Where large, multidivisional organisations used to be normal we transitioned to smaller organisations that interact with each other in chains. Organisations tend not to have all capabilities in their own boundaries, but make use of partners and suppliers. Often these are geographically spread.
It requires efficient supply chains which leads to standardisation of production processes and quality management. ICT is essential to allow complex and detailed alignment within the chain. Competition is not about organisations anymore, but about the best chains. Keeping the cost of coordination between in the entire chain low is key.
This paradigm requires a shift in control. Control is not found in hierarchy anymore, but in control and coordination of processes. It are processes that form the foundation of the organisational design.
New methods of organisation are attached to this paradigm. Business Process Redesign and Total Quality Management are created in support to design an organisation that thrives on control and coordination of business processes.
As standardisation and IT are becoming more prominent and leading the role of the manager changes. Direct supervision isn't the main part of the role anymore. Facilitation and enabling of the teams is the main priority for any manager in this paradigm. Teams are organised and given the freedom for self-steering.
| Short overview | |
|---|---|
| theoretical base | industrial engineering, ICT, supply chain management |
| Rationality|Rationality | Technical efficiency, customer value |
| Instruments | (re-)design of business processes using ICT, Six Sigma, Lean Management, self-steering teams |
| Competing Values Framework | external, control |