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    Barbarians to Bureaucrate

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    9 views121 pages

    Barbarians To Bureaucrats

    Uploaded by

    crazy_rotin
    Barbarians to Bureaucrate

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 121
    “One day your sluggish company will waken tothe sound o beating drum andthe sight of a competitor approaching at ramming sped (On deck wil bea jut jawed Barbarian... He wil hardly blink ae his targets ripped asunder, sending Aristocrats, Bureaucrats and thet Lnfortunate shipmates to their corporate death...So goes Mr, Miler tale, from which we can all profit” The Well Street Journal CC eee ee eee Sec oreo einen rece eee m eM on a aaa Rete nate tere ree ene a DE eee ane cient ene Ce igo ie ae CS ee car eerie anne Every company begins withthe compelling new vision of a Prophet SO rete er ee or ee implements the Prophets ideas. New techniques and exparsions Cer ne Treen oe ent raat Ra Ree rate ee eee a a trator sacrifices innovation to order. and the Bureaucrat smpoces Cece ee ee er oe ioe Sere Re acne al Snecma See te aera i een pcre Executives from major corporations have already put the powerful ee ea Meera rien oe iaeneain Cece ere ear) Ce ce eens eee re “Excellent provocative thoughts about leadership, which prod the reader to think for oneself rather than accept a simplistic, ila. ‘the-Hun-tike answer ‘alas Times Herald s MoT WAONTIMYT A foremost management consultant looks to world history to identify the stages of corporate life, and how to use them to your advantage BARBARIANS TO BUREAUCRATS Oy ors Life Cycle Strategies “Thought-provoking.... Anyone in a position to influence the direction of their company should make this book a No. 1 priority on his or her reading list” Atlanta Journal-Constitution Barbarians 0 Bureaucrats Corporate Life Cycle Strategies Lessons from the Rise and Fal of Chiliztions by Lawrence M. Miller ‘Seer by Be °° Contents Acmoowsnauies Irenooueron| ste 1 ‘Th Prop: nspiaton ond Inovation ‘stack 2 ‘The Barbarian: Cis nd Comput Stace The Builder and Esper: Specialization and Expansion Stace 4 The Administrator: Sse, Structure, end Sear Stace s The Burcourat: The Tight Grd of Control ‘race 6 ‘The Aricert: Alain and Revelation Stace 7 The Syren Precribion Masse Conermve Srarcy Wins: Ase Crus Oveevew Doves ax ReveeeNces| od Acknowledgments Jegemeceyreesieeeg ner en SoS ete a =a ee ened agent, this book would never ave Been written. And Im grate 10 my edt, Carol Southern, for her teacy, precise criques, fd good cheer. Paul Bown ao provided ivable ding and ‘tistace in the Sal rewrite ‘A, aly, must hak my fay, who has tolerated seem ingly endless periods of obsessive hiberation, the only exedion ‘under which {know bow to wee ny deepest gratitude tomy wile (Cree, and yeild, Langdon, Natasha, and Lay. -LMM. + Introduction ess grap ee et a st ree dep coeaatee oe Renae Beeler Toth ee women corer mez rae er tein ote ar ay seer hy coe Sites ate aed 1 and materi sets of he corporation o saci. By AeA te eye puter, leders can advance the corporation ot {eral ever nore val growth and dcveloeat ave ented sven stages of copes Me and sven led esp ses tht dmaate drag each stage: 1. The Prophet: The visionary who cretes the break {Brough and the human energy to prope the company forward 2. The Barbarian: ‘he fender of exis abd conquest who ‘commands the corporation on the march of raid growth ‘The Builder and Explorer: The developers ofthe spe alized skis and structures required for growth, who Sit {fom command to calaboration 44. The Administrator: The cater ofthe integrating ey tem and structure, who sis he fous from expansion to Se cai. 5, The Bureaucrat: The imposer of teh ip of oneal, ‘who cruces ad exes new propbets and barbarians, assuring {he los of ereatvity and expansion. 