When we think about self-organization the obvious context is a team. Everyone in the Agile world have heard about self-organized teams. We expect a boost of engagement and productivity when people aren’t told how to organize themselves.
Interestingly enough, despite all the benefits we see at a team level, almost no organizations try to scale the concept of self-organization up. The reason is the hierarchical power distribution structure that is at the core of almost all organizations. We commonly call it management. Introducing self-organization throughout the organization would require to redesign how it is managed. Is it even possible?
Let me walk you through that story. At Lunar Logic in less than 4 years we evolved from a traditional organizational model with strong management to fully self-organized company. Our CEO has equal access to information and equal decision-making power as an intern who we hired last month. We have no managers and are in need of none.
We are not crazy, mind you. The company didn’t collapse. Conversely, the retention has improved, motivation went through the roof, and financially the company has never been more stable as it is now. While I won’t lie that it’s been easy, the outcomes speak for themselves.
4. A HEALTHY WORKPLACE WHICH ALLOWS US
TO FULFILL OUR POTENTIAL, KEEPS US
ENGAGED, AND GIVES US OPTIONS TO
PURSUE OUR PERSONAL GOALS EVEN WHEN
THEY CHANGE OVER THE COURSE OF OUR
LIFETIMES.
5. WORLDWIDE, ONLY 13% OF
EMPLOYEES ARE ENGAGED
AT WORK.
GALLUP, 2013
Source: Gallup: State of the Global Workplace
11. WE DON’T CHANGE PEOPLE’S BEHAVIORS
SIMPLY BY MAKING INFORMATION
AVAILABLE. WE NEED UNDERSTANDING
OF INFORMATION WE RECEIVE AND
CAPABILITIES TO ACT ON IT.
13. DECENTRALIZING CONTROL
REQUIRES DECENTRALIZING BOTH
THE AUTHORITY TO MAKE DECISIONS
AND THE INFORMATION REQUIRED
TO MAKE THESE DECISIONS
CORRECTLY.
DON REINERTSEN
Source: Don Reinertsen: Principles of Product Development Flow
14. AUTHORITY DOESN’T AUTOMATICALLY MEAN
AUTONOMY. THERE ARE ENVIRONMENTAL
CONDITIONS THAT MAY PREVENT US FROM
EXERCISING AUTHORITY WE FORMALLY HAVE.
15. TO ENABLE LOWER
ORGANIZATIONAL LEVELS TO MAKE
DECISIONS, WE NEED TO GIVE THEM
AUTHORITY, INFORMATION, AND
PRACTICE. WITHOUT PRACTICE AND
THE FREEDOM TO FAIL UPON
OCCASION, THEY WILL NOT TAKE
CONTROL OF THESE DECISIONS.
DON REINERTSEN
Source: Don Reinertsen: Principles of Product Development Flow
37. THE TRADITIONAL ORGANIZATION DESIGN IS
BASED ON A HIERARCHICAL
POWER-DISTRIBUTION STRUCTURE.
THE NEW PARADIGM IS (BOUNDED)
AUTONOMY, WHICH PROMOTES INITIATIVE
OVER FORMAL POSITION.
38. THE CHANGE IS NOT ABOUT AN
ORGANIZTION BECOMING INFORMAL
INSTEAD OF FORMAL.
AUTONOMY-BASED ORGNIZATIONAL DESIGN
CAN BE EMERGENT AND VERY INFORMAL AS
WELL AS EXTREMELY FORMALIZED, AS IT
HAPPENS WITH E.G. HOLACRACY.
39. organizational culture
the behavior of humans who are part of an organization
and the meanings that the people react to their actions
includes the organization values, visions, norms, working
language, systems, symbols, beliefs, and habits
Source: http://en.wikipedia.org/wiki/Organizational_culture
40. SUSTAINED TECHNICAL EXCELLENCE
LEAN & AGILE
TRULY FLAT ORGANIZATION
EXTREMELY TRANSPARENT
NO MANAGEMENT STRUCTURE
EMERGENT LEADERSHIP
NEW LOGO
41. 10% - 20% PEOPLE LEAVE
BECAUSE OF THE TRANSFORMATION
42.
43.
44.
45. A WORKPLACE WHERE WE CAN PURSUE
OUR DREAMS NOT BY LEAVING THE
COMPANY AT A FIRST SIGN OF
MISALIGNMENT BUT BY INFLUENCING AND
CHANGING THE ORGANIZATION SO IT SUITS
OUR PLANS BETTER.