Indaero's Transformation to Self-Management

This blog post is part of 50+ case studies of self-managing organizations we created for the 2024 inaugural ZeroDX awards. These organizations embody the principles of RenDanHeYi in their work structures:

• Zero Distance to customer: Decision what to build is based on insights from the marketplace

• Autonomy: Small teams with full decision-making autonomy enable speed in execution

• Shared Rewards: Everyone in the micro-enterprise participates in its financial success.

Introducing Indaero

Indaero, founded in 1969 and headquartered in Seville, Spain, has a long-standing reputation in the aerospace industry. Specializing in the engineering and manufacturing of aircraft labels, decals, covers, and interior aeronautical parts, Indaero serves prominent clients like Airbus. With a team of over 40 employees, the company has consistently upheld its commitment to quality, excellence, and innovation in research and development.

In 2023, Indaero embarked on a transformative journey towards self-management under the guidance of Krisos, a private equity fund focused on sustainable organizational transformations. Leveraging the NER framework (New Style of Relationships) and embedding RenDanHeYi principles, Indaero has evolved into a dynamic, self-managing organization where authority is distributed, employees are empowered, and customers remain at the center of every decision.

Organizational Structure

Historically, Indaero operated within a traditional hierarchical model, but its acquisition by Krisos in 2023 initiated a complete overhaul. Key elements of this transformation include:

• Self-management: Traditional hierarchies were replaced with self-managing teams, granting employees greater autonomy and decision-making authority.
• Collaborative governance: Elected representatives from all teams participate in decision-making bodies, ensuring inclusivity and diversity of perspectives.
• Social technologies: Advanced frameworks like consent-based decision-making enable robust and agile decisions.

This new structure empowers employees to take ownership of their roles, fostering a culture of shared leadership and accountability.

Customer Focus

Indaero’s transformation has significantly enhanced its customer-centricity. By fostering employee engagement and transparency, the company has strengthened its ability to meet client needs in the demanding aerospace sector.

Moreover, most of the former senior managers have transitioned to client-facing roles which has further enhanced customer relationship management and overall experience.

Among other efforts, the transformation has also unleashed team proactiveness, and one year later there are micro teams set up to drive bold efforts in sustainability and ethics.

Internal Culture

The transformation to self-management has profoundly reshaped Indaero’s internal culture. Highlights include:

• Transparency: Full financial transparency enables employees to understand the company’s performance and fosters a shared sense of ownership.
• Profit sharing: A system allocating 25% of profits to employees aligns individual and organizational success.
• Training and development: Employees receive extensive training in decision-making, conflict resolution, and meeting facilitation to thrive in a self-managed environment.
• Co-created compensation: A fairer, employee-designed salary system has led to significant increases in pay and equity.
• Flexibility and autonomy: Teams are trusted to self-organize and drive their initiatives, supported by a strong culture of collaboration and mutual respect.

This employee-first approach has resulted in higher engagement and satisfaction, strengthening the company’s overall performance.

Transformation Process

Indaero’s journey towards self-management began with gaining employee buy-in, with an overwhelming 87% of employees voting in favor of the acquisition and transformation plan. The process involved:

1. Co-creation Teams: Employee teams collaborated on redesigning workflows, compensation structures, and governance systems.
2. Operational alignment: Simplified financial reporting and operational rhythms ensured clarity and consistency across the organization.
3. Continuous improvement: The transformation remains a work in progress, with regular feedback loops to address challenges and optimize systems.

Challenges and Progress

The shift to self-management has not been without challenges. Adjustments to new roles, resolving past power dynamics, and mastering the new evaluation criteria for salaries have required time and effort. However, the transformation has already shown positive results in terms of employee engagement, team spirit, and financial performance, with revenues significantly exceeding expectations and EBITDAexpected to double in 2024.

Like any significant transformation, Indaero faced challenges during its transition, including:

• Adjusting roles: Employees needed time to adapt to self-managed responsibilities.
• Addressing power dynamics: Resolving past hierarchies and fostering equal participation took deliberate effort.
• Evaluation systems: Implementing and fine-tuning the new salary evaluation criteria required patience and collaboration.

Despite these challenges, the results have been overwhelmingly positive. Employee engagement and team spirit have soared and revenues have exceeded expectations.

Conclusion

Indaero's journey towards self-management exemplifies a radical shift in organizational structure, customer focus, and internal culture. By embracing self-management, Indaero has become more agile, innovative, and responsive to customer needs, while also fostering a more engaging and satisfying work environment for its employees.

This case study highlights the potential of self-management to drive organizational success and employee well-being, offering a model for other companies worldwide looking to redefine the future of work.