Apr 09 by James M. Kerr Print This Article Earlier this year, with sweeping transparency as the goal, Zappos announced that its traditional organizational structure is being replaced by a Holacracy - a "self-governing" management system where there are no job titles and no managers".
But WL Gore and Associates is not most companies. Although there is a structure divisions, business units and so on there is no organisation chart, no hierarchy and therefore no bosses.
Kelly is one of the few with a title. As she acknowledges, that makes her job rather different from that of most CEOs. Bill Gore, who set up the company with his wife Vieve short for Genevieve in the family garage inwanted to build a firm that was truly innovative.
So there were no rule books or bureaucracy. He strongly believed that people come to work to do well and do the right thing. Trust, peer pressure and the desire to invent great products - market-leading guitar strings, dental floss, fuel cells, cardiovascular and surgical applications and all kinds of specialised fabrics - would be the glue holding the company together, rather than the official procedures other companies rely on.
Traditionalists looking at Gore wonder how it works. Kelly laughs - as she does frequently - and counters that it works just fine, particularly in chaotic times like these.
The financial crisis is also a management crisis and the symptom, she believes, of a wider issue: Counter-intuitively, the best governance, especially in troubled periods, is the absence of external rules: So when the previous group CEO retired three years ago, there was no shortlist of preferred candidates.
Alongside board discussions, a wide range of associates were invited to nominate to the post someone they would be willing to follow.
Gore now does a better job of planning investment and forecasting, she maintains, but it still tries to avoid the games-playing and inflexibility of the traditional budget. The planning and investment horizon have to match.
When Gore units grow to around people, they are usually split up. These small plants are organised in clusters or campuses, ideally with a dozen or so sites in close enough proximity to permit knowledge synergies, but still intimate and separate enough to encourage ownership and identity.
An accountant might complain that creates duplication of costs; Gore believes those are more than offset by the benefits smallness brings. A Gore lifer, Kelly joined the company as a process engineer in after graduating with distinction from the University of Delaware with a degree in mechanical engineering.
She cut her teeth as a product specialist with the military fabrics business - a unit she eventually led - before moving to head the global fabrics division. Is lack of experience outside the company a disadvantage, or an essential qualification for running Gore?
It is hard to imagine an outsider being able to understand, let alone manage, a distinctive culture such as this. Most companies find safety in numbers, ending up broadly resembling their industry counterparts in strategy, products and management processes.
For the consequences, look no further than the credit crunch, which has overwhelmed the copycats in the financial sector. Kelly, on the other hand, spends most of her time on emphasising difference and preventing people from reverting to the conventional wisdom that in other firms would be the norm.
This is a fine line to tread. Protecting the core heritage is one thing; not allowing anything to change is another. Growth, then, will largely be dictated by its ability to assimilate new people.
Lives in Delaware, married with four children Topics.That makes bureaucracy the organizational equivalent of kudzu, the invasive, herbicide-resistant vine that has overrun thousands of acres of woodland in the American south.
and W.L. Gore, the. A company’s organizational structure is the composition and system design applied on the interconnections among employees, groups, and divisions of the business. In Nike’s case, the corporate structure highlights the need to address differences among regional markets.
Final Exam Henderson. STUDY. PLAY. Which of the following exemplifies the organic nature of W.L. Gore's organizational structure? It has no formal chain of command or standard operating procedures.
Strategic business units (SBUs) in a company that uses an unrelated-diversification strategy are in direct competition with each other because. Chotchkie’s organizational structure involved simpler working relationships, but these relationships were strained beyond the breaking point by a manager’s eccentricities.
In a more general sense, Office Space shows that all organizational structures involve a . Jan 07, · According to Hamel, Gore’s core business values included believing in the individual to do what's right for the company, providing freedom for associates to make their own decisions, fairness.
W.L. Gore and Associates unique organizational structure sets them aside from the rest. They are unique in their products and services, their ability to adapt to .