Hierarchical organisation Our hierarchical organisational structure sets out clear management structures and reporting lines. This organisational structure is familiar to us. It has proven effective, it has made us strong and it has put us in the excellent position we enjoy today. In future, we want to retain all the advantages that it offers, not least stability, clarity, reliability and the clearly defined processes that give our employees both a sense of security and guidance – something that is all the more important in times of rapid change. Dynamic networks Many aspects of our business are highly complex and, as such, cannot be assigned to a single individual or organisational unit or positioned within a rigid business structure. To overcome this challenge, several years ago we introduced the idea of dynamic networks. Dynamic networks involve experts from different departments and specialist fields working together to tackle a business need on a cross-company basis. These networks can take many different forms and names, e.g. project, multi-project, platform, hub, programme, process, steering team or specialist team. There is no set way of working and likewise the management structure is fluid with no formal chains of authority. Instead, several people take responsibility for the work process and outcome. The key to success is therefore that everyone involved knows who is responsible for what, so that nobody simply assumes ‘someone else will take care of it’. Each network is managed differently depending on the specific situation. Experience shows that this model only works well when everyone participates on an equal footing and there is mutual appreciation between members. The collaboration must be based purely on expertise, and hierarchy must have no role to play. Under this model, Blum employees are members of both an organisational unit within our formal hierarchical structure and a dynamic network (as a member of one or several teams). This dual organisational system requires clear coordination and a high level of transparency across the business. Social responsibility 73
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