Alternative Systems for Corporate Survival

Change management expert John Kotter argues that companies cannot adapt to change mainly because of their hierarchical management systems. These systems are designed to coordinate large groups of people in the consistent and efficient delivery of products and services—and they do it well. They are, Kotter says, “absolutely necessary to make organizations work.” Here’s the conundrum: You can’t jettison the hierarchical system that runs your business, but if you don’t, it could kill your company. The very strengths of the hierarchical system become fatal flaws when swift change is required, Kotter says.

Editor’s Note: be sure to watch the included video by Kotter.