Paradigm Shift in the Corporation: The Fractal Company

Many branches of industry have had to recognize that their lead in the world market has been caught up with, particularly through Asian competition. Often a deficit of up to 30% in costs and productivity exists. The reasons are rigid, Tayloristic company structures. The companies are not in a position to react flexibly to constantly changing environmental conditions. This paper illustrates the methods of the fractal company necessary to solve the structure crisis. The fractal company distinguishes itself through its dynamics and its vitality, as well as its ability to react independently to changing circumstances. The methods, procedures and basic conditions are explained. They are based on practical examples from IPA's work with the automobile industry, ther suppliers and the engineering industry.