Our cloud-based future demands organizational change

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Our cloud-based future demands organizational change

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We live in an emerging globalized, mobile world of dispersed cloud workers. More than ever, we see individuals and organizations trading in their traditional offices to work from home, coffee houses, and just about anywhere in the world in which they can connect to the Internet.

Leading the 21st century dispersed workforce brings its own challenges and requires new attitudes, approaches, and technologies. It requires leadership that is willing to step out of the comfort of the corner office and explore rich, new possibilities of workforce engagement. It requires a higher degree of understanding communication, culture, collaboration, and empowerment. As I wrote in my book, The Open Organization:

We live in a time of unprecedented globalism. Businesses, people, and economies are tied together in ways we could not have imagined 40 years ago. Organizations must now compete within a global landscape where clients and even the workforce are culturally diverse and geographically dispersed. Organizations are networked and interlaced around the globe through the Internet and mobile technologies. Crossing and operating within cultural boundaries must­­­ become a skill of the leaders and followers of the future. Organizations of the future must become culturally literate if they are to successfully compete under these emerging paradigms.

As we witness the emergence of a globalized, mobile world of dispersed cloud workers, more than ever we see individuals and organizations trading in the traditional offices for the coffee house office (or what I like to call "the Coffice"). A cloud-based workforce is nothing more than a distributed or remote employee unbound by geography, time zone, or national boundaries. These employees are connected to colleagues via technology, and therefore are able to work more flexibly via the Internet.

Leader flexibility is the key to creating an atmosphere in which employees can become more excited about where they work and, more importantly, what they are working on. As the world becomes more globalized, the need for a flexible, cloud-optimized workforce is more evident. With a remote workforce comes the need to re-imagine and retool leadership for the remote worker.

What is certain is that the way we approach and engage leaders and followers is quickly changing. There are challenges ahead as we assimilate into the new realities of a distributed, cloud-based workforce. Leading the charge for change is and will continue to be our Millennials. By the year 2025, it is estimated that this generation will perform nearly 75% of all work.

So there's another certainty: Change will happen whether we embrace it or not. As the 21st century organization continues to seek greater flexibility, organizational leadership must also evolve to the pressures and realities of a globalized economy.

While traditional leadership relies on formality, power, and proximity to followers, the organization of the 21st century is emerging as a nontraditional structure, in which authority is not vested in positions and human capital is dispersed geographically. Organizations will begin to abandon traditional leader-as-pedagogue models for a leaderless, self-led, and empowered autonomous workforce. As hierarchies begin to collapse, leaders must learn to adapt to new realities and what it means to lead a more culturally diverse dispersed workforce from a distance.

As our reality shifts, leaders must learn how to communicate more effectively, engage human capital differently, embrace cultural nuances with diplomatic precision, and empower employees. The shift toward a dispersed workforce requires confidence and an abandonment of old models of employee engagement.

The new way of working is not for everyone.  These changes will require discernment in the on-boarding process. Because communication is so different in the dispersed setting, employees must leave ego behind and walk with the assurance that their questions are important enough to ask.

Things are shifting—organizations are changing. Engagement of employees will change. We can either prepare for the inevitable or bury our heads in the depths of a 19th century hierarchical structure. In the end, you can change or you can become irrelevant.

The choice is up to you.

(An earlier version of this article appeared on the Maximum Change blog. It is published here with the author's permission.)

Dr. Philip Foster
Dr. Philip A. Foster is a leadership/business consultant and Business Professor. He is a noted Thought Leader in Business Operations, Organizational Development, Foresight, Strategic Leadership and the Future of Business. He holds a Masters in Organizational Leadership and a Doctorate of Strategic Leadership.

6 Comments

I love your article and one quote really resonates for me. "As the world becomes more globalized, the need for a flexible, cloud-optimized workforce is more evident. With a remote workforce comes the need to re-imagine and retool leadership for the remote worker." As I read this and your complete post I wondered how are we re-tooling our schools? Recent emphasis in secondary and post-secondary is still pretty traditional. We need a new generation of students who are schooled and empowered to embrace this open model of leadership. We need colleges and universities to emphasize such an approach in their MBA programs.

Don - thank you for your message. Yes... secondary and post-secondary schools must keep up. Some are doing a fair job - but most are not. As a futurist myself, I am concerned about the state and future of higher education as we know it today. In fact, I predict that higher education will implode on itself in the 10 to 20 years IF they do not start changing. The old ways of thinking have to resonate in all areas of life. Books like The Open Organization are starting to pick up interest among educators - more is certainly needed.

This was a great article. I'm partly in that world now, as I'm selling from three plants in different countries (Japan, China, Vietnam) and supplying to around 10-15 countries worldwide. The management system I'm in is Japanese, but it must go through those changes you mentioned.

One part of your article struck me. "...authority is not vested in positions and human capital is dispersed geographically. Organizations will begin to abandon traditional leader-as-pedagogue models for a leaderless, self-led, and empowered autonomous workforce". I fully agree that positions/human capital will be more dispersed, but I'm wondering if they will be "leaderless". I have a feeling there will be leaders, but they will be more on a project basis, and that person well be selected by the members of the project group to represent them. In any case, someone has to coordinate all these worldwide activities and each project group must be represented.

Ron - I believe that the idea of "leaderless" is a misnomer in many respects. Leaderless means without - which is not possible in today's structures. There has to be some form of leadership. Even in the flattest structures there is a top and a bottom. Even in a circle or Halon there is a lead. To me leaderless is another word for empowered workforce. Even in the terms of self-led there is a leader and a reporting structure. I lean more toward your understand of leaderless as well - project based, team selected. In the future, perhaps the leader will be AI or even the organizations governance.

I also want to point out that an Open Organization is not a one-size-fits-all approach but a customize-able approach to designing and leading and organization. So, at the end of the day a cloud based organization is nothing more than an Open Organization. And the organization is designed to operate optimally for its specific situation.

In reply to by Ron McFarland

Philip - Thank you for your explanation. I fully agree with you and have a better understanding of your meaning of "leaderless". Your point about the leader bing for AI or even the organizations governance is very interesting, particularly in an international environment which I work in.

In reply to by maximumchange

As a futurist I am very interested in the possible future scenarios. AI very well could play an important role in the distributed workforce of the future. In fact, AI is already in use in the tech industry, specifically in software development, to produce mundane coding strings.

In reply to by Ron McFarland

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