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How to Design a Flat Organization
Take the case of French company FAVI, an autoparts supplier manufacturing copper alloy components. CEO Jean-Francois Zobrist eliminated the personnel department immediately upon taking the helm of the company in 1983. But that wasn’t all he got rid of. Says Zobrist: “I came in the day after I became CEO, and gathered the people. I told them tomorrow when you come to work, you do not work for me or for a boss. You work for your customer. I don’t pay you. They do. Every customer has its own factory now. You do what is needed for the customer.” And with that single stroke, he eliminated the central control: personnel, product development, purchasing…all gone.
Tomorrow's Talent Networks - The Big Shift - HarvardBusiness.org
Even these questions indicate a dated view of where talent is and how to get the most out of it. Sure, no one disputes the importance of talent, even in a recession. But, as a Deloitte report contends (.pdf link), companies spend entirely too much time focused on attracting and retaining talent. Moreover, as they do, they often lose sight of what appeals to and keeps hold of talent in the first place. (See John's perspectives on the report and on the mindsets that limit firms.)
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Talented workers join companies and stay there because they believe they'll learn faster and better than they would at other employers.
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Talented workers develop instead by:
- Trying new things.
- Experimenting with what they do in their jobs and how they do it.
- Tackling real problems with talented people who have different backgrounds and skills.
- Participating in talent networks, the largely invisible matrix structures that run within firms and, with increasing frequency, between and across them. - 1 more annotations...
Evolving Web: Lean Management and The Pull of Goals
Goals are indeed a pull system. Goals come from internal processes. We have individual and shared goals that motivate us to act.
Goals pull us, we ideally act based on goals. These individual actions are tasks. The tasks we take on are in service of the goals. However, if we don’t actually enjoy what we’re doing in service of these goals or, worse yet, act contrary to our goals – we are squandering our lives.
In a business context, if goals are clear amongst teams and the organization, the work involved in achieving those goals is more likely to be rewarding. We are happier in doing it. And this is a pull process.
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The push of drive is the artificial force necessary to apply to people to get them to work contrary to their own goals.
Enter here the concept of friction. When you apply an external force to an object to get it to move, friction occurs. The amount of friction is the amount of energy lost in the transfer of momentum from one object to another. Loss of energy = waste.
In a pull system, things operate faster by removing friction or constraints. In a push system, things operate faster by applying more force.
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