How to Reduce the Size of the Organization But Increase Effectiveness

A relatively new chief executive has been impressed by the increased efficiency and profitability of firms, similar to his own, which have reorganized. Prior to the change, these firms suffered from slow growth, high fixed costs, and excessive bureaucracy—ills that still plague the executive's organization. He intends to make similar changes to his own company—quickly, to put his stamp on the organization and show a real gain in profits as soon as possible.