future

In the annual global MIT/Deloitte survey of executives and managers, 90% of respondents recognized that digital trends would disrupt their industries. Only 44%, however, believed their organizations were prepared for the disruption. Parsing the data in the survey returns, the MIT/Deloitte team were able to divide the companies of respondents into three categories: early-stage, developing, […]

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Organizational Resilience Is Reinforced by These Two Variables

Although the impact of the 2008 recession was nearly unprecedented in its scope and depth, nearly all organizations will inevitably face setbacks and severe challenges. Stable, resilient companies can meet these challenges head-on and not only ‘survive’ but emerge on the other side intact and strong. Companies can make themselves resilience in one of two […]

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A Symphony of Agency and Stewardship Values Ensures Family Business Success

Both agency theory and stewardship theory help explain organizational dynamics, although starting from very different assumptions. Agency theory describes the relationship between the shareholders (called ‘principals’) and the company’s managers and executives (called ‘agents’) as a collaboration between parties with different interests: principals are focused on the success of the company while agents are focused […]

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Corporate Governance: The Power of Outside Directors on CEO-Only Boards

More and more board of directors have the CEO as the only insider on the board. At first glance, this movement toward near unanimous outside directors would seem to meet the mandate of independent oversight and governance that have defined corporate boards since the corporate scandals of the 1980s and 1990s. In fact, new research […]

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How to Design Organizational Structures by Understanding Organizational Routines

How are organizational routines — routines in an organization that involve more than one individual — related to the effectiveness of an organizational design or redesign? Answering this question begins with understanding two important characteristics of organizational routines: purpose and business-unit specificity. Routines in an organization will have one of two purposes: an operational purpose, […]

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How to Motivate Subsidiaries to Share Useful Know-How with Others in the Group

It is not easy to motivate subsidiaries of multinational companies to create competence that can be useful to other subsidiaries, and for good reason. Developing competence, including know-how and technological expertise for example, takes time and money. Subsidiaries are responsible for maintaining their own bottom lines, so why should they worry about other subsidiaries? Parent […]

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