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Today's business environment is fast paced, chaotic, and unpredictable.

The one constant confronting the senior management of any organization in the world today is continuous, unrelenting change.

In order to respond to this environment every company requires the following:1. A continuous and reliable flow of feedback from the marketplace which enables management to address current market needs as well as anticipate future trends
2. A flexible supply chain which can accommodate and anticipate continuously changing needs
3. A committed, flexible, innovative work force which is in tune with the outer environment
4. An effective, informal information network which is able to apply know-how and information from different functional and geographical areas to specific challenges confronting the company.

The moment we think of the word 'control', we think in terms of keeping something in check.

The implied assumption is that the only way to keep things from going off course is that we must keep a close eye on the process every step of the way.

The problems with this approach are the following:CostlyIf we wish to truly control a process we must build an extensive control system. This requires a significant initial investment, as well as a considerable commitment in time and resources in order to keep it current. Catch-up ModeAs the business environment shifts, there is inevitably going to be a lag while the system is catching up to changes in the market. This means that the company, instead of being ahead of the curve is always in a catch up mode.

The tighter and more elaborate the control structure, the greater this lag is likely to be, and the greater the investment in continuously updating the process. Contra-selectionA restrictive command-control structure tends to attract certain types of individuals, and repel others.

It creates a conformist culture that promotes those who are either compliant in nature and can be relied upon to do as they are told, or those who are adept impression managers, skilled at corporate politics. Meanwhile,the organization experiences a brain drain, as those who are innovative, or stand out in any way, are crowded out of the work force. Efficiency vs. EffectivenessThis type of environment can very often appear to be efficient because of the narrow and restrictive way in which productivity is defined. Everyone is terribly busy, but busy doing the wrong things. RigidityThe organization becomes very set in its ways as the supply chain becomes grooved within very narrowly defined parameters. This makes it difficult to accommodate the varied and changing requirements of consumers in today's market environment.

The firm is then placed at a severe disadvantage in relation to more nimble and flexible competitors in the industry. Silo EffectThe linear command control structure creates a silo effect through which communication generally travels from top down, and does not cross highly defined geographical functional boundaries.

In a continuously changing environment, problems require a multifaceted approach which involves the whole organization, not just the resources of a single unit which is highly defined both functionally and geographically. Having established that this rigid structure is artificial, archaic, and requires a great investment in time and resources to maintain, why does it persist? Is there a dynamic within the organization, hidden beneath the surface, which holds this rigid structure in place?
John Berling Hardy is an author who has designed a diagnostic for a condition described as

The Hidden Game Algorithm. This tool has a number of applications, among which are identifying the conditions that support malfeasance, supply chain rigidity, poor management, and poor utilization of human resources (including Brain Drain)

You may contact him at