Tag Archives: Business Silos

SOME COMPANIES ARE RUN LIKE STALIN RAN THE USSR

Founder, Virtual Group Business Consultants

Some companies are run like Stalin ran the USSR. They are command structures, highly centralised, rigid and tall. They are made up of equally rigid and tall silos called Divisions (how I hate that word – why don’t we call them Integrations?). When the environment changes rigid, tall structures are fundamentally unstable… apt to fall over. And, like Russia, when it happens they fall fast.
Other companies are set up like Jefferson set up the USA. The image is completely different from a tower, it is more like a bean bag. It fits itself exactly to the shape of the environment no matter how much it changes. The bits inside are free to move wherever they want and as a result the structure as a whole becomes far more stable and fits minutely into its environment.
HELP. I use the word “Beanbag” to describe the alternative to a tower; do you have a better analogy or description to get this idea across?

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