Corporate Butchery

The gap between vision and reality is particularly evident in the arena of corporate transformation. Many corporate transformation programs are carried out with the subtlety of the crazed butcher wielding a chain-saw. The blind pursuit of flattening the gierarchy or overhead reduction can have unexpected consequences as follows:

  • The section that is cut out might hold valuable knowledge or be a vital component of a key cross-functioned process. Many companies settle down to the task of amputation without first identifying the key processes that deliver the value sought by customers. These are the nerves and arteries without which the organization is dead meat.
  • Areas and activities that lose money may still generate contribution.  Cutting them out, without reducing activity elsewhere that does not add value for customers, could result in a heavier burden upon other units. Further activities may appear unprofitable in the light of the relocated costs.

Much of the damage results from the application of approaches that were accepted with some reluctance practised and regarded as legitimate in the bureaucratic organization. In the network organization, however, they can be dangerous, and may also be in direct conflict with its articulated values.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact Asif J. Mir

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