Mottos of Success 2.0 E-Book

Jouni Laukkanen

• Herausgeber: Books on Demand
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 242

Veröffentlichungsjahr: 2024

Beschreibung

Mottos of Success 2.0 - For Managers and Leaders by Jouni Laukkanen is an extensive guide to leadership and the development of managers. The book addresses various dimensions of leadership, such as effective decision-making, supporting an open culture, workplace dynamics, and change management. Laukkanen provides concrete advice and strategies that help leaders understand the needs of their subordinates, create more effective organizations, and improve staff engagement. The book includes both theoretical and practical perspectives and is aimed at everyone interested in leadership. This work offers tools for self-improvement and organizational development, inspires new ways of thinking, and helps build a successful business.

Leseprobe

TABLE OF CONTENTS

1 LEADERSHIP IS A SUPPORT FUNCTION

1.1 U

SEFUL

L

EADERSHIP

1.2 U

SELESS

L

EADERSHIP

1.3 H

ARMFUL

L

EADERSHIP

2 DECISION-MAKING POWER BELONGS TO THE STAKEHOLDERS

2.1 S

UPPORTING AN

O

PEN

C

ULTURE

2.2 T

RADITIONAL

O

RGANIZATIONAL

S

TRUCTURE

2.3 A

DVANCED

O

RGANIZATIONAL

S

TRUCTURE

2.4 T

RANSITIONING TO A

S

ELF

-M

ANAGING

O

RGANIZATION

2.5 E

XAMPLES OF

S

ELF

-M

ANAGING

O

RGANIZATIONS

2.6 S

ALARY PER

D

ECISION

3 A WALLFLOWER IS NOT A WALLFLOWER TO ANOTHER WALLFLOWER

3.1 B

ASIC

T

YPES OF

I

NTERACTION

S

TYLES

3.2 T

HINKERS

(N

ITPICKER

)

3.3 I

NITIATORS

(B

ULLDOZERS

)

3.4 B

UILDERS

(W

ALLFLOWER

)

3.5 M

OTIVATORS

(S

HOWBOAT

)

3.6 C

ONSIDERING

A

NOTHER

'

S

I

NTERACTION

S

TYLE

4 ALWAYS SUSPECT STAGNANT WATER IS TOXIC

4.1 T

ECHNOLOGICAL

D

EVELOPMENT

4.2 M

ARKET

C

HANGE

4.3 C

HANGE IN THE

C

OMPETITIVE

S

ITUATION

4.4 R

EGULATORY AND

L

EGISLATIVE

C

HANGE

4.5 G

LOBAL AND

S

OCIETAL

C

HANGES

4.6 B

LUE

O

CEAN

4.7 R

ESPONSIVENESS TO

C

HANGE

4.8 E

XPONENTIAL

C

HANGES

5 ANYTHING IS POSSIBLE, BUT DON’T EXPECT SOMEONE TO DO IT FOR YOU

5.1 T

HE

I

MPORTANCE OF

P

ROBABILITIES

6 INFLUENCE, BUT ONLY WHERE POWER

6.1 L

EAN

P

RINCIPLES

6.2 T

ARGET

S

TATE AND

P

RIORITIES

6.3 C

REATING

V

ALUE FOR

C

USTOMERS

6.4 D

ETERMINATION OF

V

ALUE FOR THE

C

USTOMER

6.5 C

OMPARISON OF

V

ALUE

C

REATED BY

C

OMPETITORS

6.6 I

S

C

REATING

V

ALUE FOR

C

USTOMERS A

T

OP

P

RIORITY FOR

B

USINESS

?

6.7 P

ROCESSES

6.8 W

ASTE AND

F

LOW

6.9 C

ONDITIONS

, W

ORKING

M

ETHODS AND

T

OOLS IN

O

RDER

,

AS WELL AS

C

OMPETENCE

D

EVELOPMENT

6.10 C

ONTINUOUS

I

MPROVEMENT TOWARDS THE

I

DEAL

S

TATE

6.11 D

EVELOPMENT

O

UTSIDE

O

NE

'

S

O

WN

A

REA OF

R

ESPONSIBILITY

7 YOU GET WHAT YOU MEASURE

7.1 A C

OMMON

G

OAL

7.2 K

EY

S

UCCESS

F

ACTORS

7.3 M

EASURING

G

OALS

7.4 B

UDGET IS NOT THE

O

PTIMUM

7.5 M

EASUREMENT EXAMPLE

7.6 F

INDING THE

R

OOT

C

AUSE OF

D

EVIATIONS

8 DON’T GO TO WAR YOU CAN’T WIN

8.1 W

HY

?

