It’s amazing to me, but looking back over nearly a decade of writing I find posts that still impress, with information that is as useful now as when it was written. Golden Oldies is a collection of what I consider some of the best posts during that time.

The effort to flatten management has been going on for awhile culminating in the idea of totally eliminating it and culminating in holacracy . I’m not impressed. Read other Golden Oldies here

How flat should an organization be?

How well do “self-starters” manage themselves?

Crucial questions for startups and small businesses, since how they are addressed can make or break the company.

Often the most important hires made when a company wants to grow are in sales.

Founders and owners often have technical, marketing or business backgrounds and many have a tendency to shrug when it comes to sales.

They see hiring salespeople as no big deal—there is an assumption that as long as they have a good track record in their previous sales position and understand the new product they can manage themselves.

If this sounds off base to you, you’re right, it’s not that simple. To use a real-life example, I had a client who thought that way.

The CEO hired “Jack” (before my time), a salesman with a fantastic record selling a parallel product to the same market.

The CEO personally taught Jack the product line and explained what the company was working to accomplish and then pretty much gave him free reign.

In the year Jack was with them he sold only two accounts, spent a good deal of his time on marketing and managed one large client; commissions totaled only $15K.

When he left he went to work in a field completely unrelated to anything he’d done before and in a market about which he knew nothing. In his first year at the new company he earned over 125K in commissions.

The difference was management.

Based on his track record both the CEO and Jack assumed that he could manage himself.

However, Jack didn’t have, and didn’t create for himself, the structure, accountability, etc., necessary to be successful.

During his exit interview he admitted that although he had no knowledge or training in marketing, he spent substantially more time than he should have because it was new and exciting.

After the CEO and I had fully analyzed what happened he concluded that the failure was 80-20, with the 80% his responsibility.

Hind sight is 20/20 and my client believes that if he had taken the time to do what was needed, instead of expecting Jack to completely manage himself, that he would still be with the company and doing a spectacular job.

The important lesson here is that “self-starter” does not mean “self-managed.” Even the best will need direction, structure, and accountability in order to perform brilliantly.

I’ve read multiple articles on holacracy, including Tony Hsieh actions at Zappos, but I believe that most people enjoy working for good managers and that they excel more and grow faster.

Of course, the operative word is “good”.

Image credit: iamwahid

Jim Heskett is a very smart guy. At the beginning of each month he asks a question of his readers, then publishes a summation of the general ideas expressed the comments at the end of it.

The topics are always timely, of great interest and the conversation lively.

This month he asked about something that is on many founders’ minds thanks to Tony Hsieh actions at Zappos.

The question was, Is the Time Right for Self-Management.

Here is the summary. I believe you will find it of great value to read all the comments if you are considering adopting/adapting it for your company or just intrigued by the idea.

When and Where Will Holacracy Work Best?

Holacracy, or self-management, is an interesting concept and not entirely new. It can work, but only under the right conditions. And its applications will be limited. That’s what one might conclude from reading responses to this month’s column.

The more thoughtful of them provide a primer on applying the concept. Deborah Nixon’s comment echoed several others when she said the idea has been around a long time in other forms, by other names. “The larger an organization becomes, the tougher one model is to implement. The time has always been ripe for self-management and there are always people who will poke up their heads and insist on managing themselves. But it isn’t a quick fix.” Others cited its long-time application in the London taxi system (Andrew Campbell), the hospital ER (M Iqbal Gentur B), and even Aboriginal societies in ancient Australia (Kai Akerberg).

Stephens Jr., who loves the idea, said, it does not come without extensive time, cost, and involvement in employee development. “I not only say yes (to the question of whether the time is right for self-management), but ‘it’s about time.'” Dyan Porter added, “Holacracy strikes me as a positive way to manage professionals, especially in flat organizations where job advancement is limited.” Brooks Tanner commented, “Regardless of its level of success at Zappos, this form of organization is the way of the future. The rapidly increasing complexity and unpredictability of our world is such that only a highly distributed decision-making structure will be able to adapt and respond effectively, she continued. “Most of us don’t think a centralized planning type economy makes sense. Why should it make the most sense for organizations?”

Others saw limited potential in the concept. As Edward Hare put it, “There are some people capable of managing themselves in a larger organization … but many who can’t… This strikes me as another of those ‘ideas’ promoted by consultants and academics. ” Frank Fabela added, “Holacracy in its form of each individual taking responsibility for their own self-management is absolutely necessary, however it is the responsibility of ‘managers ‘ to ensure effectiveness of the organization through coordination of those objectives. Pure holacracy … absent management is destined to fail.” Krishnan Mak was more succinct when he said: “Culture will eat Holacracy for breakfast.”

Many comments addressed conditions under which Holacracy might work best. “It might not be for everybody,” wrote Maria Rosa Serra, “but if you hire employees aligned with your values and pay them fairly, it seems an interesting proposal for both the company and the individual.” Juan Manuel Salas Guevara commented that the challenge in Holacracy “is a strong communication process from the top level of the organization that enables each member to understand the company’s vision.” Charlie Efford added that “The key to self-management becoming embedded is changing the mindset of the management team. Most corporations haven’t made this shift.” Denis Collet suggested “it’s all about clear goals and deliverables, and the metrics for success. Absent of these it’s bound to fail.”

Personally, I agree with Krishnan Mak when he said, “Culture will eat Holacracy for breakfast.”

Image credit: HBSWK