Download (direct link):
John R. Schermerhorn, Jr., Management, 6 ed. (New York: Wiley, 1999), p.
118. Used by permission.
“When Is a Temp Not a Temp?” Business Week (December 7, 1998), pp.
Adapted from J. Richard Hackman and Greg R. Oldham, “Development of the Job Diagnostic Survey,” Journal of Applied Psychology, Vol. 60 (1975), p. 161. Used by permission.
Based on Edwin A. Locke and Gary P. Latham: “Work Motivation and Satisfaction: Light at the End of the Tunnel,” Psychological Science, Vol. 1, No. 4 (July 1990), p. 244.
Xerox (Canada): Information from Kerry Shapansky, “How Fact-Based Management Works for Xerox,” CMA Magazine, Vol. 68 (December 1994/January 1995), pp. 20-22.
UPS: Information from Robert Frank, “Efficient UPS Tries to Increase Efficiency,” The Wall Street Journal (May 24, 1995), pp. B1, B4.
Excite, Inc.: Information from Quentin Hardy, “Aloft in a Career Without Fetters,” The Wall Street Journal (September 29, 1998), p. B1.
Gap, Inc.:Information from David Kirkpatrick, “The E-Ware War,” Fortune (December 7, 1998), pp. 102-110.
George Anders, “Discomfort Zone: Some Companies Long to Embrace the Web But Settle for Flirtation,” Wall Street Journal (November 4, 1998), pp. 1 and 14; and Jermiah Sullivan, “Functions of the Corporate Web,” Journal of World Business, in press.
From the 1997 annual report of the Chase Manhattan Corporation and www.chasemanhattan.com.
Warner-Lambert Annual Report 1997, p. 24.
http://www.com/cgi-bin/cgi; Caree P&G Pursues Greatest Growth Ever (September 9, 1998); Douglas G. Shaw and Vincent C. Perro, “Beating the Odds: Five Reasons Why Companies Excel,” Management Review (August 1992); P&G Annual Report, 1992, 1995, 1997.
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The Company of the Future
by Robert B. Reich
t is a revolutionary notion: Talented people are joining up with fast companies to create “social glue”—the essence of both a winning business and a humane workplace.
Danielle Rios, 28, has it all—a BS degree in computer science from Stanford, a great track record as a software developer for IBM, and the energy and savvy to market herself. With all that going for her, Rios could be a free-agent winner in the new economy, adding value by juggling different projects with different firms. Or she could have her pick of well-established corporate launch pads for her career.
But for the last three years, Rios has worked with Trilogy Software Inc., a small, rapidly growing software firm based in Austin, Texas. Trilogy is on the cutting edge of sales-and-marketing software, and Rios is part of a team that shows potential customers how the software can work for them.
Joe Liemandt, 30, founded Trilogy in 1989, after dropping out of Stanford only a few months before graduation. To finance the startup, Liemandt charged up 22 credit cards. If Trilogy were to go public today, analysts say, it would be valued at more than $1 billion. Four years
First appeared: Fast Company issue 19 page 124 Reprinted with permission from Fast Company Magazine.
ago, Trilogy had 100 employees; today it has almost 1,000—and plans to add another 1,000 before the summer of 1999. But to call Trilogy workers “employees” misses the point. They’re all shareholders. They’re all managers. They’re all partners. That’s how Liemandt, Trilogy’s CEO, has chosen to run his company—and that’s what makes it successful.
Liemandt knows that Trilogy depends on talented people. He also knows that people can go anywhere. Which means that his biggest competitive headache isn’t
companies like SAP AG, Baan Co., and PeopleSoft Inc________
businesses he has to face down in the marketplace. His biggest worry is holding onto people like Rios. ‘There’s nothing more important than recruiting and growing people,” he says. “That’s my number-one job.”
It’s a seller’s market for talent. People with the right combination of savvy and ambition can afford to shop for the right boss, the right colleagues, the right environment. In the old economy, it was a buyer’s market: Companies had their pick of the crop, and the question they asked was “Why hire?” Now the question is “Why join up?”
As a result, the economy is fostering new kinds of organizations with new kinds of practices and operating rules for pulling people together. These companies offer many of the advantages of free agency: flexibility in how,
when, and where you work; compensation linked to what you contribute; freedom to move from project to project. But they also offer the advantages of belonging to an organization in which mutual commitment builds continuity. They are the enterprises of the future.
What makes them so different? Consider again Danielle Rios and Joe Liemandt at Trilogy. In the old economy, Rios and Liemandt would have been on opposite sides of the table: employee and employer. They’d be there for years, locked in their conflicting roles. Liemandt would want steady, reliable work from Rios. Rios would want a fair wage from Liemandt and an opportunity to move up the company ladder. In the new economy, Rios and Liemandt sit on the same side of the table. And they’ve joined together—for a time—to create new value.