“The formal organization is best at. . .”

“In general, the formal organization is best at handling clear—cut situations, known tasks, well—defined relationships, and standardized transactions. Many of these formal processes and tasks can be automated and have been over the years. Emotions, personal relationships, and individual abilities do not play a large role. Because of this, the formal organization can be fine—tuned to operate with great efficiency and consistency. The strengths of the informal organization do not really show in the established routine of everyday company business. Rather, they show their value when unexpected or new situations arise, when work needs to be done across boundaries, when specifications are unclear, or when changes must be made. Almost every organization must deal with both predictable and unpredictable work. This is one of the reasons it is necessary to learn how and when to call on the logic of the formal and balance it with the magic of the informal. . . .

More and more companies are finding that the best way to create lasting value is by nurturing all kinds of informal and non-hierarchical initiatives rather than by relying so heavily on formal top—down rules of engagement.”