Why Big Organizations have to Die Today

Organizations have evolved over the years. If one is blindfolded and taken to an organization of 90’s, the layout, space utilization and office setups will confound him. Today the successful organization’s are much agile, sleek, flexible and most importantly open. The hierarchical structure has given way to open collaborations. The organization’s working which used to centralized earlier is more open and flat. The operations are more flexible and decentralized. But that is not true for all of our contemporary organizations. Even in changing times there are a few organizations which are still glued to old working style. Most of these organizations are long used to having the assurance of an captive market. Their manpower has aged, fixated on old beliefs and are not open to new ideas. The time has come for these Big Organizations to Die.

Though the quite a few of the successful organizations of yesteryears have re-modeled themselves to be in the business, yet there exists a few who have lagged behind and are on the way to oblivion. These organizations have either shunned the advisories from management gurus or their senior management is not willing to take any risk. Many of these organizations are facing loss of business and a shrinking bottom-line due to technological changes. The technological changes have not come about all of a sudden. Rather, the change has been gradual and there were many indicators for these organizations to shed their old feathers and remodel themselves. But these organizations allowed themselves to be in a perennial state of gloating exuberance. And their Strategic Masters were not able to know that their Ship has started sinking.

Big organization
Big Organization

Outsiders pointed them out about the poor numbers and also fore-casted doomsday predictions. Even then the organization’s home bred strategists were confident that its only a passing phase and organization will bounce back. But that was not to be. These companies failed to read the market and the changing times. Their citadels started crumbling and they reached the point of no return.

But what they can still do

These organizations which have become majorly flabby, need to shed excess flab, divest some of the products/services and take up new areas where the organizations either have the strengths or they may have been strategically placed. This may not be an easy task but there may not have been much options left. Going forward, the world is expected to be dominated by much smaller organizations which will be highly specialized in their core area of operations. There will exist big organizations but they would be just holding companies or conglomerates having decentralized setups and operations.

Generally these big organizations are top heavy and their employee cost is high. An agile and lean organization‘s manpower structure should never be in form of inverted pyramid. That makes it inefficient. Rather top should be as lean as possible. If one has to look towards course correcting, the first task at hand should be manpower structuring. There can be many an opportunities in the market but internal organization of resources and Business Process Engineering(BPR) is what has to be looked into first.

Image by Gerd Altmann from Pixabay

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