Networked teams are collaborative groups of individuals or entities connected through digital platforms, communication technologies, and shared goals. Unlike traditional teams that are often bound by organizational structures or geographical proximity, networked teams are characterized by their fluidity, diversity, and virtual nature. These teams leverage technology to collaborate, share information, and coordinate activities across organizational boundaries, geographical locations, and time zones. Networked teams play a crucial role in fostering innovation, agility, and global collaboration in today’s interconnected and dynamic business environment.
Networked teams rely on digital platforms, communication tools, and collaboration software to connect team members, share information, and coordinate activities.
Technologies such as video conferencing, instant messaging, project management software, and cloud-based document sharing facilitate real-time communication and collaboration regardless of physical location.
Cross-Functional Collaboration:
Networked teams bring together individuals with diverse backgrounds, expertise, and perspectives from different departments, organizations, or disciplines.
Cross-functional collaboration allows networked teams to leverage the collective knowledge, skills, and resources of team members to solve complex problems, drive innovation, and achieve shared goals.
Fluid Team Structures:
Networked teams often have fluid or dynamic team structures that adapt to project requirements, organizational changes, or evolving business needs.
Team members may join or leave the team as needed, and team compositions may vary depending on project phases, skill requirements, or resource availability.
Virtual Meetings and Workflows:
Networked teams conduct virtual meetings, workshops, and collaborative sessions using video conferencing, webinars, and online collaboration tools.
Virtual workflows enable team members to work asynchronously or synchronously, allowing for flexibility and accommodating different time zones or work schedules.
Decentralized Decision-Making:
Networked teams often embrace decentralized decision-making processes that empower team members to make autonomous decisions based on their expertise and local knowledge.
Decentralization fosters agility, innovation, and responsiveness by enabling rapid decision-making and reducing bureaucratic bottlenecks.
Knowledge Sharing and Learning:
Networked teams promote knowledge sharing, learning, and skill development among team members through virtual communities, online forums, and collaborative platforms.
Team members share best practices, lessons learned, and resources to enhance individual and collective capabilities and drive continuous improvement.
Benefits of Networked Teams:
Global Collaboration:
Networked teams enable organizations to collaborate globally, leveraging talent, resources, and expertise from diverse locations and cultures.
Global collaboration fosters innovation, cross-cultural understanding, and market responsiveness, enabling organizations to compete effectively in the global marketplace.
Flexibility and Scalability:
Networked teams offer flexibility and scalability, allowing organizations to quickly assemble and disband teams based on project requirements or business priorities.
Scalable team structures enable organizations to respond to changing market conditions, customer demands, or strategic initiatives with agility and efficiency.
Innovation and Creativity:
Networked teams promote innovation and creativity by bringing together individuals with diverse perspectives, experiences, and expertise.
Collaborative brainstorming, idea generation, and cross-disciplinary collaboration spark innovation and drive breakthrough solutions to complex challenges.
Cost and Time Savings:
Networked teams reduce the need for physical infrastructure, travel, and office space, resulting in cost savings and operational efficiencies.
Virtual collaboration tools and digital workflows streamline communication, decision-making, and project management, saving time and resources for organizations and team members.
Challenges and Considerations:
Communication and Collaboration Barriers:
Networked teams face challenges related to communication barriers, cultural differences, and technological constraints that may hinder effective collaboration.
Clear communication protocols, cross-cultural training, and technology literacy programs help mitigate these challenges and foster a culture of open communication and collaboration.
Virtual Team Dynamics:
Virtual team dynamics, such as building trust, fostering camaraderie, and resolving conflicts, require intentional efforts and virtual team-building activities.
Team leaders play a crucial role in establishing team norms, setting expectations, and promoting a positive team culture that values inclusivity, transparency, and mutual respect.
Technology Infrastructure:
Networked teams rely on robust technology infrastructure, reliable internet connectivity, and secure communication channels to operate effectively.
Organizations must invest in technology upgrades, cybersecurity measures, and IT support to ensure seamless collaboration and data protection for networked teams.
Conclusion:
Networked teams represent a modern approach to collaboration, leveraging digital technologies and global connectivity to overcome geographical barriers and drive innovation. By embracing diversity, flexibility, and decentralized decision-making, networked teams enable organizations to harness the collective intelligence and creativity of their workforce to solve complex problems and achieve strategic objectives. While challenges related to communication, virtual team dynamics, and technology infrastructure exist, organizations that effectively manage networked teams can gain a competitive advantage in today’s rapidly evolving business landscape.
OpenAI is an artificial intelligence research laboratory that transitioned into a for-profit organization in 2019. The corporate structure is organized around two entities: OpenAI, Inc., which is a single-member Delaware LLC controlled by OpenAI non-profit, And OpenAI LP, which is a capped, for-profit organization. The OpenAI LP is governed by the board of OpenAI, Inc (the foundation), which acts as a General Partner. At the same time, Limited Partners comprise employees of the LP, some of the board members, and other investors like Reid Hoffman’s charitable foundation, Khosla Ventures, and Microsoft, the leading investor in the LP.
Airbnb follows a holacracy model, or a sort of flat organizational structure, where teams are organized for projects, to move quickly and iterate fast, thus keeping a lean and flexible approach. Airbnb also moved to a hybrid model where employees can work from anywhere and meet on a quarterly basis to plan ahead, and connect to each other.
