Managing Without Managers
The Morning Star Company is a California based agribusiness and food processing company. Producers of canned diced tomatoes and both cold and hot break tomato paste.
WHAT IS THIS HR INNOVATION ABOUT?
Morning Star’s founder, Chris Rufer, has designed a self-management system where everyone drafts an annual Colleague Letter Of Understanding (CLOU) and presents it to his or her work group. The letter states how each colleague will create value for the group and support the group’s goals. Then, colleagues receive feedback from those around them on how well they are meeting their goals. Anyone can order equipment or materials they need at any time, but must present the bill to their work group and justify the purchase when each group’s profit and loss calculation is done. The staff is paid to attend a basic accounting course so they can understand the company’s finances.
WHAT ARE ITS MAIN BENEFITS?
In the last decade, Morning Star has had double-digit revenue growth, and its annual colleague turnover rate is close to zero. Employees are engaged and happy. Eliminate hierarchy, high stress and fear from the executive board. Eliminate the pressure of monitoring and follow-up. Generates trust.
WHY WAS THIS INNOVATION IMPLEMENTED?
When no one carries the title of “manager,” every colleague becomes a manager of his or her peers–and a manager of oneself.
Try a self-management model a disrupting mode of running a business.
California, United States, 2012
Check sources at the end of the page
http://www.druckerinstitute.com/2012/02/managing-without-managers/