Management of change today has to be baked into the organisational construct, not something that is added on when it is needed.
Today’s organisation is one in which everyone can initiate change, can experiment, and is allowed to fail. Everyone has the capability and permission to be self-organising so that change is truly constant. Energy and ideas come from the entire organisation.
Kill the Hierarchy!
The only role of hierarchy is to get rid of bad bureaucracy. There needs to be a flatter structure, increased innovation and collaboration, and more timely communications. Decision-making is decentralised and autonomy and authority is delegated.
There is a platform for change – not a program driven from the top. Change is driven up and down, down and up, across and out of the organisation.
Sound like anarchy? Well it isn’t and there are organisations that are already making the changes needed not only to survive but also thrive in a VUCA world.
Shining Examples
One organisation that didn't need to flatten its structure because it was always that way is W.L. Gore – one of the most successful organisations in the world today. Gore has more than 10,000 employees and basically three levels of hierarchy. The CEO is elected democratically; there are a handful of functional managers, and then everyone else. Decision-making is delegated to self-managing teams of 8-12 people.
Gore CEO Terri Kelly says:
“It’s far better to rely upon a broad base of individuals and leaders who share a common set of values and feel personal ownership for the overall success of the organization. These responsible and empowered individuals will serve as much better watchdogs than any single, dominant leader or bureaucratic structure.”
One of the most prominent and successful computer game makers is Valve. Valve’s employee handbook says:
“Nobody 'reports to' anybody else. We do have a founder/president, but even he isn't your manager. This company is yours to steer – toward opportunities and away from risks”.
At Semco, the Brazilian conglomerate, decision-making is delegated. When Ricardo Semler, joined the organisation as chairman in 1983, he worked tirelessly to distribute decision-making. Now one of the firm’s key performance indicators is how long Semler can go between making decisions. The time keeps getting longer, while the firm has maintained around 20% growth for nearly 30 years now.
Under Semler’s leadership, Semco grew from USD$4 million to over USD$160 million in about 20 years.
In a 2014 TED Global presentation, Semler said:
“We looked at it and we said, let's devolve to these people, let's give these people a company where we take away all the boarding school aspects of, this is when you arrive, this is how you dress, this is how you go to meetings, this is what you say, this is what you don't say, and let's see what's left. And so, the question we were asking was, how can we be taking care of people? People are the only thing we have.”
What are we going to learn from these organisations?
Karen Ferris is an organizational
change management rebel with a cause.
She is an author, sought after keynote
speaker, coach mentor and facilitator.
Her latest book, “Game On! Change is Constant – Tactics to Win When Leading Change is Everyone’s Business” is available now.
She is passionate about enabling individuals and organisations to triumph in the face of constant and disruptive change and does so through programs regarding organisational change, resilience, agility, leadership, transformation and adaptation.
To inquire about her working with you or your organisation please contact us here.