There’s a company in California with a unique approach to leadership that seems to be bearing results: Morning Star.
Morning Star produces over two million tons of tomato products each year, from tomato sauce and ketchup to diced, whole peeled, and crushed canned tomatoes. But what really sets the company apart is its unusual corporate structure and management philosophy centered around employee autonomy.
At Morning Star, there are no bosses or managers in the traditional sense. Instead, the company operates based on self-management, with each employee empowered to make their own decisions related to their work. Employees set their own hours and decide how to best accomplish their daily tasks and responsibilities. They coordinate with internal colleagues when dependencies exist, but no single person hands down instructions or orders to others.
This self-directed approach stems from founder Chris Rufer’s belief that innovation and motivation suffer when employees must continuously defer to managers. Rufer started the company as a solo operation in 1970, driving a single truck to haul tomatoes harvested from farms in California’s Central Valley to canneries for processing.
As Morning Star began to grow, Rufer set up Morning Star as a collection of self-directed workers.
From CEO to “coach,” how employees make decisions, set goals, and collaborate without hierarchy.
To formalize agreements, employees author annual Colleague Letters of Understanding (CLOUs) that outline each person’s commitments, relationships to others, performance metrics, budget needs, and more. CLOUs act similar to autonomous small business owners operating agreements inside one unified company umbrella. Employees use these letters to coordinate efforts and hold each other accountable rather than relying on supervision from above.
Workers at Morning Star enjoy an exceptional degree of autonomy compared to those at traditional top-down-driven companies. From prioritizing daily tasks to purchasing equipment and planning new construction, individuals and teams typically decide based on what they deem best rather than following strict rules or approval chains. Even major company expenditures over $100,000 do not require buy-in beyond those colleagues directly involved.
The Results Speak Volumes
The results so far seem to validate Rufer’s unconventional approach – Morning Star has flourished as a leading tomato company for over 30 years and continues setting records with its latest expansions and crop yields. And the emphasis on self-management has nurtured an engaged, loyal workforce that feels invested in their work. Morning Star’s annual turnover rate is less than 2% in an industry that often sees over 12%. The company has approximately 550 full-time employees and over 2,500 seasonal workers during harvest season with a revenue exceeds $1 billion per year.
The Self-Management Debate
Proponents of extreme self-management argue traditional command-and-control management chains stifle innovation, motivation, and engagement over the long-term. When workers cannot act without a boss’s blessing, personal responsibility and care erodes. People grow dependent on just following orders rather than thinking deeply about how best to drive value. Responsibility gets obscured, and key signals about what is working and what needs adjusting get muted behind authority gradients. An extreme self-management model tests the human potential to its maximum.
Could an organization run smoothly and successfully without bosses?
Some say the freedom and collective responsibility unleashed create spectacular potential for productivity, innovation, and sustainability. However, skeptics point out how inconsistent this is with millennia of human organizational tradition. Self-management also presents difficulties with coordination friction, decision speed, accountability, role clarity, and consistency.Real-world examples shine a light on the possibilities. Certain consulting firms and R&D teams have operated for years with no formal management and deliver incredible client outcomes through worker passion and fluid flexibility.
Some small software firms and professional circles collaborate as decentralized networks of peers working in tandem toward common goals — no formal bosses exist, only the sum of efforts steered through adjustments from individuals sensing customer needs. Valve Software built a flat organization of self-directed game developers that created hit experiences enjoyed by millions.
Beyond the Tomato Patch: The Future of Work and Self-Management
While radical self-management certainly won’t make sense everywhere, the concept that employees can successfully operate with no bosses deserves open-minded consideration. When people have true freedom to pursue work as they see fit, combining strong company vision with community values, trust in human potential, and removal of bureaucratic policies might unlock exponential latent energy within teams.
The possibility of empowered groups who consciously choose to partner together with no formal supervision merits more experimentation.
At the very least, business leaders can learn from self-managed principles to understand the creative, motivational power unleashed by empowering workers with more autonomy over their roles.