Organization

Toxic Positivity

Toxic Positivity Jonathan Poland

Top-down and bottom-up are opposing approaches to thinking, analysis, design, decision-making, strategy, management, and communication. The top-down approach begins with the most general, fundamental, or high-level concerns and progresses towards greater detail. This approach is often used in problem-solving or decision-making, and is characterized by a focus on broad concepts and principles. The bottom-up approach, on the other hand, begins with specific details and works upwards towards more general concepts. This approach is often used in design or planning, and is characterized by a focus on the practical details and specific components of a system.

Analysis

A top-down analysis of an investment begins with general economic outlook and analysis at the level of a firm’s sector and industry. A bottom-up analysis begins with details such as the management of a firm or the features of a product. Both may cover the same detail but progress in opposite directions. For example, top-down may quickly invalidate an investment based on its industry and bottom-up may quickly invalidate an investment based on its management team.

Thinking

Top-down thinking begins with high level information. For example, considering your priorities in life before choosing a career. Bottom-up thinking begins with details such as looking at the average salaries of professions to shortlist high paying careers.

Design

Top-down begins with the high level structure of a design such as the architecture of a building. Bottom-up begins with details such as the interior design of a floor in a building.

Decision Making

Top-down begins with major factors in a decision such as the price you can afford for a car. Bottom-up begins with details such as the color of car you want.

Strategy

Top-down strategy is formulated by upper management or uses top-down thinking. Bottom-up strategy is proposed by each team and department with approvals moving up the hierarchy of an organization.

Communication

Top-down communication flows from upper management down to the working level. For example, a corporate restructuring that is communicated by a CEO. Bottom-up communication flows from the working level up to executive management. For example, a quality problem identified by a quality control specialist that is reported to a manager to a director to the COO to the CEO.

Combined Processes

Processes can be both top-down and bottom-up such that both approaches are used strategically. For example, some strategies may flow from upper management downward and some strategies may be suggested by working level individuals and get approved all the way up a corporate hierarchy.

Iterative Processes

Many processes involve iterations of top-down followed by bottom-up in a repeated process. For example, a shoe designer who begins with a drawing of the shoe who reworks the drawing after investigating the properties of a foam that will be used in the shoe.

Middle First

It is common to start somewhere in the middle between top-down and bottom-up. For example, an investor who begins analysis with a firm’s business model with progression to their industry and later to details such as debt level.

Types of Work

Types of Work Jonathan Poland

Work refers to any productive activity or pursuit that is undertaken in order to create value. There are countless types of work, both paid and unpaid, and they can be broadly categorized into several foundational types.

Generalist
Roles and tasks that involve applying knowledge from many domains in a flexible and dynamic way. For example, a hotel manager who deals with accounting, maintenance, operations and customer service in a single shift.

Specialist
Roles and tasks that involve highly specific know-how such as an elevator technician who knows how to repair and maintain certain types of elevator. This includes trades such as electricians.

Entrepreneur
An entrepreneur is an individual who creates new industries, business models, products, services and ways of doing things. This requires the flexibility of a generalist.

Capitalist
An individual who puts capital and people to work. For example, a restaurant owner who employs dozens of people and generates value from capital such as buildings. This includes anyone who takes risks with their own money such as a farmer who puts land to work.

Strategy & Planning
The process of forming strategy, making decisions and implementing. Includes roles such as executive management, project management and change management.

Communications
Work that is primarily about communicating such as sales, customer service and advertising. This includes any role that is highly social.

Healthcare
Any role in the healthcare industry. This involves the application of knowledge and has a human side that requires sympathy and ethics.

Creative
The creation of nonobvious works. This includes areas such as art, design and craft where one work item may be extremely valuable and another worthless.

Knowledge Work
Work that primarily involves creating, communicating, managing and applying knowledge. This includes diverse areas such as research, teaching and business operations.

Professional Services
The services of recognized professionals such as doctors, dentists, lawyers and accountants.

Management
Management is the process of directing and controlling teams, resources, processes and missions.

Technical
The process of automating work including software development, technical specialists and technology operations roles.

Administration
The bureaucratic practice of implementing policy, processes, procedures and standards. This includes any work that is standardized, repeatable and predictable.

Manual Labor
Physical work that isn’t particularly creative, specialized or social.

Working Style

Working Style Jonathan Poland

Working style refers to an individual’s preferred approach to performing their job and completing tasks. This can include factors such as the pace at which they work, their preferred method of communication, and their approach to problem-solving. Each person has their own unique working style, and it is important for organizations to take these differences into account in order to foster a productive and successful work environment.

