- The organization is riddled with bureaucracy. Some even believe that bureaucracy is inevitable and is an outcome of a complex business operating in a complex market and regulatory environment.
- Time to market for new products and services is excruciatingly long.
- Digital natives like Facebook, Netflix, and Spotify do not compare well with the organization and cannot be looked to for inspiration.
- Large corporations often consist of a few operating units, each with its own idiosyncracies about strategies, culture, and capabilities. These tightly integrated operating units make a company prone to bureaucracy.
- The antidote to this bureaucracy is a platform structure: small, autonomous teams operating as startups within the organization.
Impact and Result
- Platforms consist of related activities and associated technologies that deliver on a specific organizational goal. A platform can therefore be run as a business or as a service. This structure of small autonomous teams that are loosely joined will make your employees directly accountable to the customers. In a way, they become entrepreneurs and do not remain just employees.
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