8.2 T

O

W

HOM

?

8.3 W

HAT

?

8.4 H

OW

?

8.5 A

IM

O

NLY FOR

W

HAT

Y

OU

C

AN

A

CHIEVE

8.6 Y

OU

A

RE

M

AKING THE

W

RONG

P

REDICTION

8.7 O

UTPUT AND

I

NPUT

9 GOOD ENOUGH IS ENOUGH

9.1 D

IMINISHING

B

ENEFIT

9.2 W

HAT IS

G

OOD

E

NOUGH

?

10 DON’T GRIP THE STICK TOO TIGHTLY

10.1 Y

ERKES

-D

ODSON

’

S

L

AW

10.2 A

PPLIED TO THE

W

ORK

E

NVIRONMENT

11 WHEN YOU READ WHILE STANDING ON YOUR HEAD IN THE DARK, YOU UNDERSTAND WHAT YOU ARE READING DIFFERENTLY

11.1 O

BJECTIVE

T

RUTH

11.2 S

UBJECTIVE

T

RUTH

11.3 C

OLLECTIVE

T

RUTH

11.4 C

AUSAL

R

ELATIONSHIPS

12 DO WHAT YOU CAN’T

12.1 S

TEP

A

SIDE

E

NABLES

L

EARNING

12.2 T

AKE

R

ESPONSIBILITY FOR

D

EVELOPING

Y

OUR

S

KILLS

Y

OURSELF

12.3 F

INAL

E

NCOURAGEMENT TO

L

EARN

N

EW

T

HINGS

PREFACE

Leadership is a support function for the executing level, a wallflower is not a wallflower to another wallflower, and do not start a war you cannot win. These are some of the mottos through which this book discusses my views on leadership, revolving around the themes below:

There are numerous books on leadership, but very few are worth reading. Many books have a good leading thought, covered in the first thirty pages, with the rest being filler and rambling. In this book, my thoughts are concisely depicted through mottos. Each motto forms its own entity about the theme related to the motto.

There is no all-encompassing correct theory of leadership. My aim is to initiate the reader's own thought process around the subjects, allowing the ideas presented in the book to be applied to one's work environment in the most suitable way.

Sales, leadership, and sales management have long been of interest to me, and I have sought to increase my awareness in these areas through various trainings and books, as well as practical experimentation to see what works and what does not.

I have a master’s degree in energy engineering, with studies focused on technology, but I have supplemented my knowledge and perspective on sales and leadership through additional training and self-study during my career. I enjoy critically examining my actions, which has also made practical experience in leadership beneficial.

I have worked in consulting roles related to energy engineering for over 15 years, ranging from a small company to an international public corporation. Currently, I am leading the rapidly growing energy services in Finland for an international engineering and consulting firm. I have overseen various teams/departments, applying different leadership styles as needed. For some teams, I lacked expertise in the specific field, but for others, my knowledge in the area was strong. This significantly affected my own role. This allowed me to develop a multifaceted view of leadership, shaping my leadership philosophy.

Originally, this book was my notes on what I learned and a summary of my experiences in leadership. Gradually, I accumulated enough material to compile these notes into a book. Authoring the book also involved deepening and structuring my thoughts, making it part of my personal development process. The book helps me communicate my views to my superiors and organization.

While the book is intended to be a guide on leadership, it contains a significant amount of content related to sales, sales management, and sales strategies. This is because a company's existence relies on sales, and essentially, all functions within a company are support activities for sales. Of course, a company always produces something (at least filling paper). If it is desired that someone pays for these outputs, they must create value for the customer, and someone must sell it to the customer. Quite simple.

I admit to being a believer in Lean management principles, which is evident throughout the book, and I have dedicated a specific motto to this management principle.

This book is an expanded version of the original 'Mottos of Success' (only in Finnish), published in 2022. This 2.0 version includes clarifications and examples. The additions and examples deepen the discussion and facilitate a better understanding of the topics. The original mottos have been kept unchanged, as they encapsulate my thoughts on leadership well. With these clarifications, the original booklet has grown to about four times its length, reaching the size of a full-fledged book.

More about me and my work history can be found on LinkedIn: www.linkedin.com/in/jouni-laukkanen

INTRODUCTION

This book specifically focuses on the key aspects of success in managerial and leadership positions, which are discussed through mottos. Although the insights presented in the book are applicable to various areas of life, the emphasis is on how these principles manifest in the business world.

