Is the traditional command-and-control operations management model — which reigned supreme for decades in an era of relative stability and predictability — finally dead? All the signs we see say it is. In a post-pandemic world characterized by unpredictable supply and demand, companies can no longer consolidate decision-making at the top. Doing so is counter to the kind of agility, flexibility, and speed they need in a world of rapid and chronic disruption and volatility.
It’s Time for a New Model for Operations Management
Companies can no longer consolidate decision-making at the top.
September 19, 2023
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Summary.
Covid-19 was the death knell for traditional hierarchical command-and-control operations management. In its place a new model has emerged that’s far better equipped to deal with today’s disruptive, volatile, and unpredictable environment. In this model, decision-making responsibility is broadly dispersed to where it makes the most sense, resulting in faster, more accurate decisions in response to changing conditions. This model is built on four pillars — trust, talent, transparency, and technology. Swiss multinational food and drink processing conglomerate Nestlé is an example of a company that has embraced this concept in its factories and, as a result, has built a resilient operational model that has helped the company effectively respond to adverse events and challenges.