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      Business Day

      Rule of Thumb: Use Principles and Not Rules

      Rule of Thumb: Use Principles and Not Rules

      Defining a small set of principles that clarify accountabilities and expected behaviours can help organisations improve performance and become more agile.

      By Jenny Davis-Peccoud and Tiaan Moolman

      • min read

      Article

      Rule of Thumb: Use Principles and Not Rules
      en

      This article originally appeared in Business Day.

      Which document does more to advance the wellbeing of ordinary Americans: the US constitution or the Internal Revenue Code?

      We realise it’s not a completely fair comparison, as the documents serve different purposes. But as a thought exercise, which would you prefer to govern your working life?

      Given how the complexity of the modern tax code has spread like a virus—instructions for Form 1040 alone have grown from one page in 1913 to 104 pages today—few people would cite it as a high-functioning system for collecting taxes. And the constitution? It has proved to be a practical, resilient credo for more than two centuries.

      High-performing companies take care to design an operating model that can adapt to changes in their environment, just as the US constitution has done for its nation. Companies cannot rely on the proliferation of rules within a rigid framework such as the US tax code. That would limit employees’ problem-solving abilities and couldn’t possibly account for every situation they encounter.

      It’s far more effective to define clear principles for how people work together so that a company can stay agile with minimal bureaucracy.

      Read the full article on Business Day.

      Authors
      • Headshot of Jenny Davis-Peccoud
        Jenny Davis-Peccoud
        Partner, Amsterdam
      • Headshot of Tiaan Moolman
        Tiaan Moolman
        Advisory Partner, Amsterdam
      Contact us
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      Energize Employees Through Principles, Not Exhaustive Rules

      High-performing companies take care to design an operating model that can adapt to changes in their environment.

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      In a digital world, the challenge isn’t adopting new technologies. It’s integrating them across organizational silos.

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      Six Questions To Ask To Build A Stronger Corporate Culture

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      How to Build A High-Performance Culture

      A high-performance culture is about testing, learning, applying, and adjusting faster.

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      On Happiness and Leadership: A Discussion with Arthur C. Brooks

      A Harvard professor, social scientist, and best-selling author, Brooks shares his take on leadership and how to build a culture of workplace happiness.

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      Published in 三月 2015
      Tags
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