Canzan’s June update covers organizations. I’ve read several books on organizational structures in business. A standard character is Bureaucracy as the villain. I find this narrative suspect, the same way I find extreme political positions suspect.
Balance is vital in life, so rejecting everything good about an approach lacks prudence. Follow along as I play the devil’s advocate, then contrast with the alternative.
Bureaucracy
It’s an excessively complicated administrative procedure. Bureaucracies include complex employee reporting structures, mandates, and misunderstandings; this top-down approach shackles leaders closest to human problems by prioritizing compliance over pragmatism.
However, top-down management has upsides. It makes sense to impose quality standards around your company’s core competencies. Apple’s strict quality standards set it apart from the competition. Without this top-down approach to quality, Apple’s products wouldn’t have this market differentiator.
Like most actions worth taking, balancing centralization with decentralization requires a strategy.
Decentralization
A trend has set in at companies like Haier. The Rendanheyi model has unlocked tremendous value for Haier. A key aspect of Rendanheyi is a decentralized collection of microenterprises. Each microenterprise owns its profit & loss objectives and is directly accountable for business outcomes. As a result, these microenterprises become competitive and react to markets within and outside Haier. Microenterprises bid against each other even within Haier, and they must be attractive to survive. It’s a relatively new way of thinking for Americans, and one your company ignores at its peril.
Canzan will be largely decentralized. Competing with a corporation requires agility, and decentralized systems deliver it. We’ll give you stability, control, security, and peace of mind so you can sleep at night.
We know your family comes first, and your business is a close second. Unshackling your business from centralized systems returns your focus to your customers, not your tools. You’ll no longer feel pressure to have big brother tell you what’s good for your business.
Final Thoughts
As Canzan builds momentum, we’re excited to serve you. Helping you compete with corporations is exciting.
I’ve shared Canzan’s plan with small business owners, and they’re ready and waiting. The work is well underway, and the title fight of the small business century is coming.