In this episode of The Real Entrepreneur, host Mike Michalowicz breaks down a scene from The Office where Dwight creates an "emergency" org chart to give Michael Scott full authority over the office. Michalowicz uses the scene to illustrate several entrepreneurial leadership concepts: the existence of two overlapping org charts—one formal, one social—and how the social chart often holds more sway over revenue; the danger of leaders seeking power for its own sake versus serving the organization; the use of hidden promises as a manipulative leverage tactic; and the importance of taking uncomfortable, service‑oriented decisions in a crisis rather than delegating to power‑hungry individuals. He emphasizes that great leaders step up, accept responsibility, and make decisions that serve the team, even when they are uncomfortable, and that followers expect improvement rather than perfection. The video concludes with a call to action for viewers to subscribe and engage.
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Hello, it's Mike Michalowicz here. You're watching the real entrepreneur. Make sure you hit that subscribe button and that notification bell right now so you don't miss a single episode. Today I'm reviewing a little scene from the Office. One of the best timeshows ever. And I'm going to give you the entrepreneurial insights within. Here we go.
Jim is in charge of Stanley only in sales related matters.
Hence the green the org chart. Already look at all the lines and stuff and you know what's happening as Dwight is pointing to this org chart. There is a structure that was envisioned and then there is the social. And all the little dotted lines are the social influence. There's always two org charts. There's the one you envision structurally and then there's the social one. And the social one has more influence for money sales. Get it.
There is this yellow zigzag that does give Ryan the authority to discipline Stanley.
Great.
However, in so doing it zigs past your name. Hence zagging you and making you appear weak. That's the yellow color. Yellow or cowardly.
So I will tell you Michael Scott is already avoiding responsibility. Great leaders stand up to any challenge and particularly when the most difficult things present themselves. The great leaders come forward. It doesn't mean they have the right solution. That's the key here. They are just the ones who take responsibility to see through the circumstances. They're honest and integral about it. Michael shirking that responsibility. But his right man hand man here may have something other plan. Let's see.
Emergency disaster for the org chart. This gives me full authority over every single person in the office. I never said you could. All you have to do is say it. I just say it. Okay, I'll think about it.
Say it. Just do it.
Don't think.
Say it.
Do it. 5, 4, 3, 2.
So I'll tell you what Dwight's doing here. Obviously he's strong. Arming Michael Scott to get this authority which is a sure fire indicator or sure indicator that a person is not should not be put in a position of authority. They're going for the power to have power as opposed to be of service. Great leaders are leaders of service and Dwight is demonstrating he surely isn't. Do it. Michael le is trying to be a service control.
Michael, I promise to give authority back to you when this crisis is over.
Hidden promises too. That's another technique. When people try to assert authority and aren't getting their way. It's a. To me it's a little bit narcissistic. But they seek other ways to get a leverage by making promises that they don't intend to fulfill. And you should never, never shirk responsibility of leadership when you're needed most in an emergency and give to someone that's going for a power move here with a promise that they'll return.
Do it, Michael.
See the clock spinning with Michael. Do it.
Hey, this office needs a strong man. Say it.
No. No.
All right, well, you're gonna have to.
Deal with this yourself. So at least Michael right there demonstrated true leadership. He decided between someone else inserting themselves and taking total control and not having to be responsible for it or being responsible for something he does not want to do. And he made the right move. My lesson here is this. Whatever decisions you make as a leader, even if they're uncomfortable, the fact that you're leading by, by making decisions that's in service your organization is the best leadership moves. No one expects you to be perfect at it. People expect you to improve, and you should expect that yourself. But you are going to be in situations where it's the first time ever. And don't acquiesce to someone else who's going for authority. Do it yourself, even when you're uncomfortable. That's my insights from this episode of the Office. I hope you got some additional value out of that. And I invite you to hit that subscribe button, that notification bell, so you don't miss a single episode. Also, don't forget any questions or suggestions, go to mikemcalowitz. Com. Question. I'll see you on the next Real Entrepreneur.