Detail
Big picture thinking versus attention to detail.

  • Generalist: Thinks in first principles, challenges assumptions, systems thinking, design thinking, strategic thinking, dislikes repetition and seeks new challenges.
  • Specialist: Attention to detail, expert knowledge, diligent, able to remain productive with predicable work that isn’t necessarily challenging, accurate and precise.

Problem Solving
An employee’s fundamental approach to problem solving.

  • Proactive: Manages risks, pursues resilience and addresses the root cause of problems.
  • Reactive: Addresses the symptoms of problems, ignores risk and takes shortcuts that may be costly in future.

Change
How an employee feels about change and risk taking.

  • Innovator: Seeks aggressive change, considers creative ideas and takes calculated risks.
  • Defender of the Status Quo: Seeks stability, values tradition, avoids risk, embraces conventional thinking, actively or passively resists change.

Direction
The amount of direction an employee requires to set goals, solve problems and make decisions.

  • Self-Directed: Shapes their role, finds work to do, sets goals, self-improves, handles problems, makes decisions, handles ambiguity, remains productive without direction, challenges the boss.
  • Follows Direction: Thrives in a command and control environment of clearly defined processes and procedures.

Social
The degree to which an individual requires others to achieve productivity.

  • Collaborator: Views all work as social whereby talking is viewed as productive.
  • Independent: Most productive when thinking or concentrating on independent work.

Planning & Organization
The amount of planning and organization that goes into work.

  • Structured: Plans and organizes all work in advance. May plan for a long time before executing. Changes require more planning cycles.
  • Flexible: Delays decisions and planning to the last responsible moment, able to change direction quickly, work may be ad hoc.

Conflict
The degree to which an individual can tolerate disagreement, criticism and debate.

  • Tolerance For Disagreement: High tolerance for disagreement, embraces creative tension, willing to challenge others and hold their ground, remains civil.
  • Conflict Avoiding: Avoids conflict and the seeks protection. Shapes work to avoid criticism as opposed to maximizing its value.

Leadership
Leadership is the ability to get people moving towards a common purpose independently of your formal authority.

  • Leader: Influences and takes on political challenges to lead a way forward.
  • Follower: Avoids politics and craves the protection and stability provided by leaders.

Time
A preference for acting quickly on every idea versus careful prioritization often motivated by a need to achieve work-life balance.

  • Bias For Action: Seeks turnaround time and productivity. Willing to sacrifice work-life balance to achieve goals.
  • Time Manager: Seeks productivity and work-life balance.

Workplace Issues

Workplace Issues Jonathan Poland

Workplace issues can negatively impact employee satisfaction and organizational performance. These issues often arise from cultural and systemic problems, and can sometimes originate from upper management. They can be difficult to address and may require a comprehensive approach to resolve.

Authoritarianism is the use of artifacts from authority such as rules, processes and procedures to establish a sense of personal power over others. This can occur where an employee has no actual authority themselves.

Biases are repeated failures of logic. For example, making assumptions about someone because of identity factors such as their age.

Groupthink is an environment where people can’t speak candidly without being penalized by a group for failing to comply with a dogmatic group opinion or ideology.

Failure of imagination is the incorrect assumption that the future will resemble the past. For example, marketing myopia whereby a firm continually optimizes what has worked in the past while ignoring large scale change to their industry.

Knowledge waste is a situation where an organization produces knowledge that it doesn’t use. For example, a team or entire division devoted to creating documents that nobody actually reads or acts upon.

Tone at the top is poor behavior by upper management that encourages poor behavior at every level of a firm.

Malicious compliance is the use of an organization’s own processes, policies, procedures and projects against it. For example, a customer service representative that uses a well-intentioned security policy to antagonize customers and enjoy a sense of power.

Mediocrity is a situation where individuals do the minimum required not to be fired such that they have no concern for actual results. Such individuals may actively work against any strategy that will cause them work or inconvenience. The mediocre also fear talent, risk taking and change and may work to suppress these elements. For example, a manager who works to undermine talent on their own team for fear of competition.

Mismanagement is a failure to direct and control resources in a diligent way.

Negative selection, in the context of employment, is a situation where talented employees quit with time and low performing employees cling to their jobs. This occurs in any firm with poor working conditions as talented employees have more opportunity and therefore have less incentive to tolerate a bleak job.

