Organizations across the board continue to face demographic, technological, and social disruptions throughout their ecosystems. Unrelenting market demands and the rise of the social enterprise1 require unprecedented levels of collaboration among increasing numbers of internal and external stakeholders. In this context, HR must accelerate its evolution from a service-oriented support function to an essential business contributor that routinely measures its success in terms of business impact and workforce outcomes.
Digital capabilities in companies are widespread according to the fifth annual research study by MIT Sloan Management Review and Deloitte, with more than two-thirds (68 percent) of respondents having moved beyond the early stages of digital maturity. This seems prudent, as nearly 90 percent of the executives surveyed believe their industry will be disrupted by digital technologies. Still, less than half (44 percent) believe they are adequately preparing for that disruption. A common practice has been to wade into the digital waters by setting up digital capabilities in pockets of the organization. The challenge comes when trying to integrate these pockets into the wider legacy organization. Interactions between the two are often inconsistent and stifle the digital organization, preventing it from being as effective as it could be. But by rewiring the organization—rather than wholesale redesigning it—these digital subgroups can not only become an integral part of the company but also more effective in their own right.
Posted by Matt Frost and Emily Selvin on January 23, 2014
What if everything we know about organizational design is becoming obsolete?
It’s a provocative question, and one worth considering. Technological innovations have changed our tools and how we communicate, but most organizational structures and practices remain the same.
In today’s world, a work environment that accelerates on-the-job learning is increasingly important. Organizations should take a holistic look at their work environments—including physical space, virtual interactions, and management systems. Why a holistic approach? Bolt-on talent solutions such as leadership development, training, and performance incentive programs have done little to change the 75% decline in return on assets (ROA) since 1965 for US public companies.