Value structure

Posted on Posted in management

Forget old company structure – it doesn’t support growth! By the way did you notice that clients, customers or users are never represented in organizational structure? It is like company exists for itself, but not for the clients…

Inspired by Niels Pflaeging ideas was writing some posts about what type of change we are introducing in my company. Any change is not an easy thing to do as different people need different arguments. Analogy with Scrum framework helps to explain these ideas to those practicing Scrum. I must say this comparison is so obvious that you get buy-in instantly.

But there are other people in the company. I found this article about product lines which basically is orientation towards value but has this smell of control and hierarchy. But even with control mindset and orientation towards value creation brings such benefits:

  • Improved productivity by as much as 10x
  • Increased quality by as much as 10x
  • Decreased cost by as much as 60%
  • Decreased labor needs by as much as 87%
  • Decreased time to market (to field, to launch) by as much as 98%
  • Ability to move into new markets in months, not years

Have no idea how precise are these numbers and how they were collected, but i think this can help to sell it to top management. What do you think?

p.s. posts that i mentioned above:

  • Org. design: value structure Highlights from my presentation where i try to explain why do we need value oriented structure in the company

Leave a Reply

Your email address will not be published. Required fields are marked *