With today's communication technology and changing attitudes toward work, a new management system is becoming popular and successful. It is front-line people managing and making decisions for themselves. This presentation offers some guidelines on how to make this system more productive than traditionally managed organizations.

1. 1
Peer-to-peer Management Systems
This new management system creates a paradigm that reframes leadership
to engage and catalyze participative communities both inside and outside a
single organization.
Source: THE OPEN ORGANIZATION by Jim Whitehurst published by HBR Press, 2015

2. 2
Peer-to-peer Management Systems
ENGAGEMENT: What
is on the employee’s
mind? Can I get them
engaged in company
projects?

3. Traditional Top-Down Decision-Making
3
With top-down decision-making, walls tend to be built between departments.
They need not collaborate, as decisions have already been made.
Also, with top-down decision-making,
walls tend to be built between a
company’s suppliers, customers, partners
and the general public. They too are not
involved in the decision-making process.
Outside suppliers,
customersEmployee
Barriers to
communication and collaboration
President
Vice President
Finance
Controller
Vice President
R&D
Product
Researcher
Vice President
Production
Management
Production
Planning
Vice President
Sales
Salesman

4. 4
Peer-to-peer Management Systems engages staff
In a peer-to-peer management
system, formal managers can
only try to create the right
environment for the group. The
front-line group selects its own
projects and project leaders.
Questions?
Concerns!
This new type of management system is being successfully adopted. It is a self-
managed front-line peer-to-peer community that is an all-inclusive, leadership-
driven, employee-owned culture. It sounds like an ESOP but with a strong
management system included.
Questions?
Concerns!
Questions?
Concerns!
Source: THE OPEN ORGANIZATION by Jim Whitehurst published by HBR Press, 2015

5. Front-line
Observation
Orient to
the issue
of
concern
Decide
on action
plan
Implement
of Action
plan
Speed of
response and
resolution
Front-line Quick Action
5
Management directives can reduce people’s desire to engage in the problems and goals
of the company. This will slow execution down and reduce the chance of success.
As much as possible with the knowledge and skills they have, front-
line people can manage themselves, get things done faster and better.
The faster a company acts to
market changes, customer
desires/complaints and
competitor activities, the
more competitive they will
be. Front-line staff
participation is the secret.
Source: THE OPEN ORGANIZATION by Jim Whitehurst published by HBR Press, 2015

6. Peer-to-Peer Managed Organizations
Communities that spontaneously self-organize around a problem or activity
6
President
Vice President
Finance
Controller
Vice President
R&D
Product
Researcher
Vice President
Production
Management
Production
Planning
Vice President
Sales
Salesman
Peer-to-Peer Managed Organizations: Have agility, innovation and empowerment.
Bottom-up Environment: Are more passionate, have more initiative, are self-managing, are more creative, are
more transparent, are more cooperative, value meritocracy and maintain personal accountability.
Conditions of a “Front-line Peer-to-Peer” Community (management team)
1. Purpose: Belief in the single purpose of the team with passion
2. Value: Belief the value the purpose will serve all stakeholders, including themselves.
3. Skills: Possess required skills and knowledge that will contribute to achieving the goals.
4. Communication: Good ability and desire to communicate with other members of the team.
5. Trust: Have members on the team that are highly trustworthy.
6. Caring: They personally care about what is being achieved.
7. Curiosity: They have curiosity as to what can be achieve and envisions positive rewards.
8. Leadership: A group member is decided by the group to speaks for the group and insure open discussions.
They build on
connections, trust,
transparency,
collaboration
and meritocracy.

7. Accountability
Superiors
Peers
Staff
Peers
Front-line 360°Accountability
7
Managers are rewarded
by there peers and
subordinates as well.
Rewards are not from
superiors only.
Accountability
Superiors
In the conventional organization, accountability is only one-way, from
staff to superior. In peer-to-peer managed organizations, employees
are accountable to everyone affected by the activity.
Front-line peer-to-peer managed organization
conventional organization
Source: THE OPEN ORGANIZATION by Jim Whitehurst published by HBR Press, 2015

8. 8
Why
(Motivating &
inspiring)
How (Getting
things done)
What (Setting
Direction)
Command,
control, central
planning
Title & Rank Hierarchy
Promotion Pay
Conventional Organization:
Cascading down from “What” to “How” to “Why”
Source: THE OPEN ORGANIZATION by Jim Whitehurst published by HBR Press, 2015
Conventional Organization vs. Peer-to-Peer Managed Organization

9. Conventional Organization vs. Peer-to-Peer Managed Organization
9
Why (Motivating
& inspiring)
How (Getting
things done)
What (Setting
Direction)
Catalyzing,
inclusive
decision-making
Meritocracy
Open discussion
& problem
solving
Build
engagement
Show personal
value
Show
contribution
Peer-to-Peer Managed :
Bubbling up from “Why” to “How” to “What”
Source: THE OPEN ORGANIZATION by Jim Whitehurst published by HBR Press, 2015

