Index

abolitionism, 61–62
accountability
for change, 292–294
in community, 162
control and, 38–40
at Haier, 93–94
at Handelsbanken, 228–229
at Michelin, 238
at Nucor, 69–71, 79
peer-to-peer, 169
servant leadership and, 115–116
at Southwest, 168–169
at Vinci, 121
activism, 277–295
adaptability
of human nature versus organizations, 7–8
Adidas, 194–196
administrative expertise, 144–146, 287, 302–303
agency, 19, 102, 106, 273, 275. See also ownership
The Age of Heretics (Kleiner), 47
agility, 162–163
Air Cube, 95
Alcoholics Anonymous (AA), 158–159, 161, 258
alignment, 29
Alphabet, 204
Amazon, 13
experimentation at, 202–203
Prime, 186
Prime Video, 19
software development at, 292–293
The Ambidextrous Organization (O’Reilly & Tushman), 230
ambiguity, 217–218, 220
ambition, 203–204
American Working Conditions Survey, 32t
Apple, 13
chip designs, 188
community of developers, 196
experimentation at, 204
iPhone, 27, 126, 132
iTunes, 8
Microsoft imitation of, 26
Aravind Eye Care System, 183
Aristotle, 61
Armstrong, Zion, 195, 196
artificial intelligence, xv–xvi
Ashby, Ross, 201
assumptions, challenging, 181–183
ATLAS project, 24–25
AT&T, 268
authenticity
community and, 174
in relationships, 171–172
servant leadership and, 115–116
at Southwest, 167–168
authority, 123, 126
aligning wisdom and, 150–151
exaggerated competence beliefs and, 141–142
at Michelin, 238
positional, 152–153
autocracy, 52, 53
automation, xv–xvi, xviii
at Nucor, 79
autonomy, 19, 61, 115–118
accountability and, 228–229
autocracy versus, 52, 53
in bureaucracy versus humanocracy, 3–4
community and, 159, 168–169, 174
employee turnover and, 116–117
engagement driven by, 16
at Michelin, 239–242, 251
in shaping work, 31–32
transparency and, 229–230
at Vinci, 121
See also ownership
Azure, 27

Baidu, 94
Bain & Company, 291
Ballarin, Bertrand, xxi, 238, 239–243, 249–250, 253–255, 265, 282. See also Michelin
Ballmer, Steve, 26, 27
Barrett, Colleen, 36, 168, 171–172
Baumeister, Roy, 172
beginner’s mind, 182
belonging needs, 157
Berkshire Hathaway, 43
Bessen, James, xiv
better-than-average effect, 140–141
Bevan, Helen, 279–281
bias
in compensation, 151–152
in estimating our own competence, 140–142
in-group, 143
in judging others’ competence, 142–144
See also politicking
Black Swan (Taleb), 225
Blasi, Joseph, 116–117
Block, Laszlo, 148
BMI. See bureaucracy mass index (BMI)
Bohr, Niels, 107
Boston Consulting Group, 11, 31, 200, 291
Bouvin, Anders, 119–120
Bridgewater Associates, 148–151
Brin, Sergei, 114
Brookings Institution, xv
Brotopia (Chang), 143
Brynjolfsson, Erik, 59
bureaucracy, xv–xvi, xviii
administration expertise prioritized in, 144–146
the case against, 23–41, 50–55
costs of, xii–xiv, 40–41, 43–62
determining the extent and impact of, 51–55
development of, 18
dismantling, xii–xiv
economic impact of, 56–58
endurance of, 43–50
experimentation and, 200–201
features of, 17–18
formal structure in, 29–31
getting started with dismantling, 257–275
growth of, x, 43, 44
hacking, 265–275
humanocracy compared with, 233
identifying problems with, 270–272
as inevitable, xi
in large companies, x–xi
legacy of, 16–21
management model in, 19–21
meritocracy versus, 140
negative aspects of, ix–xi, 3–4
number of employees in, 43, 44, 56, 301–303
owning your part in, 257–261
problem solving in, 161–162
productivity and, 58–60
relationships in, 172
resiliency and, 6–11
resistance to dismantling, xii–xiv
self-replication by, 45–46, 49
as social norm, 44–45, 60–62
specialization in, 31–34
standardization in, 34–40
stratification in, 23–29
strengths of, 18–19
trade-offs and, 216–218
why it’s hard to dismantle, 49
bureaucratic mass index (BMI), 51–55, 297–300
The Bureaucratic Phenomenon (Crozier), 239–240
business models, 13, 19
busyness, 180
busywork, 56
Buurtzorg, xi–xii, xiii

