Principles of Management 2.0 - Hackathon Navigator
Principles
- Openness The willingness to share information and do business out in the open
- Community The ability for people with shared purpose to organize and engage
- Meritocracy An environment where ideas and people succeed based on the quality of their ideas and contributions
- Activism Tapping into individuals' desire to stand up, opt in, and express themselves
- Collaboration The capability of groups of people to work together, divide tasks, and leverage individual strengths
- Meaning The most powerful motivations come from within
- Autonomy The freedom to act on one’s own, making decisions without direction or approval from higher levels of management
- Serendipity The occurrence of events by chance in a beneficial way has always played a fundamental role in innovation
- Decentralization Rather than a top-down approach where activity and decision-making are closely held in small, central areas—decentralization allows it to happen anywhere
- Experimentation An environment where ideas can be tested quickly and improved continually
- Speed The unprecedented pace of change and immediacy of information
- Trust An acknowledgement that each of us is acting on good faith and good work will be reciprocated
The ability for people with shared purpose to organize and engage.
- 3M
- Atlassian
- Automattic
- Bank of New Zealand
- Best Buy
- Best Buy ROWE
- Brand Velocity
- CEMEX
- CSC Germany
- Edmunds.com
- Electronic Arts
- Educate Our State
- Evergreen Coop
- IBM
- IDEO
- Intuit
- Kessels & Smit
- MailChimp
- Menasha Packaging
- Method
- Morning Star
- Mozilla
- Nucor
- Occupy Wall Street
- One Laptop Per Child
- Red Hat
- Rite-Solutions
- Salesforce.com
- Semco
- Southwest
- St. Andrews
- Thogus
- Tongal
- Virgin
- Wegmans
- Whole Foods
- Wikimedia
- WL Gore
- Yammer
- Zappos
Select a principle on the left to begin
As part of the Management 2.0 Hackathon, the Hackathon team worked to define 12 key principles of Management 2.0, and then provide real-world examples of those principles at work in organizations today. You can explore these principles and examples by using the menu on the left.
To lean more about the Hackathon and the development of the Managment 2.0 principles, see Chris Grams' post on the Moonshot Blog.
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Red Hat
Open source strategy
As an open source company, Red Hat open-sourced its strategic planning, involving all employees to make sure they discovered the best ideas and kept the conversation going. Employees have the freedom and accountability to drive and execute the strategy within the company.
Further reading
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Wikimedia
1000 volunteers build a strategic plan
Wikimedia enlisted a group of 1000+ volunteers to co-create its 5year strategic plan. Instead of chaos, the volunteers created a focused, actionable strategic plan that everyone bought into – because they were part of the process.
Further reading
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Rite-Solutions
An internal market where employees invest in ideas
Crowdsourcing is part of Rite-Solution's culture. New ideas and resource allocation are done with an internal "Stock Market" where all ideas compete equally. Because employees actually pick the ideas their 'money' is 'invested' in, they are determining the future of the company.
Further reading
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3M
Collaboration platform for sharing and selecting ideas
Through their corporate-wide collaboration platform, 3M has created cross-geographical collaboration communities with ownership. The democratic process for globally submitting, vetting and selecting ideas has led to more accountability and execution.
Further reading
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WL Gore
A corporate culture very different from most
WL Gore's culture is based on shared values like collaboration, shared risk and commitment, freedom and fairness. It is structured as a lattice of intertwined teams who choose to work together. Accountability and authority are based on living up to the commitments colleagues make to each other.
Further reading
MIX: Innovation democracy: WL Gore's original management model
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Whole Foods
A local team-based culture where employees make the decisions
Whole Foods is known for its local, self-managed culture. Employees, working in teams, decide on hiring, products, merchandising, and even compensation. Collaboration takes place within stores, across stores and with customers.
Further reading
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CEMEX
Internal collaboration and social networking practices
Cemex, known for innovation, used internal social networking and collaboration to increase innovation. In little over a year, active use went from 2000 employees to all 20,000 plus. Employee value shifted from position to expertise and credibility.
