I want to discuss YOUR Organization, that is, how is your company organized. Many organizations, still to this day are organized and structured on a purely functional method. When organizations are structured in stifling functional silos, functional priorities override customer priorities. When this happens it is a disaster waiting to happen.
Customer considerations must always come first. The absolute best way to address customer priorities and considerations – while maintaining efficient and effective processes and optimum profitability – is with cross-functional teams.
So just how is your company organized – still as a functional-silo-dinosaur? Or have you stepped into the 21st century and (at least) started to form cross-functional teams based either on value steams or customer based?
At a very basic level the types of organizations can be summed up in the following five types (from worst to best):
Exploitive
Bureaucratic
Consultative
Participative
Highly Participative
The Exploitive type is those organizations that feel the employees are merely cogs in a machine – they are all Bobbys and Bettys. The thinking is If one goes down for any reason, we can just stick another bum off the street into that position. No training, no communication, no career path, no caring – just a job. And you better be darn thankful I gave you one.
While a Bureaucratic type is better than an exploitive type – they care more, they probably train more and there may be a career path for selected positions. But they are so hide-bound in rules and regulations with ultra-strict chains of command that nothing can get done or be done unless it by the book. No creativity is allowed, no room for new ideas – unless they come from the top. This is a very stifling organization type.
In my next post I will review the Consultative, Participative and Highly Participative organization types.