Organizing for value


One more interesting report at McKinsey’s : this one is titled : “Organizing for value“. You will learn that

– the traditional divisional structure is not relevant to create value

– companies will have to fav our long term value creation instead of focusing on achieving short terms objectives.

– in order to  do that they’ll have to identify “future” value

– this implies a thiner granulity in organization and decision making

– where companies used to have 4 or 5 divisions, 50 “value cells” would to a better job.

Quite interesting because this new awareness of the “short-term mitake” will help justifying, financially, adequate organizational answers. The fact decision making is moving closer to the ground, in smaller structures which are now considered as value creator, that they were not in a wider structure in which their purpose may not be profitable, is also the proof things are (slowly) going the right way.