Success Stories
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9 Signs of a
Losing Organization
GE
Jack Welch
has always hated and fought bureaucracy. "To him, bureaucracy is the
enemy.
Bureaucracy means waste, slow decision making, unnecessary approvals, and
all the other things that kill a company's
competitive spirit. He spent many
years
battling bureaucracy, trying to rid
GE of anything that would make it less competitive." He
didn't simply strip away a little bureaucracy. He reshaped the face of the
company to rid it of anything that was getting in the way of being informal,
of
being fast, of
being boundaryless.
Welch felt that ridding the company of wasteful bureaucracy was
everyone's job. He urged all his employees to fight it. "Disdaining
bureaucracy" became an important part of
GE's shared values, the list of
behaviors that were expected from all GE employees...
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Put
Values
First
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Cutting Long
Meetings Short
A CEO hired
Larry Farrel, a renowned management consultant, to help him to get rid
of the corporate bureaucracy. In particular, the CEO complained about the
length of corporate meetings – the discussions were poorly focused and too
long. Larry suggested a very simple but a very effective solution: to remove
chairs from the meeting room. The CEO was extremely satisfied with the
results: decisions were taken now within three minutes instead of three
hours. |
Dell
Inc.
"From the very beginning, we tended to come at
things in a very practical way," says
Michael Dell, the Founder & CEO of
Dell Inc.. "I was always asking, "What's the most
efficient way to accomplish this?" Consequently, we eliminated the
possibility for bureaucracy before it ever cropped up, and that provided
opportunities for learning as well. Our sales force, for example, had to set
up their own computers. They probably didn't enjoy it, but it gave them (and
us) a real sense of what the uneducated customer would go through to set up
his system, and it helped them develop a more intimate understanding of the
products they were selling. As a result, they were able to help customers
make informed decisions about what to buy and they could help solve
equipment problems. That marked the start of our reputation for great
service, one of the tools for
staying ahead of the competition."
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Bunsha
Bunsha means company division. In
practice in means routinely spinning off
companies from the core group.
Kuniyasu Sakai and his
partner, Hiroshi Sekiyama, are legendary managers in Japan. They
don't buy the "bigger is better" concept.
Kuniyasu Sakai and Hiroshi
Sekiyama started a business together and turned it into a
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Highly Profitable
one
.
Rather than building a single, giant firm, they divided it, and then kept on
dividing. Always keeping each of their firms at its optimum size.
In the process of creating a
prosperous Bunsha group of companies, they discovered how to keep their
companies on the
cutting edge, their
employees productive, and their
clients
happy, all at the same time. Their method is what Mr. Sakai calls bunsha
(literally, 'dividing companies'), a system he and Mr. Sekiyama developed
over more than 40 years of real-world corporate management. They
created a group of more than 40 thriving, independent, high-tech
manufacturing companies through bunsha
(company division). Once a company is "successful," they fear that
bureaucracy and complacency will set in. What do they do? They divide it...
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ASEA Brown Bovery
When Sweden's Percy Barnevik's company merged
with the troubled Swiss giant Brown Bovery, he promptly sent a message to
the thousands of bureaucrats who worked at the company's headquarters in
Zurich: "In the future,... the company won't be run like a government and
administered from a central home office. Everyone at head office has ninety
days to find a real job within the company that has
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something to do with the
customer
"...
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7 Tips
for
Eliminating Bureaucracy
|