Michael Lissack CD he sairgancet edrfios rt i cCsoomf pOl erxg ai tny i z a t i o n s In a small conference room in Stockholm, a dozen executives from different industries gathered to discuss the future of their organizations. The facilitator asked a provocative question: “If you were to rebuild your organization from scratch today, knowing what you know about the com- plexity frontiers we face, what would you do differently?” After a thoughtful silence, the CEO of a logistics company spoke first. “I’d design for adaptation rather than optimization,” she said. “We’ve spent decades fine-tuning our operations for efficiency in a relatively stable envi- ronment. Now we need systems designed to evolve as conditions change.” This insight captures a fundamental shift in organizational design. Traditional organizations were built to optimize performance within known parameters. The coherent organization of tomorrow must be de- signed primarily for adaptation to changing conditions while maintaining coherence through that change. Several key characteristics distinguish organizations designed for complexity: Distributed Intelligence: Rather than concentrating decision- making at the top, coherent organizations distribute intelligence through- out their structure. Front-line employees have both the information and authority to respond to local conditions without constant approval from above. This distribution enables faster response to changing conditions and more effective use of diverse knowledge and perspectives. When a global manufacturing company reorganized its operations, it created what it called “locally responsive, globally coherent” units. Each facility had substantial autonomy in day-to-day operations while adhering to shared principles and participating in cross-facility learning networks. When disruptions occurred—from supply chain issues to ex- treme weather events—local teams could respond immediately rather than waiting for instructions from headquarters.
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