In a well-functioning organization, all employees share the responsibility for the company's operations. Although managers and leaders have the greatest opportunity and responsibility to direct activities, the entire organization's responsibility is a central theme throughout the book.

The book refers to both managerial and leadership levels as 'leadership'. The perspectives and actions at these levels may differ, but the principles for fostering a successful business are the same.

The book acknowledges that different people require different approaches. It discusses the basics of various interaction styles, emphasizing that the principles of success remain constant, even though implementation and communication might vary among diverse types of people.

The mottos described in the book are not necessarily direct quotes from anyone; they have been adapted to fit the context of the book and the author's style. Therefore, the sources of the mottos are not cited. However, at the end of the book, there are references to excellent books and other sources for further exploration of the discussed topics.

1 LEADERSHIP IS A SUPPORT FUNCTION

Effective leadership lays the foundation for an organization's success. Instead of being seen as a separate entity or at the top of the hierarchy, leadership should function as a bridge-builder and enabler between employees and various parts of the organization. Leaders are responsible for creating an environment where employees can thrive, innovate and express their full potential.

This involves open communication, clear goals, and most importantly, a trustful atmosphere where employees feel safe to try and suggest innovative ideas without fear of failure. By focusing their resources and expertise on supporting employees, leaders not only reduce obstacles in daily work but also inspire and empower everyone to contribute to the organization's goals.

Leadership is not just about managing financial statements and strategies; it primarily involves leading people. It is the ability to inspire, motivate and support others in achieving common goals. When leaders understand their role as enablers of the productive level, they set the entire organization on a stronger path towards sustainable success.

Fundamentally, management should function as a support function for the executing level. Management itself rarely produces anything directly; it is a cost that should support the productive level of the company to achieve the best possible results.

When management overly focuses on maintaining internal structures and supporting bureaucracy, the organization's ability to respond swiftly and effectively to changing market conditions weakens. This shift in focus away from the employees, who are the key contributors to the company's results, can lead to a situation where internal processes become self-serving.

This might manifest as excessive reporting requirements or slowed decision-making, as simple matters require multiple levels of approval. Such bureaucratic sluggishness hampers employees' ability to meet customer needs and adapt to market changes.

Support functions like HR, IT, and similar departments should form a foundation upon which productive work is built. Rather than seeing these functions as bureaucratic burdens, they can function as catalysts that enable and enhance work efficiency. For example, HR can develop training programs to improve employee skills and career development, while IT can ensure that technological tools are up-to-date and supportive of productivity.

Leadership can turn bureaucratic challenges into opportunities, viewing them not as obstacles but as frameworks for creative and efficient operation. By focusing on reducing bureaucracy and streamlining processes, management can free up employees’ time and energy to focus on customer needs and achieving company goals.

An organization should strive to create a culture where everyone understands their role as part of a larger whole. Leadership needs to turn the hierarchy into a service for the main goal – creating value for customers – by supporting those closest to the operation and customer experience. This ensures that the entire organization moves cohesively towards a common goal, with each part supporting and enhancing the whole's functionality.

From the perspective of the executing level, there are three types of leadership:

I would argue that most supervisors are harmless but at the same time useless. This is normally tolerable, but the ideal situation would, of course, be to have a useful supervisor and leadership in general. If you recognize that you are in an organization where you find the leadership harmful, it is wise to consider changing the organization.

Below are two images of diverse types of leaders and different work environments. Which one do you think would have a useful leader and which one a harmful leader?

1.1 Useful Leadership

With the aid of useful leadership, an organization can not only overcome its daily challenges but also focus on the future and strive for continuous improvement. The key characteristic of such leadership is the ability to identify and unlock the organization's latent strengths, transforming them into strategic advantages. This type of leadership is evident in the ability to recognize market changes and turn them into opportunities, as well as in creating an innovative atmosphere where every employee feels valued and clearly sees their contribution to the company's success.

When leadership functions correctly, it not only delegates tasks and monitors performance but also inspires subordinates to take responsibility and make independent, impactful decisions.

Under good leadership, employees feel that their ideas and opinions matter, which in turn increases their commitment and sense of responsibility. In this environment, each employee is more than just a part of the production process; they are active contributors to business development and improving results.

