Boundaryless Organization Definition and 4 Examples

A boundaryless organization is a company that rejects the external boundaries and internal hierarchies of more traditional organizations.

Due to the concurrent rise of economic globalization and quantum leaps forward in technology, various management experts and company heads—like Jack Welch, Ron Ashkenas, and Steve Kerr—decided a new company structure was necessary for today’s workforce. Their concept of a boundaryless organization is one that uses technology to connect teams from different locations (both inside and outside of the same countries) while also empowering these employees to set their own schedules and manage their own productivity.

Boundaryless organizations exist in various iterations. Some might keep certain aspects of traditional organizational structure and buck other elements, while others will discard any and all such constraints in pursuit of a business environment that is as open and flexible as possible.

There are multiple ways to set up a boundaryless organization, and it’s common to mix different strategies. Here are four types of organizations in which the structure works well:

1. 1. Learning organizations: This type of organizational structure places a high emphasis on using new data and information to positively change a company’s existing approach. As employees in a learning organization discover what works best alongside the pain points in any given process, they inform other members about their findings. This differs from waiting for management to implement these sorts of changes from the top down. These discoveries then improve the function of the entire learning organization.
2. 2. Modular organizations: If a company outsources all the different parts of its business aside from the most essential ones, odds are it’s aiming to be a modular organization. Modular organizations preserve the most essential aspects of a business while throwing the doors open to forge partnerships with other companies, rather than trying to keep everything internal.
3. 3. Network organizations: Network organizations break down both internal and external barriers by subverting traditional task assignments and making strategic alliances with outside companies. These sorts of companies aim to assign tasks to the most suitable candidate, regardless of where they rank in a company’s hierarchy. As far as allying with outside companies, some network organizations even go so far as outsourcing their human resources or accounting teams.
4. 4. Virtual organizations: This style of organizational design relies on virtual collaboration. Teams use communication software to work together across various geographical boundaries. Virtual organizations often encompass multiple different companies, all of which share relevant and useful information with each other organically.

Building a boundaryless organization empowers employees and increases innovation. Keep these five tips in mind if you hope to build one of your own:

• Aim for maximum flexibility. Since boundaryless organizations eschew rigid structure for a constant state of flux, adaptability and flexibility are paramount for success. Be open-minded to ways you and your cohorts can improve and change your workflow. Allow employees to work when and how they want, so long as they remain responsible for completing their tasks in a timely manner and assisting their coworkers when necessary.
• Coalesce around a strong vision. The free flow of information becomes far more useful when it centers around a cohesive goal. When you bring multiple employees or even entire companies together, set out a strong vision to inform everyone’s work. Senior managers can still raise awareness for the organizational mission, but there’s a greater need for all employees to step up to the plate in boundaryless organizations than in more traditional ones.
• Embrace new technologies. With each passing year, technological innovations make it easier and easier to work across previously unbreachable boundaries than ever before in history. Use video conferencing in place of face-to-face communication to facilitate team communication from disparate parts of the globe. Messaging apps built for company use specifically can also prove helpful.
• Grant employees plenty of freedom. Cross-functional teams make boundaryless organizations possible, so invest in every employee’s empowerment and education. Everyone should be able to contribute to decision-making in these types of companies, as well as to do so on their own terms. This requires employers to grant their workers freedom and employees to use that freedom responsibly. In other words, a flexible working schedule still needs to translate into a productive one.
• Set achievable goals. Boundaryless organizations rely on flexible schedules and spread-out teams, so set concrete short-term and long-term goals for all stakeholders. Communicate constantly across multiple channels to ensure everyone remains in the loop about how to best move forward.

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