flat - no managers

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Flat


Our founding fathers didn’t set their sites on making a better monarchy, they sought to supplant it.


There are 2 basic principals that lead to abundance, happiness and prosperity.

1. Don’t use force against each other (criminal)

2. Keep your commitments (civil)


Responsibility is freedom’s twin


There are no managers.GuidingPrincipals


Everyone is a managerGuidingPrincipals


Typically, key positions often go to those who are the most politically astute vs. the competent.


When you take out the pyramid, you drain most of the poison out.


Power is ‘sticky’. It doesn’t typically flow from an individual who is less capable to someone that’s more.


No individual can fire anyoneGuidingPrincipals


No individual can change your compensationGuidingPrincipals


There are no titles.

We are all colleagues.

GuidingPrincipals


There are leaders.GuidingPrincipals


The company’s leaders are determined by you. Leadership is not something that is granted, it is earned.

You and your peers will determine who you will follow and who you look up to for guidance and mentorship.

GuidingPrincipals


The core of a flat structure is making and keeping commitments.

GuidingPrincipals

Persuade vs. Dictate


Commitment Loop

3.) If needed, negotiate a new commitment if you can.

4.) Meet the commitment

1.) Colleague asks you for a commitment

2.) Agree on a Commitment


Keeping commitments creates economic value and makes you as an individual and the enterprise you work within more valuable.


Goals vs. Commitments

A goal is something you aspire to achieve. A goal is NOT a commitment.

Consistently keeping commitments is something you must do in order to remain

with the company.


Commitments

Making a commitment is voluntary.

Nobody can force you to make a commitment.NOBODY!

(When someone is hired they have a list of commitments that come with the position. They don’t have to accept them. We also don’t have to hire them. :-D)


Colleague Letter of Commitments

(CLC Doc)Pronounced Click Doc


CLC Doc A CLC doc should not include a list of goals.


Commitments go well beyond what’s in your CLC doc.

Any time you say your going to do something and when you’re going to have

it done by, it’s a commitment.

So be very clear when you’re stating a goal vs. a commitment.

CLC Doc


If you’re seeking a commitment from a colleague, get it in writing to avoid

miscommunication.

Be very clear when you’re stating a goal vs. a commitment.

CLC Doc


Mediation

• If a colleague has an issue with a fellow colleague that cannot be worked out, they can ask for mediation.

• Colleagues cannot meet with a mediator on their own to discuss issues about a fellow colleague. They can only meet as a group.

• Mediators are required to ensure this takes place as a group.• Colleagues should work out issues with their colleagues on their

own whenever possible. • Use of a mediator should be a last resort, not a first one.• Mediators should provide input and advice on the situation and

request that the parties work out their difference.• If both parties cannot agree, then a second mediation will take

place with 3 or more mediators. The mediators will make a final ruling that all parties must agree to.


Exceptions:

If you feel in danger, threatened or harassed you will not be expected to have a group mediation.

If it’s proven that someone is threatening a colleague, causes them harm, engages in illegal activities or harassment, then a senior leader in the company could immediately dismiss them if they find merit in the accusations and bypass the mediation process.


What is a Commitment Mediation (CM):• Colleague not meeting agreed to commitments• The perception that a colleague is sandbagging on their

commitments• Colleague not agreeing to commitments that are reasonable for the

role they were originally hired for

Commitment Mediation


Commitment Mediation

• There must be 3 mediators in attendance • Meeting will take place ASAP• The mediators are there to review facts. Colleagues have the burden of proving

that a fellow colleague has not met their commitments. Only objective commitments will be reviewed. Objective requires that a number(s) are included.

• Commitments are not limited to what’s found in the CLC Doc.• What are some of the things you can you expect from a C.M.?

• Guidance from the mediators and a request that the individuals continue to work out their differences

• Possible termination• A recommendation that a colleague take a new position in the company (if

available) that might better fit their skill level


Mediators

Mediators are senior leaders in the company that have experience in dealing with conflict resolution

Mediators will be chosen by the organization and will include a process by which they become mediators


CompensationCommittee

• Includes senior most leadership• The future finance leader will be part of this committee

• Every new colleague and existing colleagues compensation must be produced and agreed to by a majority of the comp committee.

• Pay will be a reflection of the following:• Market data • Your commitments and ability to meet them• The company achieving it’s goals

• At any time, a colleague can request that the comp committee review their current pay and commitments and ask for a comp review based on the fact they have increased their commitments or the market has changed. • At that time, the C.C. will reach out to their colleagues and being a

review process to determine if the colleague is due increased compensation.


Benefits

• More initiative driven by “reputational capital”• More expertise – the experts aren’t managers, it’s the people

doing the work• More flexibility – “Clouds form and go away”• More collegiality – no backsides to kiss and no adversaries to

elbow aside – “there’s less back-stabbing because we’re not competing for that scarce commodity called a promotion”

• More judgment – Sr. managers make decisions that appear to be brilliant but boneheaded by those on the front lines because they lack context

• More loyalty –• Less overhead – layers of people telling other people what to do.

Means more profit and dollars in your pocket


Challenges

• Recruiting and retention – this ain’t for everyone• Holding each other accountable - “hey, I’ll go easy on you if you

go easy on me”• Growth through acquisition is not realistic• Tracking career progress – it’s all about the title


Process You can expect more processes.


A process mindset thinks beyond individual quirks, personalities and conflicts.

A process culture values its processes as strategic assets, and seeks independence from individual knowledge bases and ‘turf’.


An enterprise with a process mindset will always have a strategic competitive advantage over an organization that doesn’t – because a process culture leads to continuous improvement.


Success is about healthy confrontation.

flat - no managers

Business

guiding principals

guiding principals

commitment

clc doc

youre stating

fellow colleague

mediation

confidential