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[Management Behavior] Chapter 6: Organizational Equilibrium. How can you coordinate the life goals of a conscious employee with an ordinary individual and rapidly grow your organization?


Roughly speaking

  1. Chapter 6 of Management Action. The goals of an entrepreneur in an organization are completely different from those of a conscious employee and those of an ordinary employee.
  2. Re-post the criteria for measuring organizational efficiency. Do not look away from the ability to choose the option that is highly accomplished and costly to achieve.
  3. Examples of how to set a good organizational goal. YouTube has only set KPIs to total viewing time to grow the organization.


Chapter 6 of Management Action. A way to grow an organization while individuals' intentions are different.


This is the sixth chapter of the Management Action series. Finally the turnaround point. The discussion develops into interesting topics.


This time, we will discuss things that everyone may have been worried about, while recognizing the discrepancy between their life goals and their organizational goals, and still thinking about how to achieve the organizational goals to the fullest. Many organizations have career advancement interviews, but it is rare that they function correctly, and individuals' true feelings do not appear in the interview. To ensure that you are aware of individual incentives, you can achieve your organizational goals, or to clarify variables and what you need to achieve.


An easy-to-understand example is the "conscious employee" who occasionally finds a slightly annoying guy who is conscious. A mysterious startup is a startup that wakes up early. Always logical both day and night. Efficiency is emphasized. I love gadgets. Work is life. People who say that difficulties are the best nutrition. It's hot to be around. And what's bothering me is that the goals are usually mixed with the president, so he is a convenient person for the president. So they push things like the president on their colleagues and subordinates to see what happens. It's the most annoying thing.


On the other hand, there are employees who want to live normally. I work a decent job, get married after a decent job, and aim to live a calm and good life. Working on hobbies and living happily. Work is for life, so I'll do it, but when it's time for me, I want to do what I like. This will result in a significant shift from the organization's goals.


The diagram summarizes the following:



An organization is basically maintained by the exchange of employee work, wages, rewards, fame and power. Ordinary employees want stability, while conscious employees want growth, fame and power to join future entrepreneurs and control organizations. They have to move forward with the organization while having a completely different engine.



What are the criteria for measuring organizational efficiency?


I understand that the goals of an organization and individual are significantly different, but what was the standard for measuring the efficiency of an organization? It has already been mentioned in Chapter 1, but will be reposted.


  • If multiple options appear, are you able to choose the one that achieves the organizational objectives more?
  • Are you able to choose the one that costs less?

In other words, it refers to how you can make a choice that is suitable for your purpose and requires little cost. In terms of efficiency, it would be best to let employees do what they ordered without caring about their employees, but this is a true modern time. It makes me sick. That's why we should collate personal and organizational goals in a 1:1 meeting.



The cleverness of setting organizational goals and OKR on YouTube


Before considering the efficiency of an organization, it is necessary to consider the possibility that the organizational goals themselves will be wrong and the entire organization will collapse. If the goal is wrong, fraud and maliciousness will become rampant.


What is the goal? Simon's goals have the following definitions:


  • A guidepost that imposes constraints on options, and sets constraints for a number of decisions, making it easier to find the best Pareto set.
  • To test whether the presented solution is satisfied or not.
  • Used to integrate and synthesize multiple solutions of the presented options.

Among the first definitions, the unfamiliar word is probably "Pareto optimal". This refers to the fact that the utility of one element cannot be increased unless the utility of one element is reduced, and to put it simply, it refers to the optimal resource allocation. Consider marketing costs. The number of new user acquisitions obtained from listing ads on Twitter, Instagram and Google Search always has an optimal cost allocation. Even if you take on one of these, the number of users you can get from another channel will be eliminated at maximum efficiency.


It would be easy to understand the story of a test of the solution presented. The story is about verifying whether the work you work with is well suited to the organization's goals and determining the value of the work.


The final story may be specific to the organization's goals. The organization will divide the goals into divisions. They divide into sales, CS, HR, and R&D to create some solution towards their goals, but they need to integrate the solution according to the organization's goals. This is difficult. Internal coordination is necessary. At that time, the only thing that can be used to illuminate and confirm correctness will be the goal.


There are some organizations that have been extremely successful in terms of their organization's goals. It's YouTube.



Great YouTube goal setting: Increase total viewing time to 1 billion hours over four years


In 2014, YouTube was actually beginning to slow down. Although it had already grown in size and sales had begun to grow, it was still a business that Google as a whole had. It's true that each business is running well somehow, but it's not quite right. In fact, users may be slightly tired of them as they are leveling flat. That's why YouTube's new CEO Susan Woshikki set a simple and bold organizational goal (called OKR).



Increases total daily viewing time for YouTube users to 1 billion hours over four years.

By the way, this is the goal of 10 times the viewing time at the time. It's an extremely bold goal. It is well known in the startup community, but these bold goals are called OKRs. For more information, please read "Measure What Matters". Returning to management actions, this organizational goal is excellent. It's not the number of users or advertising sales, but the only thing we're looking for is total viewing time. As a result, all unnecessary internal adjustments that existed within YouTube have been simplified, and solutions have been prepared "to increase the total viewing time." And three years later (it took less than four years!), the total viewing time would go through many twists and turns, and the video market would be YouTube's.


Looking at the management actions, it will be built on the good principles of setting a bold goal of OKR. It becomes a guidepost, and it is clear at a glance whether the solution given is correct, and adjustments between multiple devices are also completed. For now, I think that setting organizational goals is the right answer if you set them using OKR.



Aside (Gonjicchi memo)


I write notes for each chapter using iPad Pro and Apple Pencil. This time it's not an e-book, but it has around 550 pages, making it inconvenient to carry around. If you make a note of it on your tablet, you can do it on your smartphone when you review it later.