Organizational Structures that Support Faster Innovation and Evolution
Organizational agility is the ability for an enterprise to change direction, realign and succeed in volatile, uncertain business environments. It requires sensing emerging trends and actively listening to customer requests, then acting on this information and making the changes required to position the organization for where it needs to be in the future.
Small organizations can change direction quickly because they have fewer people or processes to change. Most medium- to large-scale organizations have considerable mindset inertia in the form of strategies, multi-year plans, in-flight programs and projects, etc. When fundamental change is required, it can be difficult to turn these large elements that have gathered their own momentum through the day-to-day behaviors of staff.
Momentum is mass in motion. Think of a thousand people all moving toward a common goal—and their organizational structures and processes to get there. Now imagine the goal has shifted; we want to get to somewhere else. We need to shift all those minds—and likely much of the org structure and processes, a bigger ask requiring more energy.
The Efficiency vs. Adaptability Trade-off
There is a growing trend. As rates of change increase, organizations are trading off efficiency for adaptability. Large-scale processes, specialized resources and large batch sizes are optimized for maximum
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