Friday, November 13, 2009

New Models of the Organization

I have been doing a lot of thinking lately about how many existing models of the organization are insufficient in addressing some important sociological issues. Most important of these, I believe, are the general desire for autonomy, individuality, and self-expression. I feel that most people appreciate being actively involved in the organizational process. Most experts with deep knowledge of human behavior agree that human beings put enormous value on independence and self-expression. So then why is it that so many organizations are engineered in such a way as to hinder these very basic societal needs instead of fostering them? Much new research points to the latter as more effective in the achievement of a vast array of organizational objectives, most important of which may be improvements in marketing and market prediction, research and development, administrative and operational processes, communications, and human capital risk management.

In this new technological age of data mining, crowdsourcing, and social network analysis, many companies still haven't realized the enormous gains to be achieved through systematic de-centralization and the enabling of self-organizing teams. It is well accepted in operations research, for example, that the worst team dynamics result from appointed teams and over-direction from outsiders. It is also a fact that the most successfully innovative research and development teams in history were given virtually non-existent timelines. As someone who has worked for many years under multiple strict daily production deadlines appraising real estate, I see major implications here in terms of quality control. It goes without saying that the highest form of motivation is that which is generated internally, and many 'incentive programs' are way off the mark.

While the most successful organizations today have wholeheartedly embraced the new paradigm, there are many destined to suffer through the process of Creative Destruction. Fortunately, models are made to be destroyed so we can learn from them, and the stakes are higher now than ever.