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What are some of the advantages of organizing much of a company in a mission-oriented form? There is only one. It is that the individual units can stay in touch with the needs of their business or product areas and initiate changes rapidly when those needs change. That is it. All other considerations favor the functional-type of organization. But the business of any business is to respond to the demands and needs of its environment, and the need to be responsive is so important that it always leads to much of any organization being grouped in mission-oriented units.
High Output Management
Andrew S. Grove
“At any given time,” Aaron said, “some significant percentage of people are working on the wrong things. The challenge is knowing which ones.”
Measure What Matters
John Doerr
It also means a change from thinking of the outputs of the organization to considering outcomes for the customer or end-user. “Instead of thinking of your company as providing a particular type of product or service—electric power, health records management, or automobile components,” writes PricewaterhouseCoopers consultant Norbert Schwieters, “think of it as a producer of outcomes. The customer needs to get somewhere, so you’re not a car company; you’re a facilitator of that outcome. The house is cold, so you help make it warm, possibly without supplying the necessary fuel. . . . Customers, in turn, are making fewer purchases to accumulate physical things and more purchases to achieve outcomes, convenience, and value.”
The Age of Agile
Stephen DENNING
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