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Small, independent teams.

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  1. 1. Teams
  2. 2. At, each unit regards itself, and is evaluated, as an independent business earning a profit or loss. Managers are there only to make sure that the [self managed] units get what they need. If managers do not help the self managed units well, people can vote managers out. Zhang Ruimin.
  3. 3. Instead of working in separate departments, like most large corporations, the 80,000 employees working for work in about 2000 fluid teams. Any employee can propose an idea and if it is voted a winner then that person becomes the team leader. The team manages itself and is responsible for the profit or loss of the project.
  4. 4. Small teams at
  5. 5. At, there is no management structure and no hierarchy. Teams of nurses are responsible for patients and have the autonomy to deliver the best possible care.
  6. 6. Define 1 product or 1 service. Then create a multidisciplinary team of about 7 people. This team will have total control of everything they do. It is completely autonomous and self sufficient. There is zero interruption and interference from the remaining company. The team works like a start-up. The goal of the team is to create a winning product / a winning service. The team is responsible for its results.
  7. 7. Increasingly, high performing staff will demand greater autonomy - not for selfish reasons, but to get things done quickly.
  8. 8. Zappos is made up of different circles. People can have any number of roles within those circles.
  9. 9. Organizational structure needed to initiate an innovation
  10. 10. Hewlett-Packard’s laser-printer division in Boise, Idaho, was hugely successful, enjoying high margins and a reputation for superior product quality. Unfortunately, its ink-jet project, which represented a disruptive innovation, languished inside the mainstream HP printer business. Although the processes for developing the two types of printers were basically the same, there was a difference in values. It was not until HP’s managers decided to transfer the unit to a separate division in Vancouver, British Columbia, with the goal of competing head-to-head with its own laser business, that the ink-jet business finally became successful.
  11. 11. Once the acquisition’s managers are forced to adopt the buyer’s way of doing business, its capabilities will disappear. A better strategy is to let the [acquired] business stand alone and to infuse the parent’s resources into the acquired company’s processes and values. This approach truly constitutes the acquisition of new capabilities.
  12. 12. and both established innovation funds. Investments in development of ideas, that anyone has, are made independently of the traditional budget cycle.
  13. 13. Increasingly, coordination will come from lateral communication and social networks where peers across the organization can discover for themselves where coordination needs to happen, where we need to be working together and then solve those problems.