How do you get a large, multinational company to move fast? You do what Percy Barnevik did at ABB in the late 80’s and early 90’s. You push decision making to the lowest level and embed a culture of decisiveness at all levels.
What seems like a simple idea is actually very difficult. For large companies, the desire for certainty, as well as a need for command and control, tends to force decision making to the top. Companies then add layers of bureaucracy to ensure compliance with the orders from headquarters. The result is a slow-moving, cumbersome organization where employees are not encouraged to color outside the lines.
Barnevik did not want this for his new company. In 1988, when he created ABB by pulling off the largest merger in European history, he quickly moved to embed a culture of decisiveness. He did this by keeping operating units small, limiting the decisions coming out of headquarters, and preaching the value of decisiveness.
I was running one of those operating units in ABB at the time and it was one of the best jobs I ever had. As I discussed in Barnevik on Decisiveness, I loved working for Barnevik. He got things done. He was decisive and he expected the same from his employees. The company culture at that time reflected his personality. We moved fast and we fixed it along the way.
The main thing I remember from that time is that Barnevik trusted us to make decisions. He had faith in his business unit leaders. He knew that we would occasionally make mistakes but he trusted us to always make it right. There was a culture of speed, decisiveness, and forgiveness. If you made a bad decision, it was not the end of your career. You were expected to fix it and move on.
What do you think? Have you worked in a similar fast-moving culture where there was trust at the top? What was it like? Have you worked in a heavily bureaucratic organization? How was that experience? How does the company culture affect your attitude towards your job? Let me know in the comment section below.
Read more about Barnevik in this rare book that I have purchased a limited supply of. This book is available on Amazon for $38.55 but I am offering it here for a special price. This is a limited supply of an amazing book. Once I am stocked out, this book will be hard to find.
Price includes shipping to U.S. customers. Overseas customers, contact me.
Percy Barnevik on Leadership (Shipping in U.S. included)
(Paperback – 2014) Percy Barnevik on Leadership is largely based on the author’s own experience gained in different leadership roles over a period of nearly 50 years. The emphasis is on efficient execution. This is, in his view, what mainly differentiates successful leaders and companies from less successful ones. The advice, contained in 200 separate points, covers a wide spectrum ranging from personal efficiency, strategy, handling of crises, company acquisitions to, not least, building successful teams.
$24.99
Great lessons Jon! This is a huge mistake so many companies make. The centralization, beauracracy, approval levels, lack of trust, and red tape cripple organizations and teams from speed in execution and the resulting success!
Thanks. I think trust and speed are related and Percy felt the same way.