Over 2.4 Billion Roubles invested. 100 companies involvement. Average yearly growth: 234%.
The profit margin has increased by 15%. Management expense fell under 7% of the overall salary expense. 83 new products launched by expanding into the new markets.
40% growthperyear. Employee projects bring in 25% of the company revenue. Management expense is less than 10% of the overall salaries.
bring life
to business
to business
We improve management model of large, medium-size, and small business... very brave business!
We do that so you can grow faster, focus on what’s important to you, and do more good for both the world and for yourself.
Strict hierarchical management model shined during the times of the industrial economy. They transformed the agrarian society, disciplined people into following the routines and fulfilling tasks. Now, this same model is destroying businesses.
As managers, we are overloaded with routine tasks. It becomes easier for us to just penalize our staff to force the results, and perhaps we try to avoid taking responsibility.
We only discuss any possible changes at the water coolers, mostly just to vent.
We only discuss any possible changes at the water coolers, mostly just to vent.
There are no new ideas; or, they get dwelled on for years and then collapse in just days after trying. Best employees move on to other places of work where they could truly shine.
Even the owners become disinterested in their own business. The money is already made; the fatigue has settled in; it is rather hard to continue like that. The business does not work by itself, yet it’s inconceivable to just let it shutter.
Even the owners become disinterested in their own business. The money is already made; the fatigue has settled in; it is rather hard to continue like that. The business does not work by itself, yet it’s inconceivable to just let it shutter.
As facilitators, we often bury any initiative and support the status-quo, even as we fully see its shortcomings.
We hire more and more of the managers and admins. We create this fake feeling of stability and being in control, while actually moving yet farther away from reality.
01. problem
people become irrelevant
business is losing steam
Frederick Winslow Taylor publishes The Principles of Scientific Management. This paper established the vertical management structure based on the delegation of responsibilities. Here, an employee is viewed as a function.
1903
what went wrong
If you look at what is happening after the industrial revolution you’ll see there’s only one growth criterion. It is the readiness of young blood to take risks in business. We have this culture in the US, but it seems Europe mostly lost it. Great Britain used to be the leader of the industrial revolution, yet it is more like a leader of bureaucracy now. This is the result of the current educational system. There’s just too much education, and people are too afraid to take risks anymore.
Nassim Taleb
Nassim Taleb
There are only two main incentives to work: wages and fear of losing it.
Henry Ford
Henry Ford
We don’t do parenting by force - that would not work. Instead, we invest in building the relationships. This approach pays off in the families. Instead of demanding some blind subservience, we show care about each other. It makes us - and people around us - happy.
We invent some plan. We avoid responsibility for the senseless job done. We attach people’s motivation to just how well they are following the plan.
We create fake stability based on the contracts and penalties, closeness to innovation, and keeping the status-quo.
We are forcing ourselves and other people around us to work too hard for the sake of the elusive effectiveness. The honest ones burn out first.
We create fake stability based on the contracts and penalties, closeness to innovation, and keeping the status-quo.
We are forcing ourselves and other people around us to work too hard for the sake of the elusive effectiveness. The honest ones burn out first.
Digitization only increases the degree of paranoia and hyper-reporting. This is not helpful; instead, our helplessness increases and we are trying to meneuver ourselves out of it.
In a couple months, KPI starts looking just like another penalty system.
If the phylosophy of agility is not shared by all, it will be rejected. Best teams grow, work, and quit/move together with their leader.
Without fixing the concept, the relationships, and the meaning of the particular company, nothing will work: forget about the corporate culture, employee education, team-building, meetups, workshops, or any other buzz notions.
In a couple months, KPI starts looking just like another penalty system.
If the phylosophy of agility is not shared by all, it will be rejected. Best teams grow, work, and quit/move together with their leader.
Without fixing the concept, the relationships, and the meaning of the particular company, nothing will work: forget about the corporate culture, employee education, team-building, meetups, workshops, or any other buzz notions.
02. сause
when the relationships are broken, we instinctively:
it’s all in your attitude
to yourself
to your business
to the people
add more management
apply a band-aid
of the salaries are spent on supporting bureaucracy and hierarchy instead of something actually useful.
only of the information from the top management will reach an employee at the bottom of the 4-level hierarchy.
Valery Razguliaev
Valery Razguliaev
40%
34%
In businesses employing 100 people and up, the spending on management grows faster than the company revenues.
