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Kathianne
01-28-2013, 11:01 PM
Anyone think this bodes well for the majority of US workers? A natural offshoot of Obamaeconomics:

http://online.wsj.com/article/SB10001424127887324461604578193472562389926.html?m od=WSJ_Opinion_LEFTTopOpinion


To Outsmart ObamaCare, Go Protean
Don't fire staff to avoid the 50-employee trigger. Make them corporations.

How big can a company get with just 50 employees? We're about to find out.

Thousands of small businesses across the U.S. are desperately looking for a way to escape their own fiscal cliff. That's because ObamaCare is forcing them to cover their employees' health care or pay a fine—either of which will cut into profits and stymie future investment and growth.

We've already seen many of America's biggest companies respond to the new law by laying off employees, putting them on part-time, or raising prices. But those are short-term solutions. Ultimately, these corporations will have to innovate and restructure to thrive in the era of ObamaCare. If small businesses follow their lead, they may even gain an advantage over their big competitors.

In his 2009 book "The Future Arrived Yesterday," veteran Silicon Valley journalist Michael S. Malone described a new organizational model called a "Protean Corporation." Like a protozoan single-cell organism, the protean corporation has the ability to "shape shift," rapidly adapting to internal and external forces in the market and the company. At the heart of a true protean corporation is a tiny number of core employees surrounded by a large cloud of resources, generally contracted or outsourced talent that does most of the work.

While the concept has been used successfully in large corporations like Intel, Microsoft MSFT +0.11% and IBM, IBM -0.02% it is bound to appeal to smaller companies now. Such businesses have several ways to get their workforce under the 50-employee limit at which certain ObamaCare rules kick in. These include reducing workers' hours to move full-time employees to part-time; laying off workers; and either selling the company or closing down.

"Going protean" offers a better strategy for many businesses. Owners of protean companies create a core of strategic employees who manage the big-picture elements of the enterprise—the culture, business model, product mix, vision, strategy, etc. This core then outsources the business tasks to other corporations.

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logroller
01-28-2013, 11:36 PM
I'm curious if these protean corps will be more or less efficient. On one hand I see how changes can be made more efficiently with smaller organizations, but would economies of scale extend into the external cloud of resources?

ConHog
01-29-2013, 12:03 AM
I'm curious if these protean corps will be more or less efficient. On one hand I see how changes can be made more efficiently with smaller organizations, but would economies of scale extend into the external cloud of resources?

You can get around that with co ops. My brother is a vp for a food wholesale company. Theybe partnered unpfficially wuth about 10 other like sized companies from around the country to negotiate with vendors.