cable television, 9
capital
allocation decisions, 128–131
for experimentation, 208
at Nucor, 81
pace of change and, 10
Carpentier, Laurent, 252
categorical imperative, 102
The Cathedral and the Bazaar (Raymond), 266–267
centralization
change and, 25–27
at Handelsbanken in the 1970s, 222
of internal functions, 135–136
at Michelin, 252–253
at Nucor, 70–71
power and, 46
chain of command, 23–29, 130
Chandler, Alfred, 287
Chang, Emily, 143
change, x
accelerating pace of, 6–7
activism and, 277–281
centralization and, 25–27
hackathons for, 282–286
institutional, pace of, 6–11
management of, 20–21
power and resistance to, 46
resiliency and, 6–11
resistance to, 291, 293–294
rethinking, 290–294
trend analysis for, 9
Change Day at the National Health Service, 279–281
Chesbrough, Henry, 179
Chesterton, G. K., 215
China, 125, 184
China Aerodynamics Research and Development Center, 95
Churchill, Winston, 261
Cisco, 127, 192–193
cities, openness in, 177–178
Clarkson, Thomas, 61–62
Coase, Roland, 132
Cognitive Build at IBM, 130–131
Cole, Arthur, 112–113
collaboration
at Haier, 91
networks and, 7
at Nucor, 76–78
peer-to-peer accountability and, 169
tools for, 49–50
Colleague Letter of Understanding (CLOU) at Morning Star, 133–134
collegiality, 16
Colvin, Geoff, 142
command economies, 125
commitment
in bureaucracy versus humanocracy, 3–4
to change, 291, 293–294
community and, 162
to experimentation, 209
at Gore, 154
at Nucor, 78–80
peer-to-peer accountability and, 169
strategy and, 190
communication, 6–7
openness in, 166–167
community, 157–175
accountability in, 169
activism and, 278–282
Alcoholics Anonymous, 158–159
authenticity and, 167–168
building in organizations, 163–173
definition of, 162
getting started with, 174–175
mutual respect and, 169–170
problem solving and, 159–163
self-determination and, 168–169
sense of family and, 170–173
at Southwest, 163–173
working toward, 173–174
Community Laundry at Haier, 88
compassion, 278
compensation
at Adidas, 196
costs of bureaucracy and, 58
at Haier, 90, 99–100
at Handelsbanken, 230
incentive from, 117–118
income inequality and, xv
managerial and administrative, 303
matching to contribution, 151–152
at Nucor, 71–74, 79, 80, 119
rank-based, 145–146
at Vinci, 122
competence
administrative, over-valuation of, 144–146
aligning with decision rights at Bridgewater, 150–151
cultivating at Nucor, 74–75
misjudging others’, 142–144
overestimation of self-, 140–142
toxic, 146–147
competitive discipline, 134–137
complexity, 45, 49
compliance, 58
compulsion, 281
confidence, 141
conformance, 19
assessing, 52, 54
in bureaucracy versus humanocracy, 3–4
conservatism, 213–214
contracting, 132–134
contrarian thinking, 278
control, 109–110
centralized, 125
freedom versus, 227–230
reinventing, 231
standardization and, 36–40
transparency and, 269–270
conversation starters, 281–282
Cook, Scott, 204–205, 208
coordination, 263–264
community and, 159–163
dynamic, 131–134
at Haier, 90–94
markets and, 131–132
peer-to-peer, 24–25
core incompetencies, 5, 17, 232
Corporate Executive Board, 144
corporations. See organizations
COSMOPLat, 188
costs
of bureaucracy, xii–xiv, 40–41, 43–62
hidden, 219
of formalization, 29–30
of specialization, 31–34
of standardization, 35–36
of stratification, 25
courage, 278
assessing lack of, 52, 54
in bureaucracy versus humanocracy, 3–4
at Nucor, 80–82
servant leadership and, 115–116
Courier (Microsoft tablet), 26
creativity, xviii–xix
barriers to, 283
building skills in, 197
in bureaucracy versus humanocracy, 3–4
community and, 162
in hierarchy of work-related capabilities, 14–16
on jobs, 34
at Nucor, 71–74
open innovation and, 178–179
open minds and, 181–187
strategy and, 188–189
See also experimentation
credibility, 190–191, 277–278
Croft, Brian, 205–206
crowdfunding, 130–131, 268–269
crowdsourcing
collective intelligence and, 126–128
exaggerated competence beliefs and, 141–142
at Haier, 94–95
open innovation and, 178–179
strategy, 189–191
Crozier, Michel, 239–240
Cuatrecasas, Pedro, 216
Culkin, John, 261
culture
of accountability, 229
of entrepreneurship, 65
of experimentation, 204–209
of ownership, 118–123
risk averse, 200–201
at Southwest, 167–168, 171–172
Current Population Survey (CPS), 301–303
customers
localization and relationships with, 225–226
open strategy and, 192
unmet needs of, 186–187
“zero distance” between, xx, 86
customer service
at Haier, 93–94
at Handelsbanken, 222
at Nucor, 81
at Southwest, 164–165
standardization and, 36–37

