If you want to be successful in your new venture, you should pay attention to the modern examples of achievement like Apple, Google, and Amazon and their business structure .
What are these companies doing differently? They have broken down the traditional norms of operation and flattened their business structure into a streamlined, distributed model. This type of system allows them to be faster, more flexible, and to evolve elegantly with changes to the market and their customer base.
Too Many Layers of Business Structure
What is stagnating many of the large, older, organizations is their tunnel vision. Within these companies, there still exists a lot of red tape, which kills innovation and expediency. This inefficient organization model creates a bottleneck for making decisions, requiring too many layers of sign-off before anything can happen.
In contrast, these modern, successful companies have done away with the hierarchy of too many levels of management, and have instead adopted a system of collaboration between departments, and even other organizations. The use of open-systems benefits everyone without the hassle of having to go through so many layers, just to get a quick answer or approval.
Such collaboration breeds diversity and allows for truly innovative options and solutions, which can make or break your success.
The Dinosaurs Have to Go
The big corporations like G.E., General Motors, IBM, and Procter & Gamble, are ancient dinosaurs, with outdated and inefficient decision-making business structure s that will most likely lead to their demise.
Whereas Apple, Google, and Amazon are thriving, due to their trust and reliance on open-systems, and a rejection of bureaucracy, authority, hierarchy, and closed decision-making processes of the past.
These young, vibrant companies are embracing new models of decision-making, and encouraging participation, diversity, new rules, and, to some extent, chaos.
Sometimes, Smaller is Better
Another way these companies are successful is that they operate much like a small business, instead of a large corporation. Real people handle customer service interactions, so that the customer walks away feeling valued and appreciated.
Small companies have to be more flexible, and, sometimes, staff wears multiple hats and are cross-trained for a variety of different tasks. This versatility benefits the entire organization, because there is less delineation between departments and management groups. No more waiting to move forward, because only one person or department can handle the issue; it can easily be re-routed and quickly solved by someone else.
Stop Talking & Listen
Large, outdated companies rarely pursue or put to use constructive criticism. The sad part is, being plugged into channels for feedback allows a company to respond much more quickly to adversity, media fuss, product support, delays or other operational issues. A direct connection to your customer base is key to staying on top of things and managing your brand reputation.
Apple, Google, and Amazon all actively encourage customer feedback, and they immediately put it to good use. Many of their ongoing upgrades, changes, and improvements come directly from customers.
They are using their customers as a huge pool of barnstormers and innovators. Just by listening, instead of dictating, they are benefiting in droves.
The Bottom Line
The bottom line is old, outdated organizational structures and hierarchies are past their expiration date. If you want to be successful and make the most of your new company, model your organization after these high-tech firms that have figured out the formula for big-time success.
By operating as a small company, you allow yourself to be flexible, more innovative, speedy, and collaborative, and this will result in a very positive bottom line for you!
Bert Shlensky Ph.D. is the President of StartupConnection.net. Bert has over 30 years of experience as a results-driven executive leader. A graduate of Sloan School of Management at M.I.T. He served as the President of West Point-Pepperell’s apparel fabrics for 10 years & President and CEO of Sure Fit Products for 14 years. Having provided counseling to over 2,0000 startup clients- he now focuses on working with select start up and small businesses.