Chapter 10> LO7 What are boundaryless organizations? Flexible and permeable boundaries internally and externally “Anything goes” is not the case Should compliment traditional forms of organization structure Boundaryless Organizations The Three Designs Barrier-free Bridge differences, facilitate information sharing, create teams Modular Non-core functions are outsourced to use the knowledge and expertise of outside suppliers Virtual Network of independent companies linked together to share skills, costs and access to each others markets General Electric’s LIG Program Focuses on attacking barriers and challenging structure, capabilities, and teamwork Not academic based; teams emerge and draft an action plan Creates a common vocabulary Brutally frank and freeflowing conversations occur Prokesch, Steven. (2009). “How GE Teaches Teams to Lead Change.” Harvard Business Review. Retrieved on March 8, 2010 from http://www.ge.com/pdf/innovation/leadership/hbr_crotonville.pdf. LIG Training Removing leadership teams from their normal environments allowed them to discuss things they would normally not have the time or energy to focus on. Connection The bar is set higher, and needed changes are realized Allows the scope of employee’s jobs to be two to three times as broad The teams gives more accountability to each employee Summary GE’s LIG program shares the advantages and disadvantages of a barrier free organizational design PROS Leverages talents of all employees Enhances cooperation, coordination and info sharing Enables quick response to market changes Coordinates win-win initiatives with suppliers, customers, and alliance partners CONS May involve political and authority boundaries Lacks strong leadership Time consuming, and sometimes difficult to manage Requires high levels of trust Multiple Choice Question Which of the following is one of the main advantages of a barrier-free design in a boundaryless organization? A. Achieves “best in class” performance at each link in the value chain. B. Enables the sharing of costs and skills. C. Leverages the talents of all employees. D. Provides for very strong leadership roles. Answer: C References Dess, Gregory G. and Lumpkin, Tom. (2007). Strategic Management: Text and Cases (4th ed.). New York, NY: Irwin/McGraw-Hill. Prokesch, Steven. (2009). “How GE Teaches Teams to Lead Change.” Harvard Business Review. Retrieved on March 8, 2010 from http://www.ge.com/pdf/innovation/leadership/hbr_c rotonville.pdf.