To take reality seriously demands a radically different approach. We need to create human-orientated frameworks, designed consciously, for teams and people to perform within. With different and wider boundaries but also with new and improved rules of the game. There is a lot of work involved to clear our minds of the old paradigms, all the stuff that work more as barriers than support for great performance, and to reconcile the need for flexibility with organizational cohesion. To transform we have to make two major shifts:
- From functional hierarchies to devolved organizational structures. Rather than being imposed, control must be embedded within the organizational design. Strengthen by self-regulation, instead of the outdated focus on command and control structures.
- From fixed annual budgets to flexible business planning. Measure performance relatively and in a meaningful way, forecast dynamically and only when required, plan and reallocate resources continuously and reward shared success. In other words: embrace the dynamics of uncertainty instead of assuming that we can predict the future with confidence.