Wednesday, July 22, 2009

Bureaucratic Vs. Organic Organizations

The arrival of bureaucracies was a great advancement for organzations, just as the assemby line was a breakthrough for manufacturing. It allowed for work to be done in a uniform and efficient manner.

Today, however, we often decry the bureaucratic form of organization and advocate for the more nimble, organic form of organization. So which is better?

If the work is routine, repetitive and fairly simple, bureaucracis wook pretty well. You can take unskilled workers, put them in specific roles with clearly defined tasks, and produce consistent results.

For example, maybe you receive thousands of written requests for information on "A", "B" or "C". You set up twenty employees who read the requests and return "Form A" if the request is for "A", "Form B" if the request is for "B", and the same with "C". The process flows smoothly as long as the requests are for A, B or C.

The problem comes when the request is for "X", or maybe a variation on "B". The organization simply is not capable of handling the request. A response likly will go back to the requester in the form of a pre-printed cover sheet with check boxes and a check beside "Could not fulfill request", or at best the request will be passed up to someone higher in the bureauracy.

The employee receiving the request does not have the knowledge or authority to think outside of the "box". They are taught to follow strict rules and regulation, not to think--that is the nature of bureauracies. While this tended to work in days when getting a response in a week or two was the norm, it is totally unacceptable in todays complex world characterized by instant communication.

So how does the process work in an organic organization? First, the standard requests are automated. Employees design and set up the systems, but the responses are automated. When there is a request that does not fit the system, it will be kicked out to a person. If it is a nimble, organic organization, that person will have both the training and authority to analyze the request and respond appropriately.

Nimble, organic, empowered organizations are essential in today's high-speed, information intense environment. Unfortunately, some of our organizations have not kept pace. Many government organizations and some large corporations are prime examples.

If the environment is fast paced and complex, the organization must be nimble, empowered and capable of dealing with complexity







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