The paradigm for corporate success is changing. For much of this century, organizational success has been a function of size, role clarity, specialization, and control. In the new paradigm of the global economy, success will be a factor of speed, flexibility, integration, and innovation.

To advance on those four scales, an organization needs to have definition and structure without unnecessary boundaries.

Book Notes:
The Boundaryless Organization
by Ron Ashkenas, Dave Ulrich, Todd Jick, and Steve Kerr.
Jossey-Bass, 1995.

"In living organisms, membranes exist to give the organism shape and definition. They prevent the organism from devolving into an amorphous mess. Yet they are permeable so that each part of the organism can contribute to the other parts. So it is with the boundaryless organization. Information, resources, ideas, and energy pass through quickly and easily so that the organization as a whole functions far better than each of its separate parts. Yet definition and distinction still exist." (p. 4)

The leader's critical task in the boundaryless organization is to determine which boundaries are essential, where they should be placed, and how permeable they should be.

The case story that follows describes one organization's on-going effort to reset the boundaries between customer and supplier to enhance the competitive position of both.

Case Story: Tearing Down the Boundaries

A large computer systems vendor had begun bringing together executives from its top suppliers each quarter to explore the possibility of fundamental changes in the customer/supplier relationship which would radically improve the competitiveness of all parties. They believed that by removing some of the barriers in the value chain, they could enhance their competitive position.

Some progress had been made in the forum, however it was not as dramatic as the program's sponsors had hoped for. With management from the operations organization facilitating the meeting, the conversations were dominated by attendees from the sponsoring manufacturer. Suppliers' voices were not being fully heard. In short, it felt to many participants as though the boundaries were not really going to move.

The old customer/supplier paradigm was too entrenched.

I was brought in to design and facilitate the next forum. In order to develop an effective agenda and process, I met with the key executive from each of the suppliers. Frank discussions of their expectations and concerns provided the information I needed to work with the sponsors to develop an appropriate agenda.

During the forum, my facilitation served to keep the sponsors out of the limelight. This enabled me to foster balanced participation among all attendees. As the sponsor said, "This lively conversation between suppliers and us made the forum successful." The group began to function more like a team - communications were more open, discussions were more frank. We began to see openings in the boundaries between customer and supplier. In short the meeting came closer to the sponsor's ideal than any previous session.

As one supplier executive put it, "The meeting had energy and momentum. I see on-going progress as a direct result of that meeting."

The next quarter I again had the task of designing and facilitating the session. This time, the forum members were ready to wrestle with some of the challenging interpersonal issues involved in their task. The new customer/supplier relationship they envisioned would require significant trust and risk-taking for all parties.

Using the momentum developed in the previous forum, I was able to lead the group through a series of discussions to raise these issues. We began to seriously examine the boundaries.

By the end of the session, the group had developed a high level of commitment to their shared vision of a seamless web of relationships. One supplier executive captured the group's feeling: "I arrived on Wednesday unclear about my role. I leave excited and committed to the task we have set for ourselves."

Teaming tip:

Ask yourself, "If the boundary between organization A and organization B didn't exist, what would be different?" Allow yourself to imagine the removal of your most sacred boundaries to see how far your thinking can take you.