Physical Address
17033 Neubrandenburg
Germany
Ensuring the controllability of the organization
After we selected the right employees, Our next task is to give them working rules: how and what they should do. Essentially, this should begin even before the first euro is invested. By establishing working rules, we create technology – that which transforms a simple group of people into a business.
Technology as a foundation
definition
Technology is a clear, formalized sequence of actions in all phases of goal achievement. Step one, step two, step three – with criteria for execution and the transition to the next step.
core principle
Qualifications should belong to the organization, not the people. They should be owned in the form of technology – as property of the company, not the employees. We give employees job descriptions.
Advantage
We practically don't need highly qualified specialists. People with average qualifications are perfectly sufficient, because the business outcome depends not on their qualifications, but on the technology we build.
The work process and its five elements
The company's work processes are the manager's homework. If he completes them, the company will operate stably for the next two to three years, and the manager's own work will become routine, simple, and understandable.
✔Define results
Determine the systematically reproducible result of the employee's work. Formulate everything using the words "completed" or "available".
✔Plan backwards
Find out what needs to be done one time step before the result. Work your way from the end to the beginning.
✔Distribute functions
Divide the work process according to functional responsibilities and positions. Avoid vertical division – use the Tetris principle.
✔Describe transitions
Describe in detail the transitions between the results. What needs to be done to achieve each result?
✔Document
Create job descriptions, selection rules, and compensation conditions based on the work process.
Correct distribution of functions
Incorrect: Vertical division
An employee is familiar with instructions from multiple organizational levels and executes a process from beginning to end. This leads to:
- Loss of competitive advantages
- Increased demands on employees
- Dependence on individual persons
Correct: Tetris principle
No process is carried out by a single employee from beginning to end. Each employee has their own small area of responsibility according to their habits and abilities.
- Employees work without effort
- No waste of time and money
- Easy employee exchange
Structure of the job description
A properly written job description follows a clear structure for each step:
Who does it?
Clear designation of the employee responsible for this step.
How is it prepared
Detailed description of the execution. Can be omitted if obvious.
Who controls
The employee who receives the work – not the supervisor of the person carrying it out.
How is it checked?
A concrete control method. Both sides understand: mutual cover-up is useless.
Important: Job descriptions should not exceed 15-20 pages. Longer instructions place too high a demand on one person and should be divided between two employees.
Implementation of the work process
Quick method
Dismiss all employees (except security and cleaning staff). Hire new employees who will work according to the new instructions from the start. Fast, reliable, effective – but rarely used.
Slow method
Gradual implementation with existing personnel. Requires destabilizing the group, audits, consistent enforcement, and administrative measures. Takes 1.5 to 3 months.
In the slow method, the collective goes through three phases of resistance:
- „"Why is that necessary? We can manage just fine without it."“
- „"That won't work, let's stick with the way things are!"“
- „"Apparently our boss won't give in, so fine, we'll work according to the new system."“
Rewards and punishments
Material incentives
Rewards: Bonuses are awarded exclusively for fulfilling job descriptions.
Punishments: Penalties for failure to fulfill prescribed obligations.
Basic principle: Every employee must understand exactly what they are being paid for and how much they will earn per month.
Administrative incentives
- Comfortable/uncomfortable workplace
- New/old equipment
- Convenient/inconvenient work schedule
- Projects with/without prospects
- Good/bad attitude of the boss
- Credit options
- Training opportunities
Important: Material rewards only for obligations stipulated in writing. Administrative rewards for unwritten rules. Both systems must be applied consistently.
Written and unwritten rules
Written rules are job descriptions. Compliance is achieved through material incentives. Unwritten rules are more complex – they cannot be enforced by posting notices on the wall.
How unwritten rules work
People follow rules they have discovered themselves. If we create conditions where non-compliance threatens stability, people will adapt voluntarily. They find the rules themselves and follow them – even to their own disadvantage.
Implementation method
Unwritten rules are not directly explained! Every direct explanation negates the work. Through systematic training without explanations, people understand how to act within 1.5 weeks. They think they've found a way to control you.
Recommended unwritten rules (maximum 5):
- Protect company property
- Save
- Constantly gaining customers
- Bringing suitable candidates to work
- Staying longer without pay to get ready
- Always and everywhere speak well of the company.
Discipline of decision-making
Define the main goal
Before making any decisions, define the main objective for the next period. Only one main objective! All current instructions will be given in accordance with this objective.
Set current goals
Each department receives a current main objective within the framework of the overall overarching goal. All decisions within the departments must contribute to achieving this objective.
Stay consistent
No decision that contradicts the main objective may be made without an official amendment to the main objective. This creates predictability and stability for employees.
Basic principle: No immediate decisions should be made at a lower level without first making a decision at a higher level. Otherwise, five decisions at a lower level may not be compatible.
Summary: Controllable Organization
owner
Main goal, myth
Top management
Current goals, ideology
Middle management
Unwritten rules, processes
Executors
Job descriptions, instructions
A well-organized company functions like a machine: Each employee performs their simple task without understanding what others are doing. But together, they achieve the desired result in a coordinated manner. The expertise belongs to the organization, not the individuals. This enables:
- Simple employee exchange
- Lower qualification requirements
- Stable, predictable results
- Reduced dependence on individuals
- Marketable business model
