| COMPARE |
The Old Way |
The New Way |
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Bureaucratic systems of command and control are needed to achieve stability. |
Organic systems of integration and coordination are needed to master change. |
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Objective |
To achieve stability. |
To master change. |
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Method |
Bureaucratic systems of command and control centralize power at the top of the hierarchy. Authority rests in the manager’s ability to direct employees. |
Organic systems of integration and coordination diffuse power throughout the organization. Every employee has the authority (within limits) to do what it takes to satisfy customers. |
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Perspective |
Organizations are machines that need stability to reliably produce predictable results. Success depends on how well an organization can regulate the various flows of information, products and services moving within its boundaries. Organizational structures must serve the information needs of the hierarchy. |
Organizations are like living organisms (except they can be more adaptable),
and need to act within the context of their environment to routinely produce value for their customers. Success depends on how thoroughly and how quickly an organization can move the various flows of information, products and services, both within and beyond its boundaries. Organizational structures must adapt to change. |
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Employee Outcome |
Employees are servants of their bosses, and must perform within the standards established by their job descriptions, procedure manuals and the expectations of superiors. |
Employees serve their customers, and must satisfy them by applying the guiding principles of the company and the best current practices developed by their co-workers. |
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Customer Outcome |
Customers must deal with a sluggish, unresponsive, larger than life entity that is incapable of meeting special needs or rush orders. This company’s reputation suffers when it encounters unique requests. |
Customer needs are handled with prompt, courteous, personal service by this company, which tries to exceed customer expectations of every kind. This company’s reputation is enhanced when it deals with unique requests. |
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Result |
The insistence on stability in this changing world leads this company to go the way of the dinosaurs. |
This company’s mastery of change clears the path to future successes. |
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