Reinventing Organizations with next-stage management?

There is a sense of resignation about the future of America’s heartland that voted for Trump. How can you create good, industrial jobs when wages are so much lower in places like China? No one seems to know. With such hopelessness, no wonder people are tempted to turn to someone with bold promises, however empty they turn out to be. Could it be that we are focusing on the wrong problem? It turns out that the bureaucratic, hierarchical management style with which we commonly run organizations is not only outdated but terribly wasteful and costly. The problem of US vs. Chinese wages pales in comparison. If you know where to look, hopeful signs abound. An increasing number of businesses in rural or in old industrial areas are adopting more powerful management practices. Based on trust rather than command-and-control, they manage to tap into worker’s immense resourcefulness and inventiveness. Businesses that have upgraded to such management practices have dodged bankruptcy, achieved remarkable turnarounds and no longer seem to fear low-wage competition from abroad. It’s a hopeful message that I believe deserves to be heard. Please help it spread.

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RESOURCES FOR FURTHER EXPLORATION

– About FAVI, Sun Hydraulics and Morning Star: “Reinventing Organizations” by Frederic Laloux

– About Irizar: “Irizar in 2005” Harvard Business Case

– About Koldo Saratxaga’s subsequent business transformations: in English: http://bit.ly/2F6jdJd. In Spanish: “El inconformismo de Koldo Saratxaga” by Pedro Gorospe Lafuente or any of the annual publications about the NER group.

– About Barry-Wehmiller’s acquisitions and transformations: “Everyone Matters” by Rajendra Sisodia and Robert Chapman