Session 8

The Organization of the future

Introduction
 The rate of change on the business world is not
going to slow down anytime soon.

 If anything, competition in most industries will

probably speed up over the next few decades.

 Enterprises everywhere will be presented with even

more terrible hazards and wonderful opportunities,
driven by globalization of the economy along with
related technological and social trends.

 So given these, what will the winning enterprise of

the twenty-first century look like?
Introduction
 In order to understand what will be the
organization like for the future we need to
compare the 20th and 21st century
organization in term of their:

 Structures
 Multileveled
 Systems
 Culture
The 20th and 21st century
organizational compared
The 20 th
century organization
Structure

 Bureaucratic

 Multileveled

 Organized with expectation that senior management will

manage

 Characterized by policies and procedures that create many

complicated internal interdependencies
The 20th century organization
 Systems

 Depend on few performance information systems

 Distribute performance data to executives only

 Offer management training and support systems

to senior people only
The 20th century organization
 Culture

 Inwardly focused

 Centralized

 Slow to make decision

 Political

 Risk averse
The 21st century organization
 Structure

 Non-bureaucratic, with fewer rules and employees

 Limited to fewer levels

 Organized with the expectation that management will lead,

lower-level employees will manage

 Characterized by policies and procedures that produce the

minimal internal interdependence needed to serve
customer
The 21st century organization
 Systems

 Depend on many performance information

systems, providing data on customers
especially

 Distribute performance data widely

 Offer management training and support

systems to many people
The 21st century organization
 Culture

 Externally oriented

 Empowering

 Quick to make decision

 Open and candid

 More risk tolerant

The future
 A persistent sense of urgency

 Teamwork at the top

 People who can create and communicate

vision

 A broad based empowerment

 An adaptive corporate culture

End of lecture