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The advice process: From the start, make sure that all members of the organization can make any decision, as long as they consult with the people affected and the people who have expertise on the matter. If a new hire comes to you to approve a decision, refuse to give him the assent he is looking for. Make it clear that nobody, not even the founder, “approves” a decision in a self-managing organization. That said, if you are meaningfully affected by the decision or if you have expertise on the matter, you can of course share your advice. A conflict resolution mechanism: When there is disagreement between two colleagues, they are likely to send it up to you if you are the founder or CEO. Resist the temptation to settle the matter for them. Instead, it’s time to formulate a conflict resolution mechanism that will help them work their way through the conflict. (You might be involved later on if they can’t sort the issue out one-on-one and if they choose you as a mediator or panel member.) Peer-based evaluation and salary processes: Who will decide on the compensation of a new hire, and based on what process? Unless you consciously think about it, you might do it the traditional way: as a founder, you negotiate and settle with the new recruit on a certain package (and then probably keep it confidential). Why not innovate from the start? Give the potential hire information about other people’s salaries and let them peg their own number, to which the group of colleagues can then react with advice to increase or lower the number. Similarly, it makes sense right from the beginning to choose a peer-based mechanism for the appraisal process if you choose to formalize such a process. Otherwise, people will naturally look to you, the founder, to tell them how they are doing, creating a de facto sense of hierarchy within the team.
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Frederic Laloux (Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage of Human Consciousness)