Tom Davenport

Why don’t organizations create process-oriented structures and start focusing the needed attention on process issues? Unfortunately, there are some good reasons. Processes aren’t the only thing in organizations that need attention. Business functions, which are focused on the skills and capabilities needed to solve organizational problems, deserve some attention too. Geographically-based structures are an acknowledgement that business is different in different parts of the world, and we need to focus attention on those differences. If your company has business units based on product or customer groups, it’s a sign that some attention is needed to those topics. Those who have called for a “horizontal organization”—essentially an argument that processes are the only dimension that matters to organizations, and everything else should go away—are being a bit naïve.

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