92% of Companies Are Not Well Organized

November 1, 2017


Last week I gave the lecture „Teamwork – current and future trends“ to psychology graduate students at University Department of Croatian Studies at University of Zagreb.


Preparing for the lecture, I've found out that Croatian psychological dictionary not only defines the term, but also practically denotes when teamwork is the method of choice. It reffers to it as: „always useful when the complexity of the challenge doesn't allow successful accomplishment of the task without participation of a number of experts and without interdisciplinary approach“.


And that's exactly why teamwork is of the essence today. Companies must satisfy markets' constantly changing demands and while customers expect various simple-to-use-yet-compehensive solutions, the challenge to produce such products is inevitably getting more and more complex. That means you need great cross-functional collaboration in your company.


Cross-Functional Collaboration - The Global Perspective



You can try to respond to this need by implementing an Agile methodology. However, some business issues aren't suitable to be solved in an Agile way, e.g. complex customer complaint with strict legal deadline. Some problems just have to be dealt with in the old fashioned way.


But if you want those tasks to be done fast, efficient and with low costs, you need well synchronized cross-functional collaboration. And there are many challenges with that kind of work, or as Harvard Business Review puts it: „teamwork across organizational boundaries is unnatural.“


In such circumstances it is no suprise that Deloittes' Global Human Capital Trends 2016 reports that 92% of senior executives and HR leaders believe their company is not well organized. They list the need to redesign their organizational structure as their No. 1 priority (p. 3). Yet, only 14% of executives believe their companies are prepared to do so effectively (p. 5).


Deloitte concludes the report with a recommendation: „Consider performing an Organizational Network Analysis(p. 23).


(to be continued)


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