By Jonathan H. Westover, PhD
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Abstract: This article examines organic organizational structures that are more flexible and distributed as an alternative to traditional hierarchical mechanistic structures that are struggling to keep up with today’s unpredictable business environment. By adopting principles from living systems such as self-organizing teams, connected networks, and adaptive leadership, the article argues that organizations can cultivate an emergent and distributed intelligence that enables ongoing adaptation, rapid problem solving, and breakthrough innovation. Industry examples at innovative companies in technology, consulting and healthcare demonstrate how organic configurations have proven benefits for operating in today's volatile business landscape.
As the business landscape continues to evolve at an increasingly rapid pace, organizations must adapt their structures to remain competitive. Traditional hierarchical structures that rely on rigid control and specialization are struggling to keep up with today's unpredictable environment (Morgan, 2006). Instead, organic structures that mirror the complexity and interconnectivity found in nature may be better positioned to thrive in this new reality.
Today we will explore the research foundation for organic organizational structures and examine their practical value through industry examples. By adopting a living systems lens, organizations can foster the emergence of more adaptive structures well-suited for today's dynamic challenges.
Defining Organic Organizational Structures
Organic structures contrast with more mechanistic, hierarchical configurations in several key ways. Whereas mechanistic structures emphasize vertical command and control, organic structures distribute authority throughout the organization (Burns & Stalker, 1961). Specialization is replaced with multidisciplinary teams empowered to address problems holistically. Rather than strict division of labor, cross-functional collaboration is valued (Morgan, 2006). Boundaries between roles are also more permeable, allowing knowledge and resources to flow freely between interdependent units (Williams, 2002).
This evolution from rigid mechanistic structures to flexible organic systems more closely resembles the way living organisms operate in nature. Like cells working together for the survival of an organism, individual units within organic structures coordinate self-organizing behaviors for the well-being of the whole (Morgan, 2015). While chaos may seem to reign in living systems, an underlying order emerges from the bottom-up through networked relationships (Wheatley, 2006). Organizations moving towards organic designs aspire to cultivate this same distributed intelligence found everywhere in the natural world.
Research Foundation for Organic Approaches
Several seminal works provide the theoretical basis for why organic structures may enable greater organizational adaptability. Early studies by Burns and Stalker (1961) found that mechanistic configurations hampered innovation in rapidly changing industries while more flexible organic arrangements enhanced it. Subsequent research confirmed organic structures facilitate knowledge sharing, decentralized decision making, and continuous adaptation essential for thriving in dynamic environments (Galbraith, 1973; Lawrence & Lorsch, 1967).
Systems thinkers also make the case that the flexibility and interconnectivity inherent in living systems confer major evolutionary advantages over rigid mechanistic designs (Morgan, 2006; Wheatley, 2006). Drawing this biological analogy, organic structures allow organizations to sense, respond, and self-organize in the face of uncertainty much like living things do in nature. This distributed intelligence enables emergence of innovative solutions from within complex adaptive systems (Holland, 2014).
Practical Application in Industries
To see how organic structures play out in real world examples, let's examine their adoption in a few key industries:
Technology - Companies on the cutting edge like Google, Amazon and 3M promote organic cultures where teams can rapidly prototype and iterate on ideas (Ismail et al., 2014). Flat hierarchies empower employees to make decisions and self-organize around emerging opportunities. Cross-functional collaboration accelerates innovation through free-flowing exchange and recombination of diverse perspectives.
Consulting – Major consultancies like McKinsey, Bain and BCG organize around multi-disciplinary project teams that bring together specialists on temporary, ad-hoc bases to address each unique client problem (Galbraith, 2013). Fluid structures allow for rapid reconfiguration of expertise to emergent needs. Partners operate more as stakeholders than managers, nurturing organic patterns of coordination.
Healthcare - Forward-thinking hospitals are moving from departmental silos towards integrated care delivery teams focused on serving whole patient populations (Wagner et al., 1999). These cross-functional units coordinate holistically on preventative, acute and follow up care. Physicians work seamlessly with nurses, therapists and social workers through shared ecosystems of care information.
In all these examples, organic configurations have proven enabling for ongoing adaptation, learning agility, rapid problem solving, and breakthrough innovation so crucial today. Industries recognizing the value are actively cultivating organic cultures able to thrive amid volatility through self-organized emergence and distributed intelligence.
