Break the chain

Entrepreneur,  May, 2002  by Chris Sandlund

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War is a favorite metaphor for business. (You carpet-bomb the market with ads; you battle for customers.) So is it any wonder that following the chain of command is as hallowed a tradition for many companies as it is for the military?

Maybe you should look at what's going on in today's Department of Defense. Chain of command isn't what it used to be. "The military is changing," says Tom Casey, principal with Buck Consultants and former member of the armed forces. "It is balancing discipline with encouragement to be innovative." Some businesses are following the DOD's lead--encouraging employees to go outside the chain of command when issues or projects necessitate talking to you or another senior manager.

The importance of communication, the speed of business and the need to retain employees are all driving this change, says Casey. More than ever, information needs to flow through your organization, not stop with managers who may have their own agendas.

The change could threaten your managers. Ease their comfort by following the military's approach. Grade the manager on two criteria, says Casey: the performance of his other direct reports and the unit's overall effectiveness based on its goals. Those goals are crucial, says Lynn Summers, founder of Performaworks Inc.: "Without the structured way to build in accountability, you've got chaos."

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