Reactance is a human tendency to react against restrictions on freedom. For example, employees that become hostile to a firm due to excessive monitoring.

Trained incapacity is an inability to see beyond the way things have been done in the past.

Here are some more examples of workplace issues.

  • Absenteeism
  • Authoritarianism
  • Biases
  • Broken Processes
  • Broken Systems
  • Change Fatigue
  • Communication Failure
  • Complaining & Defeatism
  • Compliance to Laws & Regulations
  • Cronyism
  • Discrimination
  • Disorganization & Chaos
  • Emotional Responses to Criticism
  • Employee Privacy
  • Excessive Overtime
  • Failure of Imagination
  • Failure to Manage Expectations
  • Financial Mismanagement
  • Gossip
  • Groupthink
  • Harassment
  • Health Hazards
  • Hostility Between Teams / Partners
  • Hostility Towards Customers
  • Human Rights Violations
  • Hygiene Factors
  • Ideology & Politics at Work
  • Incompetence
  • Interpersonal Conflict
  • Knowledge Waste
  • Lack of Accountability
  • Lack of Civility
  • Lack of Confidence in Management
  • Lack of Empathy
  • Lack of Training
  • Lack of Transparency
  • Lack of Trust
  • Lack of Values & Principles
  • Lateness
  • Low Engagement
  • Low Performance
  • Low Productivity
  • Malicious Compliance
  • Mediocrity
  • Misinformation
  • Mismanagement
  • Negative Politics
  • Negative Selection
  • Negative Work Culture
  • Passive Aggressive Behavior
  • Poor Ethics
  • Poor Management
  • Reactance
  • Red Tape
  • Resistance to Change
  • Sabotage
  • Safety Hazards
  • Slacking
  • Tone at the Top
  • Trained Incapacity
  • Unclear Responsibilities
  • Unfair Criticism
  • Unusable Systems
  • Workplace Bullying
  • Yes People

Organization 101

Organization 101 Jonathan Poland

A business organization is a group of individuals or entities that come together to pursue a common business goal or objective. This can include partnerships, corporations, sole proprietorships, and other legal entities that are formed to carry out business activities. A business organization is typically structured in a specific way, with different roles, responsibilities, and decision-making authority assigned to different individuals or departments. The specific structure of a business organization will depend on its size, industry, and goals, and can vary widely from one business to another.

Business organizations can succeed in a number of ways, including:

  1. Offering high-quality products or services that meet the needs and preferences of customers: a business that is able to consistently provide value to its customers is more likely to succeed, as satisfied customers are more likely to return and to recommend the business to others.
  2. Developing and implementing effective business strategies: a well-crafted business strategy can help a business identify and capitalize on opportunities in the marketplace, and can provide a roadmap for achieving its goals and objectives.
  3. Building strong and lasting relationships with customers, suppliers, and other partners: a business that is able to develop and maintain good relationships with its key stakeholders is more likely to succeed, as these relationships can provide valuable support and resources, and can help the business navigate challenges and obstacles.
  4. Investing in the right people, technology, and infrastructure: a business that is able to attract and retain talented employees, and which is able to invest in the right technology and infrastructure, is more likely to succeed, as these assets can help the business improve its efficiency, productivity, and competitiveness.
  5. Being responsive and adaptable to changing market conditions: a business that is able to anticipate and respond to changes in the marketplace, such as shifts in consumer preferences or the emergence of new competitors, is more likely to succeed, as this can help the business remain agile and resilient, and can enable it to thrive in an increasingly dynamic business environment.

There is no one-size-fits-all approach to organizing a business, as the best way to structure a business will depend on its size, industry, goals, and other factors. However, some common organizational structures include:

  1. Hierarchical structure: a traditional organizational structure in which the business is divided into different departments or units, with each unit having a specific function, and with authority and decision-making power flowing from the top down.
  2. Flat structure: a more decentralized organizational structure in which there are fewer layers of management and employees have more autonomy and responsibility.
  3. Matrix structure: an organizational structure in which employees have dual reporting relationships, with some reporting to functional managers and others reporting to project managers or other stakeholders.
  4. Team-based structure: an organizational structure in which work is organized around teams, with each team responsible for a specific set of tasks or projects.
  5. Networked structure: an organizational structure in which the business is part of a network of other organizations, such as suppliers, customers, and partners, and in which work is organized around the flow of goods, services, and information within and among these organizations.
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