Canzan’s June update is all about organizations. I’ve read several books on organizational structures in business. A standard character is Bureaucracy as the villain. I find this narrative suspect, the same way I find extreme political positions suspect.
Balance is vital in life, so rejecting everything good about an approach lacks prudence. Follow along as I play the devil’s advocate for a bit, then contrast it with the alternative.
Bureaucracy
It’s an excessively complicated administrative procedure. Beauracracies include complex employee reporting structures, mandates, and misunderstandings—this top-down approach to business shackles leaders closest to human problems by prioritizing compliance over pragmatism.
However, top-down management has its upsides. It makes sense to impose quality standards around your company’s core competencies. Apple’s strict quality standards set it apart from the competition. If this top-down approach to quality didn’t exist within Apple, their products wouldn’t have this market differentiator.
Like most actions worth taking, deciding how to balance centralization with decentralization requires a strategy.
Decentralization
A trend has set in companies like Haier. The Rendanheyi model of business has unlocked tremendous value for Haier. A key aspect of Rendanheyi is a decentralized collection of microenterprises. Each microenterprise is responsible for its profit & loss objectives and is directly accountable for business outcomes. As a result, these microenterprises become competitive & react to markets within Haier and without. Microenterprises bid against each other even within Haier itself, and they must be attractive to survive. It’s a relatively new way of thinking for Americans and one your company ignores at their peril.
Canzan will largely be decentralized. Competing with a corporation requires agility, and decentralized systems deliver this requirement. We will give you stability, control, security, and peace of mind so you can sleep at night.
We know your family comes first, and your business is a close second. By unshackling your business from centralized systems, your focus returns to your customers, not your tools. No longer will you feel pressure to have big brother tell you what’s good for your business.
Final Thoughts
As Canzan continues to build momentum, we’re excited to serve you. The prospect of helping you compete with corporations is exciting.
I’ve been sharing Canzan’s plan with small business owners, and they are ready and waiting. Rest assured, the work is well underway, and the title fight of the small business century is coming.