Trust Works #3: How the Largest Tomato Processor in the U.S. Thrived with Self-Management for Over 50 Years

When you think of a large-scale food production company, you probably imagine traditional hierarchies, strict managerial oversight, and rigid workflows. Yet, The Morning Star Company, the largest tomato processor in the U.S., has thrived for over 50 years by embracing self-management.

What makes Morning Star extraordinary isn’t just:

• That its progressive way of working dates back more than 30 years.
• That it is the undisputed leader in its industry in the U.S.
• Or even that it has successfully replaced bosses with a personal commercial mission for each employee.

While all of these facts are impressive, my favorite aspect of Morning Star’s approach is its peer-to-peer contract system—the Colleague Letter of Understanding (CLOU).

The Basics

• Industry: Food Production
• HQ: California, USA
• Team Size: 550 year-round & 2,500+ seasonal colleagues
• Established: 1970
• Self-Managed Since: 1990

Management by Mission

At Morning Star, traditional bosses are replaced with a mission-driven structure that fosters autonomy and accountability:

• The company mission is translated across the organization.
• Each employee has a personal commercial mission that defines their purpose and contribution.
• There is a commitment to ultimate human respect.
• The system encourages individual accountability and initiative.

The Personal Commercial Mission

Rather than reporting to a manager, every colleague at Morning Star operates under their own personal commercial mission. 

This mission:

• Inspires the individual and those around them.
• Is memorable and reflects the person’s unique contribution.
• Clearly connects to their activities and responsibilities.
• Must be agreed upon with impacted peers.

The Principles That Drive Morning Star’s Success

Morning Star’s self-management approach is anchored in two core principles:

Principle 1: Ultimate Human Respect

• Share information with colleagues broadly and often.
• Coordinate decisions with impacted peers and relevant experts.
• Foster tolerance towards individual differences.
• Lead with humility.
• Do what is right.

Principle 2: Do Everything You Agree to Do

• Gain agreement through direct communication.
• Focus on creating value for others.
• Operate with integrity.
• Take personal responsibility and initiative.

The Colleague Letter of Understanding (CLOU)

At the heart of Morning Star’s accountability system is the Colleague Letter of Understanding (CLOU). This annual agreement between colleagues serves as the company’s primary tool for organizing work and ensuring accountability.

A CLOU defines:

• Personal Commercial Mission (the guiding purpose of the role).
• Activities and Responsibilities (what the person is accountable for).
• CLOU Colleagues | Impacted Peers (who they coordinate with).
• Required Resources (tools, budgets, and support needed).
• Steppingstones (milestones for progress).
• Time Commitments (expected workload and deliverables).
• Goals (performance and impact targets).

Why This Matters

Self-management isn’t just about removing managers—it’s about replacing traditional oversight with a system of trust, mutual agreements, and peer accountability. The CLOU ensures that each person takes ownership of their role while staying aligned with the broader mission of the company.

A Challenge for You

What would happen if you replaced direct managerial accountability with peer-to-peer accountability in your organization?

Could your team benefit from setting up a CLOU system?

If you’re ready to explore this approach, I’d love to work with you to implement a CLOU for your team. Let’s start designing organizations that truly work! 💪