What is a Networked Organization

The networked organization is one that is connected together by informal networks and the demands of the task, rather than a formal organizational structure. It prioritizes its “soft structure” of relationships, networks, teams, groups and communities rather than reporting lines. The key way things get done in a network structure is through use of cross-functional teams.

In reality, even the most flexible organizations do have some reporting relationships, so a pure networked organization rarely exists. It is more a statement of intent to get things done flexibly rather than to rely on structure. It may also be used as a way of describing a “light” matrix organization structure.

What are the key leadership challenges in a networked organization?

The key challenges of leadership or cross-functional management are detailed in or practical guide – multiple stakeholders, influence without authority, competing goals, navigating functional cultures and accountability without control mean that the skills required to be successful in a network organization or a matrix are very similar.

Succeeding in these organizations requires a new set of skills and behaviours, find out more about this on our cross-functional training page.

(Note: disambiguation – although technology is an enabler, ‘networked’ in this context does not refer to computer networks)