2016-07-03

Sometimes progress has to be slow


Tom Breur
3 July 2016


Some people enjoy working in small and hyper nimble organizations, others prefer working large corporations. Both have their pros and cons. Many people complain, or are displeased with the relative sluggishness of big companies. Having worked in a few myself, I can definitely relate to that.

Peter Drucker is said to have invented “management as a discipline” (see for instance his 1966 classic “The Effective Executive”), and has often asserted that we owe much of our wealth and prosperity to advances in management. Doing more with less, getting the most output from your resources (within certain ethical and moral boundaries). Large corporations showcase these advances in management.

I always find it an amusing historical artifact that Friedrich Engels, a close friend of Karl Marx (author of the Communist manifest “Das Kapital”), was also at the time (mid 19th Century) the manager of one of the largest factories in the world (a mill in Manchester, UK): about 300 employees. This, at the time, was the most we knew how to “manage”…

Big companies, and management, in my opinion, have greatly contributed to our current day standards of living. 100 years ago, people worked longer hours, six days a week, and had less vacation. It is quite amazing how our quality of life has improved. So big companies must be doing something right… They leverage existing structures, and it is therefore only natural that they “resist change”: they have something to loose!

The maximum “healthy” (prudent) rate of progress (change!) isn’t only tied to the size of a company. An innovative credit card start-up, or asset management fund, is still tied to the existing structures of financial markets. Similar for supply chain management in retail, etc. Often “slowness” of change, says as much about the patience and persistence of change agents, as anything else…



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