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Adhocracy

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Adhocracy is a loose, flexible, self‐renewing organic form tied together primarily through lateral means. Usually found in diverse, freewheeling environments, adhocracy functions as an “organizational tent,” exploiting benefits that structural designers traditionally regarded as liabilities: “Ambiguous authority structures, unclear objectives, and contradictory assignments of responsibility that can legitimize controversies and challenge traditions. Incoherence and indecision can foster exploration, self‐evaluation, and learning” (Hedberg, Nystrom, and Starbuck, 1976, p. 45). Inconsistencies and contradictions in an adhocracy become paradoxes whereby a balance between opposites protects an organization from falling into an either‐or trap.

Ad hoc structures thrive in conditions of turbulence and rapid change. Examples are advertising agencies, think‐tank consulting firms, and the recording industry. A successful and durable example of an adhocracy is W. L. Gore, producer of Gore‐Tex, vascular stents, dental floss, and many other products built on its pioneering development of advanced polymer materials. When he founded the company in 1958, Bill Gore conceived it as an organization where “there would be no layers of management, information would flow freely in all directions, and personal communications would be the norm. And individuals and self‐managed teams would go directly to anyone in the organization to get what they needed to be successful.” (Hamel, 2010).

Half a century later, Gore has more than 10,000 employees (Gore calls them “associates”) and some $3 billion in annual sales, but still adheres to Bill Gore's principles. In Gore's “lattice” structure, people don't have bosses. Instead, the company relies on “natural leaders”—individuals who can attract talent, build teams, and get things done. One test: if you call a meeting and no one comes, you're probably not a leader. When Gore's CEO retired in 2005, the board polled associates to find out whom they would be willing to follow. They weren't given a slate—they could nominate anyone. No one was more surprised than Terri Kelly when she became the people's choice. She acknowledges that Gore's approach carries a continuing risk of chaos. It helps, she says, that the culture has clear norms and values, but

Our leaders have to do an incredible job of internal selling to get the organization to move. The process is sometimes frustrating, but we believe that if you spend more time up front, you'll have associates who are not only fully bought‐in, but committed to achieving the outcome. Along the way, they'll also help to refine the idea and make the decision better. (Hamel, 2010)

Reframing Organizations

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