10. Front-line Accountability & Action
10
TOP-DOWN: Managers make decisions and
give direction. All other people just follow
assignments without input or thinking.
Top-down Environment
•Employees financially
dependent, obedient, diligent,
capable, competitive for
position/title, secretive, asset
controlling
Bottom-up Environment
•Passionate, Initiative, Self-managing,
collaboration/sharing, creative,
transparent, cooperative, meritocracy
BOTTOM-UP: As much as
possible with the knowledge
and skills they have, let front-
line people manage themselves.

11. 11
Front-line Decision-making and management
Traditional Hierarchical
Organization:
•Large Scale coordination,
Efficient, Disciplined
Peer-to-Peer Managed
Organization:
•Agility, Innovation, Empowerment.
Giving Direction
Share in decision-making
Demand voice in decisions
Manager tells people what to do.
The manager convinces people
that they are valuable and informs
them where they fit in. He asks for
suggestions on what to do and
how to be accountable for it.
It is difficult to be excited and passionate
about something you are told to do without
an explanation or your opinions heard.
Peers as participants: They
want to play a in role projects
being considered. They do
not want to just leave it up to
others to decide. They
wanted to help decide exactly
what the project will achieve.

12. 12
Front-line meetings that stimulate all member in the discussions
Too toxic
Emotion based
criticism
Too nice
Withholding beliefs
for group harmony
Response to Suggestions
(Communication Breakdown)
“Creative abrasion”: There may be disagreements, but they are always in
the context of a shared purpose, shared values, and rules of engagement.*
* Source: COLLECTIVE GENIUS, by Linda Hill, Greg Brandeau, Emily Truelove, and Kent Lineback, HBR Press, 2014

13. 13
Front-line discussions must be balanced.
1-Freedom to
speak
2-Courage to
offer
something
different
3-
Commitment
to goal and
progress
4-
Accountable
for results
Four things must be balanced in peer-to-peer
managed discussion meetings:
1. All members in a meeting must be
encouraged to speak freely and honestly.
2. All members must be courageous enough to
be different.
3. All members must be committed to progress
and achievement.
4. All members must be accountable for results
and back up their positions with facts.
- Commitment
- Accountability
- Freedom
- Courage
Source: THE OPEN ORGANIZATION by Jim Whitehurst published by HBR Press, 2015

14. This is where we rely heavily on 360 degree
accountability and peer-to-peer management.
14
Opinions and open discussion with clear goal in mind
Shut down debate
• Attacks too caustic
• Off goals & objectives
• Unsupported
opinions
Push for frank
feedback
• Encourage speaking
time
• All feedback is a
volunteered gift.
CONCERN: Chaos, off objectiveGOAL: Open discussion
CONCERN:
Closed, non-participative
environment

15. 15
Us/Them Management vs. We Management Problem
Us:
With status and titles, in suits, with nice
cars, parking spaces, big offices.
Them:
In work clothes, with old cars,
foot lockers and no office.
We:
No single member sticks out. We
discuss what needs to be done
together, decide our own leader,
identify challenges and put in
action plans together. Have no
titles, are all the same and respect
each other’s concerns.
Source: THE OPEN ORGANIZATION by Jim Whitehurst published by HBR Press, 2015

16. 16
What if there were a way to treat those outside your company in a way that
truly inspires, motivates and rewards top performance and contribution?
Building front-line communities outside the organization
among partners, vendors, customer and general contributors
Could the conditions of a “Front-line Peer-to-Peer” Community
be applied (slide: 6)? It may well be that we will be hearing
examples and cases of this in the months and years ahead.

17. 17
Top-down management has been successful, but peer-to-peer front-line management is
gaining popularity and success. With today’s communication technology, possibly there could
be a blend of both approaches in any situation to achieve the best outcome.
Top-down vs. Peer-to-peer Management
Top-down direction
giving hierarchy
Blend of approaches
by situation, problem
and assignment
Full peer-to-peer
community decision
management
To gain the efficiency and coordination of a top-down system on the one hand and the speed and
agility of a peer-to-peer system on the other, a detailed make-up of this blend is what we have to
explore. Possibly that exploration should be on a project, threat or opportunity basis.
Whatever the configuration, people must agree with it. Possibly a "Count Me In" written
agreement is need, which establishes the behaviors expected and what procedures to be followed.

18. 18
Peer-to-peer Management Systems
If the environment is right and the members are willing to participate
in this self-managing system, a great deal can be achieved.
Source: THE OPEN ORGANIZATION by Jim Whitehurst published by HBR Press, 2015