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Quarterly performance-management meetings further fostered the trust required for collaboration.

Managers communicate the key drivers of success, so frontline employees have the information they need to understand the impact of their day-to-day actions.(For simplicity’s sake we refer to them as decision rights, information, motivators, and structure.) In efforts to improve performance, most organizations go right to structural measures because moving lines around the org chart seems the most obvious solution and the changes are visible and concrete.Such steps generally reap some short-term efficiencies quickly, but in so doing address only the symptoms of dysfunction, not its root causes.At one insurance company, accurate information about projects’ viability was censored as it moved up the hierarchy.To improve information flow to senior levels of management, the company took steps to create a more open, informal culture.When a company finds itself unable to execute strategy, all too often the first reaction is to redraw the organization chart or tinker with incentives.

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