Team 4: Jisuk Yoo, Mihee Kim, EuiYoung Kim, HyungYun Park, Michael Yi IT Modeling Professor Hee Seok, Lee 3/23/2014 W.L. Gore – Culture of Innovation Q1. Many companies try to sidestep difficult trade-offs: freedom and responsibility, social mission and fat profits, community and competition. So they adopt metrics, rules and processes. How different is Gore from other companies from this perspective?
In relation to freedom and responsibility, Gore attempts to achieve both. The freedom for Gore does not mean that every staff or executive can work freely and make decision in the absence of following any sets of rules or guidance. Rather, freedom for Gore is strictly defined according to its ...view middle of the document...
And finally, in pursuing freedom, every member of Gore has to have trust for each other. All in all, in balancing off between the freedom and responsibility,
Gore has created a perfect environment for staffs and executives to achieve the freedom at work, the responsibility in making decisions, and to build a strong employee value proposition. Another factor that differentiates Gore from other conventional enterprises is that it follows democratic process in sharing profits and in the selection of CEO. Gore enterprise provides compensation for its employees based on the contribution that each of these employees generate for the company, and the degree of contribution is strictly judged by his or her peers. As a matter of fact, such peer evaluation and compensation system are adopted by many enterprises in many countries nowadays. However, evaluation process is usually performed under a hierarchical environment and compensation is allocated for the division or team as a whole, or compensated discriminatively accordingly to the titles. On the contrary, peer evaluation in Gore is done within a small team base. Gore enforced the lattice structure that gives associates responsibility to work effectively for their own compensation. Secondly, all Gore members are the stockholders. This is another Gore‟s key practice in encouraging employees‟ commitments and driving motivations at work. Such system, in actuality, is considered to be one of the most effective ways to trigger employees’ motivations at work and is being implemented in many other enterprises nowadays. On top of its unconventional compensation and stock option system, Gore also follows a peer-driven process in selecting CEO. The current CEO, Terri Kelly, after spending 22 years at Gore as a process engineer and a leader for the global fabric division, earned the title of president and CEO in 2005. And such practice (an associate reaching the top to become a leader based on his/her ability to gain respects of their peers and to attract followers) is one of the core principles of Gore in terms of encouraging motivations as a whole and pursuing democratic environment. Aforementioned core values or principles implemented at Gore are all for one achievement after all. That is to create high-valued products. In creating such products, continuous innovation and creativity is crucial, and in order to foster such environment, Gore is adopting and adhering highly free, democratic, and compensating enterprise culture.
Q2. Do you think that the management practices at Gore look a lot like Web 2.0? If so, how?
In many aspects, Gore‟s management system is the so-called “Management 2.0”, which implies a management system that possesses similar traits to Web 2.0. Gore is renowned for its unique lattice organization structure, with no titles, hierarchy, or a conventional structure. The structure has no intermediaries and allows individuals to communicate and share with each other
to come up with...