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You must be able to afford decentralized bureaucracy

As soon as you give Mr. Hammer a hammer, everything looks like a nail. This curse began with the division of labor. This creates in parallel Screwdrivers, Sawyers, Grinders, Painters, Welders, and Gluers etc. Everybody is brim-fill of energy and designs the environment depending on its specialty. In a similar way, administrative or better bureaucratic functions evolve in the enterprises and the public administration. All undertake dedicated their tasks and produce one administrative act after the other. How can you stop this fate?

Komplexes Netz

Let us consider as an example a group company that has its headquarters somewhere in the world. In different regions are local headquarters that have a similar structure and tasks. The Headquarter (HQ) controls the local headquarters (LHQ) that control the locations. All have staff positions that develop eagerly strategies, target values and guidelines – everyone, of course, for its area of responsibility. The result is a flood of regulations that develops redundantly, overlaps and often contradicts. Due to ever more hierarchical levels, this effect multiplies.

The following measures might defuse this development.

  1. Clear, non-overlapping distribution of tasks, authorities and responsibilities
    Everyadministration gets an aligned bundle of tasks, clear authorities and obligations. This avoids duplication of work, creates fewer regulations and a smaller variety of interpretations. The related units streamline themselves.
  2. Bundling of roles at the highest level
    The higher regulations are positioned in the hierarchy, the more uniform and the more economical become the results. This is particularly valid for basic guidelines, like e.g. the reporting system, performance reviews, or travel guidelines.
  3. Defined escalation and decision procedures
    Most of the friction losses result from unclear or competitive decisions. The clear, for all available descriptions of the decision levels, procedures and related committees enables all to obey the official channels.
  4. Defined reprisals in case of infringement
    Rules that are not connected with painful punishments, defuse the requirements. An understandable catalogue of implications for offenses increases the probability of compliance.

Bottom line: In each organization, no matter how large or distributed around the world, bureaucratization can be reduced by re-organizing the competencies. For this purpose redundancy-free roles are needed that are as high as possible established, with clear official channels and are provided with valid sanctions.

P.S.: The example of the European Union shows the same tendency. As long as the European Union can afford the luxury of national right in competition to the European right, enormous amounts of tax funds are wasted on unnecessary administration – quite apart from the bureaucratic hurdles between the 28 member states. The non-overlapping distribution of tasks, the establishment of the regulating agencies on the highest level, clear official channels for each European Union-citizen and for all a binding, uniform juridical system would make bureaucratic operational sequences easier. The bundling of national tasks within the European Union could save ten percent of the national bureaucracies.

Without strategy, it is not Your future

The strategy is the effort to design the future according to your own intentions. It is not about foretelling the future but to make the circumstances of the own business more tangible for in five to ten years. The future is not a fate that you have to suffer, but the consequence of actions that you accomplish here and now. If you leave the organization of the future to the competition, then it is their future.

Strategie02

Who remembers that many of today’s available technologies were already introduced more than forty years ago in the TV show Star Trek. Today, many people carry a more efficient mobile phone, use translation software and let the computer read out texts. If we move this from yesterday to today, then we can assume that the solutions of tomorrow are already available.

On this basis, you develop the future for your enterprise or your area of responsibility. The following aspects are important for this purpose.

  • How do you imagine your future?
  • What are the factors that you should consider on the way into the future?
  • What kind of development do you want to strive for?
  • What are the primary goals?
  • Which elements of your abilities and processes as well as products and services are parts of your core elements?

Eventually, you have a consistent picture that you use to clearly explain your necessary activities to yourself, to your employees, to your partners as well as to the public.

Bottom line: Your future has already begun. If want it to be your future, then you must start today to develop it. The strategy model is the tool that you use to prepare your future.

Videos:

The strategy in a nutshell: http://ow.ly/wsIES

Potential application areas: http://ow.ly/wsJ7Q