Welcomes Chuck Blakeman Author of the #1 Rated Business Book, Making Money is Killing Your Business & Why Employees Are ALWAYS a Bad Idea Top 10 Business Book of the Year
Why Employees are ALWAYS a Bad Idea
Connect With Us Grow@Crankset. Group. com Books: www. Why. Employees. Are. Always. ABad. Idea. com Books: www. Making. Money. Is. Killing. Your. Business. com Blog: www. Chuck. Blakeman. com
I always hope to reunite with myself…
…before I’m gone.
…Workplaces with a soul
![[Imagine: ] No departments](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-9.jpg "[Imagine: ] No departments")
[Imagine: ] No departments
![[Imagine: ] No corporate ladder, no promotions](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-10.jpg "[Imagine: ] No corporate ladder, no promotions")
[Imagine: ] No corporate ladder, no promotions
![[Imagine: ] No written policies, just beliefs](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-11.jpg "[Imagine: ] No written policies, just beliefs")
[Imagine: ] No written policies, just beliefs
![[Imagine: ] No managers, just a few Leaders](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-12.jpg "[Imagine: ] No managers, just a few Leaders")
[Imagine: ] No managers, just a few Leaders
![[Imagine: ] No office hours](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-13.jpg "[Imagine: ] No office hours")
[Imagine: ] No office hours
![[Imagine: ] Self-managed work teams](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-14.jpg "[Imagine: ] Self-managed work teams")
[Imagine: ] Self-managed work teams
![[Imagine: ] Unlimited vacation](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-15.jpg "[Imagine: ] Unlimited vacation")
[Imagine: ] Unlimited vacation
![[Imagine: ] Profit sharing for everyone](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-16.jpg "[Imagine: ] Profit sharing for everyone")
[Imagine: ] Profit sharing for everyone
![[Is it possible this could work better? ]](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-17.jpg "[Is it possible this could work better? ]")
[Is it possible this could work better? ]
![[Who, What, When, Where, How or Why? ] WHY](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-18.jpg "[Who, What, When, Where, How or Why? ] WHY")
[Who, What, When, Where, How or Why? ] WHY
WHY
Employees Stakeholders
Employees Stakeholders
Employees Stakeholders
Managers Leaders
Managers Leaders
Managers Leaders
![[Stakeholders Make Meaning, not just money. ]](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-27.jpg "[Stakeholders Make Meaning, not just money. ]")
[Stakeholders Make Meaning, not just money. ]
Participation & Sharing Increase Revenues Participation Age Fortune 500’s – 1, 025% “Good to Great” Companies – 316% S & P 500 Avg. 10 Yr Growth - 122% Firms of Endearment, How World-Class Companies Profit from Passion and Purpose, Rajendra S. Sisodia
![[Focus on Culture? ]](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-29.jpg "[Focus on Culture? ]")
[Focus on Culture? ]
![[SEMCO] Trust in Adult Behavior Everyone’s work rhythms vary.](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-30.jpg "[SEMCO] Trust in Adult Behavior Everyone’s work rhythms vary.")
[SEMCO] Trust in Adult Behavior Everyone’s work rhythms vary.
![[SEMCO] 12 layers of Management became 3 layers of Leadership](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-31.jpg "[SEMCO] 12 layers of Management became 3 layers of Leadership")
[SEMCO] 12 layers of Management became 3 layers of Leadership
![[SEMCO] No Titles or Management Ladder](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-32.jpg "[SEMCO] No Titles or Management Ladder")
[SEMCO] No Titles or Management Ladder
![[SEMCO] Self-Organized, Self-Managed Teams](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-33.jpg "[SEMCO] Self-Organized, Self-Managed Teams")
[SEMCO] Self-Organized, Self-Managed Teams
![[SEMCO] No set work hours](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-34.jpg "[SEMCO] No set work hours")
[SEMCO] No set work hours
![[SEMCO] ALL meetings are optional](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-35.jpg "[SEMCO] ALL meetings are optional")
[SEMCO] ALL meetings are optional
![[SEMCO] Unlimited vacation](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-36.jpg "[SEMCO] Unlimited vacation")
[SEMCO] Unlimited vacation
![[SEMCO] Profit sharing for everyone](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-37.jpg "[SEMCO] Profit sharing for everyone")
