The Horizontal Organization by Frank Ostroff

Author:Frank Ostroff
Language: eng
Format: epub
ISBN: 0195121384
Publisher: Oxford University Press
Published: 2015-03-05T10:11:03+00:00

An Integrated Composite of Mini-Businesses

Fig. 8.1 depicts the new Xerox, an organization of four divisions: Corporate Finance, Business Operations, Customer Operations (now called a group), and Corporate Research and Technology. Insofar as each business division reports to an executive vice president who, in turn, reports to CEO Allaire and new president and COO Richard Thoman, Xerox 2005 is a vertical organization. But beneath the level of executive vice president, the organization takes on an entirely new face. After an initial transformation in the late 1980s, Xerox management sought to move decision making out of the corporate center and into Business Divisions and the Customer Operations Division, which could operate across the organization and accept end-to-end responsibility for supply management, products, and services. In order to inspire an entrepreneurial spirit among employees, increase customer responsiveness, decrease time to market, and thereby enhance its competitive advantage, Xerox empowered employees to break down the walls of the traditional vertical organization.

In 1996, the company made further refinements to this structure. Specifically, it streamlined Business Operations into the five Business Groups shown in the white boxes in the lower half of the chart in Fig. 8.1. In addition, the Customer Operations Division was renamed the Customer Operations Group and placed under an executive vice president with direct reporting to CEO Allaire.

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