Further reading
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Electronic Arts
An expert at building gaming communities applies the lessons to itself
An expert at building communities in the gaming world, EA needed to leverage them internally. In 2009, the company moved to a more collaborative structure, empowering communities of passion around products, services, processes. These communities worked collaboratively to decide on solutions and execute them.
Further reading
MIX: Managing beyond organizational hierarchy
Submitted by Michele Zanini
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Google
A culture based on collaboration and experimentation
Google depends on its collaborative, iterative culture. Ideas are vetted based upon value to the customer, not on the "inventor's" title. Rapid prototyping and experimentation is a given via Google Labs, done in participation with end users.
Further reading
Book: In The Plex: How Google Thinks, Works, and Shapes Our Lives
Book: The Google Way: How One Company Is Revolutionizing Management as We Know It -
Best Buy
A system to share opportunities internally and respond to customers faster
Best Buy developed a system to share employee and customer opportunities across the company, enabling employee autonomy. This resulted in faster responses to customers and more collaboration between stores. The voice of the employee mattered, regardless of level or position.
Further reading
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Brand Velocity
A corporate experiment in openness and meritocracy
Brand Velocity embodies many of the Management 2.0 principles. Compensation is calculated in a way that allows every employee to have total access to financial statements. In addition, every individual is measured via a "points system" based on how they contribute to the company's results with respect to sales, delivery, diverse people recruiting, and people development. Points are also used to earn equity and determine bonuses.
Further reading
YouTube:Jack Bergstrand "In Conversation" with Drucker Institute Executive Director Rick Wartzman
BusinessWeek:Knowledge-Worker InnovationSubmitted by Vlatka Hlupic
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IDEO
Internal collaboration suite overcomes geographical boundaries
IDEO designed a corporate-wide collaborative platform to overcome geographic boundaries. Communities of passion arose in unexpected areas that led to IDEO's increasing emphasis on social impact. The culture of 'idea ownership' has evolved into more knowledge and credit sharing.
Further reading
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St. Andrews
A very different model for building a church community
To better live their mission, St. Andrews disrupted the church model. Pastors became guides and facilitators to help people live their faith in low risk, high reward ways. They focused on what worked: congregants reaching out and making a difference in their community.
Further reading
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Mail Chimp
A culture that inspires spontaneous creativity
MailChimp is "an environment that allows for, and encourages, acting on spontaneous creativity." There are 5 "Rules for a Creative Culture": 1) Avoid rules, embrace and create chaos; 2) Give permission to be creative; 3) Hire weird people; 4) Meet in halls, at the water cooler, desks - not conference rooms to cross-pollinate, not manage; and 5) Structure for flexibility and see Rule #1.
Further reading
Fast Company: Mailchimp grants employees permission to be creative
Submitted by Deborah Mills-Scofield
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Yammer
Where employees are free to voice their opinions and ideas
The job of Yamme's leadership is fostering a culture where dissent is valued. People at all levels are free to voice their opinions, even about things outside their expertise (e.g., engineering on customer service). A horizontal 'structure' creates transparency and knowledge-sharing.
Further reading
Submitted by Deborah Mills-Scofield
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Salesforce.com
Using the Agile methodology to become more innovative and collaborative
Salesforce.com used an IT-based methodology, Agile, to transform the company for success. Using Agile and Scrum principles, Salesforce.com became more collaborative across functions. This increased the velocity, predictability, and stability of product development with customers involved earlier in the process.
Further reading
Forbes: How Marc Benioff became the most valuable CEO of all
Submitted by Deborah Mills-Scofield
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Thogus
A flat organizational structure in an organization that values serendipity
61yr old, 3rd generation Thogus is the "Google of manufacturing". The real organizational structure is flat with employees—from press operators to VPs—collaborating, sharing, prototyping, and vetting ideas. A belief in serendipity encourages employees to try new things, to meet new people, to get out of the routine.
Further reading
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Menasha Packaging
Avoiding bureaucracy and encouraging self-organized teams
163 yr old Menasha Packaging Corp (MPC) is a very hip 21st century company. Highly decentralized and entrepreneurial, MPC uses centers of excellence instead of bureaucracy to share information and encourage self-organized teams. The roots in the community and a strong family culture empowers employees to try new ideas on the plant floor and with customers.
