Zombie Organizations and Bailouts – Why They Are Such a Problem for Small Businesses

In recent times, Zombie Organizations have taken the MLM industry by storm. They have been labeled as the Zombie Corporation, Business, or Marketing Companies. However, in a recent article in the Wall Street Journal, zombie companies were labeled in such a way as to suggest that zombie companies are formed for one reason only…to fail. As an MLM marketer, you may be looking for ways to make your MLM company competitive and keep it surviving, or you may be struggling to find methods to eliminate this kind of behavior.

Just as lean thinking was the new product of needing to compete against limited resources by emphasizing identifying, reducing, and eliminating all forms of waste or behavior that distract us from connecting with our core purpose or our core value, so too is the concept of Zombie Organizations has been put into place to suggest that the zombie process is alive and well and often camouflaged in corporate leadership training materials. And just as in lean manufacturing processes where there was always the danger of new or unwanted ideas being introduced into the production process, so too there is the risk of limiting or eliminating creative input. But, again, if you understand that the purpose of any company or organization is to create wealth then you should understand that you can eliminate all these types of behaviors. You simply need to make sure that you provide leadership training to your leaders.

Why Zombie Organizations are Problematic and What to Do About It

Many zombie organizations exist today and zombie business is a huge problem.  What does zombie organization mean? It’s an organization that has many different individuals and teams who are disconnected from each other, creating digital disruption. These types of organizations are usually led by “experts” that are not really experts at all but they’re very knowledgeable in the areas in which they do operate. This is what leads to zombie organizational strategy.

Zombie organizations are the result of Digital disruption – the idea that Digital is changing faster than everything else – and the desire to adapt. In fact, some of the early gurus of the digital revolution believed that it would change far quicker than anything could change. In fact, some of the early gurus of the digital transformation thought that digital icons were going to be replaced by Buzzards within one to two years.

This is unfortunate because those gurus also subscribed to the zombie theory that all organizations, businesses, and corporations were going to die or be transformed into zombie organizations within one to two years. As it turned out, this turned out to be quite wrong. However, many of the early gurus did predict that Digital would displace the current paper-based society and that paper would eventually be entirely obsolete. It turned out that this prediction was completely wrong. So, while the paper industry may be dead, it certainly has not become a death trap for the organizations that have embraced it.

The Top-Down Problems of Zombie Organizations

One of the problems with zombie organizations is that:

  1. They are usually built from the top down, which is to say that those who run the organizations often do not understand the needs of the people who work below them and do not care about their needs. Often, these people do not even care about the people who work for them in the chain of command and so they do not care to hear about what the workers have to go through on a daily basis. They will not provide for the needs of the lower-level employees who work below them in the hierarchy of the company. In other words, the zombie organization is built from the top down and is therefore doomed to fail, just like any organization that does not build from the bottom up.
  2. The second problem with zombie organizations is that most businesses are using the waiver method as a tool for employment approval. While businesses use waivers to approve people for temporary positions, they use them for permanent hiring as well. This is why most businesses are using waiver procedures for employment purposes and have no intention of using them for anything else.
  3. Finally, one of the biggest problems with zombie organizations and the major financial institutions that allow them to exist is that they are usually created as a last resort to get out of the slow, economic death spiral that the business world is experiencing.

They are created to stop a company from going out of business and to keep the business from liquidating itself as well. If a business is in slow motion because it is not generating enough revenue or is getting bogged down in large legal cases, it will need bailouts to keep it afloat until it can return to being profitable again. Unfortunately, most businesses and institutions were counting on businesses to continue to exist during these times, but that is clearly not the case anymore. As a result, these institutions have gotten in over their heads and are causing great problems for small businesses all over the country.

In recent times, Zombie Organizations have taken the MLM industry by storm. They have been labeled as the Zombie Corporation, Business, or Marketing Companies. However, in a recent article in the Wall Street Journal, zombie companies were labeled in such a way as to suggest that zombie companies are formed for one reason only…to fail.…

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