6. The Ariatocrat: The ibartor of weah abated from those mo do proactive work, who isthe cause of rebelion sd dsntegratin 77 'The Synengiat: The leader who maintains the balance, ‘vo contin the forward motion ge ae complex tue {ure by unifying and apprecating te verse contrat ofthe Prophet, Barbarian, Baler, Explorer, and Adina. [At each stage and foreach leadership sta, challenges nei by develo. During growth, leaders respond creatively to cia lenge. Dung decine, they respond mechanically, reg on responses that have been sucesfl inthe past. Bo clues and ‘Companies continue to progress lng as leaders recognize the ‘lallnges and respond eeativey. Each sucess response leads ‘ot toa condton fease, bat to higher level of change equiing yet another new and creative response, Creative response isthe ‘osetia fenton of eaders. The moment leaders relax and rely on ‘esteaay’s success respose inthe presence of today’s cha lenge the decie begins. It is natural for leaders in every stage to rely on responses they fnd most comfortable and tof when they do not adopt innovative responses. Both the history of cations nd of corporations demonstrate is rebtionship, between the be havior of eaders andthe eee of growth and decine ‘And ic the belavor of leaders that exphine the dynamic energy, the heroic creation of jobs and weaih created in smal, {rowing bosinesee, 2c well the mess of bureaucracy, the di Slorment and waste of human and capital esources inthe ncreatve halo large corporatons and goverament. Tis alo the bebo of leaders tht frcflyregenerses the company in decine ‘Oswald Spnger was among the fis to document the stages and styles in word history. He wrote eloguenly ofthe wave batters of ciation (Over the expanse of the water passes the endless ui form wavedtan of the generations. Bit over this ssface, to, the great Cults acompish their mses Se wave-yces. They sppeat suddenly, swellin splendid Tne, fiten again and vanish andthe face af the waters isonce more a sleping waste." Butts fromthe work of historian Arold Toybee that Thave derived greatest aspiration The thoroughness and insight of his dy are without perl "The cycical patter has also been observed inthe Ble of the seat powers throughout history. Paul Kennedy describes the “pro: est of ise and fall among the Great Powers—of diferent ‘growth ates and techaclogcal change, leading to shifts inthe otal ‘conomic Blanes, whch tum gadaly impinge upon the ota ‘ed tary balances" the feteraton of he internal econany {the sokty’s extemal ence thatthe primary theme of saalyi “The faire of leadership inthe corporation, a8 wel a jn the ‘eat power, is lten 2 consequence of fale to understand the feltonsin between the internal strength of the socely and the aby to exert external inuence. Leaership i deveved be cereapecmon ‘cause the society dominates huge terstory and is abe to exert [reter material force tan is competion; wile atthe same tine itis losing it intra powers, assuring ts eventual loss of external power. Thi is the histone trap. The intemal power ofthe great power derived from te relive econamiccapaty. The external ower, a described by Kenedy, i its itary power. Inthe cr- portion the internal power ithe creaty of people, the strength ‘of sch prose, the development of eompetence, andthe ability of its members fost wil nied and determined flor. Te exer ower of the copoato i ts ait to capture and old market Temtory, to dominate the competion, and to strengthen its mate Fal resources, ‘Arthur M. Schlesinger, in his ook The Cycles of Americon istry, ha noted" cotining sbi i rational ivolerent, be tween pbc purpose and private intrest." Thee ae two ses to is turning wheel. One side the more persona ven sesh, inerest, the freedom to pursue and protect private property, 0 Imainize prot, The second se, which gins ascendancy a8 the frst descend, i the interest inthe colectve good, social respon Sty, and ars. Unie the eyes of eatin, each of which basen the past and seems to move in a forward motion. Scle- ‘Sage’ tires ofthe wheel repeat the same pattem. “This pattern of altering concerns is also foand within the sexiesy of corporation. The wheel tars from the emphasis on the human protlems std the matral pursuits, the concern fo the needs and satslaction of employees and pic, to the need for ‘raft, But, as one observes this patter, both inthe corporation Und the ciation, one reogsizes that there a necessary order terween te tw, “Inthe begining was the Word”™—the Mea, the Spi, precedes the acqistion of the mater bu, as material trealh ad size ate gained, the focis sits. As the energies tum {hv tom the cestive pt and become excessively focused on that which mater, the power to regenerate, to move forward ‘vases, leaving the ncreatve hulk. “Te ie oe snot form of tural predestination. I believe tn free wll andthe apa of man to determine is own dest. lowever, understanding the various stages within the cyl i sea “4 RARBARIANS TO BUREAUCRATS forthe corporate leader for the very reason thatthe corporation's destiny is very uch i his (or ber) hands