Big organisations often struggle to adapt to the rapidly changing business environment due to their inherent complexity. Despite their resources, these large entities can become stifled by their own structures, making them less agile and less able to respond to new challenges. The problem lies in the fact that the larger an organisation becomes, the more difficult it is to manage, leading to a lack of innovation and creativity.
The concept of ‘scalable efficiency’, which is the primary reason for companies to grow, is becoming obsolete. Instead, ‘scalable learning’ is emerging as the key to survival in the modern business world. This approach involves fostering a culture of continuous learning and innovation, rather than focusing solely on efficiency and cost reduction.
Organisations need to shift from a hierarchical model to a network model, where the flow of ideas and information is more fluid and less restricted. This model encourages collaboration and knowledge sharing, promoting a more dynamic and innovative environment.
To make this transformation, organisations need to embrace ‘radical openness’, which involves sharing information freely both internally and externally. They also need to foster a culture of experimentation, where failure is seen as a learning opportunity rather than a setback. This shift in mindset is crucial for big organisations to stay relevant and competitive in the ever-evolving business landscape.
Go to source article: http://www.digitaltonto.com/2015/why-big-organizations-are-broken/