“We are now well into the 21st century and yet most businesses, by design or default, operate a functionalised and hierarchical businesses model that was implemented by our Victorian forbearers in a time when Labour was relatively inexpensive and the UK was a dominant supplier to the world’s markets. It is not surprising that this model is no longer delivering the flexibility & low cost required to compete in todays marketplace.
Increasingly modern businesses are being considered as a system rather than simply the sum of its functions, and further a system that is nested inside many larger systems – such as supply chains, communities and the wider environment. This “systems” approach has a profound impact on business architecture (boundaries and constraints) and materially improves business performance both internally and externally. The fractal business model is a practical attempt to distil the fundamentals of the external systems (supply chains, communities, environment, etc.) to provide a structure that is far better aligned and so dramatically improves business performance both internally and externally. Key to this framework is the absence of traditional supervisory, management and administrative functions which typically form between 35 to 50% of the labour costs of an organisation. The model is tried and tested and has delivered remarkable improvements in Quality, Delivery, Profitability and Control.