 Well, as we've been discussing today we live in unprecedented times We have a huge challenge management is broken management is utterly and irretrievably broken And it's too bad Because we live in an amazing time. We live in a VUCA world And we've got massive Acceleration technology with blockchain artificial intelligence virtual reality and nanotechnology robotics genetic engineering Now we have 4d printing. We move beyond 3d printing. We now have 4d printing and these massive changes are causing tons of anxiety and fear And it's too bad because we also have unprecedented opportunities for innovation and breakthrough thinking We can now digitize virtually everything time space matter We can go beyond the material physical world to the digital world We have augmented reality Realistic virtuality virtual reality Warped reality mirrored virtuality There are a million ways to innovate and yet management is broken irretrievably broken And it's causing a lot of anxiety IBM did a study Complexity on complexity they found that most leaders doubt their ability to manage complexity It is hurting their own personal lives. They're losing sleep. It's a scary time There's burnout there's stress It's a big challenge, but there's more The management lab tells us that in the United States, for example, we spend three trillion dollars a year on unnecessary bureaucracy We are literally wasting people's lives With unnecessary permission steps Wasteful activities. It's not just an economic question anymore anymore. It's a moral question We are wasting people's lives, but that's not all Engagement study after engagement study whether it's Gallup or blessing wider Dale Carnegie or any other Consultancy or research operation tells us that anywhere from two-thirds to three-quarters Workers are disengaged at work go and Gallup says over the last 18 years about 30% of Workers are engaged at work. That means 70% are disengaged And the last study 16 or so percent were actively disengaged Which means they're actively undermining their own workplaces through gossip Bullying harassment sabotage and all the rest kind of a dark picture in some ways That's very sad given the tremendous opportunities we have so is there a way To deal with this well, yeah, but we have a problem That's underlying all this and that is that we still wrap our organizations around toxic dehumanizing language We used to have personnel departments then the 1980s we started talking about human resources Henry minstburg famously said I'm not a resource. I'm a human being People are not resources They're not direct reports. They're not file folders. We talk about man hours as if women don't exist We talk about headcount as if people are disembodied heads This is dehumanizing language and this is what undergirds All of the brokenness that we see in management everywhere in the world is There a way out of management purgatory. I Believe there is How about letting people manage themselves at work the same way they already managed themselves in their own personal lives In our own personal lives. We all make gigantic life-altering decisions without a boss We decide who to date who to marry where to go to college what to do for a living whether to buy a house Or car have children or all the rest Somehow we make all these decisions without a boss But it's only when we enter the portal of the workplace that apparently we're just too stupid to do anything without a human boss Why is that? Can we let people manage themselves? D. Hawk The founder of visa famously said that Complex rules lead to simple stupid behavior Simple rules lead to complex intelligent behavior Can we create self-managed organizations based on simple clear principles? That create the no limits enterprise how many think we can I believe we can I know this is true Because I was part of a core team that started a company called morning star and we were working in a little farmhouse 30 years ago Exactly 30 years ago in Northern California And we had a tiny core team of 24 people and I was the financial controller And our mission was to build a state-of-the-art food processing facility And so we came together it was March of 1990 and our founder Chris Ruffer brought us together and said I'd like to have a Meeting and talk about governance. So we said great so we all met that evening in a Dusty construction trailer on the job site and we sat around in a circle on steel folding chairs And he had it out a document called the morning star team principles. He said I proposed we organize around two simple principles The first principle is that human beings Should not use force against other human beings if you think about it as the foundation of all law everywhere in the world and The second principle is that people should keep the commitments they make to each other and that's also a principle of law especially contract law Now we discussed and debated these two principles for a couple of hours and at the end of the evening We just looked at each other and said these make perfect sense And so we adopted them as the governance of the enterprise And when we walked out of the trailer, we were a self-managed enterprise So we had a lot of work to do March of 1990 We had thousands of hectares of tomatoes coming up out of the ground up and down the state of California We had hundreds of contractors on the job site 24 24 hours a day seven days a week Constructing and fabricating the welding we had to hire hundreds of people to operate the factories and drive the trucks We had equipment arriving on ocean cargo freighters from Italy in the middle of the ocean But finally on July 16th of 1990. We turned on the factory and we produced 45 million kilograms of Industrial tomato concentrate for the world market and we changed the cost structure of our entire industry Virtually overnight. We did it without a single human boss No bosses no Designated managers no supervisors No titles Human beings working together as team members Cooperatively we went on to grow we built another factory and then another factory We expanded operations up and down the supply chain toward Customers and remote warehouses across North America Toward the supply in terms of farming and harvesting and transplanting and trucking We became the largest tomato processor in the world and everyone in North America at least is eating our product I believe all of you have eaten our product as well Because we export worldwide Now we have thousands of employees a billion-dollar company We still live up to our two core principles We have no human bosses whatsoever We're a self-managed enterprise the Harvard Business Review did a cover story on Us in December of 2011 Gary Hamill wrote an article We were described on the cover as the world's most creatively managed company So how does this work? How can we truly create? No limits enterprises Based on simple principles Well, the principles are key if you think about the two principles I discussed They are to human beings what gravity is to physics. They are the most fundamental principles of human interaction Imagine a world where everyone abandoned the use of force We wouldn't need armies or navies or police or locks on our doors And we know that's not realistic, but that's not the point The point is the closer we get to that ideal state the more space we open up For happiness and harmony and prosperity and teamwork Imagine a world where every single person did what they said they were going to do What an amazing world that would be Again, we know that's not Reality that's not what actually happens, but that's not the point The point is the closer we get to that ideal state The better off we are as human beings the more space we