The traditional approaches to the structure and management of firms are becoming barriers to customer value. The Austrian capital theory approach recognizes that all value in the corporation flows to it from the value experiences of customers. Therefore traditional organization design — centralization, hierarchies, divisions, bureaucracy, command-and-control — insofar as they are poorly aligned with customer value actually detract from the value of the firm.

There are alternative approaches to business organization, several of which we have highlighted in Economics For Business. One well-articulated alternative is The Flow System. We talked to one of the authors of the concept, Brian Rivera.

Show notes: https://mises.org/library/clone-raushan-gross-newly-emerging-and-newly-enabling-institutions-entrepreneurship

E4B Knowledge Graphic — The Flow System Guide (PDF): https://Mises.org/E4B_181_PDF

https://theflowsystem.com

https://flowguides.org

The Flow System by by John Turner, Nigel Thurlow, and Brian Rivera: https://Mises.org/E4B_181_Book

Teams That Work: The Seven Drivers Of Tea Effectiveness by Scott Tannenbaum and Eduardo Salas: https://Mises.org/E4B_181_Book2