Traditional organizational structures are often ill-suited to new challenges
Our hyper-connected world is testing the strength and usefulness of the traditional boundaries that once defined our organizations. Across departments, territories, partners, suppliers and other external stakeholders, the old dividing lines are obsolete. More and more work sits at the intersections between these familiar units: customers and R&D, partners and innovation, communities and intelligence.
Answers lie in the concept of boundaryless leadership. It’s rooted in a view of how our world is changing – and turning how we work upside down. Leadership author Margaret Heffernan recently shared with me how she worries about the state of leadership in our turbulent, unpredictable world. “Nobody is an expert in the future,” she pointed out. It is not that leaders are incompetent per se – but how can anyone possibly be competent to face the most novel, complex and rapidly-changing set of conditions we’ve ever experienced?
The challenges confronting leaders and their organizations, from climate change to rapid technological disruption, demand cross-functional, cross-industry collaboration. Silos are not just inefficient; they’re liabilities. Agility, speed and innovation are critical to survival.
Boundaryless leadership can be considered both a mindset and an approach to leadership that manifests collaboration across traditional organizational and structural lines. It means challenging leaders to think and act beyond the ringfences of hierarchy, function, or geography, focusing instead on creating ecosystems where ideas, resources, and talent flow freely to optimize value creation. Boundaryless leaders act as connectors, strengthening links between teams, partners – and even other competitors – around shared goals.
This enables organizations to respond more effectively to complex challenges, use their resources more imaginatively, innovate further and faster, drive engagement around a common purpose, and reach untapped potential and talent, both within and beyond their walls.
For an example of boundaryless leadership in action, look at Unilever. Its ambitious Sustainable Living Plan led to the establishment of cross-functional teams spanning marketing, R&D, supply chain and external partners like NGOs and governments. To develop more sustainable packaging, Unilever didn’t limit discussions to its internal teams. It worked with material scientists, suppliers, and even competitors, to share knowledge and create industry-wide solutions. This not only accelerated innovation, but reinforced Unilever’s leadership in sustainability.
Or consider how Pfizer developed its Covid-19 vaccine. Rather than relying on internal resources, Pfizer collaborated with BioNTech, leveraging its mRNA technology. It also worked closely with governments, regulatory bodies and logistics providers worldwide to ensure rapid production and distribution. Pfizer’s leadership didn’t view these external parties as separate entities but as an integral part of a shared mission. The result? A groundbreaking vaccine developed and distributed in record time.
Singapore-based DBS Bank’s Boundaryless Bank initiative is another standout example. DBS reimagined itself as a tech company. To break down silos between IT and business functions, it implemented a culture of hackathons, where cross-functional teams co-created solutions for customer problems. Its digital banking platform was developed by blending insights from customer service teams, UX designers, data scientists, and external fintech partners.
Where can leaders begin, then? First, redesign structures to enable collaboration. Rigid hierarchies and functional silos inhibit the flow of ideas. Explore flatter organizational models, cross-functional teams based on intersections, and agile practices that encourage collaboration. Second, foster an ecosystem mindset. Cultivate partnerships, co-create with external stakeholders, and embrace open innovation. Focus on building networks, rather than controlling resources. Third, cultivate trust and transparency through leadership communication, goal-setting, and decision-making. Work on contracting and psychological safety so people feel comfortable sharing ideas, asking questions and challenging assumptions.
In an era of complexity and disruption, boundaryless leadership is a necessity. By busting silos, boosting collaboration and fostering ecosystems leaders can unlock leveled-up innovation, agility, and productivity. The time to break boundaries is now.
Perry Timms is founder and chief energy officer of PTHR, a consultancy aiming to create better businesses for a better world. He is a TEDx speaker, top-selling author, and a member of HR Magazine’s Most Influential Hall of Fame