Good leadership understands that people are the organization's most valuable asset. It focuses on creating a corporate culture that fosters openness, trust, and collaboration—a culture where failures are not just seen as mistakes but as learning opportunities. The role of leadership is to ensure that such a culture is embedded at all levels of the organization. Only when every individual in the workforce feels they can contribute to the company's goals without fear of failure can the organization perform at its best.

While good leadership cannot replace all other aspects of operation, it provides a foundation for everything else. Effective leadership sets clear goals, provides necessary resources and support, and celebrates achievements, creating an environment where employees are motivated to excel. This type of leadership not only propels the organization forward but also ensures that the journey is fruitful, and all parties remain on the shared path towards common goals.

Useful leadership is an ideal state. This book aims to make you think deeply about your actions and what is enormously important in business and organizational activities. By focusing on the right things, leadership steers the organization in the right direction without overly involving itself in the executing level's tasks.

A leader who does not listen to subordinates will soon find themselves surrounded by silent employees. In such a scenario, the operational staff will only do what is instructed, stifling innovative and developmental activities. The most innovative and development-minded individuals are likely to have already switched employers.

Good leadership traits do not come naturally to everyone but can be developed and strengthened over time. A good leader is always ready to learn and grow. It is important to objectively assess one's leadership quality.

The roles of a manager and a leader can differ. A manager's role often involves more administrative tasks and process management, while a leader's role may be more focused on vision, strategy, and leading people.

Important qualities shared by managers and leaders include decision-making ability, reliability, fairness, and communication skills. For employees, signs of good leadership within an organization include clear goals, functional and appropriate tools, coaching support, involvement in decision-making, effective two-way communication, and recognition and reward for superior performance.

Overall, leadership can support the operational level by creating an encouraging and supportive work environment where they can succeed and develop. This enhances organizational efficiency, productivity and employee engagement.

Assessing my own leadership quality may not be unbiased. My goal has often been to make myself unnecessary by distributing responsibility, ensuring peace for those doing the work, and focusing on developing our actions and the way we operate. Ideally, I would spend more time on this, but real-world time constraints and many demanding tasks make it challenging. Authoring this book, I feel a sting in my heart that I teach something I have not fully achieved. Yet, the world is not finished, and the main thing is that we are continually developing towards our goals and a better-functioning organization.

1.2 Useless Leadership

If leadership is neutral or passive, an organization's inherent momentum may carry it through even tough times. This survival often relies on a strong corporate culture, a legacy of visionary leadership or stemming from the employees' own commitment and collaboration.

A culture where employees share common values and goals can mitigate leadership deficiencies by providing a unified direction and purpose. The strength of such a culture is evident when employees make daily decisions aligned with collectively agreed principles, compensating for the lack of clear leadership. In these scenarios, team autonomy and accountability become crucial.

In such circumstances, there is a risk that without active leadership, an organization's direction and focus can gradually blur, leading to inefficiency or a loss of purpose over time. An organization must maintain its ability to self-regulate and continually innovate. This requires strong internal communication, emphasis on collaboration, and constant learning.

Although useless leadership may not actively harm operations, it fails to utilize potential for improved performance and innovation. Ineffectual leadership can be costly by missing opportunities that a dynamic, strategic leadership could leverage. Recognizing the risks of passive leadership and continuously developing it is vital for survival and success in a competitive business environment.

If leadership is deemed useless, questions arise about its necessity and the justification for compensating leaders.

1.3 Harmful Leadership

The worst scenario in an organization is when leadership creates obstacles for those trying to work. Overbearing restrictions can lead to frustration and a decline in motivation, poisoning the work environment. Excessive control and negativity diminish employees' ability to perform effectively and their willingness to take risks and innovate. When the operational staff perceives leadership as more of a barrier than support, their belief in their ability to contribute to the company's goals diminishes.

The unfortunate truth is that operational staff rarely influence leadership appointments, leaving them to adapt to management styles that may not best serve work or company interests.

Harmful leaders may hide inadequacies behind convincing speech and charisma, impressing upper management or owners while masking the reality of situations. This issue is exacerbated when owners or higher management are disconnected from daily operations and only see a superficial picture. Recognizing harmful leadership requires upper management to understand frontline challenges and listen to employee experiences to facilitate a return to effective and inspiring operations.

When detrimental leadership creates the illusion of competence, they can remain in their roles for extended periods and may even ascend in the organizational hierarchy. This issue becomes pronounced when owners or upper management are not actively involved with day-to-day operations and only have a superficial understanding of the situation. Uncovering the reality requires higher-ups to deeply understand the challenges at the operational level and listen to employee experiences. Identifying harmful leadership and implementing necessary changes can lead to a return to an effective and inspiring operational model that supports the success and well-being of all members of the organization.

