W. L. GORE SUCCEEDS WITH INFORMAL ORGANIZATIONAL STRUCTURE Instead, it simply claims to have found alter. native ways to achieve them, such as a strong focus on exemplifying company values and a powerful peer-review and accountability system. Whatever analysts might say about the company's unusual approach, it has been Successful." Wcal and manufacturing company best to problems, opportunities, or shared skills and interests. Employees can choose their known for Gore-Tex fabric, is a fascinating own projects but in return hold themselves, success story. It has over 10,000 employ and each other, strictly accountable to deliver ees at offices in over 50 countries, is ranked results. As CEO Terri Kelly puts it, "There are 22nd on Fortune's 2014 "100 Best Compa two sides to the coin: freedom to decide and nies to Work For" list, and from its found a commitment to deliver on your promises." ing in 1958-has never posted an operating Leaders emerge naturally from these teams loss. During this time, it has held to a unique and gain management power not by formal- management structure: almost no formalized ized titles or privileges but by the demon- bosses, no structured hierarchy, and no set strated willingness of others to follow them. chains of command. In doing so, it has proven Compensation is determined by a detailed that a structure antithetical to a traditional peer review process meant to award employ. hierarchical management structure can work ees who have contributed most to the com- well if done correctly pany with the highest salaries. Gore uses what it calls a "team-based, Gore does not pretend that it has overcome flat lattice" organizational structure. The the need for company organization, strong company is built around self-creating, mul leadership, employee accountability, and high tidisciplinary teams, which form in response performance needed for all organizations. Discussion Questions 1. Why does W. L. Gore's unique manage ment structure work? 2. What trade-offs does W. L. Gore make by using the flat lattice structure? In other words, are there certain disadvantages that W. L. Gore has chosen to accept in return for other benefits? 3. Would you like to work in a flat lattice-style organization? Why or why not? 132 PART 3 Managing for Quality and Competitiveness