University of Minnesota - UMN Executive Leadership Insights
Org Physics
Article

Org Physics

How a Triad of Structures Allows Companies to Absorb Complexity

Niels Pflaeging
LinkedIn, 2017
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Editorial Rating

8

Qualities

  • Analytical
  • Innovative
  • Applicable

Recommendation

Business organizations are complex and contain multiple leadership structures. Niels Pflaeging defines the three distinct organizational systems that all businesses must leverage and identifies their strengths, weaknesses and potential outputs. Business leaders and managers who want to understand the organizational structures within their company should read this article.

Summary

Three leadership structures exist in every organization:

  • “Formal Structure” – In discussions about business leadership, most people talk primarily about the hierarchical structure, which is visible on traditional organization charts. Authority flows from one leader at the top down through an expanding pyramid of responsibility. Organizations that pay attention solely to this form of leadership can become too rule-based, which can stifle creativity, efficiency and productivity...

About the Author

Niels Pflaeging is the author of Organize for Complexity. He founded the BetaCodex Network and was a director with the Beyond Budgeting Round Table.

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