Size matters. Especially in terms of organizational efficiency.
After a certain point, the larger an organization grows the
more inefficient it becomes.
A perfect example is our own government and the myriad
programs it supposedly manages. Spending
keeps going up and up as it gets more and more inefficient. Nobody is really
managing it because it’s now essentially unmanageable.
There are untold layers upon layers of departments and
agencies that exist in a virtual vacuum, fully staffed with well-paid
government employees, chugging along day after day, doing only God knows what perhaps
for reasons that may have long passed. They thrive, nonetheless.
Nobody really knows what they’re doing. Or even why they
still exist.
Congress always seems to be making more of them. More
agencies. More special offices. More committees
with additional support staff. More
“boards” of this or that, like the one charged with insuring that goods
claiming to be made by Native Americans really are. Congress and regulators always think adding
more people and spending more will make things better.
Of course it doesn’t.
It’s only making things worse, and government more inefficient and less
accountable at every level.
Just about anybody who has ever worked in a large
corporation knows that bulking up doesn’t always make an organization better. Quite the contrary, most often.
As the workforce expands, nobody wants to share resources
with any other group. They want their own accounting people, their own IT
folks, their own tech-support personnel, their own customer-facing reps. Before
long, they’ve brought redundancy and spending to new heights.
The bigger issue is that many group leaders start seeing their
most important role as protecting the resources and headcount they’ve built.
Resources and headcount must be constantly justified to
avoid cuts. Everybody must appear so
busy they can’t possibly be cut. In the
absence of real meaningful work, meetings proliferate, task forces are created,
work is subdivided so much that individual workers are increasingly distanced
from the organization’s customers.
Everybody is “overwhelmed.” Too busy to take on anything
else. The solution? Increase budgets to add more people to lighten the load.
That’s how organizational bloat and fat come about.
With more people and departments in the mix, there are more
potential turf wars to overcome. More butts to cover. With more people involved
there’s more potential for serious mistakes though ignorance, ineptitude,
indifference, laziness, or even sabotage.
That’s why most successful businesses every now and then
purge as much redundancy and non-essential personnel as possible. They try to
flatten their org charts, reduce superfluous headcount, and at the same time
increase accountability at every level.
The goal is to boost efficiency and improve productivity, and, of
course, reduce unnecessary cost.
Done properly it’s not just rearranging things – like the
deck chairs on the Titanic. That
accomplishes nothing; the bloat is simply reconfigured and moved around while
the organization continues to flounder and sink under its own weight. Changing
who reports to whom, where offices are located, and designing a new floor plan
doesn’t address the underlying problem.
Objectively reassessing what’s really needed for the
organization to succeed and thrive, not just now, but in the future, is what’s
needed. Making the hard decisions on
what and who are essential, and then acting on those decisions, is the only way
to start solving systemic problems.
Jobs get cut. Departments eliminated and consolidated. Redundancy is lessened. The media complain it’s unfair to cut the jobs of so many people who’ve worked
there so long. There’s almost never a discussion of whether those employees
should have been gone long ago.
To be candid, streamlining also enables organizations to get
rid of troublesome employees, habitual blame shifters, idea killers, slackers,
back stabbers, empire builders, and those who spend more time playing office
politics than doing their jobs.
Which is also a healthy thing to do.
That lesson is lost on our government.
It’s become too big, too complex, to succeed. It employs too
many people doing too little, for too much, simply because they are protected
by their unions and friends in Congress.
There’s little to no accountability for bad behavior; there’s almost
never a consequence for doing their job badly, or even breaking the law –
something they’d get fired for anywhere else.
Consequently, our government no longer serves us as much as
it serves itself and those employed within it. Nobody in government worries about losing
their job; that feeds their arrogance that no one can touch them, no matter
what they do. That explains why they
feel they hold the real keys to power, not elected representatives or even a
President.
Government employees feel protected by the size of
government itself. To increase their personal job security, they want
government to grow even more. To be more complex. To insulate themselves with
more layers. The bigger it gets, the more complex it becomes, the more areas
they can hide in. And the less visible – and less accountable – every employee
within it becomes.
It shouldn’t surprise anyone that most government employees
are Democrats; Democrats are always in favor of expanding the size of
government. As are government employee
unions.
But an ever-expanding government bureaucracy is truly dangerous.
It will only get worse unless someone starts cutting the
fat, the bureaucracies, and the non-essential agencies and personnel bogging it
down.
I’m convinced the current government employee base – not
counting the military – can easily be reduced by 10-15%, if anyone has the guts
to do it. There’s so much unnecessary redundancy, so many superfluous
departments, agencies, and “boards” designed to solve problems already solved
or problems that aren’t really problems, it wouldn’t be rocket science.
The Federal employee base is just the start. We could also
cut the bloated number of contractors – most of whom exist to do the same work current
Federal employees should be doing.
If we’re really worried about threats to our security and
protecting sensitive classified information, why are we outsourcing so much of
that work to contractors to manage our most confidential information? We
already have enough security issues with full-time government employees and
members of Congress leaking sensitive data to damage those with whom they
disagree. Do we really need to add even more vulnerabilities through outside
contractors?
Of course not. Can you say Eric Snowden?
The easiest way to have better security is to have fewer
people in the loop. The easiest way to reduce inefficiency is to have
less deadwood and fewer schlagers clogging up the works.
The easiest way to get
a more responsive and manageable government is to make it smaller.
That way there’s more accountability at every level. Fewer
places to hide. And less bureaucratic
infighting that drags everything down and stalls decision execution.
Every top business executive knows this. I’m sure Trump
does, too.
I hope if he gets reelected, he’ll take this
on.
While building out AneriQuest we dealt with this issue with every acquisition we made, 7 in all. I naively thought the publicly traded company we bought would be the most problematic, in fact it was the easiest The privately owned were the worse. Most of the "former" CEO's of the private companies wanted us to just keep the existing organization intact. Well for the most part it was the size of that support organization and it's inefficiencies that brought them to sell the company. We didn't buy profitable companies but we made one. I was proud to be the grim reaper. It is surprising to some how a small efficient head-office organization can handle the boring day to day requirements of supporting the profitable management of a company.
ReplyDeleteThanks for your comments. I went through the same thing when I was buying and consolidating regional magazine companies for the oil company years ago.
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