Nurturing Emergence in Organizations
While mechanistic hierarchies persist in many organizations out of inertia, leaders can take steps to foster an organic shift from the inside:
Establish Self-Organizing Teams - Break down silos into cross-functional units empowered to coordinate autonomously around shared goals and key result areas. Reduce top-down directives in favor of bottom-up guidance through a compelling organizational purpose and values (Wheatley & Frieze, 2006).
Promote Connectedness - Design physical and virtual workspaces to facilitate informal collaboration. Invest in knowledge management tools to help teams tap the distributed intelligence within their networks. Forums for sharing lessons and insights across the organization accelerate learning (Wenger et al., 2002).
Trust Emergence - Let innovative patterns self-organize from grassroots experimentation rather than pre-planning rigid initiatives from above. Leaders provide parameters and resources but not prescriptive formulas. Detach from desire to control unpredictable outcomes that emerge from bottom-up dynamics (Wheatley, 2006).
Develop Adaptive Leadership - Shift from command-and-control styles to facilitating emergence through influence, guidance and enabling empowerment of others. Foster qualities like vision, empathy, complexity thinking and systems awareness needed to shepherd organic transformations (Uhl-Bien et al., 2007; Morgan, 2015).
Consider Holistic Metrics - Move beyond siloed KPIs to also track higher-order indicators of health like knowledge flows, collaboration rates, sense of purpose, adaptiveness and overall emergence capability. These holistic measures better capture dynamic value in organic environments (Glasser, 2018).
Conclusion
As volatility becomes the new normal, the rigid designs of the past no longer suffice. Organizations able to cultivate organic structures through techniques like establishing self-organizing teams, networks, leadership and measures will develop a more inherent capacity to adapt on the fly. By taking a living systems perspective, businesses can transform inert mechanisms into agile, emergent ecosystems. Those making this shift will be best positioned to thrive amid uncertainty through the distributed intelligence inherent in organic designs. While chaos may ensue along the journey, the order that emerges empowered by this organic approach will pave the way to sustainable advantage in our dynamic world.
References
Burns, T., & Stalker, G. M. (1961). The management of innovation. London: Tavistock.
Galbraith, J. R. (1973). Designing complex organizations. Addison-Wesley Longman Publishing Co.
Galbraith, J. R. (2013). Designing organizations: An executive guide to strategy, structure, and process. John Wiley & Sons.
Glasser, W. (2018). Choice theory: A new psychology of personal freedom. HarperCollins Publishers.
Holland, J. H. (2014). Complexity: A very short introduction. Oxford University Press.
Ismail, S., Malone, M. S., & Geest, Y. V. (2014). Exponential organizations. Diversion Books.
Lawrence, P. R., & Lorsch, J. W. (1967). Differentiation and integration in complex organizations. Administrative Science Quarterly, 12(1), 1-47. https://doi.org/10.2307/2391211
Morgan, G. (2006). Images of organization. Sage publications.
Morgan, G. (2015). Why “organizational development” needs fundamental change. OD Practitioner, 47(3), 11-16.
Uhl-Bien, M., Marion, R., & McKelvey, B. (2007). Complexity leadership theory: Shifting leadership from the industrial age to the knowledge era. The Leadership Quarterly, 18(4), 298-318. https://doi.org/10.1016/j.leaqua.2007.04.002
Wagner, E. H., Austin, B. T., Davis, C., Hindmarsh, M., Schaefer, J., & Bonomi, A. (2001). Improving chronic illness care: translating evidence into action. Health Affairs, 20(6), 64-78. https://doi.org/10.1377/hlthaff.20.6.64
Wenger, E., McDermott, R. A., & Snyder, W. (2002). Cultivating communities of practice: A guide to managing knowledge. Harvard Business Press.
Wheatley, M. J. (2006). Leadership and the new science: Discovering order in a chaotic world. Berrett-Koehler Publishers.
Wheatley, M., & Frieze, D. (2006). Using emergence to take social innovation to scale. The Berkana Institute.
Williams, T. (2002). Modelling complex projects. John Wiley & Sons.
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). The Emergence of Organic Organizational Structures: Adopting a Living Systems Approach. Human Capital Leadership Review, 11(3). doi.org/10.70175/hclreview.2020.11.3.13
