Making Workers and Organizations Happy with Apples and Mandarins
This time, I’m going to introduce the “apple” and “mandarin” that are key
to DXO*, the OS for building relationships that make both workers and organizations happy. These are not the fruits you find at the grocery store, but rather the RINGO process and MIKAN system used in the Tebanasu Management Lab. I will explain these two following the outline below.
What is DXO? Please check the previous blog:
What is DXO that Turns into an Evolutionary Organization?
- RINGO Process
- making Ring sahpe and go foward
The Flow of Decision-Making and the Three OS
- The Difference Between the Three OS
- The Difference from the Original “Advice Process” - MIKAN System for Circulating Funds
- Profit First
- Results of Implementing MIKAN System
RINGO Process: making Ring sahpe and go foward
The Flow of Decision-Making and the Three OS
Have you ever thought that your company could be easier to work at
or more efficient if certain changes were made?
Have you ever made such a proposal?
When I worked in the marketing department of a large company in Taiwan,
I once introduced new software to improve work efficiency.
First, I proposed it to my immediate supervisor. After gaining approval,
I explained the benefits of the software to other colleagues involved
in the same tasks. After obtaining their agreement, I created a proposal
for the department head. Once the department head approved it,
I requested the purchasing department to buy the software
and asked the IT department to temporarily disable security settings.
The entire process took about 2–3 months, and including the preliminary evaluation and trial period, it took about six months in total.
At DXO, management is viewed as an OS, and there are three types of OS. The department I was in had a relatively loose hierarchy, so it operated on
a consensus-based OS, which I now realize was a very happy environment.
The Difference Between the Three OS
In the RINGO process of the lab, an evolutionary OS,
after ideas and intentions within each individual are brought to light, feedback and opinions are exchanged across all levels — supervisors, colleagues, and subordinates — regardless of rank.
The final decision is made by the proposer, who considers everyone’s
input and follows a predefined format. This approach speeds up
decision-making compared to the other two OS types and increases
the satisfaction of all involved by providing opportunities
for everyone to voice their opinions.
For decision-makers, this reduces the number of decisions
they have to make, and for employees,
it reduces the number of meetings they have to attend.
The Difference from the Original “Advice Process”
The RINGO process in the lab is based on the “Advice Process” implemented by AES, an American energy company, as described in the book “Reinventing Organizations.”
Original Advice Process
1 Someone notices a problem or opportunity in the organization.
2 They seek advice from those affected or involved before making
a proposal.
3 They create and submit a proposal considering the advice received.
RINGO Process
1 Freely express opinions.
2 Identify where intentions have emerged.
3 Clarify intentions according to a set format.
4 Present intentions and seek opinions from stakeholders.
5 Sincerely consider the feedback and make a decision.
The original Advice Process is recommended to be conducted offline or through blogs, emails, or a voting app called Loomio.
However, in the lab, organizational OS updates are made using digital tools (Google Drive, Notion, Slack, or Discord, Zoom), so the RINGO process is also conducted within Slack. This allows everyone to see who said what, and because the decision-making process is visible to all stakeholders, it is easier for them to accept the final proposal. Additionally, the lab provides
a predefined RINGO process format, lowering the barrier to creating proposals from scratch.
Moreover, the recommended RINGO process in the lab operates alongside the MIKAN system, which allows employees to freely use company funds for organizational improvements. This enables consideration of the lab’s financial situation, allowing timing to be adjusted based on budget availability.
Now, let’s explain what the MIKAN system is, which works in conjunction with RINGO process.
MIKAN System for Circulating Funds
Profit First
“Profit First” is a concept proposed by American entrepreneur Mike Michalowicz in his book. It involves managing incoming sales
by dividing them into profit, salary, tax, and business expense accounts.
The lab’s MIKAN system redesigns this existing “Profit First” method to ensure money circulates among stakeholders.
Additionally, the MIKAN system is managed using the Japanese cloud accounting system freee, and all employees can view the account contents.
If a lab researcher has a costly project they want to pursue through
the RINGO process, they can secure funding from the activity account within the MIKAN system.
The MIKAN system is not implemented in all companies that install DXO but can be separately installed as an accelerated program.
Companies that have implemented the MIKAN system also have remarkable success stories, which I’ll share.
Results of Implementing MIKAN System
Case 1: Employees started to see the company’s money as their own.
When the MIKAN system is implemented, accounting information becomes transparent, allowing all employees to see the company’s financial status.
In one month, due to a mismatch in the timing of incoming and outgoing payments, the company faced a cash shortage.
The employees held discussions, asking, “What should we do?” Ultimately, they decided to delay their own salaries. However, they also considered those living alone or facing high expenses that month,
ensuring they received their pay as usual, while employees
with multiple income sources in their households agreed to delay
their payments. This consideration among employees was very touching!
During this time, the CEO simply observed the discussions and
the employees successfully navigated the situation together.
It was truly impressive.
Case 2: Endorsement from a Former Tax Bureau Official
When implementing the MIKAN system, one company,
in its second year of DXO implementation, reviewed its expenses and canceled all insurance policies taken out to pay retirement benefits, redistributing the savings to bonuses and employee salaries.
Due to the sudden large cash flow, the tax bureau conducted
an investigation. Initially, the tax accountant did not understand and opposed the MIKAN system. Therefore, the accountant seriously informed to CEO that the investigator coming was a very strict former national
tax bureau officer, and they needed to be fully prepared with complete documentation. CEO was very nervous at that time, but when the former national tax bureau investigator arrived, he said, “I thoroughly investigated your company’s website and blog. Your company practices a self-managed organization, and the accounting system is very different from typical companies. I have checked everything. I myself found it hard to believe that you could actually operate in such a manner, but upon coming here,
I see that you are indeed operating this way.” The investigator also said,
“I have seen everything, and it is excellent. It is truly pleasing to see such
a company emerging in society. Keep up the good work!”
CEO was very pleased to hear these words and gained more confidence
in self managed organizations This is just a part of it.
If you want to learn more about the changes after implementing DXO
You can watch the changes after implementing DXO in the following video: DXO Implementation Video(Only Japanese, no subtitle)
Good source for Reinventing Organizations please check in following website: Reinventing Organizations Wiki
But if you have interested to DXO, please feel free to contact to me.
