TiER1 Performance: Transforming Organizations through People-Centric Solutions

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 TiER1 Performance

Founded in 2002, TiER1 Performance is a leading consulting firm specializing in organizational performance, headquartered in Covington, Kentucky. With a team of 300+ professionals, the company serves Fortune 500 companies, educational institutions, and healthcare organizations, delivering innovative solutions that integrate strategy, culture, and technology.

At the heart of TiER1’s philosophy is a simple yet powerful belief: organizations perform at their best when their people are at their best. Their mission is to help people do their best work, and this people-first mindset drives every aspect of their structure, culture, and client engagement.

TiER1 exemplifies RenDanHeYi in the consultancy services industry. Their Dynamically Distributed Authority (DDA) model aligns closely with RDHY principles, emphasizing autonomy and agility, zero distance to the customer, and shared rewards.

Organizational Structure

TiER1 has moved away from a traditional hierarchy in favor of a flexible, role-based structure. Their Dynamically Distributed Authority (DDA) framework enables employees to self-organize around specific business needs, rather than being confined to static job descriptions.

Key features of the DDA model:

• Principle-driven decision-making: Employees make decisions based on shared guiding principles, not rigid rules.
• Role-based organization: Work is structured around fluid roles that adapt to the organization’s evolving needs.
• Metric-informed performance: Data-driven insights guide decision-making at all levels.
• Unified ways of working: Standardized processes ensure collaboration and efficiency across teams.
• Empowerment & accountability: Employees are trusted to take initiative and held accountable for results.

This agile structure fosters innovation, collaboration, and rapid adaptability, allowing TiER1 to stay ahead in a competitive industry.

Zero Distance to Customers

At TiER1, customer-centricity is not just a strategy—it’s the foundation of their business model. The DDA framework empowers employees closest to the customer to make key decisions, ensuring fast, tailored solutions.

Employees interacting with clients are empowered to make decisions that enhance service delivery and client satisfaction. This high level of autonomy ensures that client feedback is swiftly integrated into project workflows, resulting in customized and effective solutions.

The principle-driven approach of TiER1 ensures that decisions are made by the individual closest to the client, fostering direct and transparent communication. This minimizes hierarchical barriers, builds trust, and enables the development of strong, long-term partnerships.

This approach allows TiER1 to consistently deliver high-value outcomes that are closely aligned with client needs and expectations​.

Internal Culture and Employee Engagement

TiER1 fosters a high-trust, people-centered culture, where employees are engaged, motivated, and aligned with the company’s success.

Key practices:

• Open-book management: Financials are transparent, ensuring employees understand the company’s performance.
• Collaborative decision-making: Employees are actively involved in decision-making processes, ensuring a sense of ownership and responsibility across the company.
• Continuous professional development: TiER1 places significant focus on employee growth, offering various programs to support personal and professional development.
• Employee Stock Ownership Plan (ESOP): TiER1 is 100% employee-owned, providing long-term incentives for everyone to share in the company’s success.
• Bonus structure: TiER1’s bonus program is tied to profitability, further aligning employees’ financial interests with the company’s performance.

These innovative practices are designed to create a work environment where people thrive, making TiER1 an industry leader in employee engagement and well-being. The company’s open-book management and color-coded financial system enhance transparency, guiding employees toward informed decision-making and creating a culture of shared accountability.

TiER1 is also a recognized leader in supporting employee mental health and well-being. They have been acknowledged by organizations such as the Center for Disease Control (CDC) for their commitment to mental health in the workplace. Their approach integrates comprehensive wellness programs, ensuring that mental health is as prioritized as physical health in fostering a positive work culture.

Conclusion

TiER1 Performance exemplifies a progressive approach to organizational design. By integrating principles of autonomy, agility, and customer-centricity, TiER1’s Dynamically Distributed Authority system exemplifies the very best of the RenDanHeYi philosophy in action. Their commitment to creating an empowered workforce and innovative client solutions makes them a model for other companies striving to build high-performance organizations.

Recognized as one of the fastest-growing companies on the Inc. 5000 list for 15 consecutive years, B-Labs Best for the World honors, and as a top employer across several local and national publications, TiER1 demonstrates that when you put people at the center of your business, both your employees and clients thrive.