Wednesday, February 2, 2011

Organizational Autophagy - Or The Power of Lesser Resources

In cell biology, autophagy, or autophagocytosis is a major mechanism by which a starving cell reallocates nutrients from unnecessary processes to more-essential processes. In other words, when a cell in your body is starved of glucose and other forms of fuel, it begins to eat itself. But in order to ensure that it stays alive it attempts to first eat the parts that are unhealthy, old or useless. Autophagy is said to be important in cell renewal, cancer prevention and reducing the rate of aging. So going without food occasionally can be good for you. Also, this is one of the major reasons why extremely low calorie diets are said to help extend longevity and improve vitality.

Now what would happen if we applied this model to an organization?

What if we assumed that most organizations (be it corporations, divisions of corporations, government bodies or non-profits) are overfed? Many of the larger ones have too many resources at their disposal. They have too large a budget, too many people and too many projects and initiatives.

What if we starved these organizations by reducing their resources?

Let's say we cut the staff of a large organization by 50% and their operating budgets by 50%.

If what happens at an organizational level is similar to what happens at a cell level, it's possible that these same organizations will begin to "eat" themselves. They will cut out unnecessary layers of flab and middle management. They will be forced to reduce the number of projects and initiatives that they are pursuing. They will begin to cut out most activities and focus on all but the most important activities for which they have been birthed in the first place.

This is one way to explain the reasons for some spectacular turnarounds such as the one that happened at GE under Jack Welch in the 80's and early 90's.

What do you think?

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