Gary Hamel
Gary Hamel
Every employee needs to be managed
High degree of uncertainty
High degree of uncertainty
Every employee deserves to be trusted
High degree of uncertainty
High degree of uncertainty
we build businesses to do good and to become better
taylor
control
possibility
faster moving markets, the pandemic, crisis of trust, windows of opportunities - the world is pushing us to re-evaluate our views
03. changes
Instead of constant vetting, we give our employees freedom and responsibility to make their own decisions.
Instead of dictating the one and only solution, we leave the door open for a variety of options.
Instead of increasing management and supporting hierarchy, we support independent decisions and initiative with the teams.
Instead of demanding the maximum effectiveness and fulfilling the pre-set goals, we use the resources to start new projects and switch to the new directions.
Instead of viewing people as parts of the machine, we excite our employees with the evolutionary goal, thus creating a society of the like-minded.
Instead of long-term planning, we experiment while always keeping the eye on our evolutionary goal.
we value principles, not processes
trust
optionality
self-sufficiency
excessiveness
humanity
experimentation
there’s no single path to happiness. But we know the way and we are equipped to lead.
Business is a machine that uses people as resources.
Profit is a maximization of the effectiveness of operations.
Profit is a maximization of the effectiveness of operations.
beyond taylor
Business is a living system that opens people’s potential.
Evolutionary goal: maximizing the value for the end user.
the changes occur when we realize what value can be created for our employees and clients
The company creates a structure of how to build value for the clients. The value builders get teamed up in the autonomous units, with support teams. The management council is made up of their leaders.
The management council sets strategic priorities, makes decisions about large projects. The teams autonomously plan the tasks, allocate resources, set up the processes and rules of interaction. The result of their work is gauged by their P&L and client’s NPS (the client could be external or internal to the company.)
The product teams develop the user experience for the (internal or external) clients, using Agile / Lean. In this environment, any employee can start a new product or project and gauge its value within one to three months. Platforms for co-innovation with partners are launched. The circle of partnerships is expanded beyond the value chain.
The company sets up a system of commitments spanning from the client to the support teams. Teams are given sufficient rights and authority to fulfill their commitment. The company decides how to gauge the fulfillment of the external and internal commitments of the teams.
Company employees interact directly (horizontal system) with the format and frequency of the meetings pre-set in advance. Simple forms and reports allow easy access to data. Meetings necessarily include people who will be affected by the decision-making. Decisions are made in the “internal consulting” format.
Teams are united by trying to achieve the evolutionary goal together. Everyone understands their role in achieving the goal. The compensation of each employee directly depends on the team results.
Technologies are used as certain tools in achieving the evolutionary goal. The teams are proficient in choosing the optimal digital solutions for their respective goals. IT people work directly with both internal and external clients, vehicle competing with the contractors.
We moved step-by-step. We studied professional books, we learned from the other companies’ experience, we made mistakes, we invented something new. As a result, we came up with the management system of VkusVill, so we went to the US to tell the others about it. It turns out though, the best minds of the world are trying to create new management systems - we are not alone in it. It’s time to gather everyone together and let the companies move forward in their business. Beyond Taylor
04. who we are
we started from ourselves
Founder and Chairman of the Board of the HimRar Group of Companies, co-founder of the TealTech venture fund
Founder and Chairman of the Board of Directors of AGAMA Group Companies, co-founder of the TealTech venture fund
Practitioner in implementing culture, processes and tools of Internal Entrepreneurship
Founder of Vkusvill, founder of Beyond Taylor, co-founder of the TealTech venture fund
Expert and practitioner in implementing new approaches in the management of organizations
Andrey Ivashchenko
Yury Alasheev
Nikolai Popovich
Andrey Krivenko
Valera Razgulyaev
who has entrusted in us
Year ‘2013: the company is in the dumps
No new projects are launched
No new projects are launched
Year ‘2020: the company has over 1300 stores
More than 2,000,000 online orders are fulfilled every month
Year on year growth: 40%
Over 60 projects were launched by company employees in ‘2020
25% of the company’s revenue comes from those employee projects
Management costs less than 10% of overall salary expenditures
More than 2,000,000 online orders are fulfilled every month
Year on year growth: 40%
Over 60 projects were launched by company employees in ‘2020
25% of the company’s revenue comes from those employee projects
Management costs less than 10% of overall salary expenditures
Before
After
Industry: FMGG
Specialization: healthy foods
Specialization: healthy foods
VkusVill
Оставляем возможность для альтернативных решений, вместо использования одного варианта в любой ситуации
опциональность
Оставляем возможность для альтернативных решений, вместо использования одного варианта в любой ситуации
опциональность
Year ‘2016: the company is in survival mode after a string of crises and cuts
Now: the company has over 20% of the frozen seafood market
Year ‘2020: it launches 83 new products in the previously untapped markets
Profit: went from negative to +15%
Launched its own retail chain. Launched online sales
Company employees started 25 projects in the year ‘2020 alone
Management expense: less than 7% of the overall salary expenditures
Year ‘2020: it launches 83 new products in the previously untapped markets
Profit: went from negative to +15%
Launched its own retail chain. Launched online sales
Company employees started 25 projects in the year ‘2020 alone
Management expense: less than 7% of the overall salary expenditures
Before
After
Industry: FMGG
Specialization: fish and seafood
Specialization: fish and seafood
AGAMA
experiences beyond
Behind outstanding success lies a process of internal change. Look at the cases of like-minded companies around the world.
