Companies have to be both innovative and stable. However, for a company which operates in multiple locations hierarchy and bureaucracy are most likely emerge. In which case, cooperation and coordination between teams and departments become inefficient as rules and regulations become complex. As a whole, the organization slows down.

 

A team to tackle daily routines

 

When an organization is complicated, simple tasks such as order processing and consumer response are slowed. Essential tasks such as procurement and sales are restricted due to increased paperwork and control. Organizations need teams that can perform independently of change. When the company policies and resources are deployed, regardless of change, a team unit must have the autonomy to operate independently.

 

Cell units can operate without direction

 

A 'cell unit' is a team of key operation personnel who decide, execute, provide feedback, innovate on its own terms and boundaries. A cell unit is consisted of members across departments and teams. The members if a cell unit will differ according to the business.  A cell unit within a retail company will be consisted by 'merchandiser, marketer, inventory controller, display strategist'. For a manufacturing company, it will be consisted of 'R&D, marketers, engineers, procurers'.

 

'Independence' is the keyword

 

The purpose of a cell unit is to ensure that the daily tasks of the large business can operate regardless of upper management and cross departments conflict and resource allocation policy change. Disconnecting employees from the direct conflict and ensuring that their roles can be executed without interference is the intended result.

 

Independence not negligence 

 

Authorizing independence should not imply negligence. The cell unit must report to its immediate superior. Supervisors should also constantly review whether the unit is operating efficiently.

 

Change has to be adaptable

 

Change is inevitable. But when tasks are spread across departments, the ability of a firm to focus is dispersed. Office politics and inter-department transaction costs increase. The 'cell unit' is an organization design so key activities are executed effectively.

 

Originally written at Wordpress on April 25, 2017

Relocated and updated February 18, 2018.