Maui
Well-Known Member
I’m well aware of that, Einstein. And why do you think that is? It’s because they lack the competence and business acumen to figure that out themselves.
FedEx operates in a highly matrixes structure. It simply does not operate on a General Manager model and instead focuses on specialization. Operators are expected to drive operational efficiencies. Sales is Opco agnostic and sells a business portfolio - they drive pricing and yields which operators may or may not agree. HR has it's own matrix. Finance and accounting has their own matrix. Properties and facilities are separate. Ops planning/engineering has it's own matrix.
The kind of model you suggest is simply not how FedEx operates. Maybe a GM model would provide better results. Maybe allowing teams to specialize allows more focus on core strengths.
I'm not sure how many organizations you have worked or led. There are costs and benefits to both types of structures. A GM model with responsibilities for ops, finance, sales, billing, payroll, marketing, customer service, and maintenance places much more on the individuals in that role. You need broad-based experience and the learning curve can be long. When there is a truly great leader with knowledge/experience in all those areas one person can drive exceptional changes. One person can also drive a business into the ground.
The matrixed model of specialization allows for less reliance on an individual to be excellent. There is certainly varied performance and some will always be better than others. It allows each group/team to make decisions that drive the results in their specialty - ops, sales, supply chain, etc independent of additional influence. At much higher levels the leaders of the orgs hash it out. This allows for faster, more nimble movements. This may not always happen in practice.
Different business models can work. You are asking for FedEx to fundamentally operate differently than it has for decades. There would be substantial cost to that type of reorganization. Would it ultimately be beneficial? I do not know. I like more cooperation and communication between functional groups and get frustrated sometimes. I don't see how remaking the whole of FedEx would drive better results in the near-term and maybe ever.