Further reading
MIX: Packaging up Management Innovation
Submitted by Deborah Mills-Scofield
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IBM
A large company exploring how to collaborate with communities internally and externally
IBM has increased collaboration, transparency, and information sharing across their global businesses and functions. Their online communities meant a team in Brazil found several solutions to a customer issue within 15 minutes, saving the deal. Employees have even created external communities with partners and professionals to work on customer impacting projects.
Further reading
MIX: Using collective passion to scissor bureacuracy at IBM
Submitted by Deborah Mills-Scofield
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Kessels & Smit
An organization that values building strong relationships between people
K&S created an organization where people are good learning companions for each other. Personal entrepreneurship, giving people autonomy to pursue work they are passionate about, own it, and be accountable for it is critical. Reciprocal appeal is built on strong connections between people who want to work with each other—not as a transaction, but as a relationship.
Further reading
MIX: Being a true learning company and being free of management
Submitted by Deborah Mills-Scofield
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Bank of New Zealand
Driving decision-making closer to the customer
When BNZ was acquired in 1992, the challenge was to shift from a banking to a retail mindset. Local branches were given autonomy to set their own open/close times based on their customers. Decision making was driven closer to the customer, instead of headquarters. Profits are up, as is customer satisfaction and employee morale.
Further reading
MIX: Not just a day at the beach: Organization innovation and employee empowerment
Submitted by Deborah Mills-Scofield
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Evergreen Coop
From hierarchical management to a more innovative model
Evergreen is a cooperative ownership model getting national attention for reabsorbing disadvantaged people back into the economy and revitalizing communities. Employees own a piece of the company, which collaborates with a nearby "anchor organization" (e.g., hospital, museum, university). The structure is intentionally democratic in hierarchy, pay and recognition.
Further reading
TEDx: Owning your own job is a beautiful thing
Co.Exist: Evergreen Cooperative lifting Cleveland residents out of povertySubmitted by Deborah Mills-Scofield
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Edmunds.com
A unique collaborative ownership model
Edmunds.com realized their hierarchical, top-down management style led to incremental improvement, not innovation. Design thinking and processes helped create a culture where employees now drive the product roadmap. Cross-functional teams are involved in product design through rapid experimentation and iterations.
Further reading
MIX: How a Shopping Cart Transformed the Way We Work: “User Centric & Employee Driven”
Submitted by Deborah Mills-Scofield
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Morning Star
A self-managed company that gives power based on expertise and knowledge
Chris Rufer wanted his company to be a place where people were happy, productive, creative, and in control of their jobs. He developed the Colleague Letter of Understanding (CLOU) which is now in the DNA. There is no hierarchy; its a self-managed company. Employees' authority is based on their expertise and knowledge - not on an organization chart.
Further reading
MIX: The Colleague Letter of Understanding: Replacing Jobs with Commitments
Submitted by Deborah Mills-Scofield
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Method
A mission-driven organization fueled by the passion of employees
Method's purpose guides who they hire and how they collaborate. The values came from employees—be weird, ask what MacGyver would do, innovate, care, collaborate. This culture—combined with the passion for their purpose—drives innovation at all levels.
Further reading
Fast Company: The Method method of creating great corporate culture
Book: The Method MethodSubmitted by Deborah Mills-Scofield
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Mozilla
Embodying openness throughout the organization
At Mozilla, the non-profit organization famous for the open source Firefox web browser, openness is ingrained in every aspect of its culture, from publishing its financials and sharing its product roadmap, to opening meetings for anyone to attend.
Further reading
OpenSource.com: Mozilla: A study in organizational openness
Submitted by Chris Grams
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Atlassian
An experiment in performance reviews
Australian software company Atlassian dramatically redefines the dreaded annual performance review model by experimenting with a more lightweight, more ongoing, and more open process. And they’re sharing what they’ve learned with the world.
