Dealing with New Organizational Models

962dab_84da176577754dacb1b687d5fd2d2458Many that follow my work know that I am deeply focused on the 21st century organization. Specifically, what it means to lead, follow and otherwise operate a business in this new century. I have often made the bold statement that we are witnessing the greatest shift in managerial protocols and organizational leadership since Frederick Taylor adopted the Scientific Management approach in the 1890s.  For many the shift is nearing seismic conditions. In fact, the models we use to define an organization or even an employee is shifting faster than we can comprehend. With this challenge comes the problem of how government regulators approach the emerging concepts. How government regulators define and recognize organizational models and practices have profound effect on everyone involved. Allow me to offer a case study to expound on how such problems in defining the new organization has devastating effects on business owners and their human capital. I have a dear friend and colleague who is working on gaining legal status with a goal of Citizenship in the United States. All he is asking for is to extend his L1A visa which is an intra company executive transfer visa. It was denied for a reason that says “we don’t see that you are doing executive tasks.” While I do not pretend to have all the details, I do have a grasp on the fundamental problems in his case. He owns a micro-corporation. A micro-corporation is one that has a small number of employees and engages in building alliances with other consultants and professionals in their respective field. He, in essence, has a distributed workforce of professionals available to meet the needs of his clients. An interesting fact is that his organization has been growing substantially.  His company grew from over $125,000 in 2013 to nearly $700,000 last year. He has actually hired full time employees who work directly on the payroll of his company. My friend’s business model is the epitome of an emergent 21st century organization. I should also note that he has paid income tax on both his company and his personal income.  His company is very much a legal entity within the context of the state in which his company resides. Here is where the rub comes. The United States Government does not recognize his micro-organization as a true company. They are having a hard time grasping that he is actually a business owner and thusly have denied him Legal Status here in the United States. Not only has he been a tax payer and upstanding citizen, his family is here with him and his children attend American schools. The government has said No to him. In my opinion – they have said no because they don’t understand the new economy. They don’t understand the realities of a globalized, distributed workforce model. I give you this case study as an example of the immense mountain we must climb to help regulators change their view of what a business is much less what an employee is. A recent poll shows that by the year 2025 over 50% of the working population in the United States will be freelancers – consultants. If these trends play themselves out, we are anticipating this number to increase to over 60% by the year 2040. It is unacceptable for regulators to define today’s business under an outdated, out-of-touch context. The time is now for society to catch up with today’s reality of our workforce. We can no longer afford to define organizations using 19th and 20th century ideals. Unfortunately getting the government to change their opinion is a slow process.

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Dr. Philip A. Foster is considered a Thought Leader in Business Operations, Organization and Strategic Leadership. He is a prolific writer, International Lecturer and Best Selling Author of “The Open Organization” – now available through Ashgate Publishing.  Philip is certified in both Leadership and coaching. He is the Founder and CEO of Maximum Change Leadership and Business Consulting, serving clients from around the world. He is a Doctor of Strategic Leadership with emphasis in Strategic Foresight and holds a Master of Art in Organizational Leadership, both from Regent University, Virginia. He can be reached at philip@maximumchange.com.

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