Company Boundaries and Personal Valuation

There is Mr. A, who works only within the company, and Mr. B, who straddles Organizational Boundaries. #Straddle Boundaries Assume that Mr. A and Mr. B use the same ability and the same effort in their activities. If only the "inside" activities of the company are evaluated, Mr. A will have a higher evaluation.

This "Inside Only Rating" indicates that operating outside of the company is detrimental to the individual.

• Therefore, the number of "inside-only activity" type employees like Mr. A will increase.
• As a result, in the long run, this company will be at a disadvantage because it will lose its connections with the outside world.
  • For example, knowledge acquisition costs from outside the company will increase, making it difficult to adapt to changes in the external world.

This is an example of Optimization for incorrect evaluation functions.

• To avoid this phenomenon, the form of evaluation needs to change.
• Outside activities are evaluated in the same way as internal activities, and finally, "Inside Only Activities" and "Outside Activities" are evaluated on an equal basis.
• If the current culture has formed a majority of "inside-only activities" types, it is necessary to rather value "outside activities" more highly than "inside activities" in order to promote "outside activities" as well.

One way to mitigate the tendency to underestimate the value of "outside activities" when evaluated based on current internal values is to refer to "outside evaluations." - The fact that Cybozu now takes market valuation into account can be interpreted as an example of this. - When we stopped setting salaries based solely on internal evaluations, we were able to achieve a diverse work style | Cybozu Style

I was listening to BMOT20190411 and thought

• Organizational Knowledge Acquisition
• Parallel work is an opportunity for knowledge inflow
• Company Boundaries
  • Organizational Boundaries

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