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Business Builds New Organizational Model Around Teams

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Mar 28, 2016 5:45 PM ET

Business Builds New Organizational Model Around Teams

Radical changes in the way business is being done today are re-shaping how companies organize themselves. That’s the key finding of a new report by Deloitte, the 2016 Global Human Capital Trends study.

Ninety-two percent of 7,000 survey participants rated a reorganization of how to do the work of business as a critical priority. This “new organization,” as Deloitte calls it, is “different by design.” It is built around highly empowered teams, driven by a new model of management, and led by younger, more diverse leaders. Traditional concerns such as leadership and skills are still rated as important, but are now being viewed through the lens of a new style of corporate culture.

Deloitte’s report identifies 10 human capital trends that outline the changes, from social media and the gig economy to unprecedented transparency and deeper employee engagement. They require a new organizational model, a “network of teams” in which companies build and empower teams to work on specific projects. This paradigm shift comes with challenges. Only 14% of executives believe their companies are ready to effectively redesign their organizations. Sounds like there’s plenty of work to be done to figure out how to do business in the future.

I’m John Howell for 3BL Media. 

Episode Sources: 

Deloitte

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