13.1 Build your machine.
13.2 Systemize your principles and how they will be implemented.
a. Create great decision-making machines by thinking through
the criteria you are using to make decisions while you are making them.
13.3 Remember that a good plan should resemble a movie script.
a. Put yourself in the position of pain for a while so that you
gain a richer understanding of what you’re designing for.
b. Visualize alternative machines and their outcomes, and then
choose
c. Consider second- and third-order consequences, not just rst-order ones.
d. Use standing meetings to help your organization run like a Swiss clock.
e. Remember that a good machine takes into account the fact that people are imperfect.
13.4 Recognize that design is an iterative process. Between a bad “now” and a good “then” is a “working through it” period.
a. Understand the power of the “cleansing storm.”
13.5 Build the organization around goals rather than tasks.
a. Build your organization from the top down.
b. Remember that everyone must be overseen by a believable
person who has high standards.
c. Make sure the people at the top of each pyramid have the
skills and focus to manage their direct reports and a deep
understanding of their jobs.
d. In designing your organization, remember that the 5-Step
Process is the path to success and that di erent people
are good at di erent steps.
e. Don’t build the organization to t the people.
f. Keep scale in mind.
g. Organize departments and sub-departments around the
most logical groupings based on “gravitational pull.”
h. Make departments as self-su cient as possible so that they
have control over the resources they need to achieve their
goals.
i. Ensure that the ratios of senior managers to junior managers
and of junior managers to their reports are limited to preserve
quality communication and mutual understanding.
j. Consider succession and training in your design.
k. Don’t just pay attention to your job; pay attention to how your job will be done if you are no longer around.
l. Use “double-do” rather than “double-check” to make sure mission-critical tasks are done correctly.
m. Use consultants wisely and watch out for consultant addiction.
13.6 Create an organizational chart to look like a pyramid, with straight lines down that don’t cross.
a. Involve the person who is the point of the pyramid when
encountering cross-departmental or cross-sub-departmental
issues.
b. Don’t do work for people in another department or grab
people from another department to do work for you unless you speak to the person responsible for overseeing the other department.
c. Watch out for “department slip.”
13.7 Create guardrails when needed—and remember it’s better not to guardrail at all.
a. Don’t expect people to recognize and compensate for their own blind spots.
b. Consider the clover-leaf design.
13.8 Keep your strategic vision the same while making appropriate tactical changes as circumstances dictate.
a. Don’t put the expedient ahead of the strategic.
b. ink about both the big picture and the granular details,
and understand the connections between them.
13.9 Have good controls so that you are not exposed to the dishonesty of others.
a. Investigate and let people know you are going to investigate.
b. Remember that there is no sense in having laws unless you
have policemen (auditors).
c. Beware of rubber-stamping.
d. Recognize that people who make purchases on your behalf
probably will not spend your money wisely.
e. Use “public hangings” to deter bad behavior.
13.10 Have the clearest possible reporting lines and delineations of responsibilities.
a. Assign responsibilities based on work ow design and people’s abilities, not job titles.
b. Constantly think about how to produce leverage.
c. Recognize that it is far better to nd a few smart people
and give them the best technology than to have a greater
number of ordinary people who are less well equipped.
d. Use leveragers.
13.11 Remember that almost everything will take more time and cost more money than you expect.
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