The Geodesic Organization

1. The Geodesic Organization Licker, P. Management Information Systems: A Strategic Leadership Approach. Ft. Worth: Dryden, 1997, pp. 296-298. Geodesic Organization

2. Agenda • Organizational Topology • The Pyramidal organization • The Role of the Environment • The Geodesic Organization • The Role of IT Geodesic Organization

3. Organizational Topology Organisms organize themselves internally to meet environmental demands. Where the environment is dangerous, surfaces become the locus of most action Where the environment is placid, more work can go on inside, since the surface is more robust and competition knows about weak environment Geodesic Organization

4. “Smooth”, similar point to point; predictable, relatively weak “Rough”, different point to point; unpredictable, strength not known Placid Turbulent Turbulent Turbulent Turbulent Environment Geodesic Organization

5. Fewer threats, less reward in direct environmental interaction Need to process input to squeeze out profit, since others have learned to “feed” here Most processes take place inside, later Strong return on internal investments More threats, but more reward in direct environmental interaction Must process input immediately since environment is highly dangerous Most processes take place on the surface No return on internal investments Organizational Environment:Placid Turbulent Geodesic Organization

6. Placid Environment • Surface merely transacts. Processing takes place inside • Need for efficiency in internal processes • Specialization is the natural outcome • Need for control requires multiple levels • Hierarchies naturally grow • Size counts • Great opportunities are few • Decision making is by rote; non-textbook decisions are taken at the highest levels Geodesic Organization

7. Presence of competitors means little surface processing, need for mass internal production Hence specialization and the need for internal efficiency Well ploughed field. Little profit per resource This means lots of looking, need to process found resources The result: a team of specialists, focus on internal efficiency, control, mass production, environmental scanning for specific resources, levels of administration, large organizations with even larger resource needs, need for cost control, loss of risk taking and creativity Geodesic Organization

8. Turbulent Environment • Surface does processing; there is no inside at all • Need for effectiveness at surface • Generalization is the natural outcome; surface elements are expendable as defense mechanism • Need for coordination requires high level of communication • Hierarchies cannot grow as there is no control • Size hurts, because it makes communication difficult • Great opportunities are a high proportion of events • Decision making is ad hoc and rapid. All elements of the surface learn from each decision. Geodesic Organization

9. Resources must be processed at surface, decisions made quickly No time or need for specialists; everyone doeseverything Dangers everywhere; surface must be expendable New field, large profit per resource discovered and kept The result: a team of generalists, focus on external effectiveness, coordination, mass customization, environmental scanning for opportunities, flat small organization, small internal resource needs, lots of risk taking and creativity Geodesic Organization

10. The Pyramidal Organization • Bigger is better • In-house is best • Basic building block is the job held by one specialized individual • Standards are crucial; standard jobs are the key; changes to standard jobs are threatening; maintaining standards is key • Middle managers control • Support activities are ancillary and controlled from a central pool • Information needs are determined by where a worker is in the pyramid • Career advancement means moving towards the apex, which is sparsely populated • A specific adaptation to a placid, well-harvested environment (market) Geodesic Organization

11. The Geodesic Organization • Looks the same from all angles • Everyone is on the surface • Everyone has access to all the information and data • Any activity can be initiated from any place on the surface • Resources are moved rapidly across the surface by shared decision making • All work takes place on the organizational Frontier. • Support activities are integral to operations rather than part of a central pool. • Skills are tested continuously at the surface • There is no middle management • There is no pressure to specialize or become really good at any one task. • Organizational memory is available to maintain lessons learned and teach everyone the necessary skills. Geodesic Organization

12. Changing the Geodesic Organization • Environments change • Environments aren’t smooth; there are special places with special needs • Geodesic organizational elements develop special skills that aren’t shared, especially if organization outgrows its communication systems. • Specialization therefore develops • Resource needs are not smooth or predictable and may become conditioned to environmental whim, resulting in discontinuities or aggregations in specific locations Geodesic Organization

13. Changing the Geodesic Organization - 2 • Thus organizations adapt to their environments and become more “pyramidal”. Geodesic Organization

14. Non-smooth environment fosters non-smooth surface As experience mounts, so do rules and desire to limit cost Specialization results as skills accumulate unevenly inside Dangers disappear; surface is no longer expendable The result: a movement towards the pyramidal organization as specialization takes over and cost control becomes paramount Geodesic Organization