WHY ORGANIZATIONS FAIL: A CONVERSATION ABOUT AMERICAN COMPETITIVENESS

Sergey A. Ivanov

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Management Theory and Practice Leadership and Management in Organizations Complex Systems and Decision Making

Abstract

This paper offers a systemic organizational solution to the problems encountered by the U.S. government departments and corporations that the United States federal government has recently had to bail out. It also extends the applicability of a systemic organizational theory, called Requisite Organization Theory (Jaques, 1996) and General Theory of Managerial Hierarchy (Jaques, 2002). Ivanov recently expanded this work while conducting organizational studies in the U.S. Department of the Army and private corporations since 2000. Over the past fifty-years, this systemic research has been carried out and tested in the U.S. Army, Church of England, national and international corporations (Rio Tinto, Bank of Montreal, others), foreign governments, and organizations. There is a bleeding wound within our large organizations, in the organizational system itself, in all corporations and government departments alike, slowly undermining society. This bruise fails good leaders and capable CEOs. It demolishes good institutions within our democratic societies because it diminishes trust in the organization and trust between people. Having become an invisible and silent trauma, the organizational system fails us individually and collectively in cloaking the workplace in suspicion and mistrust, resulting in low productivity. There is an alternative. Instead of mistrust and suspicion our organizations generate because of systemic faults, we could redesign our organizations based on new scientific principles. This would increase trust in the organization and people, and create a healthier and more productive workplace. Citizens and national leaders must start noticing this anguish, starting with a realistic self-assessment and reevaluation of their organizations - systems presently not designed to succeed.

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