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.
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.
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.
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.