Saturday, December 17, 2022

Top-down organization chart concept is not correct for current businesses!!

 

Organizational charts have been around for centuries, but many businesses have not changed the concept since it was first developed. The top-down organization chart, with a CEO at the top and departments below him, is no longer the best way for businesses to be organized. It does not reflect the current reality of businesses and can lead to inefficiencies, lost opportunities, and decreased profitability. In order to help businesses save money and operate more efficiently, entrepreneurs must learn how to adjust the organization chart for their business.

Running a business is like making a hamburger. What is in the middle of a hamburger is the management, but it is rotten due to various reasons, which will be explained in this blog post every week.

✅When did you last analyze the escalating cost of the management?

✅Haven't you calculated the per-minute management cost yet?

The only thing management does is adhere to the rules, like when making hamburgers at McDonald's where innovation is forbidden because doing so is necessary for such organizations to meet their objectives.

The top-down management hierarchy concept has caused management to focus only on internal activities in the organization. as a result, the entire management team spends 100% of their time just solving internal operational issues which cost around 1/4 of the total workforce cost of a company average.

This is the main reason many companies couldn't face the completion and went bankrupt.








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