able to be shaped by tffective leadership. By understanding the cycles, manages wil become sensitive to Both the spit snd materi forces at work vin the corporation, By studying the cytes you wl fd an explanation for your own ‘companys past creativity and success, current leader tye end onganiation, and predictions about i tire fare, You wl so lear to identify the chlenges and traps that must be overcome cach stage. Pertaps you may even recgize your own personality and ‘hose of your sperors or your staf and gun some sgt int How to decane a mre efetive leer. “This book doesnot presenta singe prescription for man agement nirvana. Whi Ihave died the lesan of etural He {Seles to nie axioms that I beeve summarize the kes to mai tnngwiaty and upward moneatum, studying these mains is ot ‘cough Is equaly important to understand that in diferet parts of company’s le cl, diferent management syls are needed ‘There isa tine to be tough and commanting, There is tine for consens. Thee ta tine for increasing specialization, and there ' anther for snpliing the organization Theresa ane when the ‘nization creative and takes risks and another when its leaders Sek security. And, perhaps mest importa, there i tine when the organization matt be revtalzd, pale bec frm it atral tendency to decay ‘Tis isa book about the legimatedierences in corporate cite and leadership. Most writers have argued for compote ature they assume to be best forall organizations a al tines. ‘Managers know better. They know leadership is station “The try excelent manager can actin many diferet ways depending onthe station he faces. Inthe flowing pages, each of the lifecycle stages is described in terms ofa leadership se tht 's needed at a particular tine: Prophet, Barbarian, Builder, Ex Dorr, Administrator, Bureaucrat, Aristocrat, and Syergist. Ae manages, we tend more tovard abe syle than bother nd may Be ‘most comfortable in a corporation whose stage of development = most compatible with our own. We are also Hkely to impose our ‘Syle onan orarizaon wheter or uo itis the ane most needed at {hat time. Thi common ake of leadership flue 1s unlikely that any manager perfec fs the description of ne stl. Is also ule that company wil ft perfect in the description of oe stage. We are more complex. We are capable of lg, serng ou sje as we develop and as our ergatzatin ‘Ganges. When reading these descrptens try not to pigeonhole ‘nctols oe companies. They are Hel to be a blend of sever, maybe in x or in the process of change. “Throhut this book wibe making reference tothe fe eye care, deserbing the organization 2 it progresses through a natural process of growth and dete. Smart ‘The vertical ane shows the health ofthe etre at ease by its abisty to create new, and maintain present, wealth By wealth do ot mean watt aes to make one pers, o group of oop ich. Rather, Ielr to tue weal, the aguregate ef goods Sd services prodeced relative to the pit. On a rational eae, (ur wealth ste sum of the gos and eres produced per capita. "The horizontal ans represents the maturing of he corporation Is inportant to make the distinction between the growth or - er called i spying, Geneen chose, the tater sys "to tnd conic nto the oegarization, to make sre al the ig protiems would buble up to hi, so he could pre ‘serve for hel the option of being involved inthe de CGsons. That was true atthe highest levels Stat tad unquestioned acess to every mt, were lacuded in everything, had to review neary every step of every pion, process, and new prodet and that was with 10 Droblems insight... The second function of sat was {onl ou problems" ITT entered into long period of buying ad sling corporate ropertes. Many came and went. Avs, Sberaton Hotes, Jabsco Pun, Bobbs-Menil, Aiport Packing Company of Areca, Mod- fem Lie surance, Hamilton Lie, and so on. From 1965 trough 1867 Geneen made forty scquisitons." Each year the company re Drted larger revenues and larger prot. It looked great. Geneen nfs apse were ona rll The ies of gronthUsough acai tin ook on eater omentum throughout American idsry 283 renutof Geneen'sapatentsucass. But there was no social lve, ‘to common bod of dedication oan fl industry, or market ‘One of IT's acquslons was LS, and its trauma points ot the problems that beran o develop in many ofthe acquired bs neste. Bil Levitt was the ProheUBarbaran who revohtonized “124 BARBARIANS TO BUREAUCRATS home bidng. He was response for the imed Levittown. Bil Levitt