Case ID: CMR432
Solution ID: 34369

The Emergence and Evolution of the Multidimensional Organization Case Solution

Abstract

The M-form, in which a corporate parent maintains relatively free-standing business models, was most likely the very best business type of the twentieth century. However, contemporary economic conditions demand designs that enable firms to benefit from synergies across their business models, and also on this dimension the M-form is infamously weak. This informative article reviews on empirical research that highlights the fundamental tension between apparent lines of authority as well as the exploitation of synergies that firms face simply because they avoid the M-form and implement shared service centers, corporate account management, and matrix organizations. However, a small but substantial volume of firms allow us business designs that signal an alternative way of fixing this tension. These loan companies are organized around multiple dimensions (e.g., region, product, and account) and may at the same time hold different managers accountable for performance on these dimensions. The multidimensional organization is much better understood as the next thing inside the evolution in the resource-centric physical production model with a customer-centric understanding-exploitation model. It's an approach to organizing that's particularly well modified to stimulating the significant together that's necessary to create economic value in complex areas according to distributed understanding and intangible assets.


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