Top Myths of Centralized Management

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***Under Construction***

Core Belief

Premise: dramatic costs saving can be made that directly relate to a company's bottom line if resources can be centralized. Especially those associated with FTE (full time employees). This material focuses on personnel component of this belief. The crux of this belief is that large organizations have an over-lap of personnel performing the same actions.

The Prime Operational Action

There is a good chance that change is operationally underway to achieve this objective in your company. Perhaps many have barely noticed it. Why? Making abrupt changes to an organization can be very disconcerting to morale and effect a stocks\company's perception. The assumption in play is that it would be harder to achieve the objective if too many personnel left the company too soon.

For many companies the method to achieving a smaller work force is that of optimizing attrition. More clearly, people that leave the company over the normal course of time are not replaced. Ever. Well not replaced by the hiring of a new employee at minimum.

At first glance it can go almost unnoticed. The perception may even be in some camps it is beneficial. That the company cares enough for who is there that they are cutting costs by not rehiring.

In time the reality becomes clear and unmistakable.

Road Bump in the Plan

All things being equal the stated premise of optimizing a company's bottom line is black and white. Unfortunately there have been multiple events that have shaken this model to complete uselessness.

Influencing Events

• .com financial collapse.
• 2008 financial collapse.
• Chinese Currency Devaluation Effects

Lucid Assessment

A few data points:

• Fewer number of personnel are being asked to perform more work.
• Negative financial events have many organizations workload in negative numbers as compared to personnel to required to achieve it.
• As part of the overall plan to save money, many organizations have chosen not to provide adequate training or any training at all.
• The localized effect. Lack of personal and specialized attention. Lack of support deeply attuned to the needs of the business unit or facility.

The Obvious Results

Summary

Out-Of-The-Box Idea

Give bonuses to management for doing nothing. Thus not wasting valuable company FTE, resources and investment on duplicating what is already working. Grman tank commanders could see things on the ground and make decisive changes. They did not need some guy in an office back in Berlin directing tactics. ... until Hitler decided he needed to get involved at that level.

If a biz process (CM) takes too much time, is unwieldy in its implentation (Remedy) or requires significant effort: it will either not be done or shortcuts will be taken that invalidate it. Biz\Web fuel.