Week Five Essay The Boundaryless Organization

Transcription

1 Week Five Essay The Boundaryless Organization Gretchen L. Blake LEAD 580 Problem Solving for Today s Organizations Dr. Sara Garski Summer

2 Gretchen Blake, LEAD Abstract During the 1990 s, a new kind of company emerged under the leadership of Jack Welch, CEO and visionary for General Electric. Even today, companies use GE as the benchmark for strong and innovative leadership. This revolutionary approach was really quite simple; under Jack Welch s leadership, he clearly communicated the company s mission and goals with the employees and involved them in developing and implementing ideas, thus creating a culture of empowerment. In addition, Welch introduced and successfully implemented a flattened heirachial management system which this paper will explore in methodology and application within GE.

3 Gretchen Blake, LEAD The Boundaryless Organization A boundryless organization on first blush seems to have a negative connotation, unless of course you are Jack Welch, American mogul and legendary CEO of General Electric (GE). Mr. Welch coined the phrase Boundaryless Organization which in essence, is a modern approach to organizational infrastructure that limits horizontal, vertical, external and geographical boundaries which traditionally constrain innovative development and stifles the flow of information and ideas among employees (Robbins, 2007). Under over 20 years of leadership at GE, Jack Welch eliminated linear restrictions within the company, collapsed outside barriers between customers and vendors, changed the face of leadership operations and increased the market value from $12 billion during his inception to over $505 billion at the time of his retirement, thus making GE one of the largest companies in the world - only second to Microsoft (M. Davis, 2010). Defining the Concept In understanding what encompasses a boundaryless organization, it is important to first understand what boundaries currently exist in corporations. The two most common are horizontal and vertical the linear lines which often boxes in and constrains innovative movement. Horizontal boundaries are functional areas that involve various departments within an organization, while vertical boundaries refer to the layers of management within an organization. In both instances; the more layers that exist, the more complex an organization becomes and the harder it is to effectively communicate with the employees. External boundaries include a company s value chain which includes both customers and suppliers. Lastly, a special

4 Gretchen Blake, LEAD type of horizontal boundary that may exist is geographical which involves cultural, national and international restrictions. According to QFinance, a Boundaryless Organization is one which transcends the rigid lines of bureaucracy and divisional boundaries within a corporation and ignores the borders where the corporation itself is separated from its markets, customers and stakeholders. With the focus on developing fluid and adaptive behaviors, these organic structures welcome and thrive on change. Although seemingly complex, Mr. Welch s approach toward a boundaryless organization rests on the following foundation; business is simple don t make it complicated, face reality head-on and don t be afraid of change, rise against bureaucracy and empower and uncover your workers talents and expertise at all levels (Slater 2008). It was under Welch s leadership, GE created a process for workflow called Change Acceleration Process or CAP for short. In utilizing CAP, employees are trained in initiating, leading and managing significant changes through the use of effective and standardized tools. Projects, processes and personal development are all addressed using this approach and in partnership with master change agents who job is to align the organization with the principals and methodology of lean-six sigma. Transformational leadership, sharing of best practices and taking a collaborative approach to meeting organizational goals are also key concepts to being a boundarylessness organization. Implementing an Organization without Limitations Highly reliable and agile businesses have proven that status quo does not make the mark. Because this is the way we have always done things around here is considered a missed opportunity. The mentality if it s not broke then don t fix it keeps growth and expansion under

5 Gretchen Blake, LEAD thumb. It is only through innovative leadership that organizations consistently enjoy a company that has speed, flexibility, integration, growth and the ability to manage less and lead more. Jack Welch s 25 Lessons in Leadership discusses how a company can implement this culture and leadership methodology and really, it is quite simple. Welch states repeatedly that bureaucracy must be eliminated and employees must be empowered to thrive. It is then leadership s role to remove obstacles or barriers for staff in achieving an empowered organization. Focus should not be solely on numbers. Numbers aren t the vision; numbers are the products. Focus needs to be on teambuilding, creating energy and synergy, involving everyone and creative sharing of ideas. This includes mentoring leaders who show an aptitude toward the Four E s Energy, Energize, Edge and Execution. In addition, Welch adds, you must think like a small company; uncluttered, informal, those who thrive on passion and simplicity those who dream big and set the bar high and whom increments and fractions do not drive leadership. Lastly, leaders must facilitate moving toward a learning organization where flow of communication and the exchange of ideas are promoted (Harvard Business Review 1989). Conclusion So, a boundaryless organization; this seems odd in a complex world filled with technology that promotes structure, rules and regulations, almost an oxymoron. However, in terms of leadership structure, when you really look at this methodology, it is quite simple and fundamental. As Jack Welch states; What sets GE apart is a culture that uses this wide diversity as a limitless source of learning opportunities, a storehouse of ideas whose breadth and richness is unmatched in world business. At the heart of this culture is an understanding that an organization s ability to learn, and translate that learning into action rapidly, is the ultimate

6 Gretchen Blake, LEAD competitive business advantage. In this intricate world of business then, it would seem the largest obstacles faced are convincing organizations to keep it simple.

7 Gretchen Blake, LEAD References Robbins, S.P., & Coulter, M. (2007). Management Principals. (9 th Ed.) Management (pp ). Upper Saddle River, N.J: Prentice Hall Davis, M. (2010). Management Strategies from a Top CEO. Retrieved from Slater, R. (2008). Jack Welch and the GE Way; Management Insights and Leadership Secrets from the Legendary CEO. Retrieved from Welch, J. (1989). Speed, Simplicity, Self-Confidence: An interview with Jack Welch. Harvard Business Review. Retrieved from