developed on-site productontne methods for hame can struction that provided snl fmlyboising at an economical pice, "The housing busines sone of inti and wheeling and del ing, buying properties inthe field from farmers on a hunch and [pesting at the price of wat homes inthe neighbortond woud sel fe In housing development there was no predictable revenge stream, Unite the ITT telephone equipment busines with a depen ent cent tase, once a house was sod, you stared al over again [very yar you had to create new properties and new cents ‘Gencen was warmed tht hs was business ITT shoul ot be in, but investment banker Fel Rabun convinced Geneen tht LSI Ind reduced the housing business to bate manufctorng enter- pie, not unlke other TFT businesses. Some suspect hat Bil Lev- It knew that is business hd peaked before the ITT purchase. ‘Soon after the aequston Levit was replaced by Dick Wasser- man, cnsfered oe ofthe best pare managers at ITT. Wasserman brovght into LSlan excelent team. The problem was that they were ‘expected to grow a business they dil nt understand. So to meet the expectations for growth, they soon Began to acai other com pies. SI bought United Homes Corporation, a Seattle bude, in- ‘mediately blo te colapse ofthe housing market eased bythe odine of Boog. United’ ales dropped from $83 rallon in 1909, to 85 millon in 1972. The former owner ated he woud have been bankrupt had be been wale road the busines. LSI then wen into apartments and condominiums justin tie fr 2 market ‘ut there. Tey then opened a mobile be factory, perfec tied to the conraction ofthat ies Wasserman was expected to produce growth a LSI, and he veas tying to doit the Geneen vay. Look atthe mambers, The Statics show a period of years of upward growth end. The sais ties dor ie, do they? Buy! "But stasis do Be! They dnt alway tl the whole story. ‘The only thing certain bout a rer eis tht wil everse Reel [tis nly attr of ene. To pred the tararound you mist know nmmmracur 18 the substance ofthe busines, You must be dedicated tothe product fot market, Nether Wasserman nor Genecn knew oc were ded- ‘aed fo the housing busines. In 1972 SI lst $60,000. In 1973it lost $28 milion. Trough 1975 the total os was ore than $100 malion. One estimate put st over $290 milion “The conduct of business sa process of communication. If you aren the aerospace engineering business, there sa lngage sym re of tht etre Ifyou aren the arts, banking, or bung the fame etre, One of the problems at and other engomerates twas that communication became babe. Managers di not unde. and each oer, Ye, they spoke te same langage (Geneen in Sted tht all is European managers speak Engish be even dct Baropean meetings on New York tne), ut they didnot Understand the meaning behind the words. Employee elation, in- ‘entry tars, eficene, and plang areal bound to the context ofthe business, Each business has is own care, symbolized by the language and the meatng behind the lage. ti it cough to master the compe slguiicane of ging in one bus ‘ets To interpret across dczen of undated busmesses is vitally Inpossle "The downfall of Geneen and TTT was a falure of integration, & ‘alure of socal unity, When Rome was expanding init early days, the conquered peopl bocme Roman czens. They were culturally integrated. They learmed to speak the same language. Late, the Conquered db not Become cee, they were hot soca int fasted. The alnation of leaders and led began. The culture de- ed, “The measure of a soessful aquisition is whether the ca bined vale rete than the vale ofthe parts alone. Congomer- tes ingenerah and TTT in particu, have aed this test. Is this faba tat dives corporations uch as Exxon and TTT to return to the business they know. Diversifcaon hat proven so bad 2 business for ITT tha, according fo oe alt, nea a the profits re- Ported by the pant in the Rt thee quarters of 1584 Jom napmaprane-ro mupEaticRaTs: r | | | | | | | ‘sted only on paper its assets, estimated Busines Week, wore sling at maybe bl thee breakp vale the Gvidend had been cat and inthe wake of at lt ‘rau afnancer was preparing arid on the vereck, TT's latest CHO, Rand. Aratkog, had cat the di. end to fiance the ‘avestment badly needed, and shameful overde, to restreITT's strength nts base market, US. telecommunicatons, Bat of course, the fie ato of conglomeration wat to enhance the franc strength ofthe whole by coining its parts. TTT case the orignal Geneen strategy fad ply bad the reverse