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Shopify founder Tobi Lütke introduced the German word “Verschlimmbesserung,” meaning “worsening improvement.” This concept warns leaders against making changes without fully understanding existing systems. Lütke emphasizes the importance of recognizing why things are the way they are before attempting improvements, helping mid-sized companies avoid unintended negative consequences when competing with larger rivals.

This thought experiment, introduced by G.K. Chesterton, illustrates the dangers of removing seemingly useless elements without understanding their purpose. In the story, removing a fence between cows and sheep led to hungry cows. This concept teaches leaders to thoroughly investigate existing structures before making changes, preventing potential harm to their organization when innovating to compete with larger companies.

By Jessica Stillman | SEP 25, 2024
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CEO Dan Price made headlines when he cut his own salary from 1.1 million to 70,000 and set a $70,000 minimum wage for all employees. This unconventional move boosted employee morale, productivity, and customer retention. It also attracted top talent and free publicity. The company’s revenue tripled, showing that prioritizing employee well-being can lead to business success.

Ricardo Semler transformed his family’s traditional manufacturing company into a radical democracy. Employees set their own salaries, choose their managers, and vote on major decisions. This unique approach resulted in increased productivity, innovation, and employee satisfaction. Semco’s success demonstrates that trusting employees with significant autonomy can lead to remarkable business outcomes.

By Marcel Schwantes | SEP 25, 2024
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After layoffs, one leadership team used resonant language to rebuild trust. They encouraged managers to acknowledge their emotions first, then communicate openly. For example, leaders might say, “Even though I’m feeling uncertain, I’m grateful for my team’s resilience.” This helped reset emotions, improve workplace connection, and restore trust.

A mid-sized company integrated yoga nidra breathing exercises into their daily routine for managers. This unconventional method involved timed breathing to activate the vagus nerve, lowering stress levels and enhancing decision-making. It created a calm leadership approach and improved focus during high-pressure situations, especially during layoffs.

By Rajkumari Neogy | SEP 25, 2024
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During the merger, UptimeHealth noticed that Dental Whale’s team was used to a less structured environment and worried about feeling unheard. UptimeHealth created an inclusive environment by conducting interviews, addressing concerns early, and being transparent. This proactive communication helped avoid friction, ensuring smoother team integration and collaboration.

UptimeHealth transformed Dental Whale’s work experience by introducing advanced tools and systems to streamline daily tasks. They tracked how quickly the new team adopted these tools through “transition metrics,” supported by workshops and mentors. This hands-on approach helped employees adjust, boosting efficiency and trust during the transition.

By Jinesh Patel | SEP 25, 2024
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McKinsey’s study revealed that companies empowering teams during transformations capture 67% of maximum financial benefits, compared to 37% for those that don’t. This strategy involves letting frontline employees, who know the business processes best, drive change. It’s about trusting your staff to make informed decisions quickly, rather than relying solely on top-down leadership.

The Journal of Complex Networks found that information spreads 10 times faster through social networks than traditional top-down methods. This approach suggests using internal social channels and organic networks to communicate change, creating a grassroots movement within the company. It fosters transparency and makes employees active participants rather than passive recipients of information.

By Sherzod Odilov | SEP 24, 2024
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A VP assumed that sending an employee abroad would strain them, but the employee actually loved the challenge and autonomy. By becoming more externally self-aware, the VP learned to offer more high-risk projects, which increased engagement and trust. This shows how challenging assumptions about employee experiences can unlock hidden strengths.

A Babson College professor tested his external self-awareness by predicting his children’s favorite Disney moments, only to find out they valued simple activities like swimming. Similarly, many leaders misjudge how their teams experience decisions. Learning to ask and listen can help leaders better align actions with team values.

By Richard Triggs | SEP 24, 2024
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Instead of setting identical goals for all team members, a company tailors objectives based on each employee’s strengths. For example, a creative team member might have goals focused on innovation, while a detail-oriented person might have goals centered on process improvement. This approach maximizes each person’s potential and contributes to overall company success.

A mid-sized tech firm adopts a flexible leadership approach. Some employees receive daily check-ins, while others have weekly meetings. Some are given more autonomy, while others get hands-on guidance. This personalized management style leads to higher employee satisfaction and productivity, helping the company compete with larger firms.

By David Finkel | SEP 23, 2024
Read the original article at INC

WM (Waste Management): CEO Jim Fish is addressing labor shortages by investing $3 billion in recycling infrastructure and technology. They’re rebuilding plants to reduce employee needs, as finding truck drivers is challenging and expensive. This strategy helps WM compete by adapting to changing workforce preferences and reducing labor costs.

Goodwill Industries International: CEO Steve Preston is competing with well-funded for-profit businesses by expanding both brick-and-mortar and online presence. This creates a complex ecosystem connecting buyers and sellers of recycled goods, opening new growth opportunities. Goodwill’s strategy shows how non-profits can adapt to compete in a changing market.

By John Kell | SEP 23, 2024
Read the original article at FORTUNE

A VP assumed that sending an employee abroad would strain them, but the employee actually loved the challenge and autonomy. By becoming more externally self-aware, the VP learned to offer more high-risk projects, which increased engagement and trust. This shows how challenging assumptions about employee experiences can unlock hidden strengths.

A Babson College professor tested his external self-awareness by predicting his children’s favorite Disney moments, only to find out they valued simple activities like swimming. Similarly, many leaders misjudge how their teams experience decisions. Learning to ask and listen can help leaders better align actions with team values.

By Scott Taylor | SEP 23, 2024
Read the original article at ENTREPRENEUR

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NASA’s Open Innovation Strategy: NASA launched 300 projects across 32 platforms, accessing 120 million freelancers. This approach led to 92% of projects meeting or exceeding expectations, 80% cost savings, and reduced procurement time from 9-12 months to 3-4 weeks. This strategy helped NASA innovate rapidly and cost-effectively.

UST’s Fractionalized Talent Approach: UST, a transformation consultancy, faced delays in a client website build due to lack of specific expertise. They split the project between two freelance experts – one for advanced geometry and another for Java library training. This strategy completed the project in 3 weeks, saving $2 million in revenue.

By Matthew Mottola | SEP 23, 2024
Read the original article at FORBES