Deloitte’s research, Global Human Capital Trends for 2016, finds that many companies are moving away from the traditional hierarchical leader focused structure and are putting more emphasis on business teams in a functional organizational structure. This shift in structure is a response to the environmental factors of increasingly digital technology, the need for information transparency, as well as demands from Millennials in the workforce. In this new type of structure, leadership looks different as well. There is no need for general managers, instead, leaders need to be functional experts with hands on knowledge. This research identified four elements that are key to transitioning successfully into this network of teams organizational structure.
• A strong sense of shared values and culture: It is well known that building a culture that values the same things such as compliance is much more effective than giving workers more tools or increased supervision. Defining a set of shared values and culture that drives employee engagement and focuses on the goals of the organization is another application of this same idea. It’s difficult to shift culture, but is well worth the effort. Read more on organizational culture in this article, “Why Culture is the Hottest Topic in Business“.
• Transparency in organizational goals and projects: In this new team oriented structure, each employee’s goals should be linked up to the organizations goals.
• Fluid feedback mechanisms: The annual performance review will be replaced by a more fluid multi-dimensional feedback process that is happening continually. This type of fluid feedback encourages coaching relationships and evaluating work from the broader context of the organizations goals in addition to the individual’s performance.
• Merit based rewards, not dependent on job title: This progressive definition of meritocracy really empowers individuals and teams at all levels of the organization to be creative, take ownership and excel like never before.
For more information on business teams and organizational structure contact Vankeith Commercial Capital