Adapting Organizations to Todays Markets

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Adapting Organizations to Todays Markets
8-1
2
Workers in Large Companies in the Last 5 Years
Have Undergone...
500 Employees
Source Gallup for Carlson Marketing Group
3
Organizational Structures

• Flat Organizations
• Current Trend
• Creation of Teams

• Tall Organizations
• Many Layers of Management
• High Cost of Management

4
Matrix Organizations

• Advantages
• Flexibility
• Cooperation Teamwork
• Creativity
• More Efficient Use of Resources

• Disadvantages
• Costly/Complex
• Confusion in Loyalty
• Requires Good Interpersonal Skills Cooperation
• Not Permanent

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Tips for Team Leaders

• Dont be afraid to admit ignorance
• Know when to intervene
• Learn to truly share power
• Worry about what you take on, not what you give
  up
• Get used to learning on the job

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How to Increase Team Productivity

• Teach other members by sharing skills/strengths
• Emphasize concern for teammates
• Ask/invite questions
• Motivate teammates through praise recognition

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Reasons to Outsource
Source CIO, 2003 Outsourcing Trends
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Outsourcing
Benefits
Downside

• Time to focus on companys primary function
• Increased level of expertise
• Cost effectiveness
• Decreased overhead
• Risk reduction
• Flexibility
• Technology

• Less personal approach
• Less control by owner in planning, implementing
  carrying out companys future
• Potential for competing for the outsourcing
  firms time

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Top Five Outsourced Business Categories
Source BusinessWeek, July 8, 2002
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Outsourcing Possibilities
Source BusinessWeek, February 3, 2003
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How to ImproveOrganizational Structure

• Break business into smaller units
• Build teamwork
• Impose autonomy
• Create meaningful incentives
• Outsource non-operating activities
• Share business capabilities across units

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The Four Rs ofOrganizational Transformation

• Reframe
• Restructure
• Revitalize
• Renew

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Customer -Focused Design

• Information
• Build teamwork
• cross-functional
• integration
• Self-management autonomy

• Bottom-up relationships
• Outsource
• Global orientation
• Internal vs. external customers

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Inverted Organization Structure
Empowered front-line workers
Support Personnel
Top Mgmt.