Bureaucracy in organisations can stifle innovation and slow down decision-making processes. A diagnostic tool developed by Gary Hamel and Michele Zanini allows companies to assess their level of bureaucracy. The tool includes seven dimensions: bureaucratic oversight, policy-based decision-making, rule-based discretion, concentrated power, politicised decision-making, insular decision-making, and risk aversion.
Bureaucratic oversight refers to the number of managers and supervisors in an organisation, while policy-based decision-making involves decisions made based on existing policies rather than common sense. Rule-based discretion is when employees have little autonomy, and concentrated power is when decision-making is restricted to a few individuals.
Politicised decision-making occurs when decisions are influenced by politics rather than merit or evidence. Insular decision-making is when decisions are made without considering external input, and risk aversion is when organisations avoid taking risks.
Companies can use this tool to identify areas of bureaucracy and develop strategies to reduce it, thereby promoting innovation and efficiency. They can also compare their results with other companies to see how they stack up. The tool is available online and can be completed in about 15 minutes.
Go to source article: https://hbr.org/2017/05/assessment-do-you-know-how-bureaucratic-your-organization-is