It's not news that the net economy is changing the rules of business. Undoubtedly your organization has begun to address many of the challenges posed by these new rules. Here are just a few.

1. Your relationships with your customers are changing. You need to provide greater value in the person-to-person relationships between your company and its customers and you need more information content in your electronic relationships.

2. Alliances are more important than ever. Your company's products, services, and support can offer your customer higher value through strategic partnerships with other companies. If you don't do this well, your competition will.

3. New models of supply chain management are rapidly evolving. By now your organization is aggressively working with customers, suppliers and distributors all along the chain to take time and cost out of the system and put flexibility and responsiveness in. The net economy cranks the pressure way up on out-dated business models.

What does this imply about the organizational capabilities required for success in the net economy?

1. Boundary spanning
   In the net economy, your company will need more and more work done which requires "a little of this and a little of that." Most organizations today reward employees for working effectively within the boundaries. Both psychic and monetary rewards tend to flow along organizational lines. The boundaries may be functional, divisional, or geographic. Currently, most companies manage boundary spanning as exceptions to the rule, even when the "exceptions" account for 80% of the business! The organization and its employees must get increasingly adept at spanning and dismantling boundaries.

2. Creating fluid structures
   Responding to the rapid changes that are now the norm means you need organization structures which are inherently able to add and remove things without a reorganization and which can create touch points to partners without structural changes. Today most companies view organizational structures as relatively stable. Even when frequent re- organizations are the norm, the organization is assumed to be solid until a new one replaces it. More rapid re-organizations isn't the answer! Your company will need both line managers and human resource professionals who can design and manage fluid organizations.

3. Leading without direct control of resources
   At all levels of the organization, people must now find ways to get things done through people they do not have control over. This trend is accelerating dramatically. The most powerful, agile organizations will accomplish great results through loosely organized groups of people committed to a common goal. This may include direct employees of other organizations, customers, suppliers, partners, boards, volunteers, etc. The leaders (official or unofficial) who can communicate a clear agenda and engage people in the service of a compelling shared outcome will be critical to your organization's success.

What can your do now?

1. Evaluate your own ability to thrive in the net economy.

2. Identify and leverage your strengths.

3. Find others who can bolster your shortcomings or mentor your development.

Is your organization ready for the net economy? If you'd like to discuss any of these issues further, just give us a call or drop us an email.