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At Work with The Ready
The Future of HR: Slaying Your Company’s Org Debt Monster
Oct 9, 2023
The podcast discusses the concept of org debt, its negative impact on organizations, and how it particularly affects HR. It explores hidden costs of org debt, strategies for addressing it, and the financial impact it has globally. The hosts debate the value of preventive measures and share real-life examples. The chapter also mentions the concept of Orgnet and provides references for further exploration.
45:36
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Quick takeaways
- Org debt arises from unmet human needs and manifests as bureaucratic or chaotic behaviors within an organization, hampering team performance.
- To prevent org debt, organizations should focus on missions, address specific issues, apply minimum viable products, and engage in uncomfortable conversations.
Deep dives
The cycle of org debt: Bureaucratic and chaotic flavors
Org debt often arises as a result of unmet human needs within an organization. One flavor of org debt is the bureaucratic flavor, where leaders resort to command and control behavior to compensate for a lack of trust and connection. This leads to a permission culture and learned helplessness among team members. The other flavor is the chaotic side, where leaders avoid clarity and decision-making, hindering autonomy and causing an influence culture to emerge. Both flavors of org debt perpetuate a cycle that hampers team performance and creates inefficiency.
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