We succeed to the extent we apply the principle of division of labor by comparative advantage, resulting in superior application of individual abilities, cooperation and teamwork.
To maximize results, supervisors at every level continually revisit comparative advantages as team members, business conditions and opportunities change. Leaders apply comparative advantage across Koch, not just in their organization. They continually ensure everyone is in a role where they can best contribute, with the right responsibilities and decision rights, and receives feedback that helps them grow, develop and self-actualize.
Authorities are dispersed according to each person’s comparative advantage. They are not centralized or decentralized, rather, they flow to and from individuals based on the profitability and timeliness of decisions. People become increasingly motivated as they have opportunities to develop personal knowledge in their roles and earn greater decision rights.
Decision-makers seek input and challenge from those with diverse perspectives, experiences and knowledge who can contribute to better decisions.
The name of this dimension has changed from Decision Rights, since the division of labor by comparative advantage is the principle that guides how we organize and how we allocate decision rights.
