Why This Billion-Dollar Company Has No Bosses – And It Actually Works with Morningstar's Doug Kirkpatrick

What happens when an organization removes all managers—and proves that freedom and accountability can thrive together?  In this episode of The Conscious Capitalists, hosts Timothy Henry and Raj Sisodia sit down with Doug Kirkpatrick, founding financial controller at Morningstar—the world’s largest tomato processor—and a leading voice in the global movement for organizational self-management. Doug shares how Morningstar eliminated traditional hierarchies to build a self-managed system rooted in clarity, trust, and purpose. Drawing from his early experience that ignited a lifelong questioning of authority, Doug walks us through the foundational principles that continue to guide Morningstar’s success—from dynamic budgeting to emergent leadership and personal responsibility. As self-management principles spread across industries and sectors, Doug reflects on the broader potential of this approach to not only transform how organizations operate—but to reshape how we live, lead, and relate to one another. His insights reveal how empathy, courage, and radical trust can redefine capitalism for the better. Listeners will gain insights into:How Morningstar functions without bosses or traditional hierarchyThe first-grade moment that inspired Doug’s journey toward self-managementThe mechanics of dynamic budgeting and decentralized decision-makingWhy empathy and natural leadership are essential in self-managed teamsHow self-management fosters agility, resilience, and innovationThe personal and societal impact of values-based, self-led systems ** If you enjoy this podcast, would you consider leaving a review on Apple Podcasts/iTunes? It takes only a few seconds and greatly helps us get our podcast out to a wider audience. Please subscribe on Apple Podcasts / Spotify / Stitcher, or wherever you get your podcasts. For transcripts and show notes, please go to: https://www.theconsciouscapitalists.com This show is presented by Conscious Capitalism, Inc. (https://www.consciouscapitalism.org/) and is produced by Rainbow Creative (https://www.rainbowcreative.co/) with Matthew Jones as Executive Producer, Rithu Jagannath as Lead Producer, and Nathan Wheatley as Editor. Thank you for your support! - Timothy & Raj Time Stamps 00:00 Introduction and Welcome 00:42 Introducing Doug Kirkpatrick 02:15 Doug's First Grade Story 04:10 Morningstar and Self-Management Principles 07:27 Implementing Self-Management at Morningstar 09:22 Financial Management in a Self-Managed Enterprise 17:05 The Role of Leadership and Natural Leadership 20:47 Hiring and Empowerment in a Self-Managed Organization 24:55 Commitments and Colleague Letters of Understanding 31:39 Intensive Onboarding and Continuous Development 33:06 Innovative Organizational Models 34:23 Exploring Holacracy and Simple Rules 37:14 Impact of Self-Management Beyond Work 40:13 Morningstar's Resilience During COVID-19 43:05 Handling Business Challenges and Legal Issues 45:21 Self-Management and Conscious Capitalism 50:40 Leadership and Empathy in Self-Management 59:17 Rapid Fire Questions and Closing Thoughts