Management: How to Loosen Organizational Boundaries

Speed, flexibility, integration and innovation are becoming the new drivers of organizational success. Institutionalizing these new success factors requires not just new technology, but also a loosening of boundaries—between the levels of the hierarchy, between the functional areas and departments, between suppliers and customers, and, increasingly, across geographic borders. Rigid lines of demarcation—be they vertical, horizontal, external, or global—get in the way of being fast, flexible, and creative. More permeable boundaries, on the other hand, permit a healthy and brisk flow of ideas, energy, and information.