First, Let's fire all managers
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Management is the least efficient activity in your organization. In this presentation you will find out why you need to fire managers and rely on self- management. “organization is not real, the only reality are individuals.” Paul Green
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First, Let's fire all managers
- 1. FIRST, LET’S FIRE ALL THE MANAGERSHarvard Business Review , Dec 2011 , By Gary Hamel
- 2. HOLACRACY
- 3. About Presenter @saharpakseresht Sahar Pakseresht COO @recommender_ir sahar.pakseresht@gmail.com
- 4. Gary Hamel • The world’s most influential business thinker • Co-founder and Professor at London Business School • the world’s leading expert on business strategy • 17 articles for the Harvard Business Review About Author • Management Innovation Exchange
- 5. MANAGEMENT is the least efficient activity in your organization.
- 6. 1. Managers add overhead • As an organization grows, the costs of management rise in both absolute and relative terms.
- 7. Example
- 11. Direct Management Cost Each manager earns 3 times the average salary of a first-level employee Management is expensive
- 12. 2. Increase risk • As decisions get bigger, the ranks of those able to challenge the decision maker get smaller. • the most powerful managers are the ones furthest from frontline realities.
- 13. 3. speed bump • A multitiered management structure means more approval layers and slower responses
- 14. 4. Dream killer • you shrink the incentive to dream, imagine, and contribute. • The hierarchical structure that systematically disempowers lower-level employees.
- 15. Beyond management Imagine a company could be … Peer Based Compensation decisions No one has Boss Employees negotiate responsibilities with their peers Every one has to acquire the needed Tools to do activities Every one can spend the company money No Title ,No Promotion
- 16. Chris Rufer • Founded morning star in 1970 • Located in California, the world's most prolific tomato growing region • Products: Bulk Tomato , Ketchup, Tomato Paste , diced tomato , Tomato Juice • Over 25% of the California processing tomato production, supplying 40% of the U.S. • 400 Employees , Revenue at 2010 ➔ $700 Million. Formed the Self-Management Institute in 2008 as a research and educational group focused on the development of organizational tools, systems and ideas http://www.self-managementinstitute.org/
- 18. Unpacking The Morning Star Model Communications Coordination Colleagues Customers Industry Participants Directives Team members self-managing
- 19. Unpacking The Morning Star Model 1. Make the mission the boss.
- 20. Unpacking The Morning Star Model 2. Let employees forge agreements.
- 21. Unpacking The Morning Star Model - Chris Rufer Freedom isn’t the enemy of coordination, its ally. Nobody’s your boss and everybody’s your boss. The CLOUs create structures.
- 22. Unpacking The Morning Star Model 3. Empower everyone—truly. You can’t tell someone, ‘Get this done.’ You have to do whatever needs to be done.
- 23. Unpacking The Morning Star Model 4. Don’t force people into boxes. Everyone has the right to suggest improvements in any area
- 24. Unpacking The Morning Star Model 5. Encourage competition for impact, not for promotions.
- 25. 1. write down a personal mission To build a self-managing organization
- 26. 2. look for small ways to expand the scope of employee autonomy. To build a self-managing organization
- 27. To build a self-managing organization We have a lot of spontaneous innovation, and ideas for change come from unusual places. - Paul Green
- 28. To build a self-managing organization 3.Equip every team with its own P&L account. The road to self-management is paved with information. Profit Loss &
- 29. To build a self-managing organization 4. look for ways to erase the distinctions between those who manage
- 30. Freedom to succeed Increase Performance Chaos Eagerly Working Irregularities Core of Morning Star
- 33. Managers Vs. Managing Morning Stars Self Management Planning,Organizing Managing activities & Resources Right information, Incentives Controlling Accountability Tools Coaching , Staffing
- 34. Managers Vs. Managing Self Management System could be applicable in : The companies with 10,000 or 100,000 employees? Other Cultures ? Competitive markets ?
- 35. Holacracy companies W. L. Gore, Inc. Semco Partners Valve Corporation Menlo Innovations