By Nilesh Bhagat, CHRP

On the surface, W.L. Gore & Associates (WLG&A) has it right.  According to the vocabulary of modern leadership thinkers, their structure, work system and culture are all progressive. At WLG&A,

• No formal command structure exists. Rather, everyone carries the title of ‘associate’ and operates within an organizational lattice instead of a hierarchy. Individuals are expected to collaborate across functions and within multiple project teams in the course of their work. No one tells them what to do. Sounds awesome.
• Associates are expected to immerse themselves in multiple ‘projects’, rather than be assigned tasks toward predefined execution of isolated functions. It is commitment to interesting work, rather than compliance toward designated objectives, that is valued.
• Compensation depends purely on the review of your peers. The more effect you have on the projects you choose, the better you are paid. Your involvement and influence on projects is compared against your peers and your rank results in relative differences in pay.

In The Future of Management, Gary Hamel illustrates how WLG&A has advanced management practice by bringing to life systems and practices which activate the core of human motivation. Daniel Pink would say that Autonomy, Mastery and Purpose flow through the networks of this company.

The trouble is, an organization that’s built upon so much of what makes us human suffers from the flaws which make us human. The biases and perceptions which we are all evolved to project can easily sway even the most well-intentioned cultures. This is a very real issue that is faced by WLG&A with its innovative approach to leadership innovation.

For example, we all have a tendency to favour the groups we perceive ourselves as belonging to and behaving adversely to those we do not.  At WLG&A, this could mean the formation of cliques that favor each other and avoid those who don’t accept their subcultural values. Left unchecked, this could create a toxic culture of favoritism that stops cross-functional innovation in its tracks.

As well, we are easily influenced by the thoughts, feelings and behaviors of those with whom we regularly interact. This is the fundamental nature of our neural wiring and the reason our ability to observe and mimic one another is so advanced. At WLG&A, the compensation practice of ranking associates against one another can enhance confidence for those at the top of the charts; however, those at the bottom may perceive their placement with a sense of inferiority. This could result in a segment of the workforce feeling undervalued – and according to Equity Theory, this could lead to variations in effort across the workforce.

This doesn’t by any stretch mean that W.L. Gore & Associates is on the wrong track – on the contrary, I think their management practices are more advanced that many of today’s companies. It does, however, mean that we aren’t immune to the challenges of finding and implementing a better way of doing business. Just as traditional organizational practices has its flaws, so too will the next evolution. The new organization will change and move forward, but will do so learning from the lessons of the old organization.

Nilesh Bhagat, CHRP, is a rewards coordinator with Best Buy Canada. Nilesh graduated from Simon Fraser University with a Bachelor’s degree in Business Administration, First Class Honours. He majored in Human Resources Management and tacked on an extended minor in Psychology. He’s a self-confessed nerd (the first step is admitting), likes to read, loves hockey and is struggling with the complexities of learning the game of golf.