🤟 Pioneering Self-Management in Chinese Manufacturing: The Epoch Journey

Hi Reader,

Last week, we conducted an exclusive interview for our community members with a group of people from the Chinese self-managed manufacturing company, Epoch.

Epoch was established in 1993 by Foad and Ladon Ghalili. It is a high-tech design and manufacturing service company with prototype electronic manufacturing capabilities in California (approximately 20 employees) and high-volume manufacturing services in Dalian, China (approximately 160 employees).

During our interview, Foad, Ladon, and several Epoch colleagues shared their journey and experiences with self-management, touching upon several fascinating points.

The Journey Begins

During the COVID-19 pandemic, the founders were stuck in the US and could no longer manage on the ground in China. Surprisingly, the production site in China performed better than ever without their direct oversight. This realization prompted the founders to embrace self-management, a concept that aligned well with their longstanding human-centric values. As they put it, "In self-management, we found a system that matched our company's DNA to learn and grow together."

Epoch didn't implement a fixed self-management system. Instead, they emphasized the importance of co-creating the change with all employees through conversations. This gradual transformation is akin to an organic process rather than a sudden overhaul.

From Hierarchy to 'Ecosystem of Cells'

Epoch restructured their former organizational hierarchy into an 'ecosystem of cells' (sometimes referred to as a ‘galaxy of planets’). A voluntary design team of 13 representatives, reflecting the workforce, designed the new organization.

There are two types of cells: permanent cells and ad-hoc cells created to address specific customer needs. Once these needs are met, the ad-hoc cells dissolve. The launch and priorities of these cells are always guided by customer needs.

From Job-descriptions to Roles

Cells no longer operate with job descriptions but with roles.

Ad-hoc teams are divided into five parts:

People accountable for overall team performance (the leader)
“Responsibles”: topic experts
Action-takers: specialists in specific fields or machines
Suggestion-providers
Information-handlers

Fixed teams work with various roles based on their specific function or specialty. They also incorporate different fixed leadership roles, including:

Coach
Mentor
Facilitator
Time taker
Communicator

Individuals self-select into different roles, fostering a unique notion of leadership where everyone is a leader.

Self-management Training

Before transitioning to self-management, all Epoch employees undergo two months of training in 'consultation.' This intensive training focuses on honest communication, transparency, bringing diverse perspectives to the table, actively seeking diverse opinions, holding each other accountable, and shared decision-making.

Salaries & Profit Shares

Salaries at Epoch are based on market and internal benchmarks, with a portion of rewards being profit shares, distributed as follows:

25% loyalty (years in the company)
25% level of responsibilities
50% peer evaluation within the team

Teams divide the profit among themselves through a process called crystal ball distribution. The consultation training proves invaluable here, as mature conversations are crucial for self-managing profit distribution.

We are delighted to present Epoch as another brilliant example of a successful self-managing organization, even in an unexpected sector like manufacturing in China.

If you're a community member, you can watch the recording of the entire interview here. Not a member yet? Join our community to ensure you don’t miss out on such content.

Updates from Corporate Rebels HQ

Here's a quick overview of everything happening at Corporate Rebels:

Last month, we reached 50k followers on Instagram. A big shoutout to our colleague and social media guru, Polina!
We hosted an amazing community event with Jason Sharpe from the UK-based self-managing company Rebel Energy. Jason shared insights on onboarding at Rebel Energy and walked us through some the 29,5 steps (!) to become a real Rebel. Members can watch the recording here.
Our newest course ‘Salary Model Insights for Self-Managing Organizations’ is in the final stages of development. It covers peer-based, self-set, role-based, and performance-based salary models. We will be launching the course for our members shortly after the summer.
We have only 12 spots left for our September Masterclass cohort (European/Asian/Oceanian friendly time zone). Enroll before August 31 and enjoy complementary lifetime membership at Corporate Rebels.

New article

A new article has been published on our blog earlier this week:

The Hype Cycle of Work Trends: Fads vs. Fundamentals
Are you tired of chasing the latest work trends only to find they fizzle out? In our latest article Pim reminds you of why the basics of purpose, autonomy, and mastery never go out of style. Read here why you should avoid the trap of trend-hopping and focus on what truly matters for sustained success.

