Salary & Bonus Systems in a 'managerless' ecosystem?
Hello Fellow Rebels,
I just had a fantastic conversation with Ellen at Corporate Rebels HQ about some challenges we are facing with moving towards a ‘managerless’ ecosystem.
For some context, we operate what we call our ‘team of teams’ whereby we have 7 small agile cross functional teams (maximum of 7 people per team). Each team has a team lead.
We have ‘tribes’ which are social groups of people who have a shared common interest group, e.g. SEO, where the tribes can socialise, share knowledge, best practices, attend meetups and conferences and generally geek out on things.
We have a mentor program, where everybody have someone whose job it is to support team members personal and professional development
Both mentors and team leads have no hierarchical connection and actually we have found it best if mentors are not from the same tribe.
We operate in weekly sprints and swarms, which are really cool and we do lots of retrospection to help us continue to organically improve.
We have retrospectives every week, every quarter and even after we have delivered some important piece of content. This is kicked off during our onboarding and new team members will have done at least 3 retrospectives before the end of their first week.
To be successful and thrive in our ecosystem you must be self-driving, you will not be successful if you need to be told what to do.
So, onto our current challenges, with our ‘managerless’ ecosystem, they are:
Bonus Systems (at team and ecosystem levels)
We have invested heavily in our culture and are looking for an experienced expert who can understand our unique culture and help advise and implement a salary and bonus system which complements it.
Any contacts or recommended reading (& viewing) would be extremely appreciated.
I am due to speak with Aaron Dignan (Brave New Work) tomorrow, so I will let everybody know his thoughts also.
Thank you for your time.
Sounds like a cool challenge! I guess Stefanie Hornung could be a great person to work with on a topic like this. Check out her profile here: https://corporate-rebels.com/rebel/st_february/
She wrote two good articles on 'new pay', and can be found:
Thanks for the recommendation, Pim!
Andy, let's talk about whether we from Team New Pay can help you with this. Together with Nadine Nobile and Sven Franke, I have developed an approach that aims to fit the corporate culture with the compensation system. My colleagues are currently supporting several organizations in the process. In most cases, the first step is to find out what values prevail in the organization, what attitude people have towards work and performance and what possible feelings of interference a company may have with the current compensation approach. A participatory approach with a volunteer group of employees working together to develop a proposal is a good way to do this.
If that sounds interesting to you, let's connect on LinkedIn.
I would also look into some of the more progressive consulting companies that operate without managers, and that have some solid reward practices in place, that can help you as experts. I think about two companies in particular:
* K2K from Bilbao (https://www.k2kemocionando.com/)
* Centigo from Sweden (https://www.centigo.se/)
I'm sure they can tell you much more about it.
Not sure if you've found an answer to this, but we setup a salary panel, elected by the team. The financial team share the budget, and team members apply for an increase (stating how much they actually want), with reasons why etc. The elected panel then review these and share feedback for each applicant.
We also have profit share in place – everyone in the team earns the same amount.
Happy to chat more on either of these if you wanted to find out more.
I have written up some guidelines for arriving at salary structure in absence of a traditional hierarchy. Feel free to contact me.
Here is the link to the LinkedIn article, titled "Choosing your own salary, the final frontier?":
For a few years I argued that most pioneering firms on our Bucket list move beyond traditional multi-layer hierarchies via organizational models focused primarily on principles of communal sharing or market pricing. But a new round of interviews suggests they use a third model to organize their radically decentralized workforces: namely, a focus on the principle of reciprocity.
Ford's management model became the most influential one in the early 20th century. It embraced the possibilities enabled by the assembly line. This was followed by the General Motors' model (i.e. the multidivisional firm), and later by Toyota's model (i.e. Lean). More recently, electronic technologies (like computers and the Internet) have enabled the rise of the global 'Agile movement' with Spotify's model as the poster child. But now, with more and more IoT technologies, what will become the most influential management model of the future?
Maria Popova writes, “The history of the world is the history of telling others who and what we are—from tribal markings to national flags to family crests to pronoun-specifying email signatures.” How we choose to tell our stories—and what artifacts we choose to highlight—alters the way we hear our past, experience our present, and create our future.