D
New research suggests that this obsession with efficiency is misguided. The problem is not necessarily the management theories or strategies we use to organise our work; it’s the basic assumptions we hold in approaching how we work. Here it’s the assumption that order is a necessary condition for productivity. This assumption has also fostered the idea that disorder must be detrimental to organizational productivity. The result is that businesses and people spend time and money organising themselves for the sake of organising, rather than actually looking at the end goal and usefulness of such an effort.
E
What’s more, recent studies show that order actually has diminishing returns. Order does increase productivity to a certain extent, but eventually the usefulness of the process of organisation, and the benefit it yields, reduce until the point where any further increase in order reduces productivity. Some argue that in a business, if the cost of formally structuring something outweighs the benefit of doing it, then that thing ought not to be formally structured. Instead, the resources involved can be better used elsewhere.
F
In fact, research shows that, when innovating, the best approach is to create an environment devoid of structure and hierarchy and enable everyone involved to engage as one organic group. These environments can lead to new solutions that, under conventionally structured environments (filled with bottlenecks in term of information flow, power structures, rules, and routines) would never be reached.
G
In recent times companies have slowly started to embrace this disorganisation. Many of them embrace it in terms of perception (embracing the idea of disorder, as opposed to fearing it) and in terms of process (putting mechanisms in place to reduce structure).
For example, Oticon, a large Danish manufacturer of hearing aids, used what it called a ‘spaghetti’ structure in order to reduce the organisation’s rigid hierarchies. This involved scrapping formal job titles and giving staff huge amounts of ownership over their own time and projects. This approach proved to be highly successful initially, with clear improvements in worker productivity in all facets of the business.
In similar fashion, the former chairman of General Electric embraced disorganisation, putting forward the idea of the ‘boundaryless’ organisation. Again, it involves breaking down the barriers between different parts of a company and encouraging virtual collaboration and flexible working. Google and a number of other tech companies have embraced (at least in part) these kinds of flexible structures, facilitated by technology and strong company values which glue people together.
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