Impact of the Structure on the performance of the Organization
In the mid of 80s of the last century many companies began experiencing the problems with managing the control over the production. Just like those companies, Johnson and Johnson was utilizing the old system of business management that in 1982 nearly had brought the company to its break down. J&J was relying onto the main four success factors, among which were: size role clarity, control and specialization However very soon the corporation had realized that there was a need to consider a new set of the factors, such as: speed, flexibility, integration and innovation.
Since then, Johnson & Johnson in order to achieve its goals and reach the vision used a Decentralized Management Approach. It is big and small at the same time. For instance each of its operating companies functions as its own small business. They are strongly entrepreneurial in character, and they know that their success depends on anticipating customers’ needs and delivering meaningful, high-quality solutions.
Johnson & Johnson focuses on the fundamentals of the business and makes sure that the companies balance the short-term and the long-term in their strategic planning. The Corporation invests in promising new businesses while maintaining leadership positions in high growth businesses. It is also focused on sustainability, and constantly reviews key economic, environmental, and employee health and safety indicators to ensure that it is on the right path. Over the last year J&J established an internal innovation fund to keep the company at the leading edge of transforming health and well-being.