Middle management acting as a "shit umbrella" – a protective layer – is crucial, especially when there are problems at the top. This layer shields staff from negative influences, allowing focus on work without added stress. Managers should reflect on how to truly assist subordinates in improving performance, finding motivation, and self-development, beyond just when questioned by higher-ups. Effective middle management that takes care of their team's well-being creates optimal conditions for productive work.

Middle management, while protecting their teams from negative impacts, can paradoxically also hinder positive changes. They might resist upper management's efforts to advance the company through new practices or strategies, withholding information or ignoring new directives. This resistance may stem from fear of change, perceived threats to their status, or feeling overwhelmed without adequate support, leading to a defensive stance against the proposed changes.

To overcome obstacles in change management, it is crucial to engage all organizational levels, recognizing middle managers as change agents and equipping them with the necessary tools. Regular communication, training, and a sharp vision can help them understand the importance of change. Upper management must be receptive to feedback, valuing the insights of middle managers who are close to the customers and operational staff. Successful change requires a culture that supports positive transformation across the organization.

Effective middle management understands their teams' needs, acting as a communication conduit between subordinates and upper management. They adapt upper management's decisions into manageable tasks, fostering a space where creativity and innovation flourish. This approach enhances team motivation and dedication, leading to success even when higher management levels are suboptimal.

In company feedback surveys, asking the operational staff how leadership and support functions have concretely aided their daily tasks can be insightful. If the staff struggles to identify received support, it suggests the need for reflection and improvement in leadership or communication. The accompanying image highlights signs of detrimental leadership. Self-evaluation against these indicators can reveal the nature of one's leadership; if all boxes are checked positively, the leadership is not harmful (or the issues are unrecognized).

An authoritarian leader makes all decisions alone, disregarding the input or perspectives of subordinates or the team. This style leaves employees feeling undervalued or unheard and can lead to poor decisions if the leader ignores others' views.

A detrimental leader fails to communicate expectations, goals, or decisions clearly, causing confusion and inefficiency. This can result in employees being unsure of what is expected of them or the direction in which the company is headed.

A leader who treats employees unfairly or favors certain individuals or groups creates a negative work environment. This can lead to low job satisfaction, high employee turnover, and deficient performance. Feedback, both positive and constructive, is crucial, yet often challenging to provide. Insufficient feedback can leave employees uncertain about their performance and how to improve it.

A leader who micromanages, showing a lack of trust in their employees' ability to work independently, can cause stress and lower self-esteem, hindering growth and development. A consistently negative, critical, or pessimistic leader demotivates and creates a toxic atmosphere. An empathetic leader, failing to consider employees' needs and feelings, may lead to low job satisfaction and high turnover.

The effects of harmful leadership manifest in various aspects of organizational operation. The accompanying image lists characteristics of such leadership. To identify and address it, it is vital to monitor these traits. Addressing harmful leadership might necessitate changes in organizational culture, leadership training, and responsiveness to employee feedback, crucial for organizational success.

Do you recognize these challenges in your organization?

2 DECISION-MAKING POWER BELONGS TO THE STAKEHOLDERS

"Decision-making power belongs to the stakeholders" is a key principle for effective operation and engagement in an organization. It suggests that decision-making authority should be distributed equitably among people at various levels of the organization, rather than being centralized at the top management only. This often leads to better decisions, as those making them are closer to the source of the issue and understand it more deeply.

Distributing decision-making power to the operational level fosters collaboration, innovation and overall well-being.

2.1 Supporting an Open Culture

Leadership can foster a culture where decision-making is open, fair and transparent in many ways. A primary requirement is an open communication culture, where employees are encouraged to express their opinions, ask questions and give feedback. This can be facilitated through regular meetings or brainstorming sessions.

To establish an open decision-making culture, it is important to have a transparent process with clearly defined participants. While not everyone needs a voice in every decision, the legitimacy of decisions should be clear and understandable.

Leadership should encourage responsibility and personal accountability in decision-making. This can be achieved by providing decision-making training, encouraging employees to propose ideas, and allowing them to take charge of projects and teams. Trust within the organization is essential and can be fostered by a sharp vision and a values-based strategy. Understanding organizational goals and knowing what is expected makes it easier for employees to trust and actively participate in decision-making.

