Podobas Paradox Explained

 

An increase in a vertical functional specialization without a corresponding increase in cross-functional integration will result in a diminished overall organizational performance.

Profound Implications:

1. The misalignment between the vertical, silos, based patterns of decision making and the horizontal cross-functional ones create the "Zones of Disconnect".

2. These zones will expand according to a geometric progression resulting is a total destruction of operational effectiveness.

3. The vertical pattern of decision making is an artifact of two forces:

a) industrial age focus on specialization

b) a working theory of academic institutions that a vertical pattern of learning (leading to a specialized terminal degree) is beneficial because it expands the frontiers of knowledge.

4. This theory ignores the fact that organizational gains are made by the synthesis of cross-functional processes, not by their separation. It also totally ignores the process by which the "Zones of Disconnect" are created and their destructive impact on productivity and performance.

 

 

 

 

                                    

 

Traditional Specialization Driven Vertical Functional Silos

Strategy

Marketing

Finance

Operations

Deep Specialization

Horizontal Cross-functional Flows

Strategy

Marketing

Finance

Operations

Cross-functional Integration

Zones of Disconnect

Strategy

Marketing

Finance

Operations

Zones of Disconnect

Flow of Information

Flow of Skillset

Flow of Material

Flow of Funds

to learn more click here

The Remedy: The MBA students, managers, and executives should embrace, learn, practice, and perfect the art and science of lateral systems thinking. As the scope of their responsibilities increases (vertical progress), the need for and the value of cross-functional integrative (horizontal) thinking increases. 

to read more click here