Successful Organizational-Change Practices

Eliminating Bureaucracy

 

 

 

Vadim Kotelnikov (VadiK) business guru, teaching by example

Treat bureaucracy as a disease to be cured, design strategies, and launch a crusade!

~ Vadim Kotelnikov

 

Growth 10+ is People 10+

How To Eliminate Bureaucracy: KoRe 7 Steps

 

 

 

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.

Jack Welch 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... More

 

25 Lesson from Jack Welch, GE

3Ss of Winning in Business

Get Less Formal

Instill Confidence

Live Speed

GE Work Out

Goals

Problems Addressed

5 Growth Dimensions

7 Steps

5 Sessions

 

 

 

A Way To Cut Long Meetings Short

CEO of a large company hired Larry Farrel, a 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. "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. 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."

 

 

 

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 something to do with the customer"... More

 

Entrepreneurial Organization

Intrapreneurial Organization

Space for Intrapreneurship

Customer-focused Culture

Customer Intimacy

 

 

 

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 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... More

 

Leading vs. Lagging Companies

Effective Efficiency

Kaikaku-Kaizen Journey