Scalability is a critical challenge in large organizations.
Dimensional complexity:
The lessons from the tic-tac-toe game illustrate the increase in complexity
when the number of 'dimensions' is increased.
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The typical large multinational corporation has between 10-20 different dimensions.
Typical Dimensions of Multi-national Corporations
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Legal (Incorporation) entities (subsidiaries, et al.)
Holding Company,
Major corporation(s),
Wholly owned subsidiaries,
Partially owned subsidiaries,
Joint ventures,
etc.
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Product lines:
Automotive; commercial; residential; consumer;
Government; Industry; Commercial; Consumer;
Commercial; Military; Government;
Professional, Amateur, Government
Manufacturing, Wholesale, Retail, Servicing
Marketing, Sales, Generation, Delivery, Rentals
Operating Systems, Office Applications, Advertising, Cloud, Hardware
Research, Exploration, Drilling, Pumping, Tanker transport, Refining,
Pipeline Delivery, Storage, Wholesale Distribution, Retail Stations
Mining, Refining, Manufacturing, Distribution,
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Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac
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Marketing regions:
North America; South America; Western Europe; Eastern Europe; Asia;
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Customers:
Government, Corporate/Industry, Commercial; Consumer
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Product quality:
Basic, Intermediate, Premium
Beginner, Advanced, Ultimate
Broken, More Broken, Most Broken (OS)
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Plant/Office locations:
Detroit, St.Louis, Atlanta, Portland, etc.
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Functional:
Marketing (sales), Engineering, Procurement, Manufacturing, Assembly,
Packaging, Distribution, Service
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Product/Project breakdown
By contracts, Product lines, etc.
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Processes
Configuration management, Quality Assurance, Reliability Engineering,
Risk Management, Budgeting, Human Resources, Finance/accounting, etc.
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Reporting hierarchy
Caste (Org level)
President, Vice Presidents, Sr.Managers, Managers, Supervisors, Leads, Employees,
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Corporate CEO
Company President
Company Vice President and President of Aerospace Group
Aerospace Division Vice President
Plant Manager
Engineering Manager
Electronics Labs 2nd-level Manager
Electronics Test Lab 1st- level Manager
Electronics Test Supervisor
Electronics Lead Engineer
Electronics Technician
People (Workforce):
Owners, full time employees, part time employees, contract employees, subcontractors,
Pay scales
Hourly, Non-exempt Salaried, Exempt-Salaried, Bonuses, Golden-parachutes
1st-shift, 2nd-shift, 3rd-shift, Weekday overtime, Weekend overtime, Holiday overtime
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Company A and Company B are similar sized companies.
Merging the two companies is thought to be beneficial
... because the companies markets/product lines, etc
"complement" each other.
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Company-A Company-B
and their accompanying overhead structures.
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The new 'merged' company
with the additional organizational
structure to coordinate and manage
the two previous operations.
The new "King of the Pyramid"
gains (power, $$$, etc.) especially
if he or she stays focused
on the "tip of the iceberg"
and largely ignores the rest.
As the ship rides lower and lower in the water
(under the increasing weight of the
merger and acquisition complexities)
more and more people end up below the waterline
(underwater) - victims of the greed of
feudal corporate leaders.
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Management scalability
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