The Amazon organizational structure is predominantly hierarchical with elements of function-based structure and geographic divisions. While Amazon started as a lean, flat organization in its early years, it transitioned into a hierarchical organization with its jobs and functions clearly defined as it scaled.
The Coca-Cola Company has a somewhat complex matrix organizational structure with geographic divisions, product divisions, business-type units, and functional groups.
Costco has a matrix organizational structure, which can simply be defined as any structure that combines two or more different types. In this case, a predominant functional structure exists with a more secondary divisional structure.
Costco’s geographic divisions reflect its strong presence in the United States combined with its expanding global presence. There are six divisions in the country alone to reflect its standing as the source of most company revenue.
Compared to competitor Walmart, for example, Costco takes more a decentralized approach to management, decision-making, and autonomy. This allows the company’s stores and divisions to more flexibly respond to local market conditions.
Dell has a functional organizational structure with some degree of decentralization. This means functional departments share information, contribute ideas to the success of the organization and have some degree of decision-making power.
eBay was until recently a multi-divisional (M-form) organization with semi-autonomous units grouped according to the services they provided. Today, eBay has a single division called Marketplace, which includes eBay and its international iterations.
Facebook is characterized by a multi-faceted matrix organizational structure. The company utilizes a flat organizational structure in combination with corporate function-based teams and product-based or geographic divisions. The flat organization structure is organized around the leadership of Mark Zuckerberg, and the key executives around him. On the other hand, the function-based teams are based on the main corporate functions (like HR, product management, investor relations, and so on).
Goldman Sachs has a hierarchical structure with a clear chain of command and defined career advancement process. The structure is also underpinned by business-type divisions and function-based groups.
Google (Alphabet) has a cross-functional (team-based) organizational structure known as a matrix structure with some degree of flatness. Over the years, as the company scaled and it became a tech giant, its organizational structure is morphing more into a centralized organization.
IBM has an organizational structure characterized by product-based divisions, enabling its strategy to develop innovative and competitive products in multiple markets. IBM is also characterized by function-based segments that support product development and innovation for each product-based division, which include Global Markets, Integrated Supply Chain, Research, Development, and Intellectual Property.
McDonald’s has a divisional organizational structure where each division – based on geographical location – is assigned operational responsibilities and strategic objectives. The main geographical divisions are the US, internationally operated markets, and international developmental licensed markets. And on the other hand, the hierarchical leadership structure is organized around regional and functional divisions.
McKinsey & Company has a decentralized organizational structure with mostly self-managing offices, committees, and employees. There are also functional groups and geographic divisions with proprietary names.
Microsoft has a product-type divisional organizational structure based on functions and engineering groups. As the company scaled over time it also became more hierarchical, however still keeping its hybrid approach between functions, engineering groups, and management.
Nestlé has a geographical divisional structure with operations segmented into five key regions. For many years, Swiss multinational food and drink company Nestlé had a complex and decentralized matrix organizational structure where its numerous brands and subsidiaries were free to operate autonomously.
Nike has a matrix organizational structure incorporating geographic divisions. Nike’s matrix structure is also present at the regional and sub-regional levels. Managerial responsibility is segmented according to business unit (apparel, footwear, and equipment) and function (human resources, finance, marketing, sales, and operations).
Patagonia has a particular organizational structure, where its founder, Chouinard, disposed of the company’s ownership in the hands of two non-profits. The Patagonia Purpose Trust, holding 100% of the voting stocks, is in charge of defining the company’s strategic direction. And the Holdfast Collective, a non-profit, holds 100% of non-voting stocks, aiming to re-invest the brand’s dividends into environmental causes.
Samsung has a product-type divisional organizational structure where products determine how resources and business operations are categorized. The main resources around which Samsung’s corporate structure is organized are consumer electronics, IT, and device solutions. In addition, Samsung leadership functions are organized around a few career levels grades, based on experience (assistant, professional, senior professional, and principal professional).
Sony has a matrix organizational structure primarily based on function-based groups and product/business divisions. The structure also incorporates geographical divisions. In 2021, Sony announced the overhauling of its organizational structure, changing its name from Sony Corporation to Sony Group Corporation to better identify itself as the headquarters of the Sony group of companies skewing the company toward product divisions.
Starbucks follows a matrix organizational structure with a combination of vertical and horizontal structures. It is characterized by multiple, overlapping chains of command and divisions.
Tesla is characterized by a functional organizational structure with aspects of a hierarchical structure. Tesla does employ functional centers that cover all business activities, including finance, sales, marketing, technology, engineering, design, and the offices of the CEO and chairperson. Tesla’s headquarters in Austin, Texas, decide the strategic direction of the company, with international operations given little autonomy.
Toyota has a divisional organizational structure where business operations are centered around the market, product, and geographic groups. Therefore, Toyota organizes its corporate structure around global hierarchies (most strategic decisions come from Japan’s headquarter), product-based divisions (where the organization is broken down, based on each product line), and geographical divisions (according to the geographical areas under management).
Walmart has a hybrid hierarchical-functional organizational structure, otherwise referred to as a matrix structure that combines multiple approaches. On the one hand, Walmart follows a hierarchical structure, where the current CEO Doug McMillon is the only employee without a direct superior, and directives are sent from top-level management. On the other hand, the function-based structure of Walmart is used to categorize employees according to their particular skills and experience.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