[SEMCO] Profit sharing for everyone
![[Question everything. ]](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-38.jpg "[Question everything. ]")
[Question everything. ]
“We don’t want to see your expense report, how many holidays you’re taking or even where you work. Let’s agree you’ll sell 57 widgets per week. If you sell them by Wednesday, please go to the beach, and start again on Monday. ” Ricardo Semler Founder, Semco
![[SEMCO – 10 year Results] Revenues grew 600% Profits up 500% Productivity rose 700%](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-41.jpg "[SEMCO – 10 year Results] Revenues grew 600% Profits up 500% Productivity rose 700%")
[SEMCO – 10 year Results] Revenues grew 600% Profits up 500% Productivity rose 700% Employee Turnover 1 -2%
The Morning Star Co. Davita Appster Johnsonville Foods Barry Wehmiller GE Aviation Semco Zappos Nearsoft Buurtzog Pixar AES Corp RHD Sudbury Valley Schools Sounds True Realize Tektronix New Belgium Brewing CT Spring & Stamping Precision Nutrition Red House Sun Hydraulics Crankset Group Worthington Industries FAVI Valve Netflix Da. Vita Shenandoah Life Menlo Innovations Nucor Steel Ideo Trek Bikes Project e. MT Whole Foods Gerdau Ameristeel Proctor & Gamble Methanex Medium Geonetric W. L. Gore Undercurrent Springest Analog Devices Patagonia Fed. Ex
Participation Age Co. Law Firm Before $9 million 34 Employees Founders: 2 wks in 18 yrs Employees: 45. 5 hrs/wk After $25 million 90 Stakeholders Founders: 4 ½ mths/yr Stakeholders: 38 hrs/wk
Participation Age Co. Real Estate Staging Company Before $180, 000/yr 3 employees Owner: 3 -4 wks/yr; lived at her business After $3. 5 million/yr 35 Stakeholders Owner: 3 -day work wk; lives 2, 000 mi. away! Has started two more businesses in DC
Participation Age Stakeholder Novaris Home Loans One owner Four Staff Loan Processor Before Self-Managed $55, 000/yr 8 -10 loans/month Loan Processor After Self-Managed $125, 000+/yr 20 -30 loans/month
Participation Age Org. Structure PARTICIPATION AGE MODEL INDUSTRIAL AGE MODEL CEO VP VP DIR SSSS S S S SL DIR SSSS S SL SL SUP MGR MGR SUP E M P L O Y E E S SUP SL SSSS S S S SL SSSS S SL
Who’s In Charge?
Who’s In Charge?
Employee Stupid! Frederick Taylor 1911 Lazy!
U. S. Before 1850? Business Owners – 80% Employees – 20% U. S. Today? Business Owners – 15% Employees – 85%
Taylor’s Impact Today? Pay to Stay Home!
Participation Age Stakeholder Mortgage Broker One owner Four Staff Loan Processor Before Self-Managed $55, 000/yr 8 -10 loans/month Loan Processor After Self-Managed $125, 000+/yr 20 -30 loans/month
The Lattice Organization A White Paper by W. L. Gore 1967
Attributes of the Lattice Organization Everyone interacts directly with everyone No intermediary (manager)
The Lattice Organization W. L. Gore “The simplicity and order of an authoritarian organization make it an almost irresistible temptation. Yet it is counter to the principles of individual freedom and smothers the creative growth of man. --Bill Gore
Team Decision-Making Is Very Safe 1) Decisions Made Where They Are Carried Out 2) Those Affected Are Informed/Involved
Manage STUFF. Lead PEOPLE.
Replacing Industrialist Age MANAGERS with Participation Age LEADERS
The Difference Manager Solves & Decides vs Leader Trains Others to Solve & Decide Gets out of the way! (then asks questions)
The Difference Manager vs Leader LCD Management HCD Management Stupid & Lazy Smart & Motivated
The art of leadership is to know how few decisions the leader needs to make.
STOP Managing. START Leading.
The Human Side of Enterprise By Douglas Mac. Gregor 1960 Theory X Stupid & Lazy Theory Y Smart & Motivated Which do you choose?
Theory X or Theory Y? Self-Fulfilling Prophecies
Stakeholder HCD Leadership 19% Actively Engaged Survive Here? 60% Employee Survive Here? 21% Actively Dis-Engaged LCD Management Leader 80% Manager
Stakeholder HCD Leadership 19% Actively Engaged Survive Here? 60% Employee Survive Here? 21% Actively Dis-Engaged LCD Management Leader 80% Manager
The Human Side of Enterprise By Douglas Mac. Gregor 1960 Theory X Theory Y Stupid & Lazy Smart & Motivated or 80%? Which do you choose?
Myths About the Participation Age Chaos/Anarchy MORE Organized Fad The Old/New Way Industry Specific EVERY Industry Size Specific Co. ’s of All Sizes No Mgt By TEAMS Left-wing Conspiracy Everyone’s a Capitalist
I always hope to reunite with myself… before I’m gone
What do I do next?
