Tuesday, November 11, 2008

Reading: "Who CEO's Succeed (and why they fail)"

An interesting article to read indeed. This is another angle to discuss organizational structure and the role of leaders. Summary highlights below:

1. Human brain ability limits the number of people human can possibly directly communicate at the same time. Academic studies show that "decision-making performance ... falls of rapidly as the group size grows beyond six", "human brain... cannot simultaneously retain and process more than about seven information chunks at once". Hence the optimal working group size is six or seven.
2. Skills from experience of working one size of group does not necessarily working with a different size of group.
3. A mid size group (10-30) is most naturally organized by consensus among all memebers, but also with a leader who facilitates the decision making process.
4. Large size group is dictatorship with clear leadership. However, the election of the leader is the channel of the voice for all group members.
5. A successful department manager does not necessarily make a good entrepreneur. Different skill set is needed. A good entrepreneur of small-mid size company not only do the real job, but also facilitates the decision-making of his/her board. He/she must be good at leading the board in the decision-making process.
6. In a large organization setting, manager's job is to make decision with his/her authorized power level and receive decision from upper level. He/she has less or no need to work with a board in the decision making process.

Hehe, this is also part of my ESD.34 homework.

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