Dalio, Ray, 148, 149, 150–151
Dao, David, 37
decentralization
at Handelsbanken, 224–225
at Nucor, 69–71
See also centralization
decision making
about funding, 128–131
aligning wisdom and authority and, 150–151
in bureaucracy, 23–29
centralized control and, 125
collective intelligence in, 126–128
exaggerated competence beliefs and, 141–142
by experiment, 204–205
friction in, 51, 52
at Haier, 99
at Handelsbanken, 119–120, 222–223
information asymmetries and, 216–217
at Michelin, 240, 252
at Nucor, 69–71
positional power and, 145–146, 152–153
right to, entrepreneurship and, 114
at Southwest, 168–169
standardization and, 36–40
De Loecker, Jan, xiii
Deloitte Economics, 56
denial, 180
Design for Delight (D4D) at Intuit, 207
detox for bureaucrats, 258–261
Deutsch, Karl, 27
Diffee, Matt, 202
digital technology, 49–50
creativity and, 11–12
trends in, 184
diligence, 14–15
Dimon, Jamie, 43
direction setting, 262–263
diversity, 51, 143
openness and, 177–178
reducing managerial bias and, 147–149
division of labor, 31–34
Dollars and Tons game at Nucor, 75–76, 123
Dot Collector at Bridgewater, 148–151
downsizing, 169
Drive (Pink), 16
DRIVE AGX Pegasus, 7
Drucker, Peter, 287, 288
Dulworth, Ed, 47
Duplain, Olivier, 242–244, 252

ecosystem businesses, 88, 93–94
Edmondson, Jeff, 162
education reform, 159–161
Eeckhout, Jan, xiii
The Effective Executive (Drucker), 288
efficiency
centralized control and, 125
megamergers and, xii–xiii
strategic, 190
eHarmony, 8
elitism, 288–289
Emerson, Ralph Waldo, 214, 273, 275
empathy, 116, 171, 207, 219, 239
employee development
for entrepreneurship, 114
at Nucor, 75–76, 80, 123
employees
administrative work by, 146
creativity of, 11–14, 194–196
cross-training, 75
engagement of, 14–16
as entrepreneurs, 113–115
at Haier, 98–100
orientation of at Southwest, 166
ownership by, 98–100
pace of change and, 10
treatment of in bureaucracy, ix–xi, 3–4, 60
unskilled jobs and, xvi–xix
upskilling, 123
view of in bureaucracy, 34–38, 109–110, 118
See also hiring and recruitment
employee turnover, 116–117
employment
in large companies, percentage of labor force in, xi
empowerment, 19
for corporate travelers, 269–270
and engagement, 116
at Michelin, 253
servant leadership and, 115–116
at Southwest, 168–169
engagement, 14–16
drivers of, 16
at Michelin, 246
entrepreneurship, xiv–xv
at Cisco, 192–193
decline of, 113
development of, 114
employees as, 113–115
experimentation and, 206–209
field, 285
at Haier, 65, 118
at Nucor, 69–71
ownership and, 112–113
at Vinci, 120–122
Ernst & Young, 78
European Central Bank, 150
European Working Conditions Survey, 32t, 117
experience, creativity and, 181
experimentation, 199–210, 266
at Amazon, 202–203
bureaucratic aversion to, 200–201
designing, 272–273, 274
ethos of, 202–204
exploiting versus exploring and, 215–220
funding and, 201–202
getting started with, 209–210
at Haier, 96–98
Hawthorne experiments, 268
at Intuit, 204–208
mainstream, 206–209
making time for, 207
at Michelin, 240–248
at Nucor, 82
timidity about, 52, 54
expertise, 14–15
administrative, over-valuation of, 144–146
aligning authority and, 150–151
cultivating at Nucor, 74–76
exploiting versus exploring, 215–220, 227–230
Express Cabinets at Haier, 97–98

