sometimes that requires shooting the culprit

If you don't zero in on your bureaucracy every so often, you will naturally build in layers. You never set out to add bureaucracy. You just get it. Period. Without even knowing it. So you always have to be looking to eliminate it. You know when Tom Watson, Sr. was running IBM, he decided they would never have more than four layers from the chairman of the board to the lowest level in the company. That may have been one of the greatest single reasons why IBM was successful. 

A lot of this goes back to what Deming told the Japanese a long time ago: do it right the first time. The natural tendency when you've got a problem in a company is to come up with a solution to fix it. Too often, that solution is nothing more than adding another layer. What you should be doing is going to the source of the problem to fix it, and sometimes that requires shooting the culprit.

I'll give you an example that just drove Sam crazy until we started doing something about it. When merchandise came into the back of a store, it was supposed to be marked at the right price or marked correctly on the spot. But because it often wasn't getting done properly, we created positions called test scanners, people who go around the stores with hand-held scanners, making sure everything is priced correctly. There's another layer right there, and Sam didn't ever visit a store without asking if we really needed these folks. 

Well, we still have some, but what we've done is over-haul our back-office procedures to make sure we get it right more often the first time, and, in the process, we eliminated one and a half people out of the office in every Wal-Mart store in the company. That's big bucks. 

Really it's a pretty simple philosophy. What you have to do is just draw a line in the dirt, and force the bureaucracy back behind that line. And then know for sure that a year will go by and it will be back across that line, and you'll have to do the same thing again. 

David Glass

Sam Walton, Made in America by Sam Walton & John Huey. Bantam Books. 1992. p. 232

trust employees

In this world of intense scrutiny, where everyone is looking at what you do...one reaction is to create management systems, more process, more controls, and more bureaucracy. Relying on traditional supervision, process and controls would inhibit serving clients responsively, and stifle employees' creative energies. We cannot apply Industrial age management systems to address post Industrial age needs. There is a better alternative, which is to trust employees. Values are the glue, the bond that binds us together in the absence of controls. These must be genuinely shared values; they can't be imposed top-down. Values provide employees a framework to make decisions when management systems and procedures are unclear. It comes down to judgment, based on shared values.

Sam Palmisano

"The Future of Leadership" by Samie Al-Achrafi. The Huffington Post. 10/30/2015

replacing policy with principles

The curious thing about organizations is that having more people somehow doesn't equal more output. “As size and complexity of an organization increases, productivity of individuals working in that organization tends to decrease,” he says. As headcount grows, so too does the policy-and-paperwork stuff that gets in the way of rapid iteration and scale.

Why is this the case? “I think it comes down to human nature and the way we react to problems,” Curtis says. Our natural response to any problem — from a downed server to a social gaffe — is to try to ensure that it doesn’t happen again. In companies, more often that not, those solutions take the form of new policies. “What happens when you create a new policy, of course, is that you have to fit it into all of your existing rules.” And so begins a web of ever-increasing complexity that's all about prevention. Soon, you start to hit safeguards no matter what it is you're trying to do.

To avoid this type of bureaucracy from the very beginning of your company, you should adopt two particular tactics: “First, you have to build teams with good judgment, because you need to be able to put your trust in people,” Curtis says. “Then you shape that good judgment with strong principles.”

Minimizing rules that become roadblocks in your organization will only work if you’ve built a team that will make good decisions in the absence of rigid structure. Your hiring process is where you can take the biggest strides toward preventing bureaucracy.


Interview with Airbnb VP Engineering Mike Curtis
"Bureaucracy Isn’t Inevitable — Here’s How Airbnb Beat It" First Round Review. 5/18/2015

unnecessary sources of stress

Smart employers ask employees “What do we do that drives you crazy?” and “What do we do that gets in the way of you doing your job?” Employee energy squandered on overcoming bureaucratic hassles and other obstacles is not available for innovation and productivity.

It’s also energy that could make the difference between employees facing challenge with a “Bring it on!” attitude rather than an “I can’t handle another thing on my plate!” perspective.

So, to remove unnecessary sources of stress by asking employees about which rules, red tape, need to go. Ferret out and remove any and all unnecessary obstacles. Doing so will recover a massive amount of employee energy that can be channeled to productive use.

David Lee

"How To Build A Resilient, Stress-Resistant Workforce" TLNT 2/24/2014