W.L. Gore

Taken from Boddy, D. 2005; Management, An Introduction, 3rd Edition; Pearson Education Ltd, 2005, Harlow

W.L Gore and Associates is a remarkable example of a business organized around team principles. While working as a scientist at Dupont Corporation, Bill Gore became convinced of the potential value of polytetrafluoroethylene (PTFE), commonly known as Teflon, as an insulating material for wire. This led him and his wife Vieve to begin W. L. Gore and associates in Newark, Delaware, in 1958. The company has grown to the extent that in 2004 the plants in Livingston and Dundee, Scotland, were ranked by The Sunday Times as 'Britain's Best Company to Work For' and the company also featured in Fortune magazine as one of America's 100 Best Companies to Work For (ranking twelfth in the list). The company is owned by the Gore family and the associates (see below).

In 1969 their son, Bob Gore, discovered that PTFE could be stretched to form a strong porous material, which enabled the company to broaden the range of its electronics products to include new applications such as medical implants, high-performance fabrics and solutions to environmental pollution. The business is well known for the GORE-TEX * brand, under which many of their products are marketed. GORE-TEX* fabric works in a wide range of temperatures, does not age, is weather durable, porous and strong.

The focus of the business is the development, manufacture and engineering of products and technologies based on PTFE and other fluroplastics for a wide range of applications. It has four product divisions:

* Electronic products: special cables and cable assemblies for the aviation, aerospace, automation, telecommunication, medical and IT industries

* Medical products: vascular grafts, implants, patches and dental implants

* Fabrics: branded high-performance fabrics for sportswear, leisurewear, work and protective wear.

* Industrial products: filter media and gaskets in environmental technologies, and in the food, fibre and textile industries.

The company has a tradition of valuing close and direct personal contact amongst people, which is seen as essential to the success of this kind of innovative business. There are no job titles in the company - all employees are knows as 'associates'. Associates are hired for general work areas, and with the guidance of their sponsors, and a growing understanding of opportunities and team objectives, commit to projects that match their skills. Teams organize around opportunities and leaders emerge based on the needs and priorities of a particular business unit - some would provide technical leadership, others business leadership and so on. Leaders usually emerge naturally by demonstrating special knowledge, skill or experience that is in line with business objectives.

Since its inception in 1958 the company has avoided traditional hierachy, opting instead for a team-based environment which fosters personal initiative, encourages innovation and promotes direct communication amongst associates. The business philosophy reflects the belief that given the right environment there are no limits to what people can accomplish, provided these are consistent with the business objectives and strategies.

Associates work to four principles:

* Fairness to each other and everyone with whom they come in contact

* Freedom to encourage, help and allow other associates to grow in knowledge, skill and scope of responsibility.

* The ability to make one's own commitments and keep them.

* Consultation with other associates before undertaking actions that could affect the reputation of the company - this is known as the waterline principle.

The last principle is intended to balance the risks of innovation: while associates are encouraged to be innovative, they are not expected to make significant financial commitments without thorough review and participation by other associates and in line with business objectives.

A new associate at Gore is assigned one or more sponsors who help them become acquainted with the company and its ways of working, ensure they receive credit and recognition for their work, and ensure that they are fairly paid. One person can fill all roles.

To ensure a fair and effective pay structure, the company asks associates to rank their team members each year in order of contribution to the enterprise. This includes an associate's impact and effectiveness, as well as past, present and future contributions. In addition to the numerical ranking, associates are invited to comment on the rationale behind their ranking, as well as on the particular strengths or potential areas for improvement for each associate reviewed. The company also ensures that pay is competitive by taking part in extensive benchmarking. Each year they compare the pay of Gore associates from various functions and roles with their peers at other companies to ensure that pay reflects market conditions.

The benefit plan consists of core benefits and flexible benefits. Core benefits are provided to all eligible associates and include pay, holidays, sick pay, life assurance and Associate Stock Option Plan (ASOP). The purpose of ASOP is to provide equity ownership in the company and through that a degree of financial security in retirement. All associates can acquire a share in the company, in which the Gore family holds a major stake.

The company has several plants in Europe. An associate from the United Kingdom commented:

Leadership probably happens in three different ways. We still have the concept of natural leaders emerging through fellowship. There are then some areas of the business where leaders are appointed, and we probably find that more in this plant where we have a large production operation. We need associates with operational expertise which meets our business needs.

Decisions to take on additional staff are made on a consultative basis. At the moment it's very much project driven in certain areas. So a group would be working on a specific new product development and they'll look at the resources they require for that work - and if they haven't got the resources a decision will be taken to go outside. What therefore tends to happen is that people are brought into the business with a specific area of work in mind. Not necessarily a job description