Thursday, June 04, 2009

Organizational Model for a Networked Economy

DSS Organizational ChartImage via Wikipedia
One of the business challenges I am grappling with is the question of how to build an "organization" that is designed for a network-economy.

What I do know is that I don't want a traditional hierarchical structure. That model, in my opinion, is an evolution of the Industrial age and worked well in it.

Now, however, as networks and networks of networks come to the fore, where you can easily communicate, collaborate, and share with a colleague in a different division on the other side of the world, I think we are coming upon a new world of work where a new organizational model will be required.

Thing is, I don't know what that is yet.

I do know that I don't want employees in the traditional sense. I like have a network of people that I call on as contractors who can be assembled for a specific job, do it, and then move on. It's flexible and it's efficient.

I don't want to move into a "management" role as that will take me away from the stuff I love doing: working with clients and innovating on the front lines.

Of course, in a traditional "command and control" consulting model, the senior people make profit margin off of the time of the junior people.

That would be lost, so the challenge of how to scale (profitably) remains. And, what type of "relationship" I should have with my contractors?  Should I ask for (or even expect) a referral fee? Or, should I just say, I'm going to have confidence that this will pay off...and then see if it does?

Somehow, having a contract w/referral fees (at least in my experience) actually makes it more difficult to do business and build a true, long-term relationship (I'm talking about partners, of course, not clients).

Anyway, this topic is far from exhausted, but I am putting it out there for starters. I'm open to ideas, of course, and will be revisiting this as a I continue to flush it out in my own mind.


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