Agile Organization Models Are Going Mainstream

As I describe in the article “Agile Organization Models Are Going Mainstream,” we are now seeing an accelerating shift in organizational structure toward what we call a “network of teams.” We wrote about this in the 2016 and 2017 Deloitte Human Capital Trends and over the last few years I’ve been meeting with HR teams discussing this topic.

I’ll be writing much more about this topic in the coming year (including a detailed discussion in a book I”m writing), but in the interim I just wanted to share this picture. As you can see from the simple graphic below, companies that organize themselves as a network have many “digital” characteristics. The way people are organized, the way people are rewarded, what managers do, are all different and new. Stay tuned for more on this topic, its our #1 Bersin prediction for 2018!

4 Responses

  1. Amy says:

    How does this work with jobs and tasks that are more routine, and which require a consistent, constant approach to how they are done? E.g payment processing, in-bound sales and customer relations, employee services done by HR?

    • Josh Bersin says:

      These types of “service delivery” teams are common. They can be organized by customer type, problem area, or even product they service. They’re almost always organized in this way.

  2. Ed L. says:

    how do you see the impact of agile organizations to the traditional salary structures? would every one get the same job and salary grades grades? how would employees distinguish big jobs from small jobs? and, how would a company address the problems of salary distortion and employee demoralization?

    • Josh Bersin says:

      Rewards is one of the “lagging” parts of this transformation. More and more companies are doing away with tenure-based salary bands and looking at rewards based on skills, contribution, and relationships. Patagonia, for example, gives base pay raises entirely based on an employees’ skills and capabilities relative to the company’s goals. Then bonuses are based on job performance and goal attainment. Many innovations are coming in this area but it’s still early days.