open up For happiness and harmony and prosperity and by the way keeping commitments as Quantifiable economic and financial value It's not just a good thing to do Organizing around simple principles. This is our org chart. This is actually a Frame from a time lapse of video which shows how we formed a cooperative network in our first factory This is a dynamic hierarchy. It's not really a hierarchy. It's a dense network of Peers each of whom has an equal voice Working together in a dense network of cooperative relationships. I am the blue dot in the upper left This is our org chart What it looks like Now morning star we can use any tool any practice any system any approach that we want to we have no limits zero limits We use anything that works as long as it's congruent with the two core principles We can't force other people To use a system And we have to keep our commitments If I tell a colleague that I'll implement a lean manufacturing practice in part of a factory I have an obligation to do what I said I was going to do so There are no limits. We can literally use whatever works To accomplish the vision the mission the purpose of the enterprise Unless you think that this one weird tomato company is the only company that's out They're doing this. That's not true. How many have heard of the higher group? I just saw the chairman Jong room in two weeks ago in, California Had a great conversation with him He's taken the world's largest Appliance manufacturers seventy five thousand people globally he's created four thousand self-managed teams Most of the teams are support teams like it and HR Illegal, but there are a number of customer phasing teams and then there are innovation teams And if they can create a new product or service they can spin it off into a totally new company Which hire will then support if I were a competitor of hire right now. I would be very worried. I Don't know how you compete can compete effectively Against a self-managed enterprise of that scale Freshfield is a brand new company They're disrupting the convenience store industry around clean energy and healthy food and Technology they adopted morning stars principles And by the way, they can pay their people more because they don't have to pay the cost of bureaucracy The Burt's org is a home health care and Business of 12,000 self-managed home health care and care nurses Expanding all over the world Jaipur rugs in Jaipur, India. I Was there in March. I met the founder nankish or Chowdhury They make beautiful hand woven carpets For the carpet industry the carpets last for hundreds of years Each carpet may have a million knots in it They take like three or four months to produce each carpet They call him the Gandhi of the textile industry. He has 40,000 carpet makers Mostly women from the untouchable class distributed all over villages in India Their lives are getting better by the day And he is bringing self-management to every single one of those villages And many of these people are able to educate their children for the first time ever And create better lives as a result of self-management We don't have to look very far to see how to manage complexity with simplicity Nature does a really good job of this double helix two twisted strands of sugar and phosphate real simple But the information contained within those two strands Creates every single living thing on the planet. It's like two simple principles Can create an entire billion dollars self-managed enterprise? So how do we get there? Well, I Think there are some crucial elements in getting there and we'll talk about this a lot On December 2nd back here at crisp With a self-management masterclass But I think there are some crucial elements here and one is we have to embrace the reality of human nature And that gets down to understanding the philosophy of human beings And we have to share the vision of a desirable future state invite people to co-create with us and Leverage the power of technology So what does it mean to embrace human nature? I think we have to get back to philosophy and bring philosophy back into business if You believe in free will like Immanuel Kant you will create organizations that acknowledge and respect the principle of free will And if you believe in free will it's nobody's job to motivate anybody else and Every single individual in an environment is responsible for his or her own Training education and development It's a completely different paradigm Than the conventional top-down management system Sharing the vision as leaders we have to articulate a vision of a desired future state And communicate that in a way that people understand it So we can at least show people what we think is possible in a true no-limits enterprise Also, I think it's crucial to invite people To help us co-create the principle of invitation is crucial to success Trying to impose a Self-managed system from the top down is a contradiction in terms. It cannot sustainably work Once we articulate a vision we have to invite people To share their ideas and to co-create alongside us To create a sustainable model for the future and if we do these things Then I know from my experience at Morningstar and visiting with some of the most amazing leaders all around the world That's truly possible To create enterprises that are no limits and as Peter Kessinbaum would say We need to elevate our language and use transcendent language In order to touch people's hearts and invite them into this amazing future of a no-limits enterprise We need to go beyond teamwork to love We need to go beyond mission to meaning We need to go beyond collaboration to belonging We need to go from empowerment to power Thank you very much one question I Think actually we there's nobody arriving there. So maybe maybe two questions any takers Hello, Doug. Hi What do you think of some of the more common things that block people for Taking action on what you're talking about Let's assume somebody who's sensing some something in those words that you've shared with us Yeah, the the the big blocker From my perspective is the willingness of people to give up power That's a big one So if you read Ian Robertson's book the winner effect how power affects your brain There is some neuroscience and biology involved in the thirst for power and and People often get a shot of dopamine in the brain when they exercise command authority over other people and they become literally addicted to power So persuading people That lust for power or addicted to power to give up power in the interest of a better world or in the interest of a no-limits enterprise is a difficult task and so we do our best and We we work with leaders that are willing to work with us But if someone is truly unwilling to to seed power to other people then It's probably not going to be a real productive exercise Least in the short term Hi You gave some really good examples of companies where this worked well like boots or a gun hire Do you also have examples where it didn't work so well or where it met with lots of difficulties? Yeah, I would say I've seen examples where a Leadership group thought this was an interesting concept and maybe sincerely wanted to approach it But didn't didn't truly Understand it or buy into it or maybe just wanted to hang on to power and so taking half steps Without truly believing that people have free will that's why I think philosophy is so important if you don't truly believe in The concept of free will and you you still want to have Some command and control. It's you know, you can play with it You can experiment it with it, but it's really not going to work that well, and I've seen that happen Thank You duck, okay Thank You Talking of our appreciation