The way organizations are structured and run today is essentially outdated. Disillusionment and lack of engagement are commonplace and most people regard their work as filling in time and unexciting. Managers try different incentives from training to monetary rewards to company retreats without getting any lasting, positive outcome. So is a new kind of organization the answer?
The top-down, hierarchical and process-driven model prevalent in large organizations, public sector agencies, universities and military organizations has proven to be inefficient. Much of the work in dealing with such inefficiencies has been refinement and incremental improvement rather than structural change. So things like business process re-engineering, better HR practice including sophisticated incentive systems, inclusiveness and culture change have all led to significant improvements and prosperity.
Yet organizations remain for most people a mind-numbing, short-sighted, energy-draining rat race.
A number of organizations across a range of sectors – from public to corporate to non-profit – in different countries are experimenting with new management techniques and structure. Initial pilots have been encouraging and indicate pathways to make the workplace more engaging without sacrificing organizational or business imperatives.
These new models and structures have some things in common:
More self-management.
The idea in the organizations is to set up an environment in which people have a greater degree of autonomy. Power is distributed across the organization and not tied to a few individuals. A common misconception about self-management is that everyone is equal and decisions are made by consensus, which requires endless meetings. The truth is very different. Self-management requires a whole set of interlocking structures and practices, so that decision rights and power flow to any individual who has the expertise, interest, or willingness to step in to oversee a situation.
An interesting new management paradigm currently being implemented by companies such as Zappos is called Holocracy. Holocracy actually defines a very formal set of rules on how self management and organization actually works.
Wholeness.
These organizations invite people to reclaim their inner wholeness. They create an environment wherein people feel free to take off their masks and fully express themselves, bringing unprecedented levels of energy, passion, and creativity to work. People feel they can truly be themselves.
At one hospital chain, colleagues from the five hospitals come together for 75 minutes of intensive, reflective dialogue about a theme such as dealing with risks or learning from mistakes.
At FAVI, a French automotive supplier, all engineers and administrative workers are trained to operate at least one assembly-line machine. When orders must be rushed out, white-collar workers come in to run the machines for a few hours. It’s a wonderful community-building practice.
Evolutionary purpose.
Most organizations define a purpose for themselves in the form of a mission statement, which is typically engraved on a plaque in the headquarters lobby. Most of these statements, of course, sound hollow. The mission statement is there as a mere formality and it simply can’t compete with the pursuit of profits or competitive advantage.
In the new paradigm, the organization values the purpose above business profits or process. “Humanity above Bureaucracy” is an example of a mantra in an organization caring for the sick and elderly.
Making purpose the cornerstone of an organization has profound consequences for leadership. The organizations with these new paradigms do not have a strategy document nor do they have the often dreaded 5 year business plans, yearly budgets and KPIs. Instead of trying to predict and control, they aim to sense and respond.
A metaphor can be used to explain this. A farmer must look far out when deciding which fruit trees to plant or which crops to grow. But it makes no sense to plan a precise date for the harvest. One cannot control the weather, the crops, the soil; they all have a life of their own. Sticking rigidly to plan, instead of sensing and adjusting to reality, leads to having the harvest go to waste, which too often happens in organizations. The new organizations base their strategies on what they sense the world is asking from them. Agile practices that sense and respond replace the machinery of plans, budgets, targets, and incentives.
Paradoxically, by focusing less on the bottom line and shareholder value, they generate financial results that outpace those of competitors.