elles" HOW TO GET ALONG WITH A BUREAUCRAT You Work for a Burenuerat tn wilted to oeus on performance that isthe system, witht asking whether i the nght performance. Help tim by {king him questions tht wil lead ln to consider the "why” que ‘ons that may lead to more creative responses. the Burescrit needs order and confority, Nonconfor- nity ‘makes him amdous. Don' be weird 18 hel to work for 3 nervous bos, particularly if youre the one wha making fim ne. you need to serve a8 baler for your subordinates, You rust manage them to produce creative responses witoat interfer. ‘ence from your Bureaucratic boss. Dont make your problem your Stbordnates' problem. a Bureaucrat Works for You teeter be ina staff and not ine job ‘you need to control him to make sure tat he doesnot work is web of sing systems apd structure around thers. he wil constantly be complaing about others who are vas the Sancity of is bystems. Lear to sy, “So wha?” eu umpareemr (9. ‘evar him fr developing al managing the mos efient achieve processes. Define eficent as with the fewest Dronble ta, equing the leat tne of ine manager. ‘THE ORGANIZATION OF THE BUREAUCRAT Contain atthe national eal or within a business toner alos lores he inortncofics of apr ‘This din the soe of realy. AS men ond ononztons cq a preoceatin wh pers, thy bce es wider Standing ess poeptie of he reli of those mats with tek hy sould be desing. Making decisions from per fas dohonaniing fet. Much of man’s inumanty sone yt Almost leat bres of mand ase nt ‘The Bureaveratic ogaization is ane consumed by lowe ofits ‘wn physica form. The process of speizaoa has evolved now tothe pin where there ae subgroups of subgroups, each perfor ing dsjintedstties, evaluations, and plans, few of which wi have any eet The Bureaucrat wil constantly reorganize, searching for the structural soiton tothe spa problem. These frequent changes in organization wl protuce employees who wil constantly be wor dering if tey wl ave a job ce te atest reorganization sf Inbed Inthe developing stages, employees looked tothe future with high expectation. Inthe decning organization, employees lok to the fur with fea, the enemy of creativity. 'A downward cyl is se ia maton. Concern about the future reduces creativity, reducing new busines, which increases far, farther suppressing creativty. The more tis eee progresses, the ‘more the Bareanrst fees juried in cot cut, reogating. and tightening contol Tn ths ith stage the organization has become more inortant than the ini. The inddul now serves the orgaiation, 25 fnyone who has lived within a bureaucracy knows. Thee ae Bre 128 ARDASIANS TO BUREAUCRATS r | | processes ia motion that caacterze organizational ie inthis stage: the centzabzation of power, the retum to command decison aking ‘achineSke bear, the excess of speciation, and the creation of couterstructres. ‘The Centraization of Power Central stats now define the methods ard procedures fr everything rom how phones are a ‘ered to how supervisors spend th tine “An examination of those U.S. corporations that ave succes ‘uly expanded through inter ceainty—otnson Johnsen, 3M, Procter & Gamble—reveas they fave decentabzed, and it this ‘proces that has spurred imoration. For example, within 3M, ea agers can create new products ad appications. They become cham Dons and heroes ofthe busiess through creative development We SM does have a strong central research and development organization, more new products have come fom fel mangers Itering to ter castomes and developing innovative responses 10 thei customers needs. Decentralization allows one to manage one's own business ‘Tiss one ofthe primary mechanisms fer preserving the qualiies fhe Poptet and Berar, vision sd dec scion. ‘But at this stage the executive wl find high reitanoe to true decentralization, His staff and key exccuives, who wi oman ize and who fndamentally do not ust the sordate man ges, wal allegt to undermine ‘The Return to Command Decision Making During he Barta lan days, the dontant decsonsmaking style Was comma. From the Bang and Explering Age to the Administrative Age, the dom inant style was consultative an oceasionaly consensus, Dring the decining years of Bureaucracy and Arstocracy, the leaders are increasmgly issuing orders to obtain complance and acon. The consltaive sie ot succestl because subordinates don't ersand their purpose. Consensus i impossible in the absence of ‘ommon visio The fear induce by the conteling systems de