organizations of the future, today.

Ok I’m back. It’s been a pretty hectic few weeks and the damn guilt has been building up for not posting to this bloggity blog blog. Sometimes when the going gets stressful, something’s gotta give.

So here is something that new & interesting in the world of Business to me. Hopefully it’s interesting to you, too.

In my Human Resources class, we have been talking about the new kind of Organizational Structure for Businesses of the Future! (Yes, I also picture little logos flying around in Jetson-like cars…) One book calls them Sustainably Managed Organizations (SMOs). Others refer to them as nimble, flexible or agile organizations.

Whatever you decide to call them, they are a lot more fun, exciting and innovative than the Command and Control Organizations (CCOs) that have historically dominated the business scene.

First, let’s spend just a second on CCOs. Maybe you’ve worked at one of these? Maybe your parents work for one of these? Maybe you’ve seen Mad Men, which I hear is a classic example of one of these? (I’ve never seen Mad Men) In either case, CCOs are known for:

–       a wonderfully hierarchical and authoritative management style
–       fun little cubicles
–       a very serious lack of autonomy
–       strict job descriptions
–       one-size fits all, benefits packaging, pay scales, etc.
–       little to no flexibility
–       career path; one job for life

One time I worked for the government via the USDA. A lot of questions that start with “Why do we….” get a “Because.” response in CCOs. That’s a “Because. (Period).”

So what’s the deal with these new-fangled Sustainably Managed Organizations? Here are some characteristics of SMOs:

–       organized via networks and working groups
–       encouraging of team work
–       lack of job descriptions for employees so as to encourage project oriented work & innovation
–       flexible work schedule: telecommuting, job-sharing, make your own schedule
–       pay based on performance, not seniority or pay scales
–       employment for as long as it makes sense for both parties
–       transparency in organizational decision making
–       top-down and bottom-up communication & performance reviews

It sounds kind of awesome, right? I want to work on team projects based on my ideas of where the company should go according to my own schedule where I can review my boss (if I even have one) and get paid based on what a great job I do.  Bam!

I’m pretty intrigued by this “Business of the Future” model. There are pieces I really like. The lack of job descriptions is really interesting. As are a lot of studies around flexible scheduling and teamwork. The move towards these more flexible and nimble organizational structures is based on two major factors: (1) intrinsic vs. extrinsic motivation and (2) reactivity to changing markets.

Let’s go in reverse order and talk about (2): reactivity to changing markets. . Folks in the business world have come to realize that CCO organizations take too long to make any real changes. For a lot of companies, the market is changing so fast that they need to be able to keep up. Snuggies are in, now they’re not. Everyone loves avocadoes; now they have too much fat. Friendster is cool; now it’s really not. You get it…. In a CCO, some executives are making decisions at the top about how folks on the entry level are going to do things differently. Then they have to move the budget around a few dozen times, train their top execs who train their managers who train the entry level people who don’t really care and only kind of change. And all of that takes a lot of time. Therefore, CCOs don’t really work anymore. Plus, let’s just pretend that they were efficient management structures, they are stifling and boring and often lose key talent to places that better respect and support their employees.

Which brings me to point (1): intrinsic motivation. The research on intrinsic motivation is so fucking interesting. (As in wow I am so incredibly intrinsically motivated and I love learning about myself!) Basically, it makes sense that people are going to do well when they care about what they are doing, not when they are paid to do well. Let me be very clear on something here: people’s basic extrinsic needs have to be met first; that means they need a living wage, job stability, benefits and above-pleasant working environments.

Aaaaand, a lot of the stuff I’ve been reading about intrinsic motivation points loops back to a very interesting point about these flexible and nimble organizations of the future: they have to do something that matters. People are more intrinsically motivated if they feel that their work is tied to something bigger than just what they are doing. If the organization has a really great mission (and follows through on it), then employees are more likely to give a shit about what they are doing.

Here’s a quick theoretical example: There is a business in my town that does bulk mailings for companies. They have had open positions when I have been looking for jobs. I do not want that job. However, I have often sat around for hours as a volunteer, stuffing envelopes as part of bulk mailings for organizations that I deeply cared about. I did the work and I did it for free because I felt connected to the larger mission of the organization.

I will wrap this up as it’s getting long. Quick summation: There are new trends in organizational structure and management that range from reformist to revolutionary. And they are mostly aimed at happier, healthier workers. Which is pretty awesome.

Oh, and here’s a sneak peek about the next blog post: how worker-owned coops fall in line with these Organizations of the Future.