Organizational Structure

If you deeply believe in the primacy of the process paradigm, work to overhaul your organization’s structure.

Following the input-processing-output structure, oranizations should be organized to maximize cross-functional results. Five direct reports to the president.  Perhaps a sixth direct report managing the functional specialist areas of design engineering, marketing, sales, process engineering, HR, finance, accounting, operations, quality, customer service, purchasing, IT, etc as support functions.

1. Organizational strategy (I, P and O): planning, analysis and control.  Finance/accounting, quality and strategy folks build the superstructre of long-term strategic plans, business unit reporting, value added, How does the overall system work effectively?

2. Supply chain management (I).  Purchasing, scheduling, materials control, distribution, logistics team adopts a strategic view incorporating the needs of product development, engineering design, manufacturing, purchasing, marketing, sales, and operations.

3. Customer Management (O).  Sales, marketing, customer service and technical service in every market.

4. Product management (P).  Product managers supported by marketing and engineering.

5. Operations (P).  Manufacturing, distribution, reverse logistics, HR, IT, quality, process engineering, transacrion accounting.

Note that each of these 5 areas requires cross-functional experience and understanding.  We are 236 years past Adam Smith’s writings about functional  specialization and 175 years past David Ricardo’s deep insights regarding comparative advantage.  Darwin posited the process paradigm for natural events 150 years ago.  Dr. Deming promoted this view 60 years ago for manufacturing.  

 http://en.wikipedia.org/wiki/The_Two_Cultures

CP Snow outlined the different worldviews of scientists and humanities majors in 1959, but he could have been describing the different worldviews of all professions.  Breaking through to see the bigger or contrasting picture is the most important insight.

http://www.peacecorps.gov/wws/educators/lessonplans/lesson.cfm?lpid=295

The Blind Men and the Elephant story provides the same insight.  A single perspective is inherently limited and flawed.  A comprehensive view is beter.