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Part Two
Design
Operations in practice W.L. Gore & Associates Inc 1
Most famous for its high-performance fabrics such
as GORE-TEX® Fabrics, Gore also has an enviable
reputation as being one of the best companies to work
for wherever it operates. In a recent ‘Best companies to
work for’ list, its associates (the company does not use
the term ‘employees’), gave it the very top marks for
‘feeling you can make a difference’. More than half of its
Associates (staff) have been with the firm for at least a
decade, a consequence of its philosophy (‘to make
money and have fun’), and its unique organizational
culture and job design practices. Few in the company
have any formal job titles, or job descriptions. There
are no managers, only leaders and associates, people
are paid ‘according to their contribution’ and staff help
to determine each other’s pay – ideas which seem
revolutionary yet are based on the company’s founding
principles from over 50 years ago. Started by Bill and
Vieve Gore in the basement of their home in Delaware,
it has now become a global business with facilities in
more than 45 locations around the world. Its skilled
staff develop, manufacture and sell a range of innovative
products, virtually all of which are based on just one
material (expanded polytetrafluoroethylene) which was
discovered by Bob Gore (the founder’s son) in 1969.
It now has approximately 8,000 associates in its four
main divisions (textiles, electronic, medical and industrial
products) and annual revenues of over $2 billion.
Gore’s approach to how it works with its staff is at the
heart of the company’s success. On almost every level
Gore is different from other global companies. Associates
are hired for general work areas rather than specific jobs,
and with the guidance of their ‘sponsors’ (not bosses)
and as they develop experience, they commit to projects
that match their skills. Teams organize around
opportunities as they arise with associates committing
to the projects that they have chosen to work on, rather
than having tasks delegated to them. Project teams are
small, focused, multi-disciplined, and foster strong
relationships between team members. Personal initiative
is encouraged, as is ‘hands-on’ innovation, which
involves those closest to a project in its decision making.
There are, says Gore, no traditional organizational charts,
no chains of command, no predetermined channels of
communication. Instead, team members communicate
directly with each other and are accountable to the other
members of their team. Groups are led by whoever is
the most appropriate person at each stage of a project.
Leaders are not appointed by senior management; they
‘emerge’ naturally by demonstrating special knowledge,
skill or experience that advances a business objective.
Everyone’s performance is assessed using a peer-level
rating system. Even the Group’s CEO (one of the few
people with a title), Terri Kelly, ‘emerged’ in this way.
When the previous CEO retired, no shortlist of preferred
candidates was interviewed; instead, along with board
discussions, a wide range of associates were invited
to nominate people they would be willing to follow.
‘We weren’t given a list of names – we were free to
choose anyone in the company’, she says. ‘To my
surprise, it was me.’
The explicit aim of the company’s culture is to
‘combine freedom with cooperation and autonomy with
synergy’. Everyone can earn the credibility to define and
drive projects. Sponsors help associates chart a course
in the organization that will offer personal fulfilment
while maximizing their contribution to the enterprise.
Associates adhere to four basic guiding principles,
originally expressed by Bill Gore:
● Fairness to each other and everyone with whom we
come in contact
● Freedom to encourage, help, and allow other
associates to grow in knowledge, skill, and scope of
responsibility
● The ability to make one’s own commitments and
keep them
● Consultation with other associates before undertaking
actions that could impact the reputation and business
directions of the company.
This degree of personal commitment and control
by associates would not sit happily with a large
‘corporate’-style organization. It is no surprise, then,
that Gore have unusual notions of economies of scale.
Source: Alamy Images