Modern management is nearing its existential moment
Some say the traditional organizational hierarchy is soon history and we end up facing with something completely new, a new way of how businesses communicate and create value.
The end of management. Corporate bureaucracy is becoming obsolete
In a Wall Street Journal article, “The End of Management,” Alan Murray makes a compelling argument that “modern management is nearing its existential moment.” He focuses on the last 100 years or so when large organizations developed to organize people and allocate resources for tasks that seemingly could be done much more effectively than individuals contracting with each other.
One of the responsibilities of many, if not most, of the people in these organizations is to increase certainty or predictability with the intention of increasing quality and on time, on budget, performance.
The rate of change and market disruption accelerates
As the rate of change and market disruption accelerates to the pace we see today with the advent of things like social networking and smart phones, this sets up “a destructive clash between whirlwind change and corporate inertia.“
Murray argues that some of the classic failures of once market-leading companies has not been a result of “’bad management,” but because they follow the dictates of “good” management. They listened closely to their customers. They studied market trends. They allocated capital to the innovations that promised the largest returns. And in the process they missed the disruptive innovations.
Collaborate without hierarchy
Now, with the advent of instant worldwide communication, essentially free information, and the ability of large numbers of people to organize and collaborate without hierarchy, creativity and innovation can move far more rapidly than it can through a traditional organization.
The future with mass collaboration
What the future with mass collaboration will look like, no one knows for sure. But with the “modern” management becoming eventually obsolete, managers should understand the value of such culture that is willing to adapt new ways of working, is using innovatingly technology in business processes and boldness to experiment.
IBM recognized this idea back in 2008 when they released a report titled, “The new collaboration: enabling innovation, changing the work place”. It essentially argued that the old corporate model – encompassing of “exclusivity, hierarchy and solitude” – was no longer competitive in a globally interconnected world.
In the old way of thinking, employees make themselves valuable through what they know. But in the new way, people make themselves valuable by seeking opportunities to work with others and tapping into the expertise that others possess. In the old way, content is owned and protected. In the new way, content is developed through participation; it is fluid, contextual and leveraged to create opportunities through ongoing collaboration. In the old way, directories of people provide static contact information. In the new way, dynamic profiles reflect what people do, with whom and how well they do it.
From hierarchy to collaboration? Will this be the future?
Short URL & Title:
Traditional organizational hierarchy is soon history — https://www.torbenrick.eu/t/r/jci
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