It struck me, after pointing out that Citi’s going from 13 levels of management to 8 was just following the emergent natural hierarchy and so just cutting non-value adding positions, that I never really said why companies get in this mess. If these positions can NEVER add value no matter who is in them, why do companies create them? Probably …
Why Citi is shedding 5 layers of management
Why is Citicorp removing 5 layers of management? If they needed 13 layers to get their old results, how in heaven can they just ditch these layers? Because they didn’t need them. You NEVER need more than seven layers
Why Flat Organization Implodes
As Mark Nichols describes in “Flat Will Kill You, Eventually: Why Every Company Needs Structure“, flat seems like such a great idea when we start out. It works so well and things go so smoothly. Then everything slides downhill on a runaway shopping cart into hell of recrimination, anger and mistrust. What in the world just happened? Why did the …
Standard Process Kill Productivity Because Standardizing Destroys Local Knowledge
Most executives that implement a PeopleSoft or SAP are surprised that productivity takes such a dive in the departments that these systems were supposed to automate. Departments that are dependent on the data see some productivity increase as information becomes more available, but many tasks that used to take a moment (or could, if you were pal-ly with the clerks) …
Job Role (Social Role) Defines Your Behaviour: Wilfred Brown & Elliott Jaques
Behavior is as much defined and limited by the role that a work inhabits as his personality and the quality of his relationships within the company. Lord Wilfred Brown, the Managing Director of Glacier Metal Company for decades and a major management thinker in his own right, was insistent on this point. You can even take this farther than he …
Trust Is Necessary To Society. The Glacier Model Builds Trust
There’s a fascinating paper at the IMF by social capital guru Francis Fukuyama (Social Capital and Civil Society – Prepared for delivery at the IMF Conference on Second Generation Reforms) that covers his reasoning behind social capital being called “capital” at all. Besides being interested in how to create societies, I’ve always found him a lucid writer who discusses a …
Why Leaderless Groups Go Fascist
I recently tweeted that “As long as you advocate leaderless groups, the power-hungry will control you. The answer is more complex.” Asked to provide some more, I figured I’d do it here since it ties into some of the workplace stuff we’ve been talking about (from when Wilfred Brown was MD/CEO of Glacier) and the new model of Evangelical church …
New Church Model Isn’t: Multisite Is Regurgitation of the Model They Hated
This continues my examination of American Evangelicals’ organization of their churches, both lay and clergy. One of the big things in the Evangelical world, a real “game changer” they say, is the multisite church. You’ll hear them say things like “twenty years ago, the Holy Spirit was moving and doing a big thing. And people listening to Him said, ‘It’s …
Jim McCarthy’s Core Commitments
I’ve been reading Jim McCarthy’s materials lately. He used to be in charge of the Visual C++ group at Microsoft. His work there was nothing short of phenomenal: MS-VC++ came out of nowhere and demolished its long-time rival. Sure, MS has scads of cash but that wasn’t the whole picture. Borland went from 85% marketshare to nothing in a very …
Lord Acton on Organization
Wilfred Brown (along with Elliott Jaques, to a lesser extent) understood what Lord Acton understood about power. They created a constitutional system of rights at Glacier Metal. Here’s why it’s important.