Self-management is gaining traction as an alternative to traditional hierarchical structures. By shifting decision-making and responsibility to employees, this approach aims to enhance engagement, agility, and cost-efficiency. But how does it work, and what are the lessons from companies that have embraced it?
What is Self-Management?
Self-management eliminates rigid hierarchies in favor of decentralized decision-making. Employees take ownership of their roles, collaborate with their peers, and align with organizational goals – without the need for traditional managers.
This system relies on well-defined roles, transparent processes, and trust, allowing teams to adapt quickly while maintaining accountability.
Why companies are moving toward Self-Management
Several factors have made self-management appealing for businesses:
1. Employee engagement and autonomy:
Studies consistently show that engaged employees perform better and stay longer. According to Forrest Advisors, companies with self-managed teams experienced a 36% increase in job satisfaction and a 12% increase in team productivity compared to those with traditional management structures.
Source: Grant Douglas, Forrest Advisors
2. Cost reduction:
Cutting layers of management can lead to significant savings. Forbes highlights Bayer’s restructuring initiative, which removed 5,500 management positions as part of its transition to self-management. This restructuring is projected to save the company $2.16 billion by 2026.
Source: Chris Westfall, Forbes, 2025
3. Talent attraction:
Workplaces offering autonomy are increasingly attractive to younger generations. The World Economic Forum reports that millennials prioritize autonomy and purpose when choosing employers.
What results have been achieved?
The impact of self-management varies depending on how it is implemented. While some companies have seen transformative success, others have faced significant challenges:
Buurtzorg:
This Dutch healthcare company, which employs over 15,000 nurses in autonomous teams, is one of the most prominent examples of self-management success. According to Harvard Business School, Buurtzorg’s approach has yielded patient satisfaction ratings that are 30% higher than those of comparable organizations, with absenteeism, turnover, and overhead up to 2/3 lower.
Source: Annelena Lobb, Harvard Business School, June 2023
Bayer:
In 2024, Bayer embarked on a bold experiment, removing managerial layers to create a flatter, more agile organization. While cost savings aligned with expectations, Bayer reported a net loss of $4.1 billion and saw its market cap fall by more than 44% in the same year. These outcomes underscore the importance of balancing autonomy with adequate support.
Source: Chris Westfall, Forbes, 2025
What makes Self-Management work?
Self-management is not a one-size-fits-all solution. Companies that succeed with this model emphasize robust support structures and gradual implementation. Here are 3 critical factors that make it work:
1. Team training and development
Self-management requires employees to take on more responsibility and make decisions independently. To equip them for this shift, companies must invest in training programs that build skills in decision-making, conflict resolution, and time management.
2. Clear frameworks
Autonomy without structure can lead to confusion. While companies like Bayer have experienced challenges, they highlight the importance of clear guidelines that balance autonomy with accountability.
3. Ongoing support and coaching
Transitioning to self-management can be overwhelming. Buurtzorg, for example, demonstrates how crucial peer support and coaching are to ensuring success. Source: Joost Minnaar, Corporate Rebels, July 2024
External facilitators can bring valuable expertise and an objective perspective to the transition. They help organizations define processes that balance autonomy with accountability, train employees in collaboration and decision-making, and ensure alignment with the organization’s mission and goals.
By leveraging external expertise, businesses can mitigate risks and provide needed support during the transition.
Lessons learned and moving forward
Self-management has the potential to transform organizations, offering benefits such as higher employee engagement, cost savings, and greater innovation. However, its success depends on thoughtful and gradual implementation.
Bayer’s challenges illustrate the risks of neglecting employee support during the transition, while Buurtzorg shows how training, clear processes, and facilitation can drive success. The evidence suggests that self-management, when implemented with care, can indeed foster an environment where talent thrives and remains committed.
The key takeaway for organizations considering this model is clear: self-management is not just about cutting managerial layers. It’s about building a culture of trust, collaboration, and shared purpose. With the right investments in people and processes, self-management can become a powerful tool for driving long-term success and retaining top talent.
Caroline Doche – The human at the heart of the brand
