Organization Structure and Digital Business

In the equation of people, process, and technology, getting the “people” part right has been a tough challenge for many companies.  As technology evolves, the roles and talents needed to drive that technology and utilize it to help keep the business competitive requires constant evolution; getting the organization structure right in support of this evolving landscape has been an area we value advising in at StrataFusion.

In an earlier blog we looked at organization structure and critical success factors; now it would be useful to give further detailed thought to organization structure guidelines that are important to both traditional and digital business. Because digital business is different from your traditional data center kicking off this discussion would be some of the most important structural guidelines to consider in assessing your organization:

  • Align business facing technology functions to match the business organization, this expedites specification, understanding, and support of business requirements
  • Align technical development organizations along development lines and logical technical groupings to maximize development activity efficiency
  • Constantly reinforce the importance of key organizational and business dependencies. The goal is to create an environment where cooperation and team focused response become the normal team response
  • Create a system of organizational checks and balances. This allows your organization to be self governing, and can highlight important issues
  • Be consistent in your approach, limit exceptions
  • Separate your delivery function from your development function. A key check and balance that can avoid a lot of pain

Each of these guidelines could support a blog of their own, but the incorporation of these thoughts into decisions concerning how your team is organized and structured can create interactions and behaviors that can be important long term in a digital business environment.

Once you’ve assessed your answers to these questions we also believe that creating an organizational focus around rallying cries or mantra is extremely important. The idea of a mantra gives great organizational concentration, and provides a consistent focal point for how your team should be thinking.

Mantras can be a tool to guide proper organizational response

In creative organizational focus, here are some possible mantras:

  • User Ownership of Systems
  • Empowerment of the Community
  • Standards & Integration
  • Make Use of Forward Looking Development Technologies
  • Business Intelligence and Knowledge Management Systems
  • Right Tool/Right Place
  • Flexible Systems
  • Global/Shared/Local

Creating a mantra allows your team to default back to a common base – set of values, practices, and knowledge that will help them respond to questions or situations arising that are new or undefined – this is especially so in today’s digital era.  For instance, a mantra of “empowerment of the community” can help instill in your team the concept of insuring their actions result in recognition of the fact they serve a community or business and that it is in their self-interest to empower and equip that community to solve their own problems.  You can have the concept of “travel in packs” – if for those of your teams that exist in a highly competitive situation where stress is high and demands are intense and daily, a mantra of “travel in packs”  reminds them that they can count of your team for backup – you’re more than one person, they’re not alone, so that when if (for example) a website that is up 99.9999 of the time but crashes for a few minutes – upsetting c level executives – you have emotional, structural, and organizational back up.

In thinking about “Global/Shared/Local”, the mantra leads with the idea that things that data can have different types of ownership, some are universal and shared by all but require consistent management; while some can have more than one owner.

That a mantra can create organizational focus also works with another interesting potential which I call the ‘Manufacturing Metaphor’.  In the transformation to digital business this can remind you of how your digital delivery of an information product is not unlike some traditional manufacturing concepts, and incorporating some of those proven concepts into your business could be useful.

New digital business environments can be optimized by incorporating the similar concepts, processes, and flows as exists within manufacturing – digital business hold the same counterparts. For example, concepts of development engineering product engineering in manufacturing can be re-formed into as software development and operations delivery concepts in digital business; the shipping function in manufacturing is the data center in digital business. The terminology changes but the functions are similar, and taking a similar approach could favorably impact your “product delivery” process. Understanding these parallels again provides a framework within which it become easier to understand how to optimally structure your organization – with people being your most essential asset towards success.

In our third and final on blog on this topic we will be discussing the importance of infrastructure readiness on digital business delivery.

John Dick

 

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