8 ways to build a future-proof organization
Here is today’s
reality: The average large firm reorganizes every 2-3 years and it takes over
18 months. With technology advances changing everything, wait and see isn’t
an option.
Those who get it right
are creating adaptive, fast-moving organizations that respond quickly and flexibly to opportunities
and challenges. They move intelligent decision-making to the front lines. Their
process functions more like a network and less like a chain of command. Gone is
the standard, “safer” modus operandi.
One famous retailer
empowers its call center employees and, in turn, delivers “wow” service.
Instead of being a place typically associated with high stress and a slog for
employees, this retailer gave each team member the freedom and authority to
truly build relationships with customers. This has led to greater sales
numbers, customer engagement and loyalty.
We have identified
eight emerging characteristics of the organization of the future. We see
versions of these elements so often, they provide at least the organizational
outline to win:
1. Worship speed.
It’s an imperative. Look at Amazon CEO Jeff Bezos’ April
2017 letter to shareholders. Bezos highlights making “high-velocity”
decisions. “If you’re good at course correcting,” he contends, “being wrong may
be less costly than you think, whereas being slow is going to be expensive for
sure.”
2. Shift to an emergent strategy.
One that entails a relentless quest and an undefined end
point. The pursuit should involve unceasing questioning of “How do we add
value?” and an organizational platform that formulates an emergent mix of
multiple strategies executed immediately.
3. Unleash decision-making.
Grasp how your organization operates and reflects its
core proposition. This includes understanding how to handle “big-bet” decisions
shaping your company’s future, “cross-cutting” decisions like pricing and new
product launches, and low-stakes “delegated” and “ad hoc” decisions that arise
unexpectedly.
4. Reimagine your structure.
The more interconnected your organization and the more
decision-making diffuses, the easier it becomes to sustain high performance.
Even the most hierarchical chain of command – the U.S. military – moved to
decentralize decision authority to help beat back Al Qaeda’s Iraqi-based
forces. Free your initiatives and decisions from unnecessary hierarchy.
5. Personalize talent programs.
New people analytics tools are helping organizations
manage and develop their
people with greater precision. After extensive
training, for example, a fast-food
restaurant chain identified and taught behaviors that
inspired colleagues.
6. Rethink your leadership model.
Leadership can come from anyone. In agile organizations,
leaders lead more by influence than control. When we ask executives how to
solve a given issue, only a few consider how to create conditions in which an
ecosystem can largely self-manage, where individuals learn and problems are
avoided before they manifest. Yet, we believe the future will demand this.
7. Adopt a recipe to run the place.
Siloed firms execute a wide array of processes and
practices differently across the organization, generating an incongruous hash.
The healthiest firms able to sustain performance and renew over time
employ a simpler approach. They don’t sample à la carte.
8. Cultivate purpose, values and social connection.
Future organizations will emphasize aligning around
common principles. Participants will use defined rules of engagement in decision-making,
collaborate to create value and earn the credibility to lead rather than have
leadership imposed from above.
Reorganizations are
hard to get right. They distract senior leadership on down. They trigger real
consequences for meeting investor expectations. They run the risk of
bewildering employees. But in the face of today’s massive disruptions, an ethos
of urgency actually serves to smooth gyrations between “hurry up” and “settle
in.”
Those who get it right
create adaptive, fast-moving organizations that respond quickly and flexibly to
opportunities and challenges. They move intelligent decision-making to the
front lines. Their process functions more like a network and less like a chain
of command. By combining urgency with agility, capability and identity, you
generate an organization that can play fast and long. That’s the future
by Chris Gagnon and Aaron De Smet
https://www.mckinsey.com/business-functions/organization/our-insights/the-organization-blog/8-ways-to-build-a-future-proof-organization?cid=other-eml-alt-mip-mck-oth-1806&hlkid=13017665c5ee4f848c3e05625aec4229&hctky=1627601&hdpid=fd9da6af-e68d-4c24-8fd2-c9936e31c6df
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