We organize with hierarchies; we manage through networksMore or less, that idea is the theme of historian Niall Ferguson's book "The Square and the Tower".
Simply said, the orgainizing principle of bureaucracy is the hierarchy -- span of control; process flow-down; interchangeable people (to an extent) such that no one is indespensible -- everyone ages out!
But effective management more or less ignores the organization chart. Effective management reaches and influences any and all who can make a difference.
Hierarchy is way too restrictive for effective management; it promotes stovepipes and "we/they" stresses that are not value-additive. And, it's one dimensional: command and control. Networks, on the other hand:
- Are multidimensional: cultural, financial, personal, professional, political (and, all of the above)
- Are fluid with circumstances
- Respond to multiple cultures -- virtual, domestic, foreign, business
- Convey power in multiple ways: real power (hierarchy); associative power (who you know, and how well you know them); cultural or personality power
- Facilitate promotion: way more people get to know you
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