Stroy seinttve, and now viduals must increasingly be oF ered a instructed rather than eed upon. Tarpumeauceat 129 Machinelike Behavior Admisistraton creates ordeiness and therelreefiiency. An excess of admiration promes machine ke, mindless behavior ad inetiieney ‘The character of roboike response, nay expected of em oyees in suple manufacturing jobs lo becomes a characteristic ‘ol managers Ae controls nd command authority increase feat, en ‘loyees creasingly "doa they are tod," avoid isk, and do not Sle “Why?” This behavior is unkly to produce future business for the corporation: Managers act on odes, believing they can nether ttallenge nor change tem. This Seprives the corporation of the ‘lective witdam of ts members. In this way the Bureaucratic ‘xpizatins lose "slf-deterination ‘uring recent years Ihave observed a tessng trend among senioeexceutves to mandate 5 percent to 10 percent cats in ex penses acres the board. Ther command to redace expenses is bssed downward with no consideration to which dvisons ae ex- banding, wich ace contracting, and wich have otber needs. The anager carrying ot these decisions sppear intent on engpging ‘0 thought daloge tat wl fore tem to weigh one pron ot concer aver another. They woud rather deny responsi by ‘Stvng, "The CEO sad 10 percent across the board ad thts.” “The US. Congress engaged inthis behavior withthe passage ofthe Gramen-Rudnan bl, Whch programs automate redactions in spending Congress has coche that itis unable to make wise decisions in consderaon of fats, a in rstration it wing to submit 0 hides adberence to rules. Like the manager, the congessnan fan sty to his constituents, "tdoeent mater what we tink, the budget had tobe cat by ‘The Excess of Specialization Specization led to competence tnd efiiony, bot with specizaton motivation changes. Rather than deriving gols fom common socal purpose, gals are now increasingly based on moving up the ner of one's own rao fel The moe “expert” one can Became in a specialization, the ‘more dspentble he ad theless ocers can calenge his “ex- pert” decnons Responsibly is pow nt forthe whol, but fo the 130 BARMARIANS TO BUREAUCRATS snow part and the parts ae less and less connected and increas indy esoteric ‘This esoteric maybe sen as fare of creative ndvidals to oomplet the “witirawaletura” process. They fave withawn from te lager socal context to exhince thei knowledge, bt they ave fied o return othe age socal un ‘The Greeks had a word to desert the soci tense of wth Arava fram society in pus of esoteric knowedge. The word i that ram which we derive the word adit The "idot” was capri personaly who withdrew snd ied fr hinsel instead of puting fis ft the serie of the common god. ‘This isthe offense commonly committed by corporate stall soups who pre themselves in “tte ofthe at” knowledge ae tools without inking about how that knowiedge can benefit the poration. recently attended a meeting of twenty si managers at acon sumer prodicts company. This mor corporation la vested ma lan of doars in the most up-to-date maitame computers nd the lates in manufacturing solvate. They also have 2 large stall of information systems specialists. The highlight ofthe meeting was & resentation by a plant manager about his experience starting op & ‘ew plant during which he reled ently on mi and mierocompa ter vendors and di not cll upon the corporate information systems staf at all When be had asked them fr hlp they tl im wold ‘ake them thee years to wie the software and get the systems in place. So he crcmvented the ene system and bought hi ov famputer software. This experience was consistent with tose of the ater plant iaagere who had da withthe corporate sal They all wanted to know fom the executives i they coud do the ‘This was a falure of speciation reeuting from afte to understand wh one's castomer is. Everyone has customer, ic: slo external. In this cas the pant managers are cstomers ofthe ‘porate MIS department. However, the corporate staf did ot feel any accoutabty to meet the equrements of thei customer Tes the fist reqrement of eflecve corporate staf management to know its eastomer and is eed sue puppanerar 18) ‘There ar some smationl hte i which crete tough Igoe ond tec of esis the snc of ples hu Ilion and ge hich rode in a sensiie vate [pcomcios inabty to epost or azide "isco of (fee Let oy ma wh det iit down for dys work (the Brich Mus a ing shy nse by someone thom hess nota eston res. CGauoe Wasa, 158-1902 