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Thursday, June 30, 2005

The Organisation Of The 21st Century!!

(Via McKinsey Quarterly)To motivate the collaborative behavior in the new organizational model work, companies must create metrics that hold employees individually accountable for their contribution to collective success—an idea we call holding people "mutually accountable." Such metrics are particularly important for senior and top managers but are required, more broadly, for all self-directed workers. People who are great at developing the abilities of other talented people or at contributing distinctive knowledge, for example, should be more highly valued than those who are equally good at doing their own work but not at developing talent or contributing knowledge.Productive professionals make big enterprises competitive, yet these employees now increasingly find their work obstructed. Creating and exchanging knowledge and intangibles through interaction with their professional peers is the very heart of what they do. Yet most of them squander endless hours searching for the knowledge they need—even if it resides in their own companies—and coordinating their work with others.The inefficiency of these professionals has increased along with their prominence. Consider the act of collaboration. Each upsurge in the number of professionals who work in a company leads to an almost exponential—not linear—increase in the number of potential collaborators and unproductive interactions. Many leading companies now employ 10,000 or more professionals, who have some 50 million potential bilateral relationships. The same holds true for knowledge: searching for it means trying to find the person in whose head it resides, because most companies lack working "knowledge markets." One measure of the difficulty of this quest is the volume of global corporate e-mails, which rose from about 1.8 billion a day in 1998 to more than 17 billion a day in 2004. As finding people and knowledge becomes more difficult, social cohesion and trust among professional colleagues declines, further reducing productivity.
A new organizational model for today's big corporations will not emerge spontaneously from the obsolete legacy structures of the industrial age. Rather, companies must design a new model holistically, using new principles that take into account the way professionals create value. Big companies that follow these principles will get more value, at less cost, from the managers and professionals they employ. In the process, they can become fundamentally better at overcoming the challenges—and capturing the opportunities—of today's economy

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