What inspired us

Here's something noteworthy we discovered this past week that you’re going to love:

Apply Now: The Tony Hsieh Award Celebrates Innovation in Workplace Culture
Most of us know the late Tony Hsieh, the iconic leader of Zappos, who championed innovative approaches to corporate culture, customer service, and employee empowerment. His legacy lives on through the Tony Hsieh Award, celebrating companies that elevate human potential in the workplace, driving success through improved productivity, employee satisfaction, organizational growth, and customer loyalty. Last month, I met with the award organizers, who are seeking applicants for the upcoming show. They are looking for companies that innovate in management practices, fostering professional and personal growth, with scalable and transferable outcomes demonstrating positive impacts like increased salaries, growing profits, reduced turnover, higher valuations, fewer sick days, and a stronger sense of belonging. The top winner will receive a ticket to TED in Vancouver. Apply here.

Your weekly challenge

At Corporate Rebels, we believe that small changes lead to big results. That's why we challenge you each week to make a small but significant change. This week....

I challenge you to initiate a "Diverse Perspectives Dialogue" in your team. This activity is designed to enhance honest communication, transparency, and the inclusion of diverse opinions in your workplace. It consists of 6 steps:

1. Select a Topic: Choose a current project, problem, or decision your team is facing. The topic should be relevant and important to everyone involved.

2. Form a Diverse Group: Gather a small group of team members (5-7 people) from different departments, roles, and backgrounds. Ensure the group includes a mix of genders, ages, experiences, and perspectives.

3. Set the Ground Rules:

a. Encourage Open Communication: Everyone should feel safe to speak their mind without fear of judgment.

b. Practice Active Listening: Focus on truly understanding others’ viewpoints before responding.

c. Foster Respect: Treat every opinion with respect, even if you disagree.

4. Facilitate the Dialogue:

a. Start with Transparency: Begin the meeting by sharing the purpose of the dialogue and the topic chosen.

b. Share Diverse Perspectives: Invite each participant to share their perspective on the topic. Encourage them to discuss their unique insights and experiences related to the issue.

c. Explore Differences: Discuss the differences in viewpoints openly. Ask questions to dig deeper into why someone holds a particular perspective.

d. Find Common Ground: Identify any commonalities in the different perspectives. Look for ways to integrate these into a cohesive understanding or solution.

5. Document Insights: Appoint someone to take notes on the key insights, suggestions, and action points that emerge from the dialogue. Share this document with the wider team to promote transparency.

6. Reflect and Act: At the end of the week, reflect on the outcomes of the dialogue. Discuss as a team how these insights can be applied to improve your current project or decision-making process. Commit to implementing at least one actionable change based on the diverse perspectives gathered.

Engaging in a "Diverse Perspectives Dialogue" fosters a culture of openness and inclusivity. It allows team members to feel heard and valued, leading to more innovative solutions and a stronger, more cohesive team dynamic. By actively seeking and incorporating diverse opinions, you are building a more transparent and honest workplace. Feel free to adapt the challenge to better fit your organization’s needs and context.

Cheers,

Time-Limited Offer: Complimentary Lifetime Access (only 9 spots left!)

We've sold out all available seats for the first September cohort of our Masterclass "Running and Scaling Self-Managing Organizations," so we opened a second cohort, which kicks off on September 24.

If you enroll in our Masterclass before August 31, you will get:

Full, lifelong entry to our online community, where you'll enjoy monthly events, exclusive interviews, cutting-edge case studies, and much more.
Unlimited access to your Masterclass content, extending beyond the usual one year.
Ongoing access to all our current and future on-demand courses, typically valued at €948/year.

That's right – all of this is included in the one-time Masterclass fee of €5,000, with no annual subscription fees (usually €948/year) required. Ever.

But act fast – this offer is limited and there are only 9 spots left. Click below to discover more about the Masterclass program and this special promotion.

Explore the offer

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