Creation of Counterstructures The psychological need for afi- Int and empowerment vil be ued, if not through the pray ‘rztiatio, then through he cretion af counterstrutures. Unions {re the falinent ofthe same paychologiea ed tat ives many ‘entrepreneur (0 start thir orn companies. Employees want (0 feel contre Unions are created 40 fil tis need when the corporation's leaders make thir employees fel powerless. ‘Unions may appear dung the Administrative Age but is uring ths Ath sage that they wil increasingly demonstrate their power in opposition to Bureaucratic management. This wil be the Deriod of worst conic, response to 4 management who sees mployees as one more cost fctor a the fancal equation. Is the flue to recogaize employees 20 partners, fends, and tse ales that reses te rebellious underdass within the society ofthe xeporation. ‘You May Be in a Bureaucratic Age If. your company is growing more by acquisition than by new ‘cain meen ‘your company has reorganized more than once in the past tre yoo ° ‘employees and managers alike fee! that they can do litle toate te cmp ue gs nl cpyes edt tak ab ted ol days vn tgs wer ens en rangi ong ayes an sce reeves no tin dentin it eng ong 132 nameaniuns 10 BUREAUCRATS (CHALLENGES AND TASKS ‘The primary task ofthe organization in this stage is o renew the clue, to break the bonds of breaueracy and re idl creativity suppressed by the weit of control Renewal Through New Leadership The breakup of cong erates by copoate raiders andthe leveraged buyout (.BO) by ‘managers serve to cut bareaucacy and retum the atention of ma ‘agers othe el business ofthe business. ‘Sybron Corporation had navigated is way through most of he ie ce stages. Originally name the Ritter tavler Corpration, Sybron made chemicals and processing and dental equipment. Rev- enues peaked in 1980, Chef Executive Herbert W. Jarvis had ball ‘phi corporate staff and tee, detaching himself fom the con- ‘cers of any particular division ofthe company’s overal drcton ‘With the stock price fling he embarked onthe peal Buteascrac espoase, restructuring the busines without thought to predicts oF Sidded with the overiead of & Nosted corporate staff and scquiston fares, divison managers became lnreasingy us trated and aerated. Bran Beemer, advison president, sys Sybron’s leaders were “more concerned about taking vacations and geting new cars and refurbishing the ofices than adaressing the tough decison.” Tars and four ther corporate managers tried to take Sybron private in an LBO, but ther om subordinate managers—fecling {hey wou notbenet—outtd them after alaing with takeover speiasts Forstnann Lite. One ofthe dvison heads, Frank. line, Je. of Erie Scintiie Co, initted what woud ulinately ‘mou tobe the sbcesul bid Jelinek and is aly ad od tie to Sy in 1989 fr stack that then traded around 40 and fad beequently falen to 12. Sy bron, he say, was "ant joke. Thee ad been gross management cero.” Jelinek ad stayed cose tothe prog, services, and ‘Sisters he knew. He even convinced one of his suppliers, Cor ring Glass Werks, to participate inthe buy-out “TEBUREAUCRAT. 133 ter Forsisna Lit took ove Sybroa, they bought in Ken- eth Fe Yona, an execaive vie president of the Alen-Bradey Company, a8 president. Yost quickly sold of eleven Sybron dvi- ‘ions, providing the cash to pay off most al of Sybron's debt. {Cerporate value is almost always enhanced bythe dvesture of otintegrated disions, wth whom synergy canot be expected ard hich cause exeetives to lose focus on thai customers) Only sb tivison remained, and Yone now tamed his attention to ncreasing thes vale. He di tat by eliminating the corporate bureaucracy, cating staff rom 148 to 7, Te corporate computer abd lformation sy toms staf were eimieted. The remalning corporate persoma rade do witha pervnal computer. Most ofthe accounting and ‘ministration were pushed down ito the visions. where the die isin managers were held accountable for their own costs ratber than being sed with huge corporate overead Thsteed of spending ns tne corporate meetings developing esoteric strategies, Yo spent his tine in the dvisons, helping {heir managers develop thelr own improvement strategie, In the ‘ays, vison manager bad to ge our or five signatures for a ‘antl expenditure, Unde the ew system a dvsion president re- ‘ved approval fora. $600,000 new equpment expenditure it twenty-four hous, Now division managers fot they were genie prners wih thei president and the