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Customer Focused Organizational Chart For High Performing Companies

org chartThe flat organization is a concept in managing and motivating employees that has gotten a lot of interest. Instead of a traditional hierarchy with many layers of management, many companies are looking to create a more egalitarian structure. Flattening the hierarchy can allow employees from all levels of the organization to enjoy a work environment with greater freedom and creativity, and — hopefully — achieve higher levels of productivity.

A flat organizational chart does not mean lack of Leadership – on the contrary, it requires high levels of internal communication, focused interaction and a common thread of serving the customer… whether that is the external customer or the internal customer

A recent article in Slate describes what is happening at a few companies that are taking the flat organization concept to the extreme. The idea is called the “self-managed organization,” and it involves no managers. That’s right — no bosses. Employees in a self-managed organization all work as independent contractors, project managers and collaborators. Instead of reporting to managers, self-managed employees report to each other.

One example of a self-managed company is Morning Star, the world’s largest tomato processor with 400 full-time employees and $700 million in annual revenue. Employees there are all equals — there are no job titles and no higher ups. Instead, all employees work according to contractual agreements called Colleague Letters of Understanding (CLOUs) that outline the expectations and responsibilities for each worker.

A self-managed company structure is radically different from how most companies do things, but it comes with some unique benefits:

Better Efficiency

Self-managed companies can improve productivity because they enable faster innovation. Instead of asking their boss and their boss’s boss for permission to try something new or solve a problem in a new way, in a self-managed organization workers can simply consult a peer and get to work.

More Employee Autonomy

At self-managed companies like Morning Star, employees have a significant amount of freedom to decide how they work – and which projects to prioritize. Instead of taking orders from a higher-ranking boss, employees must gain consensus among their work teams.

For example, instead of having pay raises approved by bosses, employee compensation is handled by a review panel of coworkers. This fosters empowerment and initiative, as instead of waiting for a boss to give them direction, workers constantly evaluate their options and collaborate with the larger team to decide on which projects are most important.

Greater Adaptability

Because employees at self-managed organizations create their own sense of leadership and teamwork, there is often more flexibility and adaptability within the company. Instead of having designated departments for each business function, employees can be quickly reassigned to new projects that arise. Ideally, the self-managed organization might make it easier for companies to respond quickly to opportunities or deploy employees for new roles, regardless of the traditional idea of job titles or hierarchies.

Is a self-managed organization right for your business? Even if that’s too extreme an option, the idea of moving toward a flatter organization with more fluid job roles is worth considering. More companies are expecting employees to serve in a variety of capacities, manage numerous projects and contribute to multiple teams. The self-managed organization might not become commonplace anytime soon, but many companies can learn from, and hopefully capitalize on, some of the ways in which flatter organizations motivate employees and enhance productivity.

If you would like learn more about how you can get help to look at your business so that you can start creating a flat organization that is focused on customer satisfaction, call Coach Michael Stelter at Advanced Business Coaching, Inc. (262) 293.3166.

Key Habit for Small Business Owner

The Most Important Habit That Will Contribte to Small Business Success

Napoleon Hill spent most of his life studying the most successful entrepreneurs in American history.  He analysed men like Ford, Edison and Carnegie at length.  He concluded that success followed predictable and distinct patterns of behavior.  He suggested that all men and women have similar options open to them. He argued that great success and achievement were available to any and all who would choose to follow certain requirements which he spelled out in his many books.

Mr Hill was the architect of the philosophy of success.  He was a pioneer and an original thinker.  Many books and articles have copied his ideas, but he remains the master.   Of all the great human accomplishments in the 20th century, the judgement of history will inevitably rank the commentaries of Napoleon Hill among them.

I hope you will gain some small benefit from this section.

However, as you read through the article, it will become obvious it was well before the time of equality of the sexes.  Just bear with this anachronism.

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An important principle of success in all walks of life and in all occupations is a willingness to Go the Extra Mile; which means the rendering of more and better service than that for which one is paid, and giving it in a positive mental attitude.

Search wherever you will for a single sound argument against this principle, and you will not find it, nor will you find a single instance of enduring success which was not attained in part by its application.

The principle is not the creation of man.  It is a part of Nature’s handiwork, for it is obvious that every living creature below the intelligence of man is forced to apply the principle in order to survive.

Many may disregard the principle if he chooses, but he cannot do so and at the same time enjoy the fruits of enduring success.

The 12 Key Advantages of the habit of GOING THE EXTRA MILE… 
  1. The habit brings the favorable attention of those who can and will provide opportunities for self-advancement.It tends to make one indispensable, in many different human relationships and it therefore enables him to command more than average compensation for personal services.
  2. It leads to mental growth and to physical skill and perfection in many forms of endeavor  thereby adding to one’s earning capacity.
  3. It protects one against the loss of employment, when scarce and places him in a position to command the choicest jobs.
  4. It enables one to profit by the law of contrast since the majority of people do not practice the habit.
  5. It leads to the development of a positive, pleasing mental attitude, which is essential for enduring success.
  6. It tends to develop a keen, alert imagination because it is a habit which inspires one continuously to seek new and better ways of rendering service.
  7. It develops the important quality of personal initiative.
  8. It develops the self-reliance and courage.
  9. It serves to build the confidence of others in one’s integrity.
  10. It aids the mastery of the destructive habit of procrastination.
  11. It develops definiteness of purpose, insuring one against the common habit of aimlessness.
  12. There is still another great reason for following the habit of going the extra mile.  It gives one the only logical reason for asking for increased compensation.
If a man performs no more service than that for which he is being paid, then obviously he is receiving all the pay to which he is entitled.

He must render as much service as that for which he is being paid, in order to hold his job, or to maintain his source of income, regardless of how he earns.

But he has the privilege always of rendering an over plus of service as a means of accumulating a reserve credit of goodwill, and to provide a just reason for demanding more pay, a better position, or both.

Every position based upon a salary or wages provides one with an opportunity to advance himself by the application of this principle, and it is important to note that the American system of free enterprise is operated on a basis of providing every worker in industry with a proper incentive to apply the principle.

If you would like learn more about how you can show your team ways to Go The Extra Mile and grow your business , call Coach Michael Stelter at Advanced Business Coaching, Inc. (262) 293.3166.