Do we focus on people or the systems? What is your take?
Working within a dysfunctional organization run by old mindsets can be exhausting. To change this, should we focus on the people working within them or the system itself?
"95% of performance is explained by the system, 5% by people" (Deming, Ackhoff). Of course the "system" is much more than the org chart and includes people's thinking that drives the system's outward manifestations.
So yes: focus on people if by that you mean changing their thinking and shaking up their unsupportable beliefs. But working in people as mostly understood by contemporary managers and their L&D departments (as in "fixing" people through coaching, "upskilling", etc.) won't change anything...
As part of our collaboration with Haier - one of the world's most pioneering companies - we research and share how they work. Recently, we chatted with leaders of the company, including Zhang Ruimin (CEO of Haier), Kevin Nolan (CEO of GE Appliances - the US part of Haier) and Yannick Fierling (CEO of Haier Europe). In this post, we share the recordings.
Bags and accessories made of truck tarpaulins - that's what Freitag is known for. With headquarters in Zurich, around 250 employees work for the cult label which uses holacratic methods. They introduced a new salary model in early 2019. Pascal Dulex is responsible for Organizational Culture & Creative Direction. He spoke to us about their sometimes-painful path to a new compensation system.