In my 2007 book Group Genius, I predicted that the organization of the future would drive innovation with collaboration.
In the ten years since, this prediction has largely come true. Yesterday the Wall Street Journal described how several big companies have shifted to a more collaborative, more innovative organizational structure–enabled by collaborative software that didn’t exist back in 2007, like Slack or Microsoft Teams. This is a big reason why I’ve written a second edition of Group Genius (to be published later this year).
New data-driven capabilities are breaking down barriers between formerly siloed business units, flattening out management structures and streamlining production processes, prompting many firms to redraw leadership roles and responsibilities.
Companies moving toward innovative structures include Equifax, Liberty Mutual, and Procter & Gamble. For example, Equifax is moving to “small, cross-functional teams”. And the role of leaders changes, too: “rather than issue top-down directives, these managers instead strive to help self-directed teams leverage collaboration and sharing tools.” Managers are changing from “dictating how things should be done” to acting more like coaches who guide collaborative teams.
My own research on collaboration and creativity explains why and how this works: Innovation emerges, bottom up, from improvisational, nonlinear, and unpredictable processes. The organizations that can channel and foster this bottom-up, emergent process, will be the winners in the innovation competition of the future.
The organizational structures and cultures that lead to innovation have always been collaborative, distributed, and improvisational. Even before the Internet, a few rare organizations were able to design for innovation and collaboration. But today, Internet-based collaboration software is making it a lot easier for companies to shift to innovative organization designs.