Source: It's not the BIG and eats the SMALL... it's the FAST that eats the SLOW, Jason Jennings and Laurence Haughton 

     

 

A Merger of a Fast and a Slow

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".

 

Leading vs. Lagging Companies

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Entrepreneurial Organization

Eliminate Bureaucracy

Lessons from GE

 

 

 

Ninety days later Barnevik made good on his promise. More than 3,000 bureaucrats who were unable to comply were laid off. As a result of this shake-off, the once stodgy company where decisions took months - quickly transformed itself into a quick-thinking company where all decisions are made in 1,000 local offices by 170,000 associates and employees. The new ASEA Brown Bovery has sizzled, going from one strength to another and started earning multi-billion $ profits annually.

 

  

Who Should Stay at the Head Office

Leaders executives who have a direct involvement with finding, keeping, or growing customers

finding means leading the process of acquiring new customers

keeping means leading the process of exceeding the expectations of the customers

growing means creating relevant new products and services to increase customer spending and loyalty

Support staff

accountants to make certain the numbers are right

legal to stay out of trouble

tax to pay as little as legally possible

human resources to find, keep, and grow the right people

    

 

  Eliminating Bureaucracy  >>  7 Tips      Examples  >>  Bunsha  /  GE