Silos or swarms – which is best for your business? A recent paper by Deloitte (read it here) uses the analogy of silos and swarms to describe how organizational network analysis (ONA) can help leaders better understand the formal and informal networks in the company which can assist in organizational redesign efforts. The article cites nine out of 10 companies as exploring organizational redesign – a huge number. The idea of the silos and swarms is depicted in the diagram below:
When thinking about organizational redesign, failure is all but guaranteed if the informal networks of the organization are ignored. These informal networks and structures are how work actually gets done in the organization, irrespective of the formal structures. Such structures can be formalized in adaptable networks of teams, which work best for interactions with the external environment, such as sales and product development, being cross0-functional and decentralized. However what is a little surprising in this article is that traditional hierarchical models are often better for teams that internally support an organization, that are execution-focused like finance and more of a centralizes shared-services function.
Using data collected from the organisation through either active measures (e.g. surveys) or passive methods (e.g. emails, calendar invites), both the visible and invisible communication networks are revealed in ONA, which shows you who is actually working with whom to get jobs done. This enables seeing where potential breakdowns might occur and for leaders to respond more proactively rather than reacting.
Using this information and seeing how people actually work together, shortcuts and informal collaboration can be supported in order to have greater efficiencies. And importantly, the article emphasizes that there is no one-size-fits-all model and to consider using multiple methods within your organisation.
Thinking of doing some organizational change or redesign? Avondale Business School (ABS) can help you, to find out how, contact Dr Warrick Long on [email protected] or 02 4980 2168