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rictownsend

Writing Sample/Article

WHY INVERT THE BUSINESS PYRAMID

Tradition has built the organisational pyramid based on early military and bureaucratic structures where the power was with an elite group at the top. In this system the customer (enemy in the case of the military) only received what they were seeking at the whim of the people at the top. For example, not too far in the past if you wanted a telephone connection (in most countries) it could take weeks, or even months before the connection was made. A great example of a modern ‘power at the top’ based monopoly is the visa section of most embassies you wish to visit. The misuse of power, the lack of interest in the ‘customer’ and the long lines of frustrated ‘victims’ bear testimony to the shortcomings of all-powerful bureaucratic organizations.

If however alternative choices are available the power over the organization rapidly shifts to the receiver of products or services and away from the providers. Two great examples of this reality are the telecommunications and banking industries. As these industries have been deregulated, providing the customer with the power to choose, the management and staff of these industries have had to find new technologies, systems and of course methods of structuring themselves to maintain their market share.

The constant struggle for those of us working in rapidly changing markets is:

1. For the staff that deals face to face with this powerful ‘new’ customer the struggle has been (and still is) to expand their knowledge to be able to effectively deal with their customer’s ever increasing demands. Organizations need to provide customers with rational decisions on ‘problems’ in the shortest possible time to survive, let alone prosper. This has forced a process of empowerment or the need for individuals to take responsibility for their own performance (success) as well as their company’s success. In some corporate, or even national cultures is quite a challenge.

2. For the middle management that has time, money, status, careers, success, knowledge and their power based in the system as it was, the great challenge is to overcome their fear of change. For many of these people, being good at working the system has led to their success. In the future being good at doing business with the most important person in the equation… “The Customer”… will be the only basis for continued employment.

3. Senior management’s role is still to provide vision, mission purpose and values however it is impossible for them to be ‘the technical expert’ or even the operational decision makers. The levels of service demanded by the powerful new customers make it impossible to operate effectively with only a few top decision makers.

Those who won’t or can’t change to the new business reality face at best a bleak future in ever disappearing lowly paid manual labour or even worse perhaps a career in the public service, where they just might be able to hide for a few more years.

(Copyright R I S Townsend – Corporate Learning Consultant 12/9/99-2008)

5 months, 3 weeks ago

rictownsend

WHERE IS THE ERROR IN THE ARTICLE?

IT ALL LOOKS FINE HOWEVER THE CREDIBILITY OF THE PIECE SUFFERS BECAUSE OF ONE MISSING WORD!

Ric

5 months, 3 weeks ago

samuelb

WHAT THE MISSING WORK IS PLS TELL ME!!!!

1 month, 2 weeks ago

samuelb

THANK YOU HELP RIC I TELL MY FRIENDS BUT TEL THEM DONT PUT ON INTERNET KEPT YOUR SECRET! ALSO IS WRONG IS "STAFF THAT DEALS..." MY FREND SAYS IS HE WRONG?

1 month, 2 weeks ago

rictownsend

Thanks... its just a bit of a fun brain teaser :-) Ric

1 month, 2 weeks ago

new_car_smell

It's not a "missing word", but there should surely be a question mark in the title.

1 week, 3 days ago

rictownsend

You are of course correct, however there is also a missing word :-) Ric

1 week, 3 days ago