Facebook, 8, 113
family, community and, 170–173, 175
Fast Company magazine, 12–13
favoritism, 143–144
Ferriola, John, 78, 79, 82, 175
flexibility, 30–31, 73–74
Follett, Mary Parker, 261–262
forgiveness, 116, 168
Francis, Pope, 293
freedom
control versus, 227–230
hackers on, 267
at Nucor, 69–71
Freeman, Richard, 116–117
Frey, Carl, xviii
friction, 51, 52
Frischmann, Brett, 50
funding decisions, 128–131, 286
for experimentation, 208
experimentation and, 201–202

Gallup, 14, 16
Great Jobs Demonstration survey, xix, 200
State of the American Workplace survey, 171, 173
Ganz, Marshall, 258
Gardner, John, 144
Gates, Bill, 25–26, 27
General Electric, 56–57, 85, 142, 146
General Foods, 47–48
General Motors, 10
Gillette, 135
Gilt Groupe, 13
GitHub, 266
Global Problem Solver Challenge at Cisco, 193
goals
in bureaucracy versus humanocracy, 3–4
formal bureaucratic structure and, 29–30
at Haier, 87–89
mutual accountability for, 162, 175
openness and stability in, 188
trade-offs between, 211–212
Goldman Sachs, xv
Google, 8, 25–26, 114
bias reduction at, 148
compensation at, 151
diversity at, 51
granularity, 191
Great Places to Work, 117
Green, Paul, Jr., 33
group dynamics, 47
growth
engagement driven by opportunities for, 16
risk and, 223–225
shared responsibility for, 73
Grullon, Gustavo, xii–xiii
Guillon, Jean-Michel, 238, 249–250

hacking management, 265–275, 282–286
Haier, xx, 56, 65, 85–102, 105, 262
administrative work at, 146
competitive discipline at, 137
coordination at, 90–94, 132–133
employee ownership at, 98–100
goals/leading targets at, 87–89
internal contracting at, 89–90
leadership selection at, 155
microenterprises at, 86–87, 91–94, 96–97
Open Ecosystem Platform, 196
ownership at, 98–100, 118
strategy at, 188
Haier Open Partnership Ecosystem (HOPE), 95
halo or horns effect, 143
Handelsbanken. See Svenska Handelsbanken
Hansman, Henry, 114
Harvard Business Review, 52, 136, 140, 200, 290
Harvard Laboratory for Innovation Science, 179
Hawthorne Works, 268
Hayek, Friedrich, 38
HCL Technologies, 28
Healthcare Research and Quality Act, 51
Heisenberg, Werner, 107
Hewlett-Packard, 13–14
hierarchies
building dynamic, 152–155
compensation based on, 145–146
decision making and, 23–29
leadership and, 289
multiple dynamic, 28–29
networks and, 49–50
at Nucor, 83
power relationships in, 141–142
principles and, 107–108
problem solving and, 25
societal, 139
strategy in, 27–29
waste from, 51, 52
of work-related capabilities, 14–16
See also meritocracy
hiring and recruitment
at Nucor, 74–75
reducing bias in, 147–149
at Southwest, 171
Howe, Carol, 205
How Google Works (Schmidt & Rosenberg), 151
Hughes, Chris, 113
Hughey, Cheryl, 166
Huillard, Xavier, 120–122
humanity, 3–21
community and, 157
creativity of, 11–14
exaggerated beliefs about competence and, 140–142
identity and, 3–4
passion of, 14–16
resiliency of, 6–11
strengths of, 4–5
humanocracy, x
the case for, xix–xx
getting started with, 257–275
human spirit and, 6
management model for, 19–21
meritocracy in, 139–156
ownership in, 111–124
the path to, xxi
power of markets and, 125–138
principles of, xx
principles versus practices for, 105–110
the spirit of, 82–84
human resources (HR), 57–58, 136
The Human Side of Enterprise (McGregor), 16
humility, 115–116, 254
Hutton, Ryan, 130

