10 crazy town ideas for extreme organisational democracy

Crazy Frog

Here are 10 ideas that take the principles of organisational democracy to the extreme. In the context of mainstream business today they seem far-fetched but there are organisations in the world who are pushing the boundaries of democracy every year. If you think that these ideas are just too radical for your business, imagine how you will attract and retain the very best employees if you have a competitor who is bold enough to do these things. Will you be able to stand out and remain relevant when someone in your market is doing this? Welcome to the world of extreme organisational democracy.

1 Purpose and Vision

The radically democratic company has a vision and mission that transcends itself and its people. It describes a world that is richer not just for its shareholders but for all of humanity, and the planet. How about a soft drinks company that sets out to alleviate the problem of thirst and water shortage in all of its forms for every human and animal on the planet. Now that would be a real purpose.

2 Transparency

Radical transparency can build an incredible level of trust both within an organisation and with the outside world. It shows you have nothing to hide and beyond that you invite criticism and input into your business. How about publishing every single line item of expenditure in the business? How about turning the 20th century wisdom of ‘secrecy and closedness unless there’s a very good reason to do otherwise’ on its head and publish every item of income, profit, loss, remuneration and even decisions by default – available to all employees, and anyone else in the world including competitors to see. Opening a pandora’s box? Certainly. But who wouldn’t trust an organisation brave and open enough to do this? And what new insights would the company gain from having their inner workings opened up for others to analyse?

3 Dialogue & Listening

What would happen if you invested in training every single person – from the cleaners to the CEO in an organisation – to a professional level as relationship counsellors? OK it might fill you with fear to think of a business full of shrinks and endless meetings on comfy chairs with tea and biscuits. But what would the outcome be when you have truly professional standards of listening and understanding other human beings and a deep ability to forge and maintain great relationships. What would it be like to work somewhere like this? What would relationships with customers and other stakeholders become?

4 Fairness & Dignity

Decisions that impact fairness happen every day in businesses, from allocating work to setting pay. Typically its people with power (managers, directors) who make these decisions and others have to live with being treated fairly or not. How about having a rule that states that any decision made in the company which could impact feelings of fairness or dignity to a group or individual must be scrutinised by a peer-selected group of their colleagues. Yes, it will slow down some decisions, but the gains in loyalty and the removal of the politics of favouritism or discrimination will more than make up for it.

5 Accountability

Democracies are not soft. As Worldblu puts it, ‘they are crystal clear about who is accountable to whom and for what.’ In most businesses, employees are accountable to their managers. In an extreme democracy, people are accountable to everyone they work with or even influence indirectly, AND the outside world. 360 degree reviews don’t go far enough, especially for senior managers. People need to be able to hold anyone to account where necessary, regardless of who they are. Local communities and even activists can be brought closer to the organisation to create deeper accountability with the outside world. But accountability isn’t about blame. In extreme democracies, accountability creates a tight support network.

6 Individual & Collective

Google and other companies famously have ‘20% time’ where they are able to work on projects of their own choosing for one day per week. How about upping this to, say, ‘100% time’? In other words, employees choose ALL of their tasks and projects. To get this right, the collective mission of the company will have to be not just well-defined and understood, but genuinely bought into so that all work supports the mission. You also need to have good accountability in place from peers.

7 Choice

Throw away the rulebook for dress code, working hours, work location, pay reviews and holiday entitlement. Take a punt on assuming that employees can be trusted to make decisions that are fair to them, the business and their colleagues and customers. Crazy right? Not really when you think that this is how millions of freelancers and self-employed people work. Many of the most talented people in the world opt out of the corporate world because they have more choice by going it alone. It works because they are ultimately accountable and have direct alignment with the purpose of their 1-person business. But if we can create this alignment and accountability in a larger business, then why not give them this freedom and choice? The business that is brave enough to do this may never lose a talented employee to a competitor again.

8 Integrity

Google started a change in the corporate world with their mantra ‘Do no evil.’ But that’s just the foundation. ‘Extreme integrity’ is about doing GOOD in all your actions, not just avoiding evil. Imagine a company that has a set of ‘values’ that are more than just filler on the boardroom wall. Values that were created by, and truly believed in by every person throughout the organisation. What if in your culture, every decision and idea is checked against these values as a matter of everyday routine such that it becomes instinctive and automatic. Could you build extreme integrity such that a company can be trusted as much as a close family member or friend? Businesses are made up of human beings with the capacity for enormous integrity so I believe they can.

9 Decentralisation

Do away with the ‘centre’ or ‘top’ of an organisation altogether. A network structure is the ultimate in decentralisation. It is possible to create an organisation that has no ‘top leaders,’ board of directors or even any sort of legal entity. In the extreme democratic future there will be large organisations with the power and impact of large publicly listed companies today that are a mesh of individuals and relationships. The network can swarm together around projects and customer needs, then disassemble and re-form as needed. No formal ‘lines of responsibility’ or control, just agreed roles, responsibilities and accountability that are completely dynamic. Networks are incredibly resilient. That’s why it’s hard to fight al-Qaeda and BitTorrent because there is no ‘head’ to cut off.

10 Reflection + Evaluation

Why not reverse the current trend of business needing to become faster, faster, faster and instead spend more time reflecting and evaluating than actually ‘doing?’ Sounds hopelessly inefficient? Well how about all of the rushed, high-pressured years of ‘doing’ that led to the effective collapse of the global banking system? What would the world look like now if more time had been spent reflecting and evaluating? Perhaps sanity would have prevailed. At Mindvalley, a company in Malaysia, they already hold group meditation sessions to envision the future and reflect on what they are doing. Sounds almost cult-like, and it’s uncomfortable to expose our souls at work, right? But imagine the wisdom and breakthroughs that could surface if we slowed down more, and became more mindful. Perhaps not so crazy after all.

DALAI LAMA

Inspiration Sunday: Why happiness is the new productivity

Here’s an awesome presentation from Vishen Lakhiani the founder of one of the Worldblu Most Democratic Companies – Mindvalley.

There’s so much I love in here:

  • The focus on being happy NOW (not putting off happiness until you’ve achieved other things)
  • Achieving a state of Flow
  • Rituals like ‘ringing the bell of awesomeness,’ ‘the gratitude log’ and even guided group meditations!

All of this has created an incredible workplace at Mindvalley that attracts and grows fantastic people, and that leads to success for the company as a whole.

The only thing I’m not sure about is the idea of sharing 10% of company profits on a monthly basis. I am all for profit sharing, but my fear would be that with it being a monthly thing, people may quickly grow used to it and instead of it feeling like a bonus it could come to feel like an entitlement. I’m sure that it is a motivator but I’m not convinced of the long-term value of it. But it’s part of a mix that’s working for Mindvalley so good luck to them.

Oh and if you’re thinking that all of this wacky stuff is fine for a company whose average age is 24 but not for a ‘grown up’ business, then just remember that these ‘Generation Y’ people are the senior leaders of the future so if you want to have them developing in your company then you need to create the right environment for them NOW.