Structure vs Openness
The Win-Won Business Mindset (#5): “Structure vs Openness - Insights Into Finding Balance”
Business requires formation in order to exist, establishing structures that facilitate the cycle of inputs into outputs. Each organization must balance these two concepts and attempt to cultivate a healthy tension between them.
Historically, change occurred at a relatively slow pace compared to the rapid transformations societies and cultures experience today. Technology is reshaping many aspects of life at an ever-increasing, accelerating pace. People and businesses are confronted with this reality and must adapt accordingly.
Provided are some thoughts and insights:
STRUCTURE
Benefits:
- Order - Formation of the business and a hierarchy of personnel and responsibilities.
- Efficiency - The establishment of processes and systems to navigate the products/services lifecycle.
- Transparency - The ability to observe and measure the inputs and outputs from beginning to end.
Drawbacks:
- Bureaucratic capture - An over centralized system or hierarchy can stifle decision-making and execution.
- Rigidity - A propensity or refusal to implement change, adapt, or innovate.
- Insularity - A failure to look outward and consider external technological, cultural, or societal changes.
OPENNESS
Benefits:
- Creativity - The ability to solve problems and create novelty and uniqueness.
- Dynamism - Energy and momentum invoked by the spirit of change.
- Expansiveness - A growth mindset that explores opportunities with a willingness to take risks.
Drawbacks:
- Flux - A lack of structure or order can lead to confusion, or chaos in the extreme.
- Externalities - An absence of conscientiousness towards costs, losses, or unintended consequences.
- Dogma - Adherence to new ideological assumptions and rejection of traditional methods that work.
Structures that are too rigid, ordered, or hierarchical can inhibit change and creativity. However, organizations that are too decentralized or unstructured can become ineffective and disordered.
Certain industries require a more structured approach, especially those operating in highly regulated fields or environments where change can be destabilizing or introduce risk. Conversely, some industries depend on greater openness to adapt and survive.
Examining these two concepts is something all businesses must wrestle with. Getting the balance right is a constant work in progress.
“The Win-Won Business Mindset” is a series by Win-Won Business Consulting designed to share insights, ideas, and strategies for small businesses and entrepreneurs.