by Dr Paul Thomas

3. July 2007

“Not invented here” and “we only do tools” are just two of the many syndromes which regularly undermine efforts to create a sustainable organisation. Attempts to benchmark performance, measure input, control output and create performance league tables often drives open, honest and trusting communication further underground, as departments and management defend their positions and compete with each other over power, money and status. There must be another way.....

What about letting go and giving your employees run the company? What about Democratic Leadership in Wales - Can we do it? Why or Why Not? What's holding us back?

Ricardo Semler and his company SMECO are an excellent example that it can be done. Below is an interview with Ricardo Semler conducted by the Australian Broadcasting Corporation (ABC), where Ricardo releases some insight into democratic leadership at SEMCO. Watch the interview and post your comments to ths blog.

Can we in Wales adopt democratic leadership as possible alternative for businesses as opposed to measurement, command and control? I think we can!

Posted: Dr. Paul T. Thomas.

Comments

Dr Kelly Page

July 18. 2007 13:37

Interesting interview. Semler's approach is one approach that I think some businesses in Wales are alreadying doing, they just might not realise it. And as for those who are still constrained by command and control mechanisms ... as opposed to can we in Wales adopt or more actively engage with democratic leadership - I think we have to! The world is in constant change. You can't control it! you can't measure it! and you certainly can not predict it! No matter how many resources we spend on controlling, measuring and predicting our environment - guess what - stuff happens?

With democratic leadership, perhaps instead of spending resourcse trying to control employees, measure their performance and predict behaviour and output ... perhaps we need to let go a little, rust them more and instead spend our resources on supporting the human-system and developing the agents within so they can naturally evolve and respond to these changes in the environment as they occur?

Dr Paul Thomas

August 3. 2007 22:57

I agree Dr Page, but democracy isn't that simple. People are messy, organisations are messy and if you want to lead them then you have to be prepared to deal with messy, on a constant basis. Just because you do one good thing to encourage democracy one day/hour, it does not mean the next day/hour will be easier than previous. People seek, power, control and status. Democracy could allow the power or bully to rise to the top of the system and impact this system in a negative way.

I also agree, that spending time, money and effort in policing the systems (people) to gain more control is futile, problematic, and counter-intuitive. Its the downward spiral that most organisations find themselves in particularly when they are loosing customers or faced with increasing target management. It doesn't work...! Honest!

Dr Kelly Page

August 4. 2007 18:20

Hehehe ... I agree ... but then arn't most things messy, nothng is really that simple, and the things most rewarding and natural are never ever easy ... and what is now may not be in the next few minutes ... that's life and living social systems ...

Democracy could allow the bully to rise to the top of a system (e.g., organisation, team etc) and impact the system in a negative way, but at least agents (staff) in the system play a more active and natural role in this evolution ...

I think people also seek meaningfulness, feeling valued, and belonging as well ... even those that seek power, status and control but sometimes loose sight of it as they are too close and too busy micro-managing ....

In a state of flux and uncertainity, management can feel they don't really understand 'why' or 'how' to move forward, and thus feel that targets and measures will give them the insight to make a 'correct' decision (if there is ever one!) for them and the organisation (driven by fear and uncertainity!).... however they fail to see the difference between data collected or boxes tickd and tacit knowledge and intuitive insight in a human system ...

the former to me is a an act/behaviour undertaken, historically founded which provides little insight as to the real nature of the system ... so you only sold one car today or processed one case and the 'expectation' is 5 - but you know what the relationship formed will benefit the organisation tenfold through word-of-mouth ... but can that be measured??? Why would we want to measure it???

The latter ... tacit knowledge and intuitive insight ... to me rests at the grassroots level of most organisations ... residing within informal social systems, exchanged through non-verbal communication, informal language and intangible knowing ... now that is messy, complex and far from easy to emerse oneself in .... especially if you are a manager ... where a psychological wall has been created as you are perceived to have power, status and importantly control ...

So yes ... targets rarely work ... they actually stifle and create a culture of uncertainty and fear .... mmmm ... give me messy any day ... its far more real and meaningful ....

:)

Mr John Bosworth

August 30. 2007 09:53

Guys,

Are you seriously suggesting that we in Wales (or anywhere else in the World for that matter) are ready for giving up, status, ego, command, control, for something that does away with all that. A people’s business is a very tough environment to work in compared to that of a C&C where you can always blame others and you are just a number and when you not there no-one cares. Because in an environment like Semco’s you are responsible for yourself and your actions and you are expected to act like an adult and have respect for others, you can no-longer have ‘special’ treatment for a ‘special’ few, all benefits are shared - including profits!

Now knowing the business community as I do, I can’t see many shareholder directors giving up power for the alternative that Semler describes, its just too hard, and as you say Paul its forever, you can’t just dip in & out. No I don’t think Wales can do it, but I do think a few business in Wales can and want to do it.

So lets start with the few who see the huge benefits in being part of a business like this or lets start our own and prove the concept beyond doubt…

TTFN
JB

Dr Paul Thomas

September 4. 2007 18:13

Hello John,

I couldn't agree with you more! I'm afraid that what you state above is so correct, hence my question "do you think we can change in Wales"

The resistance is not only managers with 'power' but middle managers who thurst even more for status, money and power. I have even encountered 'frontline' staff who don't wish to contribute to the organisation, one even stating that they were the toy-bunny, with the batteries runout, after they had bumped into the walls of the 'organisation' so many times that it had stopped hurting and had simply runout of energy to think!

I think we must take hold of a company, yes a brave company in Wales and change what they are doing. Starting anew is what I get told is the easy option. There are no easy options, but I can see their point, even if I don't agree with it.

I suppose thats why DNA Wales, has stopped 'researching' in the academic sense and concentrated on 'Action' or 'Change' over the past 6 months. We have about 15 companies that are exploring the DNA way, including a Public Services organisation, a Local Authority and of course manufacturing (which I know consider to be an easy sector)

The benefits for the organisation and Wales is potentially huge....ground breaking stuff. If we succeed then I have no doubt that it will change the face of organisations, leadership and management...for good.

I hope......
Paul
PS more than willing to have a go at your organisation.... ;-)

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