Focus-Driving Organizational Simplification

“It constantly surprises me to what extent many companies waste energy on things that are vaguely connected to the company's core business. Behaviors are allowed to grow and become approaches, hierarchies, working methods, mindsets, and finally a culture that has a far too loose connection to the company's purpose, the production of benefits for buyers that ensures long-term survival. At Latour, we systematically strive with mostly gentle guidance to steer our companies towards effective organizations that lead to focus and frugality with scarce resources.”

“Long-distance runners must pay more attention to culture, this vague concept so cherished in management literature. What it involves is shaping people's behavior in organizations towards constant product renewal, increased productivity, frugality, and a culture of continual improvements in humble work for customers. It is my experience that this pattern of behavior works best in flat organizations where responsibility is decentralized and as close to customers as possible. The smallest possible number of levels means that communication runs faster and becomes less distorted on the journey up and down the hierarchy.”