Tuesday, December 16, 2008

Why having structure in organization is not good enough?

There is no doubt that there is a need to have a structure in the organization, however it is not good enough. Structures help us with how by showing the various functions of the organization but does not clearly address why.

The need is to focus on the purpose and provide explanation of why the organization exists and where it is going. Leaders add an additional dimension of meaning. When staff throughout the organization comes to share in a larger sense of purpose, they are united in a common vision. They have a sense of continuity and identity not achievable in any other way. When the why is not articulated properly then you see the emergence of local optimization in the business verticals, divisions, departments, and groups. The overall purpose of corporate- policies, process, development methodologies, etc., don't get tied leading to duplication of effort in the organization. We see this situation further aggravating in a globally distributed and culturally different setting as compared to co-located work teams.