Further reading
MIX: Atlassian's Big Experiment with Performance Reviews
Submitted by Michele Zanini
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Wegmans
Building community through trust
Food chain Wegmans applies a “people first” attitude to their business. They encourage trust-building both among employees and the community through practices such as setting and guaranteeing low prices on families’ most frequently purchased items.
Further reading
Management 2.0 Hackathon: Community through Trust at Wegmans
Submitted by Ellen Weber
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SEMCO
Giving up control and gaining engagement
Brazilian company SEMCO implemented its three principles of (non-)management: democracy, profit sharing, and information. Proving that giving up control and introducing self-management can lead to greater employee satisfaction, growth, and profits.
Further reading
SEMCO: Ricardo Semler Won't Take Control
Submitted by Susanne Ramharter
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Virgin
Inspired experimentation
For Richard Branson and Virgin, everything is an experiment. The organization fosters empowerment and experimentation by praising employees, letting them fail and learn from their mistakes. Calculated risks lead to occasional failures—but very often successes.
Further reading
Entrepreneur: Richard Branson on Strategies for Success
Submitted by Angela Hey
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Occupy Wall Street
A leaderless movement bound by shared purpose
They braved the elements, they collaborated in spite of rules such as no microphones, they devoted their time and energy—all for a shared purpose. In the process they started a movement.
Further reading
Huffington Post: Occupy Your Company: Three Leadership Lessons from Zuccotti Park
Submitted by Susanne Ramharter
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Best Buy—ROWE
Radically redefining the workplace through results only
Best Buy adopted a Results Only Work Environment for its corporate staff. The rules of ROWE: The company trusts employees to meet goals without prescribing precisely how, where, or when they achieve them.
Further reading
Bloomberg Businessweek: Smashing The Clock
Submitted by Susanne Ramharter
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Southwest
Making flying fun
Southwest is known for its positive internal culture, high employee morale, and the occasional fun surprise from its flight crews. All have led to strong customer loyalty in a competitive industry.
Further reading
Skills2Lead: Southwest Airlines Employee Motivation
Submitted by Susanne Ramharter
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Tongal
Meritocracy beyond Madison Avenue
Tongal uses the Internet to bring together talent worldwide to create winning advertising. Projects are broken into specialized pieces, everyone competes, the best ideas get paid, and people gain credibility based on their ability.
Further reading
MIX: Tongal: A 21st century business model
Submitted by Silvia Colombo
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One Laptop Per Child
A laptop for all, developed in the open
One Lap Top Per Child is a global effort to bring technology to places where there is none. The laptop is built entirely through a distributed, decentralized process, and using open technology.
Further reading
Submitted by Aaron Anderson
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Educate Our State
A knowledge network for creating change
To combat falling fiscal support for public education, a network of parents formed to fight the problem. Using a snowflake model for organizing, the network has grown to nearly 40,000 supporters who are arming themselves with the tools to affect change.
Further reading
Submitted by Aaron Anderson
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Intuit
An innovation tool built by innovators
When an innovation team at Intuit didn’t have the right tool they needed to help them collaborate, they built their own. They built a platform called Brainstorm, which is designed to engage innovators from around the world and across functional areas.
Further reading
Submitted by Terri Griffith
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Nucor
Distributed management for decades
A pay-for-performance model, distributed decision-making, and flat management structure have been core to the management philosophy of steel-producer Nucor since the 1960s.
Further reading
Submitted by Terri Griffith
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Zappos
Competing through culture
Zappos has become famous for its commitment to customer service and its continued investment in culture—the cornerstone of company strategy.
Further reading
Submitted by Stephen Danelutti
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CSC Germany
Letting employees lead
Two divisions of CSC Germany have changed their management approach: Decentralizing decision-making based on knowledge and skills rather than formal position, and making it possible for teams to self-organize in communities of practice.
Further reading
HBR: To Be a Better Leader, Give Up Authority
Submitted by Vlatka Hlupic
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Automattic
Fully distributed
Most recognized for its publishing software WordPress, Automattic, is a distributed company to say the least. Everyone works from their own home or office, they collaborate online, and there are no working hours.
Further reading
When I Have Time: The New Digital Company: Distributed, Online, and Transparent
Submitted by Terri Griffith