What is Principle Based Management?
Principle Based Management™ (PBM) is a framework based on the principles of human progress that enables individuals and organizations to succeed long term by creating superior value for others.
Having a principle-based approach frees everyone to think and innovate rather than mindlessly follow instructions. It creates an environment where every employee knows what to do to maximize value creation and is motivated to do it without being told.
Principle Based Management encourages entrepreneurship, discovery and transformation. Our principles guide everything we do from business/team visions to employee performance evaluations.
What does it mean to apply principles?
A principle is a fundamental, primary or general law or truth that guides our thinking, behavior and actions to enable us to succeed long term. Principles apply universally, whereas detailed rules and methods only work in specific applications.
Applying principles requires each of us to be collaborative and use judgment. As you approach any aspect of your work, start by asking: “Which principle(s) should guide me?” You intentionally apply those principles and then evaluate the results. What did you learn? What adjustments will you make? Who could benefit from the knowledge you gained?
Why We Don’t Want a Rules-Based Approach - Unscripted
Why take a principle-based approach? This video explores problems and limitations with a rule-based approach.
Taking a Principle-Based vs. Rule-Based Approach
These examples show what someone might think or say if they have a principle-based approach or rules-based approach to their work.
- Routine Work
- Poor Results
- Good Results
- Something Unexpected
“This step seems unnecessary, but it’s what they told me to do.”
“This step seems unnecessary. Help me understand the purpose of this procedure and the importance of this specific step.”
“We’ve lost a few long-time customers, so we need to figure out where the breakdown was in our process. I think it’s time for some refresher training for the team.”
"Let’s talk through what happened with the customers we just lost and see why these weren’t mutually beneficial relationships. Maybe some customer relationships needed to end, and maybe we missed some opportunities to be a preferred partner.”
“My team is getting good results since we updated our quality check process. We should do exactly the same thing at all our sites.”
“My team is getting good results since we updated our quality check process. I’m going to share this knowledge with others who might benefit.”
"I noticed an unusual odor in our work area. Our compliance systems and measurements look good, so I guess there is nothing to worry about."
"I noticed an unusual odor in our work area. Our compliance systems and measurements look good, but I need to check into it to ensure it’s safe for people to be in the area."