By Mack Hanan
A brand new method of powerful divisional administration - the way to run a department as if it have been a firm you owned. With dozens of examples, Mack Hanan indicates new "owners" tips on how to create a hugely responsive and efficient company that bases its good fortune on how a lot it is helping its buyers be triumphant. He offers particular options for a way to: hold "the corporation" small, quick and leading edge; make effective use of highbrow capital, services; retain expenditures low and margins fats; organise workflow and make the most know-how to its fullest; teach human resources to be actual participants to productiveness; remain fanatically involved in the customer's wishes.
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Extra resources for Manage like you own it
They are full business partners, allying themselves strategically with the business objectives of customers, linking themselves up to their Figure 1-4. Pyramidless peak. Page 29Figure 1-5. Peakless pyramid. outcomes and acting as co-managers of the customer assets they affect. Peakless Pyramids, on the other hand, occupy Tier Two. They are manufacturers and vendors. They sell products on price and performance: they are the "feature and benefit" sellers of "forty-watt light bulbs" to "electrical contractors" who apply them in the Pyramidless Peaks.
Managing a corporate business "like you own it" is managing as an owner-manager. It is very different from managing like someone else owns it. As long as a business is someone else's, it can remain unfocused: Its last dollar of cost can remain uncontrolled, its last dollar of revenue can be left on the table, its last unit of productivity can be left on the conference room floor or in the factory scrap bin, and the result of its last cycle of innovation can be left on the market one day longer than it is able to sustain its margins.
High-autonomy organization model. Page 8 not intervene in their operations; no one intervenes between them and their CEO. General Motors has organized its Saturn Corporation as if it were a "virtual corporation" made up of small focused business units. Each self-directed team manages its own unit's budget without direct oversight from top management. The team hires and fires on its own, controls its inventory, and manages innovation. Saturnization is gradually taking place in the traditional divisions of General Motors, where the monolithic concept of running a business is on the way out.