Government agencies demand evidence of regulatory compliance and are satisfied only when presented with the artifacts of bureaucratic controlâa chief compliance officer, compulsory training, and comprehensive reporting.
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As you read, youâll realize that these Nine Lies have taken hold because each satisfies the organizationâs need for control. Large organizations are complex places, and a strong and understandable instinct of their leaders is to seek simplicity and orderânot least because this makes it easier to persuade themselves and their stakeholders that they are moving toward their objectives. But the desire for simplicity easily shades into a desire for conformity, and before long this conformity threatens to extinguish individuality. Before we know it, the particular talents and interests of each person are seen as inconveniences, and the organization comes to treat its people as essentially interchangeable.
Bureaucratic organizations are inertial, incremental, and dispiriting. In a bureaucracy, the power to initiate change is vested in a few senior leaders. When those at the top fall prey to denial, arrogance, and nostalgia, as they often do, the organization falters. Thatâs why deep change in a bureaucracy is usually belated and convulsive. Bureaucracies are also innovation-phobic. They are congenitally risk averse, and offer few incentives to those inclined to challenge the status quo. In a bureaucracy, being a maverick is a high-risk occupation. Worst of all, bureaucracies are soul crushing. Deprived of any real influence, employees disconnect emotionally from work. Initiative, creativity, and daringârequisites for success in the creative economyâoften get left at home.
These companies were built, or in some cases rebuilt, with one goal in mindâto maximize human contribution. This aspiration is the animating spirit of humanocracy, and stands in stark contrast to the bureaucratic obsession with control. Both goals are important, but in most organizations, the effort spent on ensuring conformance is a vast multiple of the energy devoted to enlarging the capacity for human impact. This gross imbalance is dangerous for organizations, a drag on the economy, and ethically troubling.
If your worldview places a premium on human freedom and growth, youâll regard the inhumanity of bureaucracy as intolerable and feel compelled to act. If, on the other hand, you regard human beings as factors of production, youâll make excuses for bureaucracy and be content with minor reforms.
Before moving on, letâs recap:
- Bureaucracies are replication machines. Theyâre designed for exploit, not explore.
- Bureaucracies tend to be monocultures. Theyâre run by individuals temperamentally inclined to favor the status quo.
- Bureaucratic information systems fail to capture the hidden costs of one-sided trade-offs. As a result, many decisions are underinformed and, therefore, suboptimal.
- Bureaucracies tend to enforce uniform trade-offs across the entire organization. Though unsophisticated, this preserves the centerâs power and sense of order.
- The bureaucratic aversion to ambiguity leads to either/or thinking. Rather than maintaining a creative tension, organizations tend to whipsaw between counterposed priorities.