How to Design a Flat Organization : The World : Idea Hub :: American Express OPEN Forum

Description

How to Design a Flat Organization

Conventional wisdom says that to be successful, our ideas—be they designs, strategies, products, performances, or services—must be concrete, complete, and certain. And when it comes to managing a company big or small, we need organizations to be highly ordered, with a strong and well-defined structure. But what if that’s wrong?

Take the case of French company FAVI , an autoparts supplier manufacturing copper alloy components. CEO Jean-Francois Zobrist eliminated the personnel department immediately upon taking the helm of the company in 1983. But that wasn’t all he got rid of. Says Zobrist: “I came in the day after I became CEO, and gathered the people. I told them tomorrow when you come to work, you do not work for me or for a boss. You work for your customer. I don’t pay you. They do. Every customer has its own factory now. You do what is needed for the customer.” And with that single stroke, he eliminated the central control: personnel, product development, purchasing…all gone.

The company formed twenty teams based on knowledge of customers like Fiat, Volvo, Volkswagen, etc. Each team ...

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https://www.openforum.com/idea-hub/topics/the-world/article/how-to-design-a-flat-organization-matthew-e-may

https://www.openforum.com/idea-hub/topics/the-world/article/how-to-design-a-flat-organization-matthew-e-may