In a survey by Harvard Business Review, nearly two-thirds of respondents said their organizations had become more bureaucratic in recent years. workforce has grown by more than 100%, while the number of people in all other occupations has increased by just 44%. Dimon remembers an outside adviser who defended it as the “necessary outcome of complex businesses operating in complex international and regulatory environments.” Indeed, since 1983 the number of managers, supervisors, and administrators in the U.S. Though mindful of its evils, many people believe bureaucracy is unavoidable. Walmart CEO Doug McMillon calls it “a villain.” Berkshire Hathaway vice chair Charlie Munger says its tentacles should be treated like “the cancers they so much resemble.” Jamie Dimon, the CEO of JPMorgan Chase, agrees that bureaucracy is “a disease.” These leaders understand that bureaucracy saps initiative, inhibits risk taking, and crushes creativity. So far that formula seems to be working beautifully, producing 18% yearly revenue growth for a decade and $2 billion in market value from new ventures.īureaucracy has few fans.
![gross beat half speed preset gross beat half speed preset](https://www.stantondj.com/media-downloads/deckadance-2/web_help/html/img_shot/deckadance_grossbeat_editor.png)
All targets are ambitious, and rewards are tiered, performance based, and potentially hefty. Everyone is also encouraged to be an entrepreneur. Ultimately, everyone is accountable to the company’s customers. Users can hire and fire nodes-or contract with outside providers-as they see fit, and nodes’ revenues are tied to their users’ success. About 250 are market facing (“users”), and the rest (“nodes”) supply them with components and services like IT and HR support.
![gross beat half speed preset gross beat half speed preset](https://cdn.shopify.com/s/files/1/0921/6638/products/gravity-box_1024x1024.jpg)
Under a renegade CEO, it has been divided into 4,000 self-managing microenterprises.
![gross beat half speed preset gross beat half speed preset](https://www.loopmasters.com/ckeditor_assets/pictures/1435/content_loopmasters_gross_beat_4.png)
But the most promising solution may have emerged in an unlikely place: the world’s largest appliance maker, Haier. In a complex global environment, it’s seen as a necessary coping mechanism. While most business leaders recognize that bureaucracy squashes initiative, risk taking, and creativity, it continues to thrive.