Get Rid of Bureaucracy before it Cripples You
The bigger your organization gets, the more it is at risk of falling into layers of bureaucracy. In Bureaucratized companies, employees are encouraged to work on fixed routines instead of exercising their own judgment. It is characterized by stringent rules and procedures which are assumed to be measures of quality control.
No matter how big the organization – it needs to get rid of bastions of power in its hierarchy to remain on top. Organizations worth a billion dollars have gone bankrupt; they have been replaced with faster organizations – that value the large database of intelligence in their ranks. A clear example of this is how the once dominant Microsoft is now desperately playing catch up to the new agile players like Google & Apple referenced in an article published by The Wire (http://goo.gl/xKVgHw).So what harm does bureaucracy bring to your company?
Slows down the decision making process
Bureaucracy results in slow decisions as people are not empowered and instructions come from top. Committees make their own decisions, often not taking advice from frontline employees; they back up their decisions through paperwork.
An example would be of Africa where bureaucracy has resulted in poor coordination between policy makers and ministries, greatly slowing down the manufacturing sector (Economic Report Africa, 2014).
Proactiveness is replaced by reaction
A large organization has a giant bank of resources at hand. Its competent people and multiple departments fail to respond quickly because they need permission from the top management to move forward. All projects need a final approval from the board; this automatically gives a competitive advantage to smaller organizations.
To get rid of bureaucracy at Google, Larry Page directly communicates with product managers and asks them to pitch him on what they are doing in sixty words (via email); everyone has been given access to executives.
Risk aversion
A bureaucratic organization becomes risk averse because of needless protocols in place. In today’s world, when change is the only constant, companies need change leaders; they need entrepreneurs who would take bold risks to introduce new products and change the way things are done. A bureaucratic organization sucks out the enthusiasm from talented employees who start looking for other opportunities.
Jim Collins, in Built To Last, points out how the world’s most sustainable companies encourage risk taking by empowering employees and spending more on research and development.
3 popular quotes on red tape
Donald Trump
Getting things done in this country, if you want to build something, if you want to start a company, it's getting to be virtually impossible with all of the bureaucracy and all of the approvals.
Laurence J. Peter
Bureaucracy defends the status quo long past the time when the quo has lost its status.
Jack Welch
If you have a reputation as a big, stiff bureaucracy, you're stuck.
How has bureaucracy affected your company and your career? Share your view with us.