IBM, 130–131
I Ching, 101–102
identity, 3, 34, 185–186
idiosyncratic rater bias, 142–143
ifundIT at IBM, 130
ignorance tax, 127
Immelt, Jeff, 142
incentives, 117–118, 136. See also compensation
income inequality, xv, xvi, 28
incubators, 13, 94–98
open innovation and, 178–179
Industrial Revolution, 112
inertia, 9–10, 191
information asymmetries, 216–217
information sharing, 264–265
in-group bias, 143
innovation, 11–14
at Amazon, 202–204
challenging assumptions and, 181–183
continuing, 13
grassroots, 112
at Haier, 94–98
in Haier microenterprises, 86–87
at Intuit, 204–208
incubators/accelerators, 13, 94–98
internal venturing at, 98
at Nucor, 68–69
openness and, 177–179
scientific, 12
specialization and, 32
top organizations in, 12–13
training for, 207
See also entrepreneurship
Innovation Academy at Adidas, 195–196
Innovation Grand Challenge at Cisco, 193
Institute for Innovation and Improvement, 279
insularity, 51, 52
integration, 93
Intel, 4, 126–127
intellectual property, 196
intelligence, collective, 126–128
internal customers
at Haier, 89–90
Michelin, 244–245
at Morning Star, 133–134
Internet of Food at Haier, 93–94
Intuit, 204–209
Iowa Electronic Market, 127
I-Prize, 193
Iverson, Ken, 69, 105, 169, 232

Jacques, Roy, 124
JD.com, 97
jobs
in bureaucracy, 56
bureaucratic waste in, 58–60
creativity in, xix–xx
in large companies, 114
standardization and, 36–40
unskilled/low-skilled, xvi–xix
upskilling, xvii
Jobs, Steve, 187
job security, 78–79, 115, 169
job shadowing, 170
Jouret, Guido, 193
JP Morgan Chase, 43
justice versus mercy, 214–215

Kant, Immanuel, 102
Kapor, Mitch, 143
Kelleher, Herb, 164, 166, 167–168, 171, 173. See also Southwest Airlines
Kellerman, Barbara, 288
Keltner, Dacher, 146
Ketchum, Lyman, 47
Kierkegaard, Søren, 212
King, Mark, 194–196
Kleiner, Art, 47
KnowledgeWorks, 160–161
Kruse, Douglas, 116–117
Kuhn, Thomas, 180, 181–182

Laboratory for Innovation Science at Harvard, 179
labor force, bureaucratic class in, 43, 44, 56, 301–303
labor unions, 164
Lakhani, Karim, 179
Large Hadron Collider, 24–25
Larkin, Yelena, xii–xiii
law of requisite variety, 201
leaders and leadership
choosing, 100, 153–155
collective intelligence and, 126–128
compensation of, 28
development of, 114, 288–289
employees viewed as commodity by, 118
exaggerated competence beliefs of, 140–142
expectations for, 27
experimentation mentoring and, 210
failure of leadership development, 288
at Haier, 100
innovation and, 11, 179
number of employees in, 43, 44
opportunities for, 121
power of, 46
pre-bureaucratic, 18
redefining at Michelin, 251–252
reimagining, 20–21
rethinking, 287–289
servant, 115–116, 262
strategy and, 188–189, 198
in strategy setting, 27–29
leadership promoter system (LPS), 285
lean production, 70–71, 238–239
Lean StartIn, 207
learning exchanges, 76–77
Leary, Mark, 172
Lego, 178
LeGoues, Francoise, 130
Lei Yongfeng, 94
Lewin, Kurt, 47, 290
Linden, Greg, 203
Linux, 266
living standards, 59
localization, 224–226
loneliness, 157–158
love, power versus, 171–172
Lu Kailin, 96–97
Lululemon, 183–184
LuvLines, 167

