The Four Seasons
January 15 and 16, 2002


The Emerging Dominance of "Hyborgs"
In former economic eras, there were a handful of dominant organization types. They tended to have set, proscribed and comparable processes and structures. Their operations generally conformed to widely-held principles. Thus, we were able to develop entire constructs of law, regulation, accounting, worker benefitsall the bits and pieces that added up to the social contracts between the organization and its stakeholders, and the greater society at large. This was true whether considering family farms, the guilds, trade associations, merchant entrepreneurs or mega-corporations.

In the 21st century, it is clear that there is no "typical" organization of any kind. Instead, whether small or medium or large, we are diversifying and multiplyingand morphing into "hyborgs" -hybrid organizations that have inner and outer workings in common with few others. For example, major corporations are hardly comparable to one another any more, as operational structure could include any permutation of:

• centralized vs. decentralized control
• virtual vs. permanent vs. contract employees
• knowledge vs. tangible assets
• in-sourced vs. out-sourced work
• wholly-owned subsidiaries vs. majority stakes vs. minority stakes vs. joint ventures vs. strategic   alliances vs. licensing vs. leasing
• local vs. national vs. regional vs. off-shore vs. transnational vs. global

The model for the future is that there is no model. But as organizations grow less alike and less permanently organized, we may finally need to give them a new name, "Hyborg" - the hybrid organization. This refers both to the cross-breeding of entities that go to make up the new organizations, and to the crossover of purposes, products, services.

Many "hyborgs" dot the economy:

• Unocal Corp., headquartered in New York, says itƒs no longer an American firm (it describes itself   as a global energy company) and is moving its assets and management to Asia.
• Chryslerƒs video-game kiosk also sells Chrysler-licensed and other merchandise.
• Churches are performing state-funded social welfare programs.
• Malls are becoming tourist attractions.
• Wellness centers are crosses between hospitals and health clubs.
• The city of Las Vegas is becoming a theme park, Disney is becoming a resort/Institute community   with a campus-like setting.
• The non-profit Talent Alliance was formed by corporations for business purposes.
• CBOs (Community-Based Organizations) are employing people and doing contract work.
• The Virtual Emporium is on-site retailing that is actually access to the WEB for shopping.
• Working ranches are becoming tourist attractions.
• Outsourcing and contracting are involved with "box-building" and profit splitting.
• "Net metering" turns homeowners into electric power-generators, in competition with utilities.
• Farmer-investor-consumers are in CSAs (Community Supported Agriculture).
• Willow Creek Community Church is more entertainment than religion, and has become a Harvard   Business School Case Study.

Implications:
All of our "comparing and controlling" systems will continue to go haywire, until such time as we devise new ones that are calibrated to a unit of one. For example, just as there is talk of medicine evolving to address each personƒs specific genotype (with individually timed and targeted pharmaceutical delivery and diagnostic processes), so too will management and technology and law and accounting principles be required to focus on the specifics of the hyborg rather than a generalized class of organizations.

Trade associations and professional groups will continue to experience the challenges of great differentiation between and among their members. Consumers will become increasingly confused with regard to their ability to compare delivering mechanisms and companies. This customization of understanding and prescription is actually one of the greatest opportunities that knowledge workers have in the 21st century. The morphing and blending of endeavors into "hyborgs" may be underlying Druckerƒs claim that the next economy is the Knowledge Economy. Creating value-added in these unique and diversified constructs will probably be what employs the greatest number of people in the workforce.