Question: In Table 9-2 what do you consider the five best suggestions to implement? Why and under what conditions would these be best?( we need a

sire, age, products, markets, processes, and the answer will vary depending on the suggests that a company's structure must be subhologies of a company. This reality change. Further, there is an art to designing an ent to continual experimentation and the conventional rules of organizational design mistrepreneurial structure, as many of TABL.1 9:2 Twenty Structure-Related Suggestions for Innovation 1. Insist on a maximum of two levels of management between the bottom and top in any division-size unit. 2. Most business can be done in independent operating units of 250 or fewer people (with their own boards of directors, including outsiders): Reorganize accordingly within the next 18 months. 3. Within the next nine months, eliminate ALL first-line supervisors. 4. Within the next year, transfer one-third of all staffers at the division level or above to customer-focused operating units (of 250 or fewer people-see No. 2) and then transfer another one-third the following year. 5. Within four years, reduce corporate staff to a maximum of ten people per billion dollars in revenue (and no squirreling away "temporary assignees" stolen from divisions). 6. Require remaining members of all "central" (corporate, division) staffs to sell their services to line units at market rates; allow those line units, in turn, to buy any and all services from anybody, anywhere. 7. Destroy all organization charts. Now. 8. All top division/corporate managers: Pledge two days per month to customer visits and two days per month to supplier and distributor visits. Visit, in depth, at least three "neat" companies per year (outside your industry). 9. Aim for one-third employee ownership of the corporation within five years. 10. Chief executive officers and division general managers: Within the next 12 months, promote to a position of significant responsibility at least one rabble rouser who doesn't like you or agree with you (on much of anything). 11. Insist that no one serves on a strategic planning staff for more than 24 months. (Twenty-five percent of all strategy staff members should have worked for a cus- 2. Make sure all work teams are largely self-contained, encompassing almost all tomer or competitor.) functional skills within their confines. 13. Allow the CEO to sit on a maximum of one outside board. 14. Vacate all facilities more than three stories high. 15. Within 24 months, end all physical segregation of functional departments. (Continued) Twenty Structure-Related Suggestions for Innovation At all off-site meetings, make sure that at least 25 percent of all attendees are "outsiders" (customers, vendors, etc). In companies with at least $250 million in revenue, create corporate vice president positions for the following: knowledge management, perceived quality and brand-equity management, innovation, industrial design, horizontal systems integration, cycle-time management. (Incumbents will each be supported by a oneperson professional staff max.) 18. Within four years, at least one-third of division-level chiefs should be 32 or younger. 19. Within 24 months, make sure you have at least one non-U.S. board member (companies of $50 million to $1 billion). Companies over $1 billion should have 25 percent non-U.S. board members within four years. 20. Let no senior manager have an office of more than 225 square feet. SOURCE: From The Cirde of Innovation by Tom Peters, Copyright (C) 1997 by Excel/ A California Partnership. Used by permission of Alfred A. Knopf, a division of Random House, Inc
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
