Entrepreneurs without money (IXX): El Salvador possible entrepreneurship journey with China. Organizational Context. A further clarification.

Good afternoon. Let us share a further clarification from yesterday publication.

When we were sailing Leg 3 from Cape Town to Melbourne, I had the opportunity to show you the theme of Competitive Advantage as a Result of Resources and Capabilities. At that moment, I shared with you a new perspective of how the future will shape the new organization structures, and I named it, or baptized it as “satellite organizations”. Home office.jpgThe digital world will change the traditional functional hierarchies explained by Porter or  Mintzberg, and we will evolve into a “network of teams” (Deloitte, Human Capital Trends 2017). This new “satellite organization” will be the result of our transition to a digital economy, because we will be forced to change job roles, job descriptions, rethink careers and internal mobility, emphasize skills and learning as keys to performance, redesign how we set goals and reward people and finally change the role of the leaders. The workplace, workforce, and teamwork will evolve. Please revisit this post from December 18th, 2018. Refresh your mind with that publication.

https://eleonoraescalantestrategy.wordpress.com/2017/12/18/leg-3-from-cape-town-to-melbourne-vi-competitive-advantage-as-a-result-of-resources-and-capabilities/

Knowing that we inevitably have started a process to evolve from a traditional organization structuring, into a “satellite organization”, we will stick into Mintzberg configurations.  Why?

Mintzberg configurations will continue to be valid. What will change is the prime coordinating mechanism, the key parts of the organization, and the type of decentralization. In addition, we will see interactions between these configurations and a forced evolution of them. Probably we will find no pure organization structures that look as entrepreneurial only, or as machine organizations only, or as professional organizations only.  Meanwhile, we know for sure what will happen, we foresee these configurations melted in between, working in transition together for several years.

machine learning.jpg

For example, the traditional machine organization explained by Mintzberg surged with jobs which became highly specialized and when the work became highly standardized. With automation, robots and high-performance high-tech equipment, which are controlled by the internet of things, we expect to see a machine automated organization, which will have more centralization in managers, and fewer people doing the operating core activities. The original Mintzberg machine organization structure will change in the future.

The same will happen with the diversified, innovative, missionary and political organizations.  With the digitalization, AI, machine learning, better-automated robots, there will be some changes, particularly in terms of the impact on the operating core, the situational factors and the essential parameters of the design.

Just for a minute, try to imagine how all these 7 configurations will evolve to become something new, maybe we will keep the same “name”, but they will change into a “satellite dynamic organization” skeleton. The future awaits us with quite different proposals. So fascinating and scary at the same time!

On my next post, we will continue with the Geographic context applying it to El Salvador possible entrepreneurship journey with China.

Thank you. Stay tuned.

Source References: 

https://www.technologyreview.com/sublp/robotics/?k=ADPRROB

Disclaimer: All the presentation slides shown on this blog are prepared by Eleonora Escalante MBA-MEng. Nevertheless, all the pictures or videos shown on this blog are not mine.  I do not own any of the lovely photos or images posted unless otherwise stated.

 

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