Collateral Organization: A New Change Strategy

Abstract

The claim that managerial flexibility is essential makes more sense to managers and is more relevant to organizational development than the claim that traditional forms of organization should (or will) be displaced by more humanistic, participative forms. Managers can readily understand that finding solutions to different problems calls for different modes of organization. This article outlines a new change strategy-a collateral organization; i.e., a parallel, continuously coexisting organization which a manager can use to supplement his or her existing formal organization. Collateral organizations have norms differing from those usually in force, are used to identify and solve apparently intractable problems, and are carefully linked to the "regular" organization. No new people are required.

Two cases illustrate application of the concept, which is also discussed in relation to matrix organizations, task forces, and temporary systems.

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