Yet all these investments are wasted. They are focusing on systems and technology, while companies don t attract, retain, and motivate people. At the heart of the transformation has to be a move beyond the Strategy, Structure, Systems philosophy to a broader philosophy that s based on Purpose, Process, and People. This is about hard-nosed organizational designs that still have Strategy, Structure, and Systems in place, but recognize that these elements alone are no longer sufficient. Some organizational mind-shifts are crucial.
Companies are no longer simply economic enterprises.
Managers must create and manage companies as social institutions as well. Social networks are the key link in developing and diffusing expertise through the organization. From Structure to Process . The organization is not just a hierarchy of tasks and responsibilities, but also a portfolio of flexible roles and relationships. The main task of the organization is to shape behaviors of people and create an environment that enables them to take initiative, cooperate, and learn.