Over the time, the needs of the company in particular HR sub-function can change as well as new industry regulations can create new opportunity or restrict certain activities. Let’s see how such changes can be adopted by the Organic Business company.
A transition journey into Organic Business starts with an allocation of new RACI (R=Responsible, A=Accountable, C=Consulted, I=Informed) model. This is, probably, the most challenging part of the transition because it affects people directly. This model requires transformation of corporate culture from whatever it is into the service-oriented culture [“Architcts Know what managers Don’t”].
We have recognised and described specialised HR services, we need to review how we could manage them with maximum efficiency. Should it be just a new scheme of traditional delegation of responsibilities or this is a new quality of governing principles and policies, under which the company uses the HR Function in a form of service.
In our previous articles “The Major Principles of the Organic Business Design” and “Results of Applying Principles of Organic Business Design” we discussed how an Organic Business organisation looks like from inside. This article aims to explain how to move to the Organic Business organisation from a relatively traditional hierarchical business; what business transformation needs operational IT transformation that is so populat now.
When we postpone not only subordination, but also grouping, we can notice that a use of an outcome from one BU by another BU portrays simple and well-known provider-consumer relationship pattern. In other words, one BU serves another BU. This type of relationships existed and currently exist in all models of organised business but was camouflaged by a management hierarchy.
It seems that for the last 57 years the definition given by T. Burns and G.M. Stalker for organic organisation has not been changed. We can explain this phenomena by that the Organic Organisational structure was not in demand for these years: no need – no use – no evolution. In our previous publications – “The Major Principles of the Organic Business Design” and “5 Characteristics of an Organic Business” – we argued that the time for Organic Business has come now due to the market where changes become global and accelerating in pace at an unprecedented rate.
A big thinking piece in Operating Model Design is the understanding of what makes Value Deliver Chains actually deliver that value, and then what needs to be tweaked to ensure a delighted beneficiary. Value heat-mapping is a useful technique to identify areas of improvement.
Organic business is a special model of business that can be and should be deliberately designed. Though approaches are known for many years, we define the design principles the first …
An organic business has two important benefits over a traditional mechanistic setup:  it can process and distribute relevant information and knowledge much faster, and  it possesses an ability to decide and execute fast, and in accordance with the available information and knowledge. Five key characteristics reflect the nature of an organic business today.
One of the major problems that separate corporate business from corporate technology is not only in functions they represent in the corporate structure, but also in the languages these two realms use. Examples of such confusions are discussed in this article.