Today, the organization is not only complex, but also chaotic in a constant state of metamorphosis. The organization is:
- Distributed. Business is not done within traditional brick-and-mortar walls as it now has distributed operations complicated by a web of global business partner and client relationships. Physical buildings and conventional employees no longer define an organization. The organization is an interconnected mesh of relationships and interactions that span traditional business boundaries.
- Dynamic. Organizations are in a constant state of metamorphosis. The organization has to manage shifting business strategy, technology, and processes while keeping current with changes to risk and regulatory environments around the world. Not only is the organization dealing with constant change in its business relationships, each individual relationship is dealing with change in its business and downstream relationships.
- Disrupted. The intersection of distributed and dynamic business brings disruption. The velocity, variety, and volume of change is overwhelming – disrupting the organization and slowing it down at a time when it needs to be agile and fast. Business operates in a world of chaos. Applying chaos theory to business is like the ‘butterfly-effect’ in which a small event actually results, develops and influences what ends up being a significant event.
The primary challenge of the organization is a need to be agile in a distributed, dynamic, and disrupted environment. Agility and control naturally seem to be opposing forces . . .
Continued on the MEGA Corporate Governance Blog (The GRC Pundit is a guest blogger) . . .
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