15
Mar 16

Introducing the New Organizational Model

New Organizational Model DiagramThe above diagram is my new organizational model which I have referred to in several previous postings. I developed this after several years of reflection and study starting with my MBA work in 2001. I was especially inspired by my Ph.D. work in developing a new model of public leadership and, later, on my study of the lean startup movement.

The new organization is designed to be agile in every aspect from the work products, leadership, and workforce. The organization is also transparent and designed for maximum information flow. Finally, the mission, vision, and strategy is baked into all that the organization does and drives the organization forward.

I will expand upon various components in future postings, but, for now, I want to give an overview of the complete model.

Starting with the upper box with the five chief officers: A common theme in organizational studies is the danger of silos and fiefdoms. There are also the problems with forming a senior leadership team that works together for the good of the entire organization. Therefore, in the new organization, there are only five chief officers that form the senior leadership team.

  • The Chief Executive Officer (CEO) – chairs the senior leadership team and is responsible for keeping the organization aligned with the mission and vision by keeping the strategy engine working effectively.
  • The Chief Alliance Officer (CAO) – combines the traditional functions of the chief human resources officer and chief information officer. Responsible for managing the organizational talent and the organizational APIs platform.
  • The Chief Knowledge Officer (CKO) – responsible for managing the knowledge and learning workflow of the organization. Also oversees the training and development of the organization’s talent.
  • The Chief Brand Officer (CBO) – responsible for overseeing the organization’s brand: internally and externally. Helps the CEO manage the public-facing side of the organization’s mission and vision.
  • The Chief P4 Officer (CPO) – Oversees the portfolios, programs, projects, and processes of the organization’s Business Engine.

In the middle of the model is the “Business Engine.” The Business Engine is where the work is done by the organization. Instead of a factory floor with fixed production lines, the Business Engine is a makerspace with both a physical presence and virtual presence. Work is performed by a network of project teams that are loosely organized into portfolios and programs. There are few fixed processes, and these processes will be heavily-automated using artificial technology systems using blockchain technologies and deep learning algorithms. The teams will use agile project management, human-centered design, and adaptive case management to manage the work.

Surrounding the Business Engine are four critical components. The most important component, of course, is the “Talent” box with the four types of employees. These types are based on the Alliance model of employer-employee agreements. At the bottom is the Organizational APIs Platform in which the core APIs that run the business infrastructure are available for the talent and teams to build their personalized tools and apps upon. Surrounding the Business Engine on both sides are open data streams that provide the performance metrics of the organization and allows for easy knowledge-sharing and collaboration in the organization. Embedded in the Business Engine are strategy information radiators (Ambient Strategy) that provide constantly-updated information on how well the organization is fulfilling the mission, vision, and strategic goals.

Pulling the organization forward is the “Strategy Engine.” On top of the Strategy Engine is the “Mission and Vision” alignment compass which helps the align all of the organization’s activities toward the mission, vision, and strategic goals. What powers the planning process for the Strategy Engine are the twin concepts of organizational agility and organizational health.

There is a lot of this model that is borrowed and a lot that is new. I don’t believe there is an organization that follows this model but, I believe many organizations could benefit from adopting parts of the model. I look forward to expanding upon the various parts of the new organizational model. I welcome your comments, criticisms, and suggestions.

8
Mar 16

From Hierarchies to Network of Teams

Deloitte just released its 2016 Human Capital Trends report and it is outstanding! What I especially like is the realization that organizational design is the top HR topic among executives and HR practitioners.

I have found similar results in my research on the new public organization model. Hierarchical models just can't meet the demands for organizational ability and organizational health. In my model, there are programs, projects, and processes. The programs and projects are handled by teams that constantly change and reform as the organization's strategies and needs change. This way, team members can rotate through program directors, project leads, and project team members.

As to processes, I envision a fusion of human workers and artificial intelligence agents. For the purely algorithmic portion of processes, I see a combination of AI agents and blockchain technology. For any exceptions to the processes, adaptive case management will be used to signal for human intervention and refinement of the process.

3d-jump-070615-15colThe best analogy is to think of the organization as a network of teams that work off an organizational IT/analytics platform to build new applications. The closest organizational design that I have seen to what I envision is a makerspace

16
Feb 16

The Constructal Law in Organizational Design

feature-constructal-law-physicsA key component to my new theory on public administration and my new organizational design is the Constructual Law. First proposed back in 1996 by Adrian Bejan, the Constructal Law states:

"For a finite-size system to persist in time (to live), it must evolve in such a way that it provides easier access to the imposed currents that flow through it"

The Constructual Law is a physics law and refers to natural systems. However, if one defines the imposed currents as data, information, and knowledge, then you can see the application to organizations. Especially in the communication channels for data, information, and knowledge.  The tricky part is that the organization's environment changes over time and thus, the organization's internal configuration of flows needs to evolve to optimize access for data, information, and knowledge.

The organization's internal configuration will evolve according to the dictates of the Constructual Law. Making this directed evolution rather than unguided evolution is the great insight offered by the Constructual Law to organizational theory.

3
Jan 14

Why Networks Will Outperform Hierarchies

Excellent article in Globoforce's blog on the value of organizational networks:

"Networks are safer because they have built in redundancies. They increase the flow of information. They speed communication. They connect larger groups that otherwise might remain siloed. They homogenize culture. They increase diversity of perspective and experience. They encourage innovation. They provide resilience in the event of trauma. And most critically, they protect against the failure or loss of an important connection point, such as a poor manager or the departure of an influential colleague."

What especially interests me is reconciling Constructal Law and the hierarchical tendency of complex adaptive systems with the advantages of networks. I think a key here is the tension between the optimum flow of information through the system versus the ability for agile reconfiguration to create new information flows.