Summary of K2K Emocionado's Organizational Transformation Approach

Introduction

Lisa Gill attended a two-day event in Lisbon led by K2K Emocionado's Pablo Aretxabala and Jabi Salcedo, who have transformed 70 organizations in the Basque region into self-managed entities. The transformations have led to improved performance metrics, sparking Gill's interest in their methodology.

The Core Concept

At the heart of their approach is a concept of a new style of relationships proposed by a former CEO. K2K's method involves a radical restructuring of organizations, dismantling hierarchies, and implementing transparency, shared responsibility, and profit sharing. This process requires employee choice before implementation.

Ten Key Components

K2K's method consists of ten crucial elements deemed non-negotiable for the transformation's success, which include:

1. Complete Transparency: Open access to all information and financial literacy for employees.
2. No Hierarchy: Middle management is removed without layoffs, and the CEO role shifts to coordination without decision-making power over others.
3. Self-managing Teams: Teams make decisions collaboratively with representatives from each team participating in monthly meetings.
4. No Privileges: Elimination of privileges such as exclusive offices, dining areas, and parking spots, with no special access to information.
5. Fair Salaries: Standardization of salary levels to minimize gaps, with a set ratio between the highest and lowest earners.
6. No Control: Removal of time-tracking systems and empowering teams to manage their outcomes and behaviors.
7. Measurement and Tracking: Focused on team metrics rather than individual performance.
8. Consensus Decision Making: Teams learn to make decisions without a boss, with major decisions made at general assemblies.
9. No Layoffs: Support for middle managers to find new roles that contribute to productivity gains.
10. Profit Sharing: Mandatory sharing of 30% of profits with all employees.

Starting Your Transformation

If inspired to begin a K2K-style transformation, Pablo suggests staying informed about new relational methods within organizations, sharing your vision with others, and making a formal decision to commit to change as important starting points.

业务降本增效，数字化转型有妙招

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