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Simply subdividing an organization into small units is not sufficient.
It is not an overstatement to say that the major points outlined here will determine the success or failure of Amoeba Management. The issue is how to subdivide a complex corporate organization into amoeba units. A good understanding of the true state of the business is essential, and the organizations must be subdivided accordingly. In my view, there are three conditions that must be met when dividing an organization into successful amoeba units.
The first condition is that amoebas must have clearly definable revenues and cost of sales in order that they can be fiscally self-supporting.
The second condition is that amoebas must be self-contained business units.
The third condition is that subdivision of the organization must support the goals and objectives of the company as a whole.
An amoeba can exist as an independent unit only if these three conditions are met. It is not an overstatement to say that the formation of amoeba units determines the success or failure of Amoeba Management. Formulating an appropriate amoeba organization is the foundation of Amoeba Management. |
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| (From the book, Amoeba Management) |
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