Hierarchical Organisations are Limited
in their Capability for
Dramatic Performance Improvement
OTRA – TRAnsparent Organisation TRAnsformation
Stagnation of hierarchical organisations
– is this as well your situation?
Due to steady revenues and/or increased cost pressure, companies are seeking new performance improvements. There are clear restrictions for hierarchical companies to push the limits of performance further.
![Management Overhead Management Overhead](https://otra-consulting.com/wp-content/uploads/2016/12/e831b90b2ef4023ecd0b4204e2445b97e77fe3dc11b0164395_1920-e1481996708397.jpg)
MANAGEMENT OVERHEAD
Restructuring and cost-cutting initiatives have so far reduced the frontline and led to short term improvements. Management Structures and Overheads have not adapted leading to a higher overhead ratio and consequent loss in productivity.
![Process Overhead Process Overhead](https://otra-consulting.com/wp-content/uploads/2016/12/e832b40d29f2053ecd0b4204e2445b97e77fe3dc1eb9114995_1920-e1481996208610.png)
PROCESS
OVERHEAD
Optimisation has been targeting improvements in processes over the last years. Optimised processes need a higher degree of control leading to increased Process Overhead with consequent increases in bureaucracy and administration.
![70% of staff are not engaged in their work. Due to more management and more processes overhead, employees act as soulless robots.](https://otra-consulting.com/wp-content/uploads/2016/12/e83db50a21f4003ecd0b4204e2445b97e77fe3dc1eb9134694_1920-e1481996800922.jpg)
DISENGAGED EMPLOYEES
Due to more management and more processes overhead, employees act as soulless robots. 70% of staff are not engaged in their work. Frontline staff know all of the operational problems but are not envolved in decision making. Management know 20% of the context and take all decisions.