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Author: | Gingrich, J. Metz, H. |
Title: | Conquering the costs of complexity |
Journal: | Business Horizons
1990 : MAY-JUN, VOL. 33:3, p. 64-71 |
Index terms: | FLEXIBILITY FLEXIBLE MANUFACTURING SYSTEMS COSTS |
Language: | eng |
Abstract: | There are a number of firms that have found ways to compete on the basis of responsiveness and innovation without becoming swamped by the costs of complexity. Four rules are suggested for managing the agile organization: (1) implement a "bottom-up" organization - knock down the walls of functionalization and compartmentalism; (2) de-emphasize scale and emphasize focus; (3) plan for uncertainty, and structure accordingly; and (4) overhaul the organization and its culture. Taken together, these concepts permit a level of flexibility, innovation, and responsiveness that the traditionally managed company, oriented toward mass production, cannot match. These rules define a new set of operating economics. |
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