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Centerless versus
Traditional Corporate Model |
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Traditional |
Centerless |
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Hierarchical |
Flat |
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Centralized corporate
services |
No centralized
services |
|
Large corporate and
divisional staff |
Minimal staff at the
corporate and group level |
|
Independent, isolated
business units |
Interdependent,
networked business units |
|
Linear chains of
command |
Nonlinear, flexible
and adaptable chains of command |
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Standard structures of
business units for different products and geographies |
Customized structures
of business units for different products and geographies |
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Main Features of the
Centerless Corporation
A More Open and
Interdependent Corporation |
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Built around
resources and
capabilities
rather than the assets
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Flat with a network of
interdependent business units and strategic alliances
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Characterized by interdependence
rather than the independence of its parts
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Nonlinear: everything flows up and
down in whatever direction it is most effective
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Flexible structures: there are
different structures for different products and geographies in line
with specific needs.
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Manages people with a new type of relationship –
New People Partnership – rather that downsizing lists
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Has a Knowledge Department and a
Chief Knowledge Officer
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Knowledge management: best
practices and knowledge flow freely, finding their most productive
use
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Staff functions are placed in the
business units, a service unit, or
outsourced
– this arrangement allows firms to compete seamlessly with their
full set of capabilities no matter where these are housed in the
organization.
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Mind-set Change
In the Centerless Corporation, roles rather
than organization get revamped. The Centerless Corporation represents a
mind-set change – it does not so much look radically different as it acts
radically different.
Business Enablers – the
Three Axes
While the traditional corporate business model
is structured around individual businesses, the Centerless Corporation is
built along three axes: people,
knowledge, and
coherence. These
business enablers are what allow the
corporation to breathe and function.
Leadership
Smart
Executive
Results-based Leadership
12
Leadership Roles
The real center of the Centerless Corporation
is an extended leadership team. The model is
leadership driven because
traditional management is not
enough anymore in
today's rapidly changing world.
Flat Organizational
Structure
Case in Point
Siemens
Keeping Siemens' worldwide sales force abreast
of the company's latest technology and best practices requires collaboration
on an enormous scale. To accomplish this, sales people must be able to stay
in communication with their fellow employees. ShareNet, an innovative
knowledge management system used by a division of Siemens. ShareNet attempts
to capture the knowledge and experience of Siemen's many dispersed sales and
marketing units around the globe, making it available to all. ShareNet
enables 18,000 employees worldwide to tap into the company's vast knowledge
base to gather the latest information about products, customers, and
competitors. More importantly, it allows them to do this from any web
browser on the planet...
More
References:
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"The Centerless Corporation, by Bruce A.Pasternack and Albert. J. Viscio
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SMART Business Architect,,
Vadim Kotelnikov
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Synergistic Organization,
Vadim
Kotelnikov
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