Chapter 10> LO7
What are boundaryless
organizations?
Flexible and permeable boundaries
internally and externally
 “Anything goes” is not the case
 Should compliment traditional forms of
organization structure

Boundaryless Organizations
The Three Designs
Barrier-free
Bridge differences, facilitate information
sharing, create teams
Modular
Non-core functions are outsourced to use the
knowledge and expertise of outside suppliers
Virtual
Network of independent companies linked
together to share skills, costs and access to
each others markets
General Electric’s LIG Program
Focuses on attacking
barriers and
challenging structure,
capabilities, and
teamwork
Not academic
based; teams
emerge and draft an
action plan
Creates a
common
vocabulary
Brutally frank and freeflowing conversations
occur
Prokesch, Steven. (2009). “How GE Teaches Teams to Lead Change.” Harvard Business Review. Retrieved on March 8, 2010 from
http://www.ge.com/pdf/innovation/leadership/hbr_crotonville.pdf.
LIG Training
Removing leadership
teams from their normal
environments allowed
them to discuss things
they would normally not
have the time or energy to
focus on.
Connection
The bar is set higher, and needed
changes are realized
Allows the scope of employee’s jobs
to be two to three times as broad
The teams gives more accountability
to each employee
Summary
GE’s LIG program shares the advantages and disadvantages of a
barrier free organizational design
PROS
Leverages talents of all employees
Enhances cooperation, coordination and
info sharing
Enables quick response to market changes
Coordinates win-win initiatives with
suppliers, customers, and alliance partners
CONS
May involve political and authority
boundaries
Lacks strong leadership
Time consuming, and sometimes difficult to
manage
Requires high levels of trust
Multiple Choice Question
Which of the following is one of the main
advantages of a barrier-free design in a
boundaryless organization?
A. Achieves “best in class” performance at each
link in the value chain.
B. Enables the sharing of costs and skills.
C. Leverages the talents of all employees.
D. Provides for very strong leadership roles.
Answer: C
References
Dess, Gregory G. and Lumpkin, Tom. (2007).
Strategic Management: Text and Cases (4th ed.).
New York, NY: Irwin/McGraw-Hill.
Prokesch, Steven. (2009). “How GE Teaches Teams
to Lead Change.” Harvard Business Review.
Retrieved on March 8, 2010 from
http://www.ge.com/pdf/innovation/leadership/hbr_c
rotonville.pdf.