How the Next Generation Company Is Redefining the Future of Work

When we talk about the future of work, the conversation often circles around digital transformation, hybrid work, automation, and AI. These trends have indeed revolutionized how we work. But as we dive deeper into what the future holds, it’s clear that it’s about more than just the tools we use. It's about how we work, the purpose behind it, and how we can build environments where people not only thrive but also feel genuinely connected to their work. And this is something that the next generation company understands very well. 

Unlike traditional companies that prioritize efficiency and control, next generation companies recognize that the modern workforce craves meaning, autonomy and appreciation. They understand that to attract and retain top talent, they must foster a culture that values these human needs just as much as technological advancement.

So, what exactly does a next generation company look like? Why should your organization strive to become one? And how can you begin to redefine the future of work in your own company? Read on to discover all you need to know about embracing this transformative approach to business.

What is a Next Generation Company?

First thing first, what does the term “next generation company” really mean? If you asked yourself that question, then this definition should help clarify things for you.

Quick Definition

A next generation company is one that places purpose at the very heart of its business strategy. It values employee autonomy, empowerment, and is also strongly committed to sustainability and social impact. 

Next generation companies are not just focused on profit; they are deeply driven by a mission that goes beyond financial success. Whether it's through environmental stewardship, social responsibility, or innovative business practices, they aim to create value that benefits both people and the planet.

What Sets Next Generation Companies Apart from the Rest

What sets next generation companies apart from traditional ones is their forward-thinking approach to business. This includes:

• Innovative organizational models: These companies embrace modern governance models like Shared Governance, Holacracy, Sociocracy, or Teal, which prioritize decentralized decision-making and empower employees at all levels.
• Radical transparency: They foster a culture of openness, ensuring that both leadership and teams communicate transparently and trust each other.
• Encouragement of initiative: They encourage employees to take initiative, even if it means making mistakes along the way, viewing it as an essential part of growth.
• Agility and responsiveness: They are inherently agile and can quickly adapt to change, ensuring the organization remains competitive and resilient.

With these principles, next generation companies hep set new standards for what it means to be a successful and responsible business in the 21st century.

Why Should You Want to Become a Next Generation Company?

Maybe your organization isn’t a next generation company yet, and that’s OK. However, to ensure continued growth and success, you’ll likely need to make some adjustments to your current organizational model. Here’s why.

Challenges Facing Traditional Companies

Our traditional ways of working are becoming increasingly misaligned with the needs and expectations of today’s workforce. Companies that cling to outdated structures thus often face significant challenges, such as:

• Lack of purpose: Many employees seek more than just a paycheck; they want to work for organizations with a clear purpose. Without this, motivation declines, leading to a disconnect from company goals. In fact, 19% of American employees perceive their jobs as socially useless, highlighting the need for meaningful work.
• Low engagement and initiative: Traditional companies often stifle creativity by focusing too heavily on control, which can lead to disengagement and lack of autonomy. As a result, 62% of employees worldwide are now quiet quitting, i.e. doing the bare minimum at work.
• Hierarchical silos: Rigid structures create departmental silos that limit communication and collaboration, slow down decision-making and hinder innovation.
• Meeting overload: Excessive meetings sap productivity and morale. Executives spend an average of 23 hours per week in meetings, leaving little time for meaningful work. 

These challenges not only affect employee satisfaction but also have a significant financial impact, contributing to higher turnover and the associated costs of losing precious talent and knowledge.

How Next Generation Companies Solve These Problems

While these challenges may seem daunting, they are not insurmountable. By changing your organizational practices, it’s entirely possible to overcome them. Here’s how the next generation company does it:

• Aligning teams on a common purpose
• Clarifying roles and responsibilities
• Involving employees in decision-making
• Encouraging autonomy and initiative
• Creating a psychologically safe environment 
• Fostering an agile mindset 

This holistic approach enhances employee engagement, performance and loyalty, and helps create a more humane and purpose-driven workplace.

PS: Want to know how +200 next generation companies worldwide have successfully transformed their management? Read our book “The Next Generation Enterprise” to find out! 

Want to Redefine the Future of Work? Here’s what to do

If you too want to become a next generation company and drive change within your organization, here’s what you should do:

Define Your Purpose and Align Everyone with It

Start by clearly defining your organization’s purpose. This isn’t just about profit—it's about the broader impact your company wants to make in the world. A well-defined purpose acts as a North Star, guiding every decision and action within the company. Ensure that this purpose resonates with every employee, from leadership to the frontline, so that everyone is aligned.

Involve Your Stakeholders

Transformation requires buy-in from everyone involved. Engage your employees, customers, and other key stakeholders early in the process. Create communication channels (using Talkspirit’s group feature, for example) where people can express their concerns, share their ideas, and feel part of the change. Identify ambassadors within your organization who can champion the new ways of working and help guide others through the transition. Remember, change is more successful when it’s driven by the people who will be most affected by it.

Choose the Right Model and Tool

Next generation companies often rely on modern governance models that help distribute decision-making power and encourage greater autonomy and accountability among employees. Selecting the right model for your organization is crucial. 

Equally important is choosing the right solution to support your new structure. Tools like Holaspirit can facilitate the implementation of these models by providing a platform that helps document roles and responsibilities, structure decision-making processes, and connect projects to organizational goals. Schedule a call with our team to find out how we can help you become a next generation company 😉

Create Your Organizational Structure and Roles

Redefining your company structure is a key step in becoming a next generation company. Instead of rigid hierarchies, aim for a more fluid structure where roles are clearly defined but flexible enough to adapt to change. 

Use our organizational chart feature to clearly map out your structure, and keep track of who does what. Make sure everyone knows their responsibilities and how their work contributes to the organization’s overall purpose. This clarity not only improves efficiency but also empowers employees to take ownership of their roles.

Train Your Employees

New ways of working require new skills and mindsets. Invest in training programs that help your employees adapt to these changes. This could include workshops on agile practices, leadership development, or tools that support your new governance model. Continuous learning should be part of your company culture, as it ensures that your team is always ready to evolve with the organization.

If you’re looking to develop your managers’ skills in particular, have a look at our “Next Generation Leadership” white paper. You’ll find out the skills that every great leader should possess, as well as the different management styles they can adopt 👇

Monitor Success 

Finally, it's essential to regularly evaluate how well your new practices are working. Set specific Key Performance Indicators (KPIs) or Objective and Key Results (OKRs) to measure progress and identify areas for improvement. This data-driven approach will help you make informed decisions and adjust your strategies as needed. Remember, becoming a next generation company is an ongoing journey, not a one-time project.

En conclusion

Next generation companies aren’t necessarily the ones who have the best talents, who implement the most advanced tools or who make the most revenue. They’re the ones who have a clear purpose and foster a culture of autonomy and transparency. To reshape the future of work, they implement innovative governance models, as well as dedicated tools like Holaspirit that can support their new structure. 

At Holaspirit, we’ve helped over 1000 organizations transform the way they work, communicate and govern information. So whatever your maturity level, there’s probably something we can do to help you!

Are you ready to take the leap and learn more about new governance models? Download our latest white paper to discover insights from both consultants and next generation companies:

Access White Paper

In our white paper "The Ultimate Guide to Organizational Models", you'll get: a comprehensive overview of innovative organizational models (like Agile, Teal, Holacracy, Constitutional Management, and more), testimonials from pioneer organizations that have successfully adopted it, best practices for choosing, implementing and measuring the effectiveness of our model, as well as digital tools to facilitate the transition.