"Alison, there has been a lot of talk about whether our institutions are up to today's challenges. So I'm talking about schools, I'm talking about companies, I'm talking about other organizations that really continue to be run essentially as they were 100 years ago when our economic and social needs were very, very different. I'm particularly interested in how companies are structured and whether they're set up to succeed in today's really fast moving business environment."
"Our guest today, Jana Werner, argues that most companies still retain an organizational structure that yeah, may have evolved, but is still too rigid to make it in this world. And the authors use a metaphor that the ideal modern organization should be like an octopus with tentacles that work separately, but also together with distributed intelligence, sensory awareness and adaptability."
Most companies still operate with hierarchical, century-old structures that struggle in rapid, complex environments. Modern organizations should adopt an octopus model with distributed intelligence, sensory awareness, and adaptability. Autonomous, connected teams function as tentacles that can act independently while coordinating around shared customer outcomes. Bureaucracy must be reduced and decision-making pushed closer to where information exists. Platforms, governance, and common standards provide cohesion without central control. Continuous sensing, rapid experimentation, and an obsessive focus on customer needs drive learning and adaptation. Leadership shifts from command-and-control to enabling, aligning, and providing shared resources.
Read at Harvard Business Review
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