management
engagement and, 16
hacking, 265–270
number of employees in, 43, 44, 56, 301–303
peer-to-peer coordination, 24–25
reimagining, 19–21
reinventions of, 47–49
for standardization, 34–40
theories, trade-off decisions and, 218–219
value creation by, 59–60
waste from, 51, 52
managerialism, 287
MAPPEDIA, 246–247, 250
March, James, 215
markets, 125–138
allocational agility and, 128–131
collective intelligence and, 126–128
competitive discipline and, 134–137
dynamic coordination and, 131–134
getting started with embedding, 137–138
power of, xiii–xv
problem solving in, 162
markups, xiii
Marsal, Olivier, 245, 249
Maslow, Abraham, 157
Mayo, Elton, 268
McGregor, Douglas, 16
McKinsey & Company, 11, 118, 129, 291
McLuhan, Marshall, 261
McMillon, Doug, 43
Ménégaux, Florent, 249, 253
mercy versus justice, 214–215
mergers and acquisitions, xii–xiv, 13–14
meritocracy, 139–156
administrative ability and, 144–146
aligning wisdom and authority in, 150–151
community and, 157–175
compensation in, 151–152
dynamic hierarchies in, 152–155
exaggerated competence beliefs and, 140–142
getting started with, 155–156
misjudging others’ competence and, 142–144
openness in, 177–198
overestimation of one’s competence and, 140–142
reducing managerial bias and, 147–149
toxic competence and, 146–147
Michaely, Roni, xii–xiii
Michalak, Jaroslaw, 250–251
Michelin, xxi, 237–255, 282
autonomy at, 239–242, 251
embedding responsibilization at, 253–255
Homburg, 244–245
leadership at, 251–252
lean manufacturing at, 238–239
Le Puy, 243–244
reaching a shared view at, 245–248
responsibilization at, 242–245
Michelin Manufacturing Way, 238–239
microenterprises, 86–87, 91–94, 96–97, 121
Microsoft, 25–27
Mill, John Stuart, 18
mission, 166, 174, 246, 262–263
modularity, 45
monarchy, 60, 62
moral inventory, 258–261
Morgenthau, Hans, 172
Morning Star, 32–34, 56, 106
coordination at, 133–134
power at, 153–154
Munger, Charles, 43
Munoz, Oscar, 37
Musk, Elon, xv–xvi

N26, 114
Nadella, Satya, 26–27
National Compensation Survey, 303
National Health Service, 279–281
National Research Council, 268
Nayar, Vineet, 28
Netflix, 8, 19, 180
network capacity, 6–7
networks
collaboration and, 7
hierarchies and, 49–50
social, at Nucor, 76–78
See also community
Newton, John, 62
New Yorker, 202
New York Stock Exchange, 128
Nike, 183–184
Notebaert, Nicolas, 121
not invented here, 94–95
Nucor, 56, 65–84, 105, 123, 169, 175, 262
building business skills at, 75–76
collaboration at, 76–78
commitment at, 78–80
courage at, 80–82
creativity at, 71–74
cross-training at, 75
cultivating expertise at, 74–76
culture at, 174
employee turnover at, 69
experimentation at, 82, 202
freedom and responsibility at, 69–71
hiring at, 74–75
innovation at, 68–69
ownership at, 119
performance of, 67–68
strategy at, 188
transparency at, 77–78
Nuitjen, Inge, 115–116
Nvidia, 7

obedience, 14–15
Ocado, 19
Occupational Employment Survey (OES), 301–303
occupational mix, 43, 44, 56, 301–303
oligopoly, xiii–xiv
open innovation, 178–179
Open Innovation (Chesbrough), 179
openness, 177–198
at Adidas, 194–196
change and, 293–294
at Cisco, 192–193
closed minds versus, 180
to entrepreneurs, 192–193
getting started with, 197–198
at Haier, 94–95
innovation and, 177–179
open minds and, 181–187
repurposing skills and assets and, 185–186
strategy and, 187–189
to trends, 183–185
to unmet needs, 186–187
operating models, 19
opportunity mash-ups at Nucor, 77
O’Reilly, Charles, 230
organizations
core incompetencies of, 5, 17, 232
creativity of, 11–14
evolutionary advantage for, 10–11
inertia in, 9–10
market power of, xii–xiv
pace of change in, 6–11
passion in, 14–16
originality, 38, 39
Osborne, George, 59
Osborne, Michael, xviii
Otellini, Paul, 126
outsourcing, 50
ownership, 111–124
autonomy and, 115–118
benefits of distributed, 122
culture of, 118–123
entrepreneurship and, 114–115
getting started with increasing, 123–124
at Haier, 98–100
at Handelsbanken, 119–120
job security and, 115
at Nucor, 119
rights of, 114
at Vinci SA, 120–123
of your own part in bureaucracy, 257–261

