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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.

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