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Week 2: IT and organization

Week 2: IT and organization. Main idea: Companies used to be hierarchical, whereas today the relationships are more like a network. Challenges. How does a small (startup) company become an organized enterprise? Is it really possible to operate without a hierarchy of roles?

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Week 2: IT and organization

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  1. Week 2: IT and organization • Main idea: Companies used to be hierarchical, whereas today the relationships are more like a network

  2. Challenges • How does a small (startup) company become an organized enterprise? • Is it really possible to operate without a hierarchy of roles? • “We want to be global and local, big and small, and radically decentralized with centralized reporting and control. If we resolve thoe contradictions, we create real competitive advantage” (Percy Barnevik, ABB, page 59)

  3. Fig 2.1 Organizational Design Challenge

  4. Fig 2.2 Building Lean, yet agile enterprises

  5. Fig 2.3 Streamlining operating and management processes

  6. Fig 2.4 redefining control systems © Lynda M. Applegate, 2005

  7. Hierarchical Enterprises vs. networked enterprises

  8. Building a management team • Understand multiple functions • Relate interdependencies between processes • … learning and integrative approach (page 68) • ‘information literate’

  9. Accountability and Collaboration • Teams • Defining structures, responsibilities and incentives • See figure 2.5

  10. Fig 2.5 Building Authority Systems

  11. Does redefining roles create or remove clarity? • Boards and teams become responsible for end-to-end process performance • However, individuals still need to be evaluated for their roles • Is this really much different?

  12. Case: Learning from Leapfrog

  13. Learning from Leapfrog

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