In a sense, the division system can be regarded as the embryonic form of the amoeba business model!

main difference 1: the overall operating state of the enterprise

the business department usually does not allocate the headquarters expenses, so it can't reflect the actual operating situation of the enterprise more accurately!

Amoeba management Through the statistics of operating accounting statements, the profit and loss of each amoeba can be reflected in the table, so as to understand the operating status of the whole enterprise!

main difference 2: transmission of market pressure

although there is a trading mechanism among business divisions, there is no transaction within the business division, so the market pressure is only transmitted to the level of the person in charge of the business division, while the amoeba operation is a small-scale operation within the business division, which transmits the operating pressure to every employee of the enterprise!

main difference 3: business philosophy and business accounting statements

the implementation of business philosophy within the division has not been deepened, and the use of business accounting tools is also in the initial stage!

main difference 4: all employees participate in the operation

the business division system is far from achieving the goal of catering operation for all. The middle and senior employees of the enterprise are on the way from "working for the boss" to "working for themselves", while the grass-roots employees are still in the stage of "working for the boss".

the division system is only the beginning of amoeba management. When it runs to a certain extent, it is bound to achieve more detailed decentralization! (Source: Amoeba Practice Research Institute)