Simple and complex structures - Complexity and clarity
3 important questions on Simple and complex structures - Complexity and clarity
The balance of advantages and disadvantages from interdependent structures brings out two underlying issues, which two?
The danger of excessive complexity and the need for clarity.
The complexity of decision-making, responsibility allocations, cross-unit working and collective accountabilities in interdependent structures can lead to indecisiveness, ambiguity, slowness and high costs. What are the key questions for this problem? And what is the default position?
1 Are competitors with simpler structures more/less successful?
2 Does our strategy dictate a complex structure, whereas other companies' strategies allow a simple structure?
3 If our strategy does call for a complex structure, is it paying off in terms of our competitive position and performance?
> The default (standaard) postion should always favor decentralization, self-management and networking solutions. Additional structure, machanisms, and processes should only be created if they are specifically needed to pass the design tests.
What is the unclarity in interdependent structures?
Unsure about the sort relationship with other units, how major decisions will be handled, what the relative balance of power will be, and how performance will be evaluated.
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