Organizational Evaluation: W. L. Gore; Associates
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Organizational Evaluation:
W. L. Gore & Associates, Inc.
Introduction
Managing a business in the 21st century is a complicated endeavor. Many books and studies have been commissioned to find the right balance of management and profitability. This tight-rope walk of ensuring a business is managed properly, without being managed into bankruptcy can be difficult, but one company stands out as a bastion of best practices for a competitive and happy workplace, and that is the W. L. Gore & Associates Corporation.
Gore & Associates was founded by the late Wilbert L. Gore and his wife, Genevieve (Daft, 2009). Wilbert based the company on his experiences while working for the Remington Arms Company, and E. I. DuPont de Nemours where he worked as a chemist. During his days at DuPont he worked on a team that developed polytetrafluoroethylene, referred to as PTFE or more commonly known as Teflon. Using the knowledge gained through this experience, he worked in his basement laboratory to develop ribbon cable coated with PTFE which was patented in his name. This breakthrough led to other discoveries such as using PTFE for arterial graphs, and a weather proof material named GORE-TEX which is used on a variety of items from camping gear to clothing. This ultimately led to the creation of W. L. Gore & Associates in 1958.
The organizational structure of Gore & Associates is unique. Wilbert didnt want his employees being mired down with too many lines of management, so there are no bosses at the company. There are no titles or hierarchies accept for the mandatory president and secretary-treasurer required by the laws of incorporation. This has led to an adhocracy structure defined by Daft (2009) as “develops in a complex, rapidly changing environment (p. 29, para. 5). From this structure Gore & Associates have built a unique mission culture with a clan mentality that works very well for them. The company has no corporate-wide mission or code of ethics statement. However, neither of these is prohibited and if divisions wish to create their own they are allowed to do so. One Associate at the company stated “The company belief is that (1) its four basic operating principles cover ethical practices required of people in business; (2) it will not tolerate illegal practices” (Daft, 2009). Wilbert Gore articulated the four basic operating principles as:
Try to be fair.
Encourage, help, and allow other Associates to grow in knowledge, skill, and scope of activity and responsibility.
Make your own commitments, and keep them.
Consult with other Associates before taking actions that may be “below the water line.” This metaphor means dont make decisions that would put a hole in the ship below the water line and sink the company. (Daft, 2009)
Wilbert Gore created a management structure that has been described as unmanaged. He referred to this structure as a lattice organization which Daft (2009) characterizes as six things:
Direct lines of communication – person to person – no intermediary
No fixed or assigned authority
Sponsors, not bosses
Natural leadership defined by followership
Objectives set by those who must “make them happen”
Tasks and functions organized through commitments (p. 558)
Although this structure is complex, Wilbert Gore explains that “Every successful organization has an underground lattice. Its where the news spreads like lightning, where people can go around the organization to get things done” (Daft 2009). This philosophy seems to work very well for Gore & Associates, but its not without its problems. This is seen by corporate customers because there are no assigned accounts representatives with whom they can deal with each time they call the company for assistance.
Gore & Associates philosophy of dealing directly with the each other is unique in that they dont rely on the latest technologies, such as email, for their interactions. Each associate has a voicemail box set up so other Associates can leave them personal messages rather than impersonal electronic mail or text messages. This type of horizontal communication system has forced Associates to learn to communicate effectively. In an article entitled Dont hide behind email, pick up the phone, Tomkins (2007) states that “its easy to fall into choosing the one (communication method) thats easiest for you, not for your audience” (para. 1). Using direct communication prevents people from hiding behind email, and creates a diversified environment for collaboration and trust with a strong structure for horizontal linkage between all departments.
With no direct managers, Gore & Associates has pushed the definition of decentralized decision making with an “emphasis on learning and adaptation” (Daft, 2009). The company relies on informal teams, face-to-face communications and few rules. To help people adjust to this unique environment they implemented a system of sponsorship within the company. When an Associate joins the firm they are assigned a sponsor to act as a coach and advocate in their new environment. The new Associate isnt assigned a boss, because there arent any, so they may feel lost and in need of direction. The sponsor helps them get started. There are three types of sponsors: Starting sponsors who help people initially when they join the firm; Advocate sponsors who ensure an Associates accomplishments are recognized; and Compensation sponsors who ensure Associates are fairly paid for their contributions to the company. A single person can be any one, or all of these types of sponsors. The key is to create an environment where Associates dont feel pressure to report to a boss, but rather discuss things with a colleague who is frequently a friend in order to overcome obstacles.
With a lattice type environment, innovation thrives at every level. A good example of this is when a line Associate with only a third grade education designed a machine that could wrap thousands of feet of wire a day (Daft, 2009, p. 564). This approach to facilitating idea champions is all too often lost in a contemporary setting where managers do the innovating and line workers stick to their duties. Ensuring that all Associates have a stake in innovation