Sector
Household appliances
What was done with help of Beyond Taylor
The company has created a neural network-modeled management model - each division works on a specific purpose as a separate company, collaborating with other divisions to deliver a service to a customer. Some of the teams are responsible for direct work with the client, for resolving his issue, and some of the departments (so-called support teams) help in providing an answer to the client's request.
What are the results
Household appliances
What was done with help of Beyond Taylor
The company has created a neural network-modeled management model - each division works on a specific purpose as a separate company, collaborating with other divisions to deliver a service to a customer. Some of the teams are responsible for direct work with the client, for resolving his issue, and some of the departments (so-called support teams) help in providing an answer to the client's request.
What are the results
- The company has 100 million users in over 100 countries, 24 overseas factories, 10 research centers
- Retail market share - 10.2% Revenue in 2018: $ 24.16 billion
- Growth rate - 28% in the period of 2010 to 2020
- The only brand of the IoT segment, included in the BrandZ rating “Top-100 most expensive brands in the world-2020”
Sector
Home care services
What was done with help of Beyond Taylor
Currently, each team of health workers is performing as one small team, linked to other teams working in the neighboring areas. When the number of team members reaches 12, the team is divided into two equal teams of six people. This helps the company grow without the use of control tools. The staff was expanded in order to increase the concentration of medical workers in the area. Health workers can decide for themselves how much time a patient needs, their working hours are not regulated by top-management.
What are the results
• The company spends less than 40% of the time prescribed by doctors
• Decreased number of ambulance calls by 30%
• Company saves hundreds of millions of euros annually for the Dutch social security system
Home care services
What was done with help of Beyond Taylor
Currently, each team of health workers is performing as one small team, linked to other teams working in the neighboring areas. When the number of team members reaches 12, the team is divided into two equal teams of six people. This helps the company grow without the use of control tools. The staff was expanded in order to increase the concentration of medical workers in the area. Health workers can decide for themselves how much time a patient needs, their working hours are not regulated by top-management.
What are the results
• The company spends less than 40% of the time prescribed by doctors
• Decreased number of ambulance calls by 30%
• Company saves hundreds of millions of euros annually for the Dutch social security system
Sector
Banking
What was done with help of Beyond Taylor
The company focuses not on profit, but on the individual needs of the client, trying to cover them as much as possible. Each branch of the bank has autonomy and can customize the offered products for themselves.
What are the results
• Handelsbanken is among the top 15 most reliable banks in Europe according to Global Finance
• Market capitalization of the company rose to nearly $ 9 billion, with over $ 6 billion in dividends paid.
• 1% growth in NPS of Handelsbanken clients consistently leads to an increase in market capitalization of $ 476 million
Banking
What was done with help of Beyond Taylor
The company focuses not on profit, but on the individual needs of the client, trying to cover them as much as possible. Each branch of the bank has autonomy and can customize the offered products for themselves.
What are the results
• Handelsbanken is among the top 15 most reliable banks in Europe according to Global Finance
• Market capitalization of the company rose to nearly $ 9 billion, with over $ 6 billion in dividends paid.
