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Many know it as host to the annual Hukilau. By avoiding the management tax, the company can also invest more in growth. Having no managers reduces head count and wage costs.
The savings can be used to pay better salaries to everyone and to fuel growth. Backstabbing, politicking, and sycophantic behaviors drop dramatically when employees stop competing for promotions. Employees are proactive because they have the freedom to act. They are also willing to help colleagues because it increases their reputational capital. Few employees leave to join rivals, and even temporary workers are dedicated to the organization.
Because everyone is responsible for the quality of his or her work, employees are forced to invest in developing their skills. By pushing expertise down to the front lines, rather than escalating decisions, self-management promotes smarter, faster decisions. Employees respond rapidly, coming together in teams to tackle challenges and to experiment with new ideas. This is less a matter of capability than of acculturation.
An individual who has spent years working in a highly stratified organization often has difficulty adjusting. Rufer estimates that, on average, it takes a new associate a year or more to become fully functional in the self-management environment. It takes time to fit in. New employees may need a year or more to become fully functional in the system. Without a corporate ladder to climb, employees find it difficult to evaluate their progress relative to peers.
That can become a handicap when someone wants to switch companies. That adds time and complexity to the hiring process. Today every potential hire gets a two-hour introduction to self-management and is interviewed by 10 to 12 Morning Star colleagues.
Even then, mistakes happen. Paul Green Jr. Getting colleagues to hold one another accountable is a second challenge. In a hierarchical organization the boss deals with troublemakers and underperformers. At Morning Star everyone is responsible for safeguarding quality, efficiency, and teamwork by calling out colleagues who violate policies or norms.
If employees shirk that duty and fail to deliver tough love when needed, self-management can quickly become a conspiracy of mediocrity. Growth is a third challenge. Although Morning Star has been looking for ways to expand, it has so far resisted the urge to trade away its management advantage for even faster growth.
Tracking personal development is also tough. In most companies the rungs of the corporate ladder serve as benchmarks. With no hierarchy, Morning Star colleagues can find it difficult to evaluate their progress relative to industry peers. When I suggested to Rufer that Morning Star had learned how to manage without managers, he immediately corrected me. The job of managing includes planning, organizing, directing, staffing, and controlling, and everyone at Morning Star is expected to do all these things.
Everyone is a manager of their own mission. They are managers of the agreements they make with colleagues, they are managers of the resources they need to get the job done, and they are managers who hold their colleagues accountable. Nevertheless, Rufer knew what I was driving at. When individuals have the right information, incentives, tools, and accountabilities, they can mostly manage themselves. On the one hand, you can think of Morning Star as a socially dense marketplace.
Colleagues are free to negotiate marketlike contracts with their peers. While this might seem a contentious and complicated process, several factors mitigate those risks. First, everyone involved in the negotiations shares the same scorecard. Second, team members at Morning Star know that if they take advantage of a colleague or fail to deliver on a promise, the repercussions will catch up with them.
This encourages associates to think in terms of relationships rather than transactions. Finally, because most folks at Morning Star have been in the tomato business for years, they have a good sense of what needs to be done and who needs to do it.
Not every aspect of every contract needs to be rewritten each year. On the other hand, Morning Star is a collection of naturally dynamic hierarchies. On any issue some colleagues will have a bigger say than others will, depending on their expertise and willingness to help. At Morning Star one accumulates authority by demonstrating expertise, helping peers, and adding value. Stop doing those things, and your influence wanes—as will your pay.
In most companies the hierarchy is neither natural nor dynamic. Maddeningly, key jobs often go to the most politically astute rather than the most competent. Until then they can keep mucking things up.
No one at Morning Star believes that everyone should have an equal vote on every decision, but neither does anyone believe that one person should have the last word simply because he or she is the boss. Questions remain. Can it be exported to other cultures? Can it cope with a serious threat, such as a low-cost offshore competitor? These questions keep Rufer and his colleagues up at night. They readily admit that self-management is a work in progress. Most big corporations are collections of teams, departments, and functions, not all of which are equally interdependent.
However large the company, most units would have to contract with only a few others. In fact, the real question is not whether the model can be scaled up but whether it can be adopted by a traditional, hierarchical organization.
Again, I believe the answer is yes, but the metamorphosis will take time, energy, and passion. You have 1 free article s left this month. You are reading your last free article for this month. Subscribe for unlimited access. Create an account to read 2 more. Corporate governance. From the Magazine December Listen to an interview with Gary Hamel. Download this podcast. First, ask everyone on your team to write down a personal mission.
Second, look for small ways to expand the scope of employee autonomy. Finally, you must look for ways to erase the distinctions between those who manage and those who are managed.
Lower Costs Having no managers reduces head count and wage costs. More Collegiality Backstabbing, politicking, and sycophantic behaviors drop dramatically when employees stop competing for promotions.
Greater Initiative Employees are proactive because they have the freedom to act. Higher Loyalty Few employees leave to join rivals, and even temporary workers are dedicated to the organization.
Deeper Expertise Because everyone is responsible for the quality of his or her work, employees are forced to invest in developing their skills. Better Decisions By pushing expertise down to the front lines, rather than escalating decisions, self-management promotes smarter, faster decisions. Increased Flexibility Employees respond rapidly, coming together in teams to tackle challenges and to experiment with new ideas.
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What is it that channels all the freedom that people at Morning Star enjoy into operational effectiveness? Do you ever reach to touch her but there’s nothing there? When the invoice arrives he confirms that he has received the equipment and sends the продолжение здесь to accounting for payment.
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