2.2 Traditional Organizational Structure

I recommend exploring Frederic Laloux's "Reinventing Organizations" for an in-depth understanding of various organizational structures. The book offers a detailed look at the characteristics of different organizational models. There are several versions of the book, but the illustrated and simplified version, "Reinventing Organizations: An Illustrated Invitation to Join the Conversation on Next-Stage Organizations," is highly recommended.

Today, most companies, as described in "Reinventing Organizations," follow the orange pyramid organizational structure, which can sometimes have as many as ten levels.

In an orange organization, as described in Laloux's work, the hierarchy can be extensive. A significant problem with such hierarchical structures is the disconnect in understanding and awareness as one moves up the hierarchy. For instance, a manager two levels above the operational staff might have little to no understanding of the day-to-day activities of those employees. This lack of direct knowledge at higher decision-making levels can lead to misguided decisions, as those making them are often far removed from the actual work being done.

In a hierarchical organization, decision-making follows a topdown approach. This implies that the upper management wields considerable power over organizational operations, with decisions typically made at higher levels of the hierarchy. Meanwhile, the operational staff is expected to follow these decisions.

A hierarchical organization has several drawbacks. Typically, decision-making is slow due to the structure. Decisions are often made with incomplete information about the actual situation. Communication about decisions often gets filtered through multiple organizational layers, which can distort the message. Additionally, this top-down approach can be demotivating for the operational staff, who may feel disconnected from the decisionmaking process.

2.3 Advanced Organizational Structure

A more advanced and desirable organizational structure is the evolutionary self-managing organization, also known as a Teal organization. This book refers to it as a self-managing organization. This type of structure is characterized by greater autonomy and self-direction, moving away from traditional hierarchical models.

In a self-managing organization, there are no traditional manager levels. Instead, teams of about 8-15 members with clear goals independently decide on the methods to achieve these goals. These teams are highly networked, sharing information and resources among themselves.

The three key principles of a self-managing organization are self-management, empowerment and an evolutionary purpose. This approach allows for a more adaptable and responsive organizational structure.

In a complex world, hierarchical leadership cannot manage everything due to limited bandwidth for processing and influencing all activities. Decision-making at the level where work is executed allows for real-time information and quick adoption of changes. Experimentation is crucial; not all trials may succeed, but successful experiences can be shared across teams, enhancing overall efficiency and innovation.

A hierarchical organization resembles a centralized planned economy, where leadership dictates needs and methods. In contrast, a self-managing organization is more akin to a market economy, where overarching rules (organization's purpose) are set, and solutions are creatively developed at the operational level. This structure is like the human brain, which has eighty-five billion neurons but no single decision-making entity, emphasizing decentralized functioning and problem-solving.

In a self-managing organization, it is crucial to clearly define operational areas and responsibilities among teams to prevent internal competition. With clear responsibilities and goals, teams can independently devise methods to achieve objectives, enhancing job significance and satisfaction and improving organizational performance. Clarity in goals means a clear understanding of the organization's mission and purpose, not necessarily implying budgets or top-down directives.

A self-managing organization supports individual autonomy, creativity, and personal growth while addressing complex problems and goals. It involves various practices and features adaptable to different organizations, fostering an environment where individuals can thrive and contribute effectively to the organization's objectives.

In a self-managing organization, decision-making is evenly distributed among teams and individuals. Teams are autonomous, deciding on their work methods, time management and responsibility sharing. The core principle is the absence of a traditional supervisor, with teams collaboratively allocating tasks. All relevant information should be accessible to the entire team, though legal constraints may apply to sharing certain personal data.

In practice, a team in a self-managing organization might have a designated leader, but their role should avoid dominating team operations to prevent hierarchical structures. A well-functioning self-managing organization thrives on an open and transparent culture. Information and knowledge are freely shared among members, and decision-making processes are open to all, although not everyone may participate in every decision. This openness is key to the effective functioning of such organizations.

2.4 Transitioning to a Self-Managing Organization

Implementing a fully self-managing organization can be challenging if done all at once, but its principles can be applied in various parts of an organization. It is crucial for leadership to bravely relinquish detailed control, delegating responsibility directly to the levels responsible for operations.

Applying self-management principles in a specific part of an organization without broader management support highlights the role of the unit's leader. This leader acts as a shield between the unit and top management, ensuring operational levels work peacefully while relaying necessary information and adhering to the organization's overall rules and guidelines, thereby enabling the unit's self-managed operation.