27. December 2024 7 minutes reading time

Experimental Organizational Models in the Focus of Modern Business Management

Theme Series – Part 3

Effectiveness along the corporate life cycle
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If change is the only constant in the business world, then the ability of companies to adapt and innovate is becoming increasingly important. Experimental organizational models not only offer solutions for this, but also pave the way for future corporate success. In Part 1 of our series, we introduced classic organizational models and showed how companies can adapt their structures to remain successful in the long term. This article serves as the third and final part of our series on different organizational models and explores two newer approaches – the McKinsey Helix model and the holonic organizational model. We compare both to the well-established flexible organizational model.

    The McKinsey Helix Model: A Synthesis of Flexibility and Structure

    The Helix Model, introduced by McKinsey in 2020, is a response to the limitations of traditional matrix and agility models in businesses. It aims to make organizations more agile, less complex, and faster.

    Concept and Application:

    • Double-helix structure: Inspired by DNA, this model combines two distinct, parallel lines of responsibility – value creation and capabilities.
    • Influence of Sandy Ogg’s Talent to Value: This approach focuses on optimizing the use of talents where the company creates the greatest value.
    • Conflict-free leadership: Unlike in matrix organizations, where conflicts between leadership levels are common, the Helix Model enables a more harmonious collaboration.

    Advantages of the McKinsey Helix Model

    Increased efficiency in value creation
    Simplified structures
    Accelerated decision-making processes
    Employee empowerment

    Disadvantages of the McKinsey Helix Model

    Significant organizational changes
    Necessity for a new leadership culture

    The Holonic Enterprise Model: Autonomy and Efficiency

    DThe holonic organizational model is based on the concept of “Holons,” coined by the philosopher Arthur Koestler. A Holon is a unit that is both an autonomous whole and a dependent part of a larger system. In the context of organizational structure, the holonic model represents a type of system design that seeks to combine the benefits of autonomy (as seen in flat hierarchies) with the advantages of cooperation and coordination (as found in traditional hierarchical structures). It is often employed in complex, rapidly changing environments where flexibility, innovation, and swift responses to change are crucial.

    Concept and Application:

    • Three levels: Global collaboration, internal organization, and the machine level.
    • Self-governed units: Each Holon operates as an autonomous unit seamlessly integrated into the larger corporate network.

    Advantages of the Holonic Enterprise Model

    Holonic systems can adapt quickly to changes in their environment, as individual holons can act autonomously and react to changes. In addition, the modular structure means that companies can be easily expanded or reduced as required.

    Disadvantages of the Holonic Enterprise Model

    Managing a network of autonomous units can be complex and challenging, especially in terms of coordination and communication. Furthermore, as different holons can act independently, there is a risk that their actions are not always perfectly aligned with the overall goals of the company.

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    Deloitte's Flexible Organizational Model: Proven Agility

    In contrast to the previously mentioned models, Deloitte’s flexible organizational model is not an experiment but an established method to make organizations more agile and adaptable.

    Concept and Application:

    • Self-managed teams: Future organizations are comprised of networks of autonomous teams.
    • Implementation process: Deloitte proposes a four-stage approach to introducing the model.

    Advantages of Deloitte's Flexible Organizational Model

    Increasing creativity and team spirit
    Decentralized decision-making
    Culture of personal responsibility

    Disadvantages of Deloitte's Flexible Organizational Model

    Cultural adjustments take time
    Development of new leadership personalities required

    Practical Implementation Across Various Industries

    These experimental and established organizational models offer fascinating perspectives for companies aiming to thrive in today’s dynamic environment. While the McKinsey Helix Model and the holonic enterprise model present innovative approaches to specific challenges, the flexible model provides a proven framework for comprehensive organizational agility. The application of these models spans across various industries, each presenting its specific challenges and opportunities:

    01

    Technology Companies

    In the realm of technology, the McKinsey Helix Model can assist in responding quickly to market changes by creating a flexible yet structured environment. This fosters innovation and accelerates product development.
    02

    Financial Services Providers

    In this industry, the holonic enterprise model could enhance efficiency and customer orientation through improved internal and external collaboration.
    03

    Manufacturing Sector

    The flexible organizational model can contribute to optimizing production processes in this industry by empowering teams to respond more quickly and effectively to changes and challenges.

    Challenges During Implementation

    1. Cultural change: A fundamental change in corporate culture is often the biggest challenge. Traditional hierarchies and working methods need to be reconsidered.
    2. Leadership development: The development of leaders who can support and promote these new models is a critical factor for success.
    3. Employee commitment: It is crucial to involve employees at all levels in the transformation process and get them excited about the new structures.

    Conclusion

    The landscape of organizational design is diverse and dynamic. Experimental models such as the McKinsey Helix Model and the holonic corporate model offer exciting possibilities for companies willing to question traditional structures and explore new paths. Alongside proven approaches like Deloitte’s flexible organizational model, they enable a tailored approach to organizational challenges and the harnessing of opportunities in an ever-changing world.

    Companies should not hesitate to seek external expertise and consultation to identify the most suitable models for their specific needs and successfully implement them. The future belongs to those who recognize and leverage agility, innovation, and continuous adaptation as key elements of their organizational structure.

    Looking for the right tools?

    Join our free webinar and discover how to visualize, analyze, and actively shape your organizational structure with Ingentis org.manager. We’ll show you practical ways to make data-driven decisions, simulate reorganizations, and uncover hidden potential.

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