Page, Larry, 114
Paine, Thomas, 62, 139
paradoxes, 211–233
certainty versus uncertainty, 212
definition of, 212
exploit versus explore, 215–220
freedom versus control, 227–230
getting started with, 231–232
Handelsbanken and, 220–226
inescapability of, 211–215
left versus right, 213–214
mercy versus justice, 214–215
strategies for coping with, 231
parochialism, 30
passion
in bureaucracy versus humanocracy, 3–4
of humans versus organizations, 14–16
patience, 203–204, 265
patient care, 279–281
patient safety, 50–51
patriarchy, 60
Payne, Chris, 25–26
performance
autonomy and, 115–116
bureaucracy’s impact on, 56–57
challenging assumptions and, 183
community and, 162–163
costs of bureaucracy and, xii–xiv
at Haier, 89–90
at Handelsbanken, 221–222
managing, 264
processes/practices versus principles/paradigms and, 108–110
performance reviews, 147–149, 284–285
personal growth, 76. See also employee development
PersonalPro, 208
Peter, Laurence J., 96
The Peter Principle (Peter), 96
Pew Research, xv, 16
Pfeffer, Jeffrey, 288
pharmaceutical industry, 216
Phelps, Edmund, 112
Pink, Dan, 16
Plain Talk: Lessons from a Business Maverick (Iverson), 69
platforms, 88, 91–93
politicking, 52, 55
funding decisions and, 129
lack of, at Nucor, 73
meritocracy versus, 140, 146–147
popular sovereignty, 106–107
Posner, Eric, xiv–xv
power
decision making and, 145–146
dismantling bureaucracy and, xii–xiv
exaggerated competence beliefs and, 141–142
giving away, 261–265
growth of bureaucracy and, 46
of large corporations, xiii–xv
leadership and, 289
learning and, 27–28
love versus, 171–172
mergers/acquisitions and, xiii–xiv
in meritocracies, 154–155
positional, 152–155
Prahalad, C. K., 180
predictability, 109
principles, 105–110, 271–272
community, 157–175
experimentation, 199–210
meritocracy, 139–156
openness, 177–198
ownership, 111–124
power of markets, 125–138
power of paradox, 211–233
Principles (Dalio), 148
The Principles of Scientific Management (Taylor), 34–35
problem solving, 271, 283–284
in communities, 159–163
hierarchies and, 25
See also decision making
processes, 57–58, 107–110, 271
hacking, 265
Procter & Gamble, 204
pro-democracy principles, 106–107
product development, 95
productivity, 58–60
entrepreneurship and, 113
at Michelin, 246, 253
at Nucor, 68, 71–73
rewarding, 71–73
profits
institutional inertia and, 9–10
at Nucor, 67–68
pace of change and, 10
regulation and, xiv
at Southwest, 163
work friendships and, 171, 173
profit sharing
at Haier, 99
at Nucor, 79, 80
progressivism, 213–214
promotions
biases in, 143–144
politicking and, 52, 55, 146–147
reducing bias in, 147–149
purpose, 166
alignment with, 29
engagement driven by, 16
PwC, 189

Quanta Computers, 97
quantum mechanics, 107, 212
QuickBooks, 207
Quicken, 204
quick wins, 282

Raymond, Eric, 266–267
reciprocity, 158
recognition, 172
Reed, Philip D., 287
regulation, profits and, xiv
rendanheyi, 86, 100–102
reorganizations, 31
reputation, 34
resilience, 6–11, 28, 177–178
resistance, 255, 291
respect, mutual, 169–170, 175
responsibilization, 238–255
risk
in bureaucracy versus humanocracy, 3–4
decentralization and, 225
experimentation and, 200, 209
minimizing, 273
Roland, Damian, 279
Rosenberg, Jonathan, 151
Rufer, Chris, 33, 106

