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The classic Organizations
Every enterprise is structured according to a certain number of dimensions: in most cases, we can find the following dimensions:
- Product line: for example, cars are separated from heavy goods vehicles
- Process domain: for example, Production and Distribution are separated
- Territory: for example, one Organizational Unit per region
- Individual Customers and Enterprise Customers
- Form of Distribution: online Banking is separated from retail Banking
The first 3 are the most used.
The most important dimension was the Territory; today, it is the Product line quite simply because transport speed, communication facilities and making Products commonplace have erased the differences between countries.An Enterprise can of course combine these dimensions: for example, it creates a division per Product line and each of these divisions is decomposed into Production Department and Distribution Department.
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The acceleration of Transformation has seen another dimension appear
If the Enterprise wants its Transformations to be quicker than those of its competitors, it asks the Transformers to focus 200% of their energy on making the Transformation succeed, which requires that their time is not taken up with Operational tasks.
A new demarcation line has appeared between Operations and Transformation.
And within the Transformation, the separation between Solutions and Foundation (remember that the Foundation contains the Models common to the different Solutions) can be seen.To take an example, a Group is decomposed into several companies, each one responsible for a Product line.
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Structure of a Company
Each Company is structured in 2 Organizational Units: Transformation and Operations.
The Operations manage the present and generate the Company revenues:- Production
- Distribution
- Resources; human resources, financial, premises, information...
- Managing the Company
The Transformation prepares the future:
- Definition of the strategy
- Building new Models to Offer Products, Operation Model, Image
- Deployment of the new Models: training Actors, installing hardware, information migration...
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Structure of the Group
The Group is structured in the same way: Operations and Transformation.
The Operations do not concern the Distribution or the Production that are managed by the Companies, but
- the management of Resources specific to the Group, management of senior managers, financial management
- managing the company as a whole
The Transformation prepares the future:
- definition of the Group strategy
- building the Group Foundation which represents all the Models that can be reused by the Companies: human resources Model, financial management Model, shareable Solutions, common Components, common Transformation Approach...
- deployment of the common Models to the Company Transformation teams
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