ABSTRACT

In an effective organization there is congruence between purpose, strategy, processes, structure, culture and people, It is the challenge to the leaders to orchestrate this alignment and to still promote innovation and change. Organizational structures that foster an innovation culture tend to be less hierarchical than traditional structures, in some cases doing away with hierarchy entirely. They tend to use advanced communication mechanisms that encourage interactions and exchange of information. Innovation in these environments is seen as integral across the organization – everyone’s responsibility, to borrow a quality management phrase – and the structure is set up to support innovative thinking and behaviors throughout. Organizations with a fully integrated structure ensure each individual not only has the opportunity but also feels responsible for contributing to innovations and problem-solving. In a parallel operating system, the organization is divided into two parts: one utilizing a traditional structure and another utilizing a structure designed for innovation.