new owner "The ress? In 1986 operating prt amped to $54.7 millon ‘on sales of $498.9 illo, up fom $27.3 mallon on ales of $52.7 milion in 1985. Renewing Creativity Within Peter Drucker tel us the corpo ration exsts for wo purposes: ination (of preduc) and market- ing. When i faa the fst, wil be wnble to succeed atthe Second Ite nature of bureaucracy to sti eeativiy.Itis up to the leaders ofthe organization to free that creativity by pointing ot {he gip Between where we are today and where we cul be tomor- tow. The members ofthe ogazation must have acer vison of the freA brsing desice 1 asus 2 gals the oly way to ‘break bureaucratic constrains, Whats woth geting exted aout, 134 BARBARIANS TO BUREAUCRATS losing slep over, scricing for? Why will you be proud to have served ths company? You, the leader, most be abl to answer these questions, New Challenge—New Response The aire of creativity is ao failure to nurture and apprecate people of diverse incnations, Prophets and Barbarian are each nique and nonconforming, They Ive ltl chance for sural in the Burenuratic Age They are creators, the anthesis of Buresicrt Creativity i the recognition that new challenges require new responses. People win have ot sigly conformed to the od are ‘moc likely to recosize the new. Jesus was eral commenting oo business when he sid ‘No man put pte of wo ct into a ld garment, fr ‘hat which pu no i tat rom the sore, ad ‘heres s mae worse Neher do me al nee lt tes the bots bea ond he wine ranth ol hd ‘he ets perish; Bu eu nw ine nome Bt, nd eth are preserve Maron 116-17 Each sucessve challenge isthe new wine, requing new seat ee ing Honda shows us one way tis can be done. One of the core rinciples of management philosophy ie “o proceed shay with ‘youthflbess." Why youhubes? Its characteristic of the young ‘ory things that are diferent from, pecs even contrary tthe td way. I'yu are “proceeding aways with youthess,” you are ‘consamyexploring new ways and Requent dg better wa Avoid a Condition of Base Base i the enemy of ecativity. The Bureaucratic organization appears to be scare It has ge ase, balding, stalls, pension ans, and benefit. Bt we have seen th neither cizations nor ccrporations are bor tof condi of fase. They are born outa a condition of cage, andthe mote severe the challenge, the greater the pulse to ceatiiy. cup wnpeanewer 198 The leader who sable to regenerate bureauracy must create the psychology of crisis, He or she mist instil the urgency that specs the pulse Is the job of the regenerative leader to bing the esto the door of every inva and provide an avenue of response. Creativity, wheter in ew product development or on the factory floor, i enanced by the th of string for someting of siicance, something oferng the reward of pre and ele Breaking the Rigidity of Institutions Burearatic orgie. tions need to reefne acounablty to ensure that the lrgest Possible number of people fel responsible for the organ’ fate. The imposion of centralized staf cone has init tis accountability and cased decisions to rise to ever higher levels 1 ecenty consulted wih an organization of engineer who were re Soni for the design and construction of mtinlio doar stro. tures, The engineers all hd graduate degrees fren prestigious universities. They were no, however, allowed to sin thet name {0 any documents. A eters leaving the organization had to be signed by a manager two of tree levels up. For the bureaucrat Iie tobe broken, decison malig nd authority must be pushed down to thse wo are onthe spot, touch with he peace To renew the corporate ctr, i wil have to go on adler ‘te program of physi fess. The sutures, stems, kl sie, and symbols mist be redefined. The leader mist act as both the Propet an Batra restoring te isn and ales ye ing lecsive action to recreate the frm, ‘The leader must estbich a process of redesign in which the line managers, those who must implement and live with the out ‘ome, are the people doing the redesign. And the process shoud be ‘ageing. The challenges an orgnzation faces constamly change; es "Tesponse to those calenges shal, to. ‘Tis conn redesign process wl keep the managers focused on basi principles suchas defining ostorers ad meeting cunome ‘equrements; miinizinglyers and pushing decison ming down to the lowes possible level Tt wll prevent complacency a aro. snc. I wil inal the bebe tht it managements job to be 136 saenaxans To BUREAUCRATS

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