Earlier in the week we'd been discussing a paper by Niels Pflaeging on Organizing for Complexity where he outlines three types of organization structures: formal hierarchy, informal network, and value creation network. In this he argues that, 'value creation is never the result of individual action: It is a team-based process of working interactively, "with-one-another-for-each-other".'
The idea of networks of empowered teams as a new organizational model is one that we're hearing a lot about. Deloitte (a consultancy) describes, 'This new mode of organization-—a "network of teams" with a high degree of empowerment, strong communication, and rapid information flow' as integral to value creation.
But as Anne-Marie Slaughter, talking about her new book, says, 'Network theory is a whole branch of science, but it's relatively new in terms of the last 20 or 30 years. We haven't had a chance to take all that theory out of the universities and apply it to ask, "What kinds of networks should we build, and for what purposes?"'