Hierarchical leadership structures and specialized departments were efficient for organizations in the past but in the digital world, they impede the fast and agile reaction of organizations to the changing requirements.
Organizations are simplifying their structures to foster collaboration and become more nimbler. Companies can introduce the “fast track budgets” to simplify their budgeting processes to an application for a new idea. This will result with employees submitting a higher number of ideas which will lead to an increase degree of innovation within the company and as a result, several new innovative products and services will enter the market.
Adobe reduced the number of locations to make it possible for employees to work together in close proximity as they consider close collaboration a precondition to scale. Moreover, companies are changing their strict working time regulation that enables employees to work in a more flexible way whenever they feel most creative. Companies are becoming more agile by shifting their department structure to a project-based approach through cross-functional teams.
Visa, for example, to match the speed of change in the global payment industry shifted their structure to a more horizontal and project-based by joining teams from marketing, product development, and operation to make sure that plans are executed seamlessly. By making changes in the organization structure, companies enable employees to work in a more flexible, networked, and collaborative way.