Peter Cochrane

Peter Cochrane's Hard Drive 1996
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Filing away at the middle ranks
RADITIONALLY, most organisations have been strictly hierarchical and based upon the power and control of individuals or groups. Steep pyramids of power and laws have been the name of the game for centuries. However, technological change is now challenging this established and well-tried model. It is shaking out the need for the many layers of management dictated by old technologies and wisdoms. When the US Army invaded Grenada a single GI came under fire from 10 policemen. Being outnumbered, he called HQ by radio and asked what he was to do. The reply was a singular order - shoot them! This order was given by a four-star general in person. So the question arose: what are all the intervening ranks for, and what were they doing?

Desert Storm saw the American troops without an approved personal Navistar system. So back home Mom and Pop went to Radio Shack and bought $300 GPS (Global Positioning System) units and mailed them direct to their sons in the desert. It also turned out that the most reliable piece of information technology was a laser jet printer bought from a high street store. So why bother with military specification and procurement?

Companies that had five layers of management can get by with two

These examples reflect technologies that induce fundamental operational and organisational change. No wonder companies are downsizing and delayering.

Improved communication and computing allow the old-style management chains and processes to be by-passed. Companies that had five layers of management can now get by with only two, and can become more dynamic and responsive. It is as if the intermediate layers were in place to stop organisations becoming successful. Managers who act as information and control intermediaries create unnecessary delays and inaction. Holding on to information, people and control used to be a way of maintaining position and staying employed. Today it is the kiss of death for the individual and the company.

So why do modern armies still have all those ranks when commanders have direct radio access to all their troops? It appears to be a combination of mindset, tradition, and the fear and risk of change. No one wants to gamble with human lives. But this is not a problem if all the armies in the world maintain the status quo. It is a problem if one army makes a successful change and becomes a far more effective machine. In modern business there is no status quo - many have moved, or are on the move - and competition leaves us with no choice. We have to become more efficient and responsive. Delayering and outsourcing is inevitable if we are to keep markets and keep costs down.

None of this can be realised by blindly cutting out people

The really successful and fast-developing companies are now more like amorphous blobs than hierarchical armies of ranked officers. Although production lines and processes still demand the stability of structure, increased levels of automation put even this under threat. So we can expect more pressure from the ever-shortening lifetimes of products and industries, with most of us facing more change than all previous generations.

It should be recognised that none of this can be realised by blindly cutting out people. Without a considered and co-ordinated investment in technology, new working practices, processes, and most important, education and training, it can all go badly wrong. To tackle one or two, and not all facets of change, can be fatal. But getting it right can mean survival and a very healthy bottom line.

Peter Cochrane holds the Collier Chair for the Public Understanding of Science & Technology at the University of Bristol. His home page is:
http://cochrane.org.uk