Practitioners in organizational development, organizational effectiveness, and other related consulting disciplines place great importance on organizational structure. Organizational structure is often defined by management structure; hierarchical, flat, matrix, or some hybrid version. Management structure influences the flow of information. I am suggesting that neither information flow nor management structure define organizational structure. What does?
In our global economy, knowledge is the new currency. How knowledge is created and shared in organizations is what determines an organization’s structure. Created and shared knowledge is what adds value to an organization, creates a competitive advantage, and shapes the organization. Old organizational structures are being challenged by the need to transform information into created and shared knowledge. That is not a top-down structure or a lateral structure. It occurs in the white space of organizations. It results from relationships vetted by common goals and interests. It invites organizations to use and leverage social networking tools. It requires managers and leaders who engage in transparency and a willingness to lead by sharing.
Your thoughts?