1/ On the notion of Fair ProcessThis article is very interesting. It emphasizes the fact that "People are sensitive to the signals conveyed through a company’s decision-making processes. Such processes can reveal a company’s willingness to trust people and seek their ideas—or they can signal the opposite".
The Three Principles of fair processHere are the three principles provided by the authors:
- Engagement means involving individuals in the decisions that affect them by asking for their input and allowing them to refute the merits of one another’s ideas and assumptions. Engagement communicates management’s respect for individuals and their ideas. Encouraging refutation sharpens everyone’s thinking and builds collective wisdom. Engagement results in better decisions by management and greater commitment from all involved in executing those decisions.
- Explanation means that everyone involved and affected should understand why final decisions are made as they are. An explanation allows employees to trust managers’ intentions even if their own ideas have been rejected. It also serves as a powerful feedback loop that enhances learning.
- Expectation clarity requires that once a decision is made, managers state clearly the new rules of the game. Although the expectations may be demanding, employees should know up front by what standards they will be judged and the penalties for failure.
Nor is fair process the same as democracy in the workplace. Achieving fair process does not mean that managers forfeit their prerogative to make decisions and establish policies and procedures. Fair process pursues the best ideas whether they are put forth by one or many.
The (High) Price of Unfairness
Difference between Distributive Justice and Procedural Justice
2/ Netflix’s company culture document
- Creativity is Most Important: In procedural work, the best are 2x better than the average. In creative/inventive work, the best are 10x.
- Prioritize Discovery Over Job Security: Many people love our culture, and stay a long time. They thrive on excellence and candor and change….Some people, however, value job security over performance, and don’t like our culture. Politically, this principle is the most fascinating: no major Internet company has a union, despite consistently ranking as some of the best places to work. Creative enterprises have been able to replace the long-cherished values of worker compensation and stability with a challenging, enjoyable environment. “Risk” is an often-praised characteristic of tech founders, who are now asking their employees to jump down that same rabbit hole. The future of work is likely to be as insecure as it is unforgivable. For some, this is utopia…for others, not so much.
- Poor Employee Behavior Is Caused By Misunderstanding: Managers: When one of your talented people does something dumb, don’t blame them. Instead, ask yourself what context you failed to set. High performance people will do better work if they understand the context. Hierarchical 20th century management structure was modeled off of authoritarianism, a philosophy based on the idea that individual disagreements can only be settled through power. Netflix takes precisely the opposite approach–that workers normally operate under consensus. Acting “stupid” is actually caused by a failure of communication. It is a profoundly different view of human nature.
- Unlimited Vacation: Netflix Vacation Policy and Tracking. There is no policy or tracking. Employees are left to decide when and for how long they should go surfing in the Caribbean. Netflix also proudly replaced the entire bureaucratic apparatus sounding travel expenses with five words, “Act in Netflix’s Best Interest.
3/ Cultivating OutragedThis article written in French is from Pierre Pezziardi, 41, co-founder of Octo and the founder of Octopus Microfinance (a leading ERP microfinance). He helped also to launch Babyloan, a microfinance peer to peer platform . He was previously, CIO of BRED Banque Populaire, where he deployed techniques and culture of Lean Management.
On change Management
For this, he applied a quite simple theory: there is no change prompted by the above, there are only changes wanted, and desired by the bottom, that converge with the interests of the above. So when you want to make a change, the emergence of new things, we must look to the presence of two factors:
- a place where problems are (quality, cost, time ...)
- the presence of a person who wishes to sincerely address them.
You need to empower indignants. This will annoy others, of course, because it breaks "the status quo" (poor quality call center, poor in this mammoth project, poor quality in ...). Status quo is the result of the organization as it is, and in a bureaucracy, this is what is reinforced. Whoever says "I do not agree, I am outraged, it could be otherwise" is a renegade who takes a lot of risks, including ostracism, of being seen as a barbarian who endangers the sustainable equilibrium of the organization.
The challenge is then to protect and support outraged, without replacing them (no substitution, he should do the job). The best equilibrium seems to be 80% of coaching (protection, how to behave) and 20% of consulting (how to make things happen by "inflicting help").
In order to make thinks happen, you have to do small steps, instead of big plan. The small steps are made to react to problems (Kaizen). The 5 why technique is used to understand the roots of the problem. Then, the PDCA (Plan-Do-Check-Act!) is used to follow actions made, results and decisions (yes it should be tracked).You could make mistakes, that's why you have a checking phase before acting.
You are part of a system or building it, and you will improve it step by step in order to create value for your internal or external client. he main objective is client value. So everything is done in order to make people better understand how things work, why decisions are taken, improve trust but, the root of all this is generating value. This is what the author called the "lean culture", to be dissociated with the lean tools ...