It is not socialist, as some of our critics contend. It isn't purely capitalist, either. It is a new way. A third way. A more humane, trusting, productive, exhilarating, and, in every sense, rewarding way.

Human nature demands recognition. Without it, people lose their sense of purpose and become dissatisfied, restless, and unproductive.

For a company to excel, employees must be reassured that self-interest, not the company's, is their foremost priority. We believe an employee who puts himself first will be motivated to perform.

If we do not let people do things the way they do, we will never know what they are really capable of and they will just follow our boarding school rules.

If you look at any kind of modern organization and you think, 'What are the foremost tools of power?' You will find that it is information.

To survive in modern times, a company must have an organizational structure that accepts change as its basic premise, lets tribal customs thrive, and fosters a power that is derived from respect, not rules. In other words, the successful companies will be the ones that put quality of life first. Do this and the rest - quality of product, productivity of workers, profits for all - will follow.

The era of using people as production tools is coming to an end. Participation is infinitely more complex to practice than conventional corporate unilateralism, just as democracy is much more cumbersome than dictatorship. But there will be few companies that can afford to ignore either of them.