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Horizontal Organisation

In: Business and Management

Submitted By Smriti
Words 753
Pages 4
In a profound way then, everything in your organization is focused on executing the strategy. You start by determining what success comes for the company means, the use those criteria to evaluate and design every action and element required by the winning strategy. This amounts to a 180- degree turn from the traditional way of designing and organizations around its functions where there was a disconnect between the strategy and the people at the top who planned it and those further down who actually execute it. In the horizontal organization everyone meets in the middle and the strategy of the company becomes a part of the everyday work.

In contrast to the traditional bureaucracy, the horizontal organization does not group people according to monolithic skill bases or hold them accountable for functional goals. While a functional approach can contribute technical expertise to a value proposition, today there is a much larger range of value proposition that require simply technical expertise.

To a large extent, and with the advent of horizontal organizations, organizational design can now truly be tailored to individual value positions and shaped to deliver them. When the value proposition is the starting point – just as it should be for all good organizational design- it directly determines which processes are chosen for unique customer demands and what they are aimed to achieve, what flexibly customized collection of multi-functional, multi-disciplinary competencies are needed, how people are arranged within the core process groups, and what performance objectives should be.

The horizontal model allows designers to identify individuals with required skills, combine (or not combine) them into team at the work unit level, and then pull together teams or individuals into core process groups. The combinations are dictated by the redesigned process, which is...

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