Professional Documents
Culture Documents
Big Procedures,
Controls Mediocre
Organizational Bureaucracy
Results
Goal (Alignment)
Catalytic Mechanisms
• Aim to introduce new and effective products • Class getting hindered due to a lot of DCP
• In 1956, scientists are urged to spend 15% of by students
their time experimenting and inventing in the • Red Flag given per student for the quarter
area of their own choice to state their opinion
• Results: Post-IT Notes, Reflective License Plates • Red Flag made a CEO listen to a MBA
student , improving the knowledge of the
whole class
Distributes power or the benefit the overall system!
Traditional Managerial • Concentrates power in the hands of authorities who can force people to
Mechanisms obey their commands
Catalytic Mechanisms
Power corrupts, absolute power corrupts absolutely
Traditional Managerial • Attempts to simulate the right behaviors from the wrong
Mechanisms people.
…continuing the case of Nucor The case of W.L. Gore & Associates
• Nucor does not make lazy people • Followed the principle that you
productive, it creates an are a leader as along as people
environment which leaves no room choose you
for the inefficient
• It was essentially a strategy
• Nucor’s rural employment strategy – where employees had authority
“you can’t teach a person work to fire their bosses
ethic.…. But you can teach him steel
making” • Attracted people who thrived in
the system and scared the rest
A catalytic mechanism produces an ongoing effect.
Vision
Transform a mediocre forest and paper product company to a
world class consumer product company in the likes of P&G
Did something that was unpredicted for then Indian market, stepped
out of the scripted path.
The vision of keeping on moving put a process in place that all but
guaranteed that the vision will be fulfilled
“Think big, think fast, think ahead.”- These made sure that the effect
of the mechanism is an ongoing one, rather that just a passing buzz
or a fading fad.
Key Takeaways