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Where big is bad―for business, for people and for efficiency

In the Orange World businesses are fragmented. Most companies are small, lean and nimble, relying on an extensive network of suppliers. They have multiple clients and contracts, and access a globally diverse workforce of "team workers" on a supply-and-demand basis. Communication networks are enabled by continual technological advancement and innovation.

During a downturn, many organisations switch to survival mode: they cut costs and take cover until the storm blows over. While this approach may save cash in the short term, it is unlikely to encourage innovation or to position the organisation well for the upturn. Orange World organisations focus on the future―and on the belief that they can capitalise on the changing world more quickly than their competitors.

See how Data Honey, a fictitious market research and communications agency, emerged from the downturn

Four factors of the Orange world

In the Orange World, global businesses fragment, localism prevails and technology empowers a low impact, high-tech business model. Networks prosper as large companies fall.

Strategies for managing people in the Orange World

Where big is bad for business, for people, and for efficiency. In the Orange World, global business fragments, localism prevails, technology empowers, and networks prosper.

• Organisations recognise that their employees and the relationships they have across their networks are the foundation of success. Companies, seeking to promote and sustain people networks, encourage employees to achieve connectivity goals and collaborative behaviours.
• As guilds grow in importance, they take on many of the functions previously assumed by employers—including sourcing talent, medical insurance, pensions, development and training.
• Employees are usually aligned to guilds and access opportunities through professional portals provided by guild networks. Work can be bought, sold and traded in this way. Employment contracts are kept flexible so as to accommodate both staff churn and rapid turnaround.
• Workers are categorised by, and rewarded for, specialist expertise. This engenders increased demand by workers for a personal stake in the organisation’s success; direct ownership share schemes and project delivery-related bonuses become the norm.
• Recruitment has largely become a sourcing function, merged with the management of the huge number of contracts and price agreements required for each company’s network of partner organisations.

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