Question

OD Application: How w. L. Gore Empowers Individuals and Teams Innovation and change are in the DNA of W. L. Gore& Associ- projects get killed, it is the team that makes the decision. As peo- ates. Gore is most commonly known for its Gore-Tex fabric, a ple gravitate to a project, and if it grows, new hires may be nec- fabric used to make jackets and shoes. Gore-Tex has the ability essary. The team does the interviewing and hiring, with the to repel water while allowing perspiration to pass through.human resources group conducting in-depth reference checks Gore-Tex was one of the company's first inventions, but instead of becoming a textile manufacturer, Gore has gone on to pro- interest in making sure that the new associate is successful. Each duce a diverse array of products. These include guitar strings, associate is assigned a sponsor who acts much like a mentor dental floss, space suits, chemical warfare suits, fuel cells, and a re sponsors. The sponsor is medical device that can nonsurgically repair a hole in the heart. normally the person who has the most at stake in making sure The company's products typically are raw materials that end up the new associate is successful. If you sponsor someone, you in products made by other companies. Since the team does the hiring, its members have a vested ypically, 20 percent of associates a want him or her to be successful. You will offer them appropri- ate opportunities to sit in on meetings and seminars, and do Gore realizes that its products and the company itself will become obsolete in several years without continuous innovation. things so that they will be successful. If you are someone who is The dimate of the company is very much free flowing and inno- growing people on your team, it adds to your value. In other vative. Highly innovative companies need to have a free flow of words, the team becomes successful because it makes sure that knowledge and a structure that will stimulate communications individual members are successful among individuals and teams. Evaluation of performance for team members comes from other associates. Once a year, each team ranks every member to First, a bit of history. W.L. Gore & Associates got its start in 1958 when Bill Gore, a chemist, left DuPont. Having read Dou all the other members on the question, "Who has made the glas McGregors management book, The Human Side of Enter biggest impact on the enterprise?" The rankings are then sorted prise, he was intrigued with Theory Y management and the through by "contribution committees" who use the rankings as lattice organization system. McGregor's book served as his a basis for compensation. Seniority and education are not the model, and the lattice system is still used at Gore over 50 years criteria. The criterion is contribution, pure and simple. Though later. Gore has grown to have annual sales of more than $2 bil associates have an unbelievable amount of freedom by the stan- lion, about 8000 associates, and approximately 45 manufactur dards of other companies, they know they will be reviewed by at ing and sales offices around the world least 20 of their associates at the end of the year In the flat lattice system that Gore uses, there is no as- All associates are offered a stock option plan and profit signed authority, and, in keeping with this, Gore has no employ sharing. Everyone, not just salaried employees, is induded. That ees or managers. There are few job titles, no chains of comes back to the concept that everyone is in this endeavor to- command, and no predetermined channels of communication. gether. "We all are a team." Gore has found that the lattice organization is most effective when plants are no larger than 150 to 200 associates. The phi- been named in Fortune's list of "100 Best Companies to Work losophy is that people who know one another work better to-for in America." gether and any cost savings from large plants is cancelled out by the loss of efficiency and productivity when people do not know Questions each other well. "You have to divide so that you can multiply, says the CEO, Terri Kelly. The CEO is one of the few job titles at Gore As a footnote, W. L. Gore for 12 consecutive years has 1. How does Gore empower teams by empowering individ- ual associates? 2. What is the lattice system of organization? 3. Do additional research on Theory Y and Theory X 4. Do you think other companies could use these managerial The system uses sponsors rather than managers, and asso- ciates rather than employees. Everyone communicates with whomever they need, and people are accountable to fellow team members. Gore lets employees figure out what they want to do. Associates make commitments to work on the projects that they believe are most worthy of their time. As a result, "People tend to be very passionate about what they're doing." says researcher Jeff Kolde. Leaders are not appointed from above; instead, they emerge as they acquire followers to work on a project. "We vote with our feet," says manufacturing leader in Gore's technical-fabrics group. "If you call a meeting, and people show up, you're a leader." When strategies and structures? Or is this something unique to Gore? 5. Using the latest edition of Fortune's "100 Best Companies to Work For in America," find out what is Gores current ranking. See Fortune's web site at www.money.cnn.com/ magazines/fortune 6. You can find additional information on Gore's lattice sys- Rich Buckingham, a tem and management at the company's Web site, www gore.com

Answer 1

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- Everyone conveys anyway they need to.

- Few employment titles. Just CEO. Everyone is relating at same dimension.

- Go to whoever they think can answer questions. Work with whoever they like, endeavor to pick up adherents. No allocated pioneers for ventures. Have gatherings and individuals can join your groups.

- Can be engaged with what energizes you and interests you

- Choose group you think will be effective

- When a group is shaped that needs new representatives, some portion of an enlisting procedure. Work with HR and have input. They can pick who they need to be on their group to make sure they think they are fruitful.

2

The lattice organization structure is characterized by self-management as this structure has no hierarchy and no defined leadership. Gore describes the lattice organization structure as one that involves: 'Direct transactions, self-commitment, natural leadership, and lacks assigned or assumed authority.