SAP, 36
Saverin, Eduardo, 114
scale, 91, 187–188, 251, 277–295
hackathons for, 282–286
Schmidt, Eric, 151
scientific management, 34–36
scope, 91, 187–188
Scruton, Roger, 213
secrecy, 166–167
self-determination, 168–169
selflessness, 115–116
Selinger, Evan, 50
Senard, Jean Dominique, 238
Silicon Valley, 129–130
diversity in, 51
Simeon, Charles, 215
skills
building, 263
cross-training and, 75
for experimentation, 209
hierarchy of work-related, 14–16
repurposing, 185–186
Slate, MaryEmily, 70
slavery, 60, 61–62
Smith, Adam, 31, 125
Snabe, Jim Hagemann, 36
Snap, 114
Snaptax, 205–206
social dimension, 239–243
social engineering, 35
social media, 94, 280
activism and, 281–282
social networks
at Nucor, 76–78
social norms, 44–45, 60–62, 158
sociotechnical systems (STS), 47–48
Southwest Airlines, 36–37, 163–173, 262
SpaceX, xvi
specialization, 31–34, 83–84
speed, in bureaucracy versus humanocracy, 3–4
Spiegel, Evan, 114
Spotify, 8, 56
Stalf, Valentin, 114
standardization, 34–40, 83, 238–239
startups, 111–112, 201–202
State of the American Workplace survey, 171, 173
status quo, 45, 219, 265–266
funding decisions and, 128–131
when to resist, 60
status symbols, 79
steel industry. See Nucor
stewardship, 116
Stone, Luke, 171
strategy
challenging assumptions and, 182–183
closed, 187–189
at Haier, 99
hierarchies and, 27–29
open, 189–196, 197
responsibility for setting, 189–191
at 3M, 191–192
StrivePartnership, 160–161, 162
structure
formalized in bureaucracy, 29–31
at Haier, 90–94
at Nucor, 83
Student Success Networks, 160–161
Sun Hydraulics, 56
superposition, 212
support functions, 208
Suzuki, Shunryū, 182
Svenska Handelsbanken, 56, 119–120, 122–123, 220–226
freedom and control at, 227–230
localization at, 224–226
transparency at, 229–230
Swift, Mike, 51
systems theory, 201

Taleb, Nassim, 225
Tan Lixia, 95
Tap-o-Meter at IBM, 130
Taylor, Frederick, 34–35
Taylorism, 34–36
teams
in change, 292–294
compensation and, 71–73
driving results in, 264
experimental, 206–207
at Michelin, 246–248
at Nucor, 80–82
technology
activism and, 281
creativity and, 11–12
deployment of at Nucor, 81
digital, 11–12, 49–50
productivity and, 59
technology industry, diversity in, 51
Terkel, Studs, 61
Tesla, xiv, xv–xvi, 5, 10, 30, 162
assumptions challenged by, 182–183
T-group training, 47
Thierolf, Christian, 253
3M, 191–192
Thunberg, Greta, 277
ThunderRobot, 86–87, 96–97
Tianzun wind tunnel, 95
Time Out, 185–186
timidity, 52, 54
Tocqueville, Alexis de, 158
To Err is Human, 50–51
Topeka system, 47–48
Torvalds, Linus, 266
Toyota, 208
transformation, 88
transparency, 229–230
control and, 269–270
in creating community, 166–167
at Nucor, 77–78
in performance reviews, 148–149
travel expenses, 269–270, 274
trends, 9
formal structure and, 29–30
openness toward, 183–185
Treverton, Gregory, 225
tribalism, 173
Trist, Eric, 49
trust, 78–80, 166–167, 250–251
TurboTax Live, 206
Tushman, Michael, 230

U-Fund-It at IBM, 286
Unger, Gabriel, xiii
United Airlines, 37
universities, 177–178, 287
upside, 115–118
US Bureau of Labor Statistics (BLS), xviii, 38, 66, 301–303
US Institute of Medicine, 50–51
US Patent and Trademark Office, 12
U.S. Steel, 71

value-adjusted mechanism (VAM), 99–100
value creation
bureaucracy and, 18, 59–60
at Haier, 86
Venkataswamy, Govindappa, 183
venture capital, 201–202
video streaming, 9
Vincent, Jean-Claude Marie, 18
Vinci SA, 120–123
The Visible Hand (Chandler), 287
von Dierendonck, Dirk, 115–116

Wallander, Jan, 222–223, 229–231, 232. See also Svenska Handelsbanken
Walmart, 43, 179
Walton, Richard, 48
waste, 51, 52, 58–60
Waymo, 204
The Wealth of Nations (Smith), 31
Weber, Max, 17–18
Western Electric, 268
Weyl, Glen, xiv–xv
White House Council of Economic Advisers, xiv
Wilberforce, William, 61–62
Williams, Drew, 32
Williamson, Oliver, 132
W.L. Gore, 56, 151–152, 154
work-life balance, 173–174
work organization, 263–264
work-soul integration, 173–174
worldview, 105–107, 213–214
Wu Yong, 91–92

Xinchu, 92–93

Yousafzai, Malala, 277
YouTube, 19, 180

Zhang Ruimin, 86, 87, 90, 101–102, 105, 232, 262
Zhang Yi, 98
Zhisheng, 86
Zhou Zhaolin, 96–97
Zias, Jeff, 207
Zillow, 178
Zuckerberg, Mark, 114

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