In this series of posts I will try to get the perspective of some people in Projectplace about what it’s like to work with Value Based Management. First out is our CEO Pelle Hjortblad. 5 quick questions:
Why did we choose Value Based Management in Projectplace?
Because Projectplace is a company with very stong and positive values. When you have a company like that, the management has to be in line with the rest of the organisation and can not function as a separate part.
In which way is it different to be a leader in an organisation that is value based?
The demands on the leader is higher, to be a good example, and these values have to be lived every day. There is also a higher demand for flexibility and listening skills. It can be a challenge that fewer things are given, but it gives more room for initiative and creativity. It is also easier since there is less risk of things falling between areas of responsibility. The infinite responsibility, where you have complete responsibility for your own tasks but also responsibility for other things that need doing in the company, means that there is less pressure on the leaders to detail manage and keep everything in mind.
Which are the advantages of Value Based Management?
One of the main advantages is that you get a dynamic organisation, several people working across boundaries on the same thing. The limitless responsibility makes sure that nothing falls through the cracks since no-one can claim that it’s not their responsibility. When everyone knows what is going on and you have transparency you also all share the responsibility.
Are there any disadvantages?
Value Based Management requires extreme trust and respect between people in the organisation. There is a risk of stepping on some sensitive toes when people take responsibility in what can be percieved as someone else’s area.
Are there organisations that are not suitable for Value Based Leadership?
Value Based Management is most suitable for growth organisations. Is is unsuitable for organisations that are being consolidated or downsized since there tends to be more politics about areas of responsibility there. The system is designed to encourage initiative and creativity so it’s best suited in organisations that have a need for just that. If you want people to do the same thing in the same way every day, this is not the right system.