Introduction

The structure of an organization plays a vital role in its ability to adapt and respond to new information and shifting market needs. In this article, we will explore key characteristics of organizational structure that impact agility. Specifically, we will discuss the challenges faced by geographically distributed organizations, the influence of functionalized structures on collaboration, the importance of project deliverable size, the allocation of people to projects, and the impact of procurement-heavy organizations. We will also explore how agile approaches can help organizations navigate these structural considerations and foster flexibility and speed.

Geography and Collaboration

Geographically distributed organizations often face unique challenges when it comes to project execution. Project leaders and regional managers may have different goals and face obstacles such as cultural differences, language barriers, and limited visibility. However, agile approaches can facilitate collaboration and build confidence among teams. Project leaders in such contexts should encourage open dialogue at both the team and executive levels to tailor techniques that suit the specific context and manage expectations regarding the effort required.

Functionalized Structures and Collaboration

Organizations with highly functionalized structures may experience resistance to collaboration across departments. Siloed approaches can hinder communication, information sharing, and the flow of value. To foster collaboration, organizations should promote a culture of open communication, create opportunities for cross-functional collaboration, and provide incentives for knowledge sharing and teamwork.

Project Deliverable Size and Interactions

The size of a project deliverable can significantly impact agility. Smaller deliverables encourage more frequent handoffs between departments, leading to increased interactions and a faster flow of value across the organization. Breaking down projects into manageable chunks enables teams to adapt and respond quickly to changing requirements, reducing the risk of delays and increasing overall agility.

Allocation of People to Projects

An alternative approach to enhance agility is to allocate a dedicated person from each department to the highest priority project. This temporary, full allocation ensures focused attention and facilitates cross-functional collaboration. By integrating expertise from different areas, organizations can leverage diverse skills and perspectives to drive project success.

Procurement-Heavy Organizations and Knowledge Retention

Organizations heavily reliant on vendors for project implementation face challenges in retaining project knowledge and maintaining internal competencies for sustained flexibility and speed. When vendors complete their obligations and leave, critical project knowledge often goes with them. Agile techniques such as retrospectives and ongoing engagement with vendors can help mitigate the loss of product knowledge. By proactively identifying improvement areas and capturing essential information while vendors are still engaged, organizations can build internal capabilities and preserve valuable knowledge.

Conclusion

Organizational structure significantly influences an organization’s agility. By recognizing the challenges posed by geography, functionalized structures, project deliverable size, allocation of people to projects, and procurement-heavy practices, organizations can take proactive steps to foster collaboration, increase flexibility, and accelerate value delivery. Agile approaches provide valuable tools and techniques to navigate these structural considerations and enable organizations to thrive in dynamic and competitive environments.

Keywords: Organizational structure, agility, collaboration, geographically distributed organizations, functionalized structures, project deliverable size, allocation of people, procurement-heavy organizations