"Trust is more easily given to those whom one knows well over time. It should, therefore, be easier to trust insiders rather than outsiders, yet, perversely, we give a freer rein to outside contractors than we do to our own workforce." Charles Handy offers his new idea for more effective organisations: the doughnut.

By applying the doughnut principle, organisations will be able to tap into all the latent creativity that is hiding in the everyday workplace. Handy urges organizations to treat "insiders" like"outsiders", dealing with staff as if they are outside suppliers,negotiating payments to teams not individuals, giving people more freedom and incentives to be creative and improve productivity. The essay outlines the new role for managers and examples where the doughnut approach is already yielding results.