Organizational Theory - Spider or Starfish

I recently picked up a copy of Brafman and Beckstrom’s 2006 quintessential work on organization theory. This interesting and quick read confronts the conundrum faced by many growing organizations: as growth in the market forces us to react to a changing landscape, is it better to decentralize and force more self-direction down stream, closer to the market, or continue to rely on a centralized ‘command and control’ approach to ensure consistency between planning and execution.

The rise of social networks, from Craig’s List to Zedge to LinkedIn, create an enormous opportunity to capture in real time the pulse, direction and implications of markets as well as facilitating reactions to new opportunities equally immediate. But, can social networks run a company, deliver online security or ensure the right level of patient care when and where needed? As Brafman and Beckstrom point out, “You certainly don’t want Johnson from seat 28J to decide that right about now is a good time to land” if you’re trying to run an airline.

I found their research entertaining and their core thesis well constructed. And, a good reminder to continue to push decision making to the lowest possible level, which also puts the burden of clear communication on leadership and management. But, I’m interested in your thoughts and perspective. Can ‘headless’ organizations thrive against stiff competition? Can centrally run organizations develop starfish-like qualities in certain divisions or departments and subsequently improve their timing and quality of reactions to market changes? Let me know…post your comments!