WL Gore Case On Family Business

“GET BIG BY STAYING SMALL”

W.L GORE ASSOCIATES

SEJARAH

W.L GORE

• Pada tahun 1935 menikah dengan Vieve • Tahun 1945 bekerja di du pont• Meneliti ttg PTFE yang lebih dikenal sebagai Teflon• Melakukan eksperimen PTFE dilapisi pita kabel• 1 Januari 1958 mendirikan W.L GORE & Assoc.

Struktur OrganisasiChairma

nBill Gore

President(Bob Gore)

Officer,Secretary

Treasurer(Vieve)

Associates

Associates

Associates

Associates

Associates

Associates

Associates

Associates

Associates

Associates

Associates

Associates

•Associates•Sponsor

Characteristics of Lattice Structure

Direct lines of communication – person-to-person with no intermediary

No fixed or assigned authority Sponsor, not bosses Natural leadership defined by followership Objectives set by those who must “make

them happen” Task and functions organized through

commitment Split to 150-200 employees per facility

Organization Culture

Sponsorship Program Four guiding principles :

Try to be fair (fairness) Use your freedom to grow (freedom) Make your own commitment and keep them

(commitment) Consult with other associates before taking

any action that may hurt the reputation on financial stability of the company (discretion)

Less formal

Compensation

Salary Bonus (15% company profit

distributed twice a year) Associates Stock Option/ASOP (Equal

to 15% associates annual income) Avoid layoffs by temporary transfer

and cutoff salary

W.L. Gore & Associate. Inc

80%

10%

10%

Share

Gore Family&Veteran AssociateCurrent AssociateOther

Creative Industries

Non formal R&D Equal opportunity to be creative Development came from inside and

outside of industry (diversed background)

Detect and repair problem fast (due to minimal hierarchy levels)

Marketing

Market the best valued product to marketplace

Product champion responsible for marketing product through commitment with sales representatives

Cooperative and word-of-mouth advertising

Sales

1969 1982 1983 1985 1987 1988 1989$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

$6,000,000

$125,000,000 $160,000,000

$250,000,000

$400,000,000 $426,000,000

$600,000,000

Over 18% Growth Rate Of Revenues In Past 20 Years

To Be A Good Company

HBR July–August 1999, Donald N. Sull, “Why Good Companies Go Bad “ page. 5

Growth Phases

HBR MAY–JUNE 1983, Neil C. Churchill and Virginia L. Lewis, The Five Stages of Small Business Growth Page 3

Characteristics of Small Business at Each Stage of Development

HBR MAY–JUNE 1983, Neil C. Churchill and Virginia L. Lewis, The Five Stages of Small Business Growth Page 4

“Get Big By Staying Small”