Summary of Turn Your Company Outside-In!

Gebhard Borck, Valeria Junqueira, Niels Pflaeging and Andreas Zeuch

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For decades, theorists have urged companies to adopt alternative structures – often pointing to networked designs. But few organizations have embraced such structures. According to the authors of this 2008 white paper – a PowerPoint presentation from the Beyond Budgeting Transformation Network – they’ve lacked a full account of the principles behind networked structures and a road map for implementation. This presentation makes the case for cell networked structures, outlining their benefits and essential elements. It provides only an introduction; executives will have to look elsewhere for detailed information about principles and implementation.

About the Authors

Gebhard Borck, Valeria Junqueira, Niels Pflaeging and Andreas Zeuch are associates with the Beyond Budgeting Transformation Network.

Summary

As the business world becomes more complex and dynamic, Taylorism – the separation of functions and departments, along with top-down command-and-control – fails to serve organizations. Instead, networked cell structures enable highly devolved organizations, where decentralized decision making permits radical empowerment. Cell structures draw on people’s full capabilities. Instead of top-down command-and-control and a “make-and-sell approach,” cell structures embody an outside-in philosophy and a “sense-and-respond approach.” The four structural elements of cell network organizations include:

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