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Horizontal vs. Vertical Organizations

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Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
In your opinion, which type of organization would be more succesful, Vertical or Horizontal ? and Why ?
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Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
Mar 09, 2017 8:09 AM
Replying to Sergio Luis Conte
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The only thing that matters to answer your question is the need to consider the whole organization from the systemic point of view. Your organization, to survive in the actual world, must be horizontal integrated from the point of view of systemic thinking. That is critical to implement things like Agile. So, the physical structure does not matters. What matters is that you have to achieve low coupling and high cohesion between organizational architecture layers. That is one of the reasons why the business analyst role was created and it is growing fast. I am working from 30 years ago in this type of endeavours.
Great feedback Sergio. Thanks ! What exactly do you mean by Low Coupling ?
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1 reply by Sergio Luis Conte
Mar 09, 2017 10:32 AM
Sergio Luis Conte
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Organizations have to be considered from the point of view of architecture. Strategy defines the architecture. Basically organizational architecture is composed by three main layers: business layer, application layer (any piece of computational code tp support business layer), technology layer (any type of technology top support application layer). You have to design your organization with low coupling between layers (it is a meassure of the degree of independence between layers) and high cohesion (it is a meassure of the degree of integration between layers). So, let me go to an example (taking from my personal life). Suppose you are working into a bank. You design your bank architecture to answer to environemental stimulus in face-to-face way (all transactions are performed by the clients going to the bank directly and being served by a human being teller). Then, because the bank new strategy, human being tellers must be replaced by ATM. When you change something into the technology layer (you have to replace existing technology used by human being tellers by ATMs) then application and business layer must not be impacted (or, at least, suffer a minimal impact). That is because low coupling and high cohesion is a must. And you will achieve it if you (the business analyst) uses the systemic thinking to help the organization to define the solution to the problem which arrives when strategical implementation needs arrives.
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
Mar 09, 2017 9:58 AM
Replying to Rami Kaibni
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Great feedback Sergio. Thanks ! What exactly do you mean by Low Coupling ?
Organizations have to be considered from the point of view of architecture. Strategy defines the architecture. Basically organizational architecture is composed by three main layers: business layer, application layer (any piece of computational code tp support business layer), technology layer (any type of technology top support application layer). You have to design your organization with low coupling between layers (it is a meassure of the degree of independence between layers) and high cohesion (it is a meassure of the degree of integration between layers). So, let me go to an example (taking from my personal life). Suppose you are working into a bank. You design your bank architecture to answer to environemental stimulus in face-to-face way (all transactions are performed by the clients going to the bank directly and being served by a human being teller). Then, because the bank new strategy, human being tellers must be replaced by ATM. When you change something into the technology layer (you have to replace existing technology used by human being tellers by ATMs) then application and business layer must not be impacted (or, at least, suffer a minimal impact). That is because low coupling and high cohesion is a must. And you will achieve it if you (the business analyst) uses the systemic thinking to help the organization to define the solution to the problem which arrives when strategical implementation needs arrives.
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2 replies by Rami Kaibni and Vincent Guerard
Mar 09, 2017 11:21 AM
Rami Kaibni
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I totally agree and fully understand now.

This is a very valuable feedback Sergio - Thank you so much. I learned something new today. Appreciate it - Cheers
Mar 09, 2017 10:35 PM
Vincent Guerard
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Sergio thanks
I suggest you make an article of this, it would be real valuable
avatar
Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
Mar 09, 2017 10:32 AM
Replying to Sergio Luis Conte
...
Organizations have to be considered from the point of view of architecture. Strategy defines the architecture. Basically organizational architecture is composed by three main layers: business layer, application layer (any piece of computational code tp support business layer), technology layer (any type of technology top support application layer). You have to design your organization with low coupling between layers (it is a meassure of the degree of independence between layers) and high cohesion (it is a meassure of the degree of integration between layers). So, let me go to an example (taking from my personal life). Suppose you are working into a bank. You design your bank architecture to answer to environemental stimulus in face-to-face way (all transactions are performed by the clients going to the bank directly and being served by a human being teller). Then, because the bank new strategy, human being tellers must be replaced by ATM. When you change something into the technology layer (you have to replace existing technology used by human being tellers by ATMs) then application and business layer must not be impacted (or, at least, suffer a minimal impact). That is because low coupling and high cohesion is a must. And you will achieve it if you (the business analyst) uses the systemic thinking to help the organization to define the solution to the problem which arrives when strategical implementation needs arrives.
I totally agree and fully understand now.

This is a very valuable feedback Sergio - Thank you so much. I learned something new today. Appreciate it - Cheers
avatar
Vincent Guerard Coach - Trainer - Speaker - Advisor| Freelance Mont-Royal, Quebec, Canada
Mar 09, 2017 10:32 AM
Replying to Sergio Luis Conte
...
Organizations have to be considered from the point of view of architecture. Strategy defines the architecture. Basically organizational architecture is composed by three main layers: business layer, application layer (any piece of computational code tp support business layer), technology layer (any type of technology top support application layer). You have to design your organization with low coupling between layers (it is a meassure of the degree of independence between layers) and high cohesion (it is a meassure of the degree of integration between layers). So, let me go to an example (taking from my personal life). Suppose you are working into a bank. You design your bank architecture to answer to environemental stimulus in face-to-face way (all transactions are performed by the clients going to the bank directly and being served by a human being teller). Then, because the bank new strategy, human being tellers must be replaced by ATM. When you change something into the technology layer (you have to replace existing technology used by human being tellers by ATMs) then application and business layer must not be impacted (or, at least, suffer a minimal impact). That is because low coupling and high cohesion is a must. And you will achieve it if you (the business analyst) uses the systemic thinking to help the organization to define the solution to the problem which arrives when strategical implementation needs arrives.
Sergio thanks
I suggest you make an article of this, it would be real valuable
avatar
Vincent Guerard Coach - Trainer - Speaker - Advisor| Freelance Mont-Royal, Quebec, Canada
Rami,

My experience is with vertical organisation. But looking more and more at Agile I see it changing organisation to horizontal.
It would be more efficient, less red tape....
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1 reply by Rami Kaibni
Mar 09, 2017 11:36 PM
Rami Kaibni
...
What disadvantages did you notice in vertical organizations ?
avatar
Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
Mar 09, 2017 10:41 PM
Replying to Vincent Guerard
...
Rami,

My experience is with vertical organisation. But looking more and more at Agile I see it changing organisation to horizontal.
It would be more efficient, less red tape....
What disadvantages did you notice in vertical organizations ?
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