• 1% growth in NPS of Handelsbanken clients consistently leads to an increase in market capitalization of $ 476 million
Sector
Constructing
What was done with help of Beyond Taylor
The company makes up to 30 acquisitions a year, integrating new companies to the business process. Acquired companies, in turn, conserve their autonomy and can make decisions about new products on their own. Employees are shareholders - out of 200,000 employees, 115,000 own shares, in total they own about 12% of the capital
What are the results
• The company consists of about 1,600 divisions, each of which has an average turnover of 6 million euros, with assets of 78 billion dollars
• Profit for year 1990 - 223 million euros, for year 2020 - 2.45 billion euros
Constructing
What was done with help of Beyond Taylor
The company makes up to 30 acquisitions a year, integrating new companies to the business process. Acquired companies, in turn, conserve their autonomy and can make decisions about new products on their own. Employees are shareholders - out of 200,000 employees, 115,000 own shares, in total they own about 12% of the capital
What are the results
• The company consists of about 1,600 divisions, each of which has an average turnover of 6 million euros, with assets of 78 billion dollars
• Profit for year 1990 - 223 million euros, for year 2020 - 2.45 billion euros
Sector
IT
What was done with help of Beyond Taylor
Company has a culture of experimentation: employees are free to try new things and come to successful results through trial and error. The company trusts its employees, and the employees trust the company, so there are practically no rules. The company has freedom of decision making, employees take responsibility for them. There is no top management - teams are completely self-regulated
What are the results
• In 2017, company was acquired by Indecomm, having more than 3,900,000 transactions taken annually
• In 2019, Nearsoft was awarded the TOP-20 of one of the most prestigious Startup Lighthouse programs in the European Union.
IT
What was done with help of Beyond Taylor
Company has a culture of experimentation: employees are free to try new things and come to successful results through trial and error. The company trusts its employees, and the employees trust the company, so there are practically no rules. The company has freedom of decision making, employees take responsibility for them. There is no top management - teams are completely self-regulated
What are the results
• In 2017, company was acquired by Indecomm, having more than 3,900,000 transactions taken annually
• In 2019, Nearsoft was awarded the TOP-20 of one of the most prestigious Startup Lighthouse programs in the European Union.
Sector
Streaming services
What was done with help of Beyond Taylor
Hierarchical structure was replaced by self-organizing associations of employees called "squads", "tribes", "unions" and "guilds" (sorted by increasing the number of employees in the team). For instance, there are guilds such as the Java guild, the C ++ guild, or the Android guild. Each form of association chooses its own way of working, each squad has a long-term mission and takes responsibility for various aspects of user interaction. Also, Spotify has line managers who are developers working alongside the entire team, at the same time being mentors
What are the results
• Income increased by 95.7% to $ 9 billion in 3 years
• Assets increased by 97.4% to $ 7.7 billion in 3 years
Streaming services
What was done with help of Beyond Taylor
Hierarchical structure was replaced by self-organizing associations of employees called "squads", "tribes", "unions" and "guilds" (sorted by increasing the number of employees in the team). For instance, there are guilds such as the Java guild, the C ++ guild, or the Android guild. Each form of association chooses its own way of working, each squad has a long-term mission and takes responsibility for various aspects of user interaction. Also, Spotify has line managers who are developers working alongside the entire team, at the same time being mentors
What are the results
• Income increased by 95.7% to $ 9 billion in 3 years
• Assets increased by 97.4% to $ 7.7 billion in 3 years
05. what to do
start small
- Customers for Life: How to Turn That One-Time Buyer Into a Lifetime Customer / Carl Sewell, Paul B. Brown
- Raving Fans: A Revolutionary Approach to Customer Service / Kenneth H. Blanchard, Sheldon Bowles
- Lessons in Loyalty: How Southwest Airlines Does It / Lorraine Grubbs-West
- Humanocracy: Creating Organizations as Amazing as the People Inside Them / Gary Hamel, Michele Zanini
- The Five Dysfunctions of a Team / Patrick Lencioni
- Contagious – Why Things Catch On / Jonah Berger
- Turquoise management in practice / Valeryi Razgulyaev
- Nonviolent Communication: A Language of Life / Marshall B. Rosenberg
- VkusVill: how to establish a revolution in retail doing everything wrong / Evgenii Shepkin
- The Phoenix Project / Gene Kim, Kevin Behr, George Spafford
- Blue Ocean Strategy / Chan Kim, Renée Mauborgne
- The Coaching Habit / Michael Bungay Stanier
- Lean Startup / Eric Ries
- Immunity to Change / Robert Kegan, Lisa Lahey
- Reinventing Organizations / Frederic Laloux
- Antifragile / Hassim Taleb
- The speed of trust / Stephen M. R. Covey
- Black Box Thinking / Matthew Syed
- Parkinson's Law / C. Northcote Parkinson
We’ll be happy to meet you at our office. Or we can come to you, whatever is more convenient for you. Let’s look at your particular situation, go through the case studies, and come up with fresh ideas of how your business might possibly change. Direction and ways of it.
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