The best leaders realize that their people are wise, that they do not need to be coerced into alignment through yearly goal setting. These leaders strive instead to bring to life for their people the meaning and purpose of their work, the missions and contributions and methods that truly matter. These leaders know that in a team infused with such meaning, each person will be smart enough and driven enough to set goals voluntarily that manifest that meaning. It is shared meaning that creates alignment, and this alignment is emergent, not coerced. Whereas cascaded goals are a control mechanism, cascaded meaning is a release mechanism.

If you’re a company of one, your mind-set is to build your business around your life, not the other way around. For me, being a company of one means not having to bother with infinite growth, since that was never the purpose of my working. Instead, I just focus on maximizing work in a way that works for me, which can sometimes mean doing less.

These companies were built, or in some cases rebuilt, with one goal in mind—to maximize human contribution. This aspiration is the animating spirit of humanocracy, and stands in stark contrast to the bureaucratic obsession with control. Both goals are important, but in most organizations, the effort spent on ensuring conformance is a vast multiple of the energy devoted to enlarging the capacity for human impact. This gross imbalance is dangerous for organizations, a drag on the economy, and ethically troubling.

As he [Ken Iverson] explained in his book, Plain Talk: Lessons from a Business Maverick,

Most of today’s corporations were conceived as command-and-control organizations. The founders of integrated steel mills, for example, clearly assumed that the “genius” of the organization resided almost completely in management … In contrast, we built Nucor under the assumption that most of the “genius” in our organization would be found among the people doing the work. 2 3 From the outset, we shaped our business to let employees show management the way to goals that once seemed unreachable.

In a loosely coupled organization, where talent density is high and innovation is the primary goal, a traditional, control-oriented approach is not the most effective choice. Instead of seeking to minimize error through oversight or process, focus on setting clear context, building alignment of the North Star between boss and team, and giving the informed captain the freedom to decide.