Softening Internal Structure: Case Studies from L’Oréal, Travelex, and Haier

To build the strategic capabilities for digital transformation, companies must often dismantle parts of their formal organizational structure to allow more informal ones. Examples include:

• Social networks formed through person-to-person and group-to-group interactions;

• Collaboration that crosses the lines that separate functions, levels,and geographies;

• Project-based teams that add or shed members as needed;

• Decentralized decision-making to support agility and speed; and

• Greater transparency and information-sharing.

The case studies highlight how L’Oréal, Travelex, and Haier have changed their internal structures to drive digital transformation.