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Twenty-first century problems require 21st century organizations. The bureaucratic-hierarchical pattern that characterizes almost all organizations today was developed in the industrial age of 19th century. Then people had to be in the same place if they were to work together. As we move into the 21st century, the broad array of communication options permits the refiguring of our organizations in order to meet the rapidly changing demands of the business environment.
The Age of the Network
The 21st century organization is made up of virtual teams and networks of teams. The network-rather than the pyramid-becomes the conceptual model for how people work together to accomplish the goals of the enterprise. A physical model of a networked organization would look like one of Buckminster Fuller's geodesic domes-many tetrahedrons joined together at key intersections. One of the interesting things about the geodesic dome is that it's the only built structure in the universe that gets stronger as it gets larger. A networked organization can increase in effectiveness as it grows. In team-based organizations, networks can help teams avoid a sense of fragmentation and isolation. Networks can even extend beyond the boundaries of a single organization. There are networks of organizations, networks of companies, and networks of nations.
Virtual teams and networked organizations are the latest stage in the evolution of organization. In the nomadic era, the small group was the first organization people invented. Hierarchy evolved rapidly in the agricultural era, as towns of 10,000 or more developed. The industrial era required a more robust form of organization-so bureaucracies emerged.1 And finally, as we moved into the information era, another form of organization began to appear. This new form has been called by many names, but in essence it is a networked organization.
The networked organization will not wipe out all the old forms. Rather, it includes them and adds new capabilities. When hierarchies formed, we didn't lose the ability to work in small groups. A complex, networked organization will, in fact, involve hierarchy, bureaucracy, and small groups, as well as distinctly networked relationships. The key is to select the best form of organization for a particular kind of work.
Hierarchy is a fundamental principle of organization in the universe. Our cells, organs, organisms, and communities are...