White paper: Agile Companies

July 27, 2021
Studies show that only about 10 percent of companies are able to profitably grow over a longer period of time.1 One of the reasons for this is the increase in complexity due to the penetration of new markets, in addition to the constant drive for product innovation and development of new customer potential. As a result, companies often focus on their internal processes and establish administrative structures, on the one hand to organize this complexity in the corporate environment, and on the other hand to “put things in order” internally. This order often turns into bureaucracy – and bureaucracy can be crippling. Companies as a result gradually lose their original founder’s mentality that originally led them to success. Establishing organizational structures sometimes has exactly the opposite effect of what was originally intended: Internal structures can no longer cope with external complexity and are not primarily oriented towards the value creation process; they develop their own logic (“silo thinking”) and complexity.