This work offers a summary of the book "HIDDEN VALUE: How Great Companies Achieve Extraordinary Results With Ordinary People" by Charles O´Reilly III, Jeffrey Pfeffer.
Hiring new people takes time, and therefore money. A far more effective strategy, O´Reilly and Pfeffer suggest, is to do everything possible to utilize existing talent. They encourage every business to be a people centered company that "allows every employee to become a star producer." Great companies have managers who are leaders, not overseers.
Hidden Value explains how to cultivate this philosophy, using concrete examples from real life companies. Southwest Airlines, for example, has a policy that no employee is ever punished for using good judgment when accommodating a customer irrespective of any other guidelines; everyone has information on how the business is doing - so they can act like owners rather than employees. They have a collective pay system with profit sharing and stock ownership. Employees are always suspicious of management who say one thing and do another; do not fall into that habit.
O´Reilly and Pfeffer demonstrate that with simple measures, it´s possible to maintain vibrancy, create loyalty and have clear, well-articulated values which will permeate through your organization. Hidden Value is crucial reading for managers and entrepreneurs everywhere.
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