![[Join us in the Participation Age!]](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-71.jpg "[Join us in the Participation Age!]")
[Join us in the Participation Age!]
Connect With Us Grow@Crankset. Group. com Books: www. Why. Employees. Are. Always. ABad. Idea. com Books: www. Making. Money. Is. Killing. Your. Business. com Blog: www. Chuck. Blakeman. com
Why Beliefs Matter Beliefs Values Thoughts Actions Habits (decisions) (processes) Character (brand/culture) Destiny (legacy)
Hiring Priorities 1 2 3 4 5 Beliefs Culture Talent Skills Experience (Business Beliefs) (Comes From Beliefs) (Innate) (Learned) (Cumulative)
Self-Managed Teams Why? Everybody participates, everybody shares in the results. What does a Self-Managed Team Look Like? “Lattice Organization”
![Participation Age SHRM Roundtable Discussion [Room N 241] [11: 30 am-12: 30 pm]](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-77.jpg "Participation Age SHRM Roundtable Discussion [Room N 241] [11: 30 am-12: 30 pm]")
Participation Age SHRM Roundtable Discussion [Room N 241] [11: 30 am-12: 30 pm]
All Sizes, All Company Ages Crankset Group – 9 full-time; 12 part-time Law Firm – 90 full-time Semco – 3, 000 full-time Davita – 53, 000 full-time Thousands of others in every industry How do they find 100% Stakeholders?
![The Three S’s of the Industrial Safety, Security, Age [ Stability]](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-80.jpg "The Three S’s of the Industrial Safety, Security, Age [ Stability]")
The Three S’s of the Industrial Safety, Security, Age [ Stability]
![The Fourth S of the Participation Age [Significance]](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-81.jpg "The Fourth S of the Participation Age [Significance]")
The Fourth S of the Participation Age [Significance]
…before I’m gone.
Hallmarks of The Participation Age The New Normal Participation & Sharing (giving people their brains back)
![[Imagine: ] No HR Deparment](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-85.jpg "[Imagine: ] No HR Deparment")
[Imagine: ] No HR Deparment
![[Imagine: ] No HR Deparment](https://present5.com/presentation/c5d24a22a106a0aea5ba633956bd93bf/image-86.jpg "[Imagine: ] No HR Deparment")
[Imagine: ] No HR Deparment
Why Is Culture So Important? “Culture eats strategy for lunch. ” Peter Drucker “You don’t create a culture. You simply live out what you believe. Your culture is your belief system, and your belief system is your culture.
Participation Age Co. Construction Company $28 million 120 employees Issues - High turnover, low productivity - Sheet metal vs. roofing –they never talk! - 17% profitability goal rarely achieved Restructure - Self-managed teams (Emp. Become Stakeholders) - Sheet metal and roofing – together for 1 st time! - 1 st project – 33% profitability; ZERO punch list items
Replacing Industrialist Age EMPLOYEES with Participation Age STAKEHOLDERS
The Morning Star Co. Davita Appster Johnsonville Foods Barry Wehmiller GE Aviation Semco Zappos Nearsoft Buurtzog Pixar AES Corp RHD Sudbury Valley Schools Sounds True Realize Tektronix New Belgium Brewing CT Spring & Stamping Precision Nutrition Red House Sun Hydraulics Crankset Group Worthington Industries FAVI Valve Netflix Da. Vita Shenandoah Life Menlo Innovations Nucor Steel Ideo Trek Bikes Project e. MT Whole Foods Gerdau Ameristeel Proctor & Gamble Methanex Medium Geonetric W. L. Gore Undercurrent Springest Analog Devices Patagonia Fed. Ex
EMPLOYEES STAKEHOLDERS Directed CHILDREN Self-Motivated ADULTS TIME-BASED RESULTS-BASED DO WHAT TOLD (react) QUESTION ALL (proactive) Need CERTAINTY Need REWARDING WORK Making MONEY Making MEANING Need MANAGEMENT Need LEADERSHIP
MANAGERS LEADERS Ask HOW Ask WHY SOLVE & DECIDE TRAIN & DELEGATE Focus on PROCESSES Focus on RESULTS Delegate TASKS (used) Give RESPONSIBILITY
Leader: Has Followers SERVE - Vision, Guidance, Teams, Training, Resources, Feedback; RESULT, not PROCESS – Disappear!
What do you believe? . . . . About business? About work? About people? About leadership?
Who’s In Charge?
What is a Stakeholder? (Not a Shareholder) Thinks and acts like an owner.
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