Business Analysed

http://scobleizer.com/2009/04/23/learn-from-zappos… 

This blog entry describes a visit by Robert Scoble to a company called Zappos. Although what they do is less important – it is how they do it that is of interest. The approach taken is not one of the traditional workplace with stringent hierarchy, with managers, line managers and directors  – but it is an in formal structure more resembling a family rather than a business. Zappos have learned to relax and by doing that they have learned to win. Another classic and often quoted example of changing the workplace can be found at Google.  

By relaxing their organisational structure the company has empowered staff making them feel part of the family and as such has increased the productivity. Staff want to go to work and want to work. Even the simplest steps can make an organisation more employee friendly and each step is a step away from the traditional Victorian factory structure that can be perceived by employees.

Some ‘quick wins’ could include relaxing the dress code. Firstly why some organisations insist that employees wear suits and ties is beyond me. If there is no reason for your staff to wear a suit then why do you make them wear a suit. The feeling of being able to work in clothes that you feel comfortable in is important to staff. It is a simple psychology win that will allow workers to feel that they have some say in the company.

Secondly wins could relate to flexible working – sometimes this is not possible, however where possible it will allow workers to feel more in control of their lives. Flexible working could include the ability to come to work between set hours, or taking lunchbreaks when staff want and not by a prescribed =time. Other flexible working could include ‘flexi-time’ or the ability for staff to earn additional time off work by doing additional hours in advance.

Thirdly wins can also be gained from allowing employees to work from home. This is not suitable for all organisations, and in some places it is not suitable for many employees due to their personal circumstances, however the ability to work in an environment of their choosing can increase productivity and loyalty of the employee.

The way that organisations relate  are just as important as the perks that they offer to staff. As described above hierarchy exists in many companies and the way that staff are treated can resemble a feudal system with a Chief Exec at the top, directors below, managers, team managers etc. etc.. unfortunately to accompany this structure similar communication channels exist with any bottom up messages having to be approved by a more senior person before being passed on – or not in some cases.

More flexible organisations are removing this communication barrier and looking at a social network structure rather than a traditional hierarchy. A social network structure is made up of those people required to deliver the goals and many networks may exists depending on the aspirations. A network may exist for a project and may include staff from many different departments from across the business, it may even go wider than the organisations. The social network appreciates the skills of the individuals and does not distinguish rank but, when working for the goal, gives each member of the network equal status. This improves the speed of communication resulting in faster decision making processes. in addition it also removes individuals who do not need to be part of the chain. In some cases it may be possible to utilise technology to assist social networking in the workplace – but that is for another post.

The key blocker to more organisations not empowering their workforce and learning to relax and win can be summed up as ‘line of sight managers’. These are a special breed of managers, usually suit and tie wearing (even at the weekends) who are convinced that staff do no work unless they are smart and can been seen at all times. They can be described as ‘old school’ managers who live in a world that they know best and everyone else is mistaken.

In some cases it may be possible to reeducate these managers so that they can become more flexible and learn to trust their staff to achieve goals – but in some cases it cannot. What will a leader do if one their managers cannot, or will not, change in line with the organisations..? What happens if a manager recruits only people like themselves – how will the organization develop?

Organisations need to ask the are they ready to plan for the future and realise that the organisation as we know it is changing and are they equipped to deal with that change, have they the people, the processes and the technology..?

Till next time,

Paul