Real-World Examples of Alternative Organisational Structures
• Traditional Hierarchical Models:
– Functional Structure: IBM has traditionally operated with clear functional divisions such as research, sales, and manufacturing.
– Divisional Structure: General Electric organizes its vast operations into distinct business divisions based on products or geographical markets.
• Networked/Agile Structures:
– Agile Teams: Spotify is renowned for its “squad” model, where small, cross-functional teams work semi-autonomously, aligning with its agile, adaptive culture.
– Agile Transformation: ING Bank has adopted agile methodologies across departments, enhancing speed and innovation in response to market changes.
• Holacracy:
– Zappos has implemented holacracy, a decentralized management process where traditional hierarchies are replaced by self-organizing teams, fostering distributed authority and responsiveness.
• Dual Operating Systems:
– Unilever is often cited as an example of dual operating system structures, balancing a traditional hierarchy for routine management with a more flexible, networked system to drive innovation and agility.