Paradigm Shift in the Corporation: The Fractal Factory

Many branches of industry have had to recognize that their lead in the world market has been caught up with, particulary through Asian competition. In many cases a deficit of up to 30% in costs and productivity already 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" which are 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 such as company structuring, human networking, hierarchy formation and models for remuneration and working time are explained. They are based on practical examples from IPA's work with the automobile industry, their suppliers and the engineering industry.