have an account?【sign in】Decentralised Organisational Structure Examples: Lessons Learnt from Successful Decentralised Organisations
lamarreauthorThe decentralised organisational structure has become increasingly popular in recent years, as businesses and non-profits seek to enhance innovation, efficiency, and employee engagement. Decentralisation involves distributing power and responsibility across multiple levels of the organisation, rather than relying on a top-down command and control approach. This article will explore some successful decentralised organisational structures and the lessons that can be learned from them.
1. Examples of Decentralised Organisations
1.1. IBM
IBM is a prominent example of a company that has successfully implemented a decentralised organisational structure. The company's 'business units' are empowered to make decisions and invest in new technologies, while a global management team provides strategic direction and oversight. This structure has enabled IBM to adapt quickly to changing market conditions and stay at the forefront of technological innovation.
1.2. Google
Google is another company that has embraced a decentralised approach. The search giant splits its business into small, autonomous 'projects' that can experiment with new ideas and products without fear of immediate approval or rejection by upper management. This structure has enabled Google to develop groundbreaking products such as Android, Chrome, and Google Maps, while maintaining a dynamic and innovative culture.
1.3. Kickstarter
Kickstarter is a popular crowdfunding platform that has successfully implemented a decentralised approach to decision-making. The company's 'projects' are independently run by their creators, who have full control over their campaigns and the funding they raise. This structure has enabled Kickstarter to grow rapidly and support thousands of innovative projects, while maintaining a vibrant and diverse community of creators and backers.
2. Lessons Learnt from Successful Decentralised Organisations
2.1. Enhanced Innovation
Decentralising power and responsibility encourages employees to take risks and try new ideas, as they are more likely to see their ideas implemented and have an impact. This can lead to more innovative products, services, and business models.
2.2. Improved Efficiency
By distributing power and decision-making across the organisation, decentralisation can help to streamline processes and reduce bottlenecks. This can lead to increased efficiency and productivity.
2.3. Enhanced Employee Engagement
When employees have a greater say in their work and the decision-making process, they are more likely to be engaged and committed to the organisation. This can lead to higher employee satisfaction, lower turnover, and better performance.
2.4. Improved Adaptability
Decentralisation enables organisations to respond more quickly to changing market conditions and customer needs. By distributing power and responsibility, organisations can make decisions and take action more quickly, leading to a competitive advantage.
3. Conclusion
The success of companies such as IBM, Google, and Kickstarter in implementing decentralised organisational structures demonstrates the value of this approach. By distributing power and responsibility across the organisation, these companies have been able to enhance innovation, improve efficiency, and maintain a vibrant and engaged workforce. As businesses and non-profits continue to seek ways to adapt to a rapidly changing world, the lessons learnt from successful decentralised organisations should not be ignored.