12 Principles of new organization

Posted on Posted in management

How are these principles applied in your company? Do you have modern management system? Let me know if you want to discuss this more or have any practical hints how to move that direction in the company with more than 5 people.

Leadership

  1. Orientation towards client – teams are seeking highest clients satisfaction level rather than achievement of fixed targets from the top management
  2. Responsibility – not central hierarchical units, but small network units are responsible for the results
  3. Effective environment – environment where team’s success is measured according market success, instead of internal fixed targets achievement
  4. Actions freedom – decentralized teams, which are directly working with clients, have all freedom to make decisions and take actions
  5. Management style – everything is managed based on clear and understandable values and boundaries instead of rules and fixed budgets
  6. Transparency – important information is easily accessible to everybody

Processes

  1. Targets setting – making challenging flexible targets, oriented towards continuous relative improvement instead of fixed targets defined for a year. You can call it a direction.
  2. Bonuses and awards – evaluation of overall success and rewarding based on relative improvement instead of rewarding for certain achievements, fixed targets
  3. Planning – collaborative continuous activity that is oriented towards actions, no separation between thinkers and doers.
  4. Control – control is performed based on relative metrics compared with market trends/other teams/previous periods instead of comparing deviations between planned and actual results
  5. Resources – resources are provided on demand without upfront planning and budgeting
  6. Adjustments – adjustments are made as reactions to market changes or new demand, instead of agreed planning cycles or hierarchical coordination

p.s. translated from this very interesting book http://www.goodreads.com/book/show/18462862 by http://nielspflaeging.com/

p.p.s. comparing my organization against these principles now to identify next steps for improvements

Leave a Reply

Your email address will not be published. Required fields are marked *