So while companies spend millions of dollars on āleadership development,ā they invest next to nothing supporting bottom-up entrepreneurship. This has to change. Unleashing the problem-solving, business-building energies of every team member is essential to building a humanocracy.
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And rather than investing in systems and processes to provide a fallback in case our managers are found wanting, itās far better to invest in helping our team leaders do what we need them to, by 1) getting rid of ratings of āpotential,ā 2) teaching team leaders what we know about human growth, and 3) prompting them to discuss careers with their people in terms of momentumāin terms of who each team member is, and in terms of how fast each is moving through the world. This is harder, of course, than buying the latest piece of enterprise software and then imploring our people to use it, but itās the right hard thing to do.
These companies were built, or in some cases rebuilt, with one goal in mindāto 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.
We must be no less radical in rethinking the foundations of human organizations. Like our forebears, we must do our part to emancipate the human spirit. It is here we find a cause worth servingāto build organizations that give every human being the opportunity to thrive.
While most CEOs acknowledge the virtues of free markets, the companies they run are typically structured like command economies. As in the former Soviet Union, decision-making power is highly concentrated at the top. Changing this is essential to making our organizations more resilient, innovative, and human. To see how this might be done, we need to understand the conditions under which markets outperform hierarchies and then try to imagine how these advantages might be replicated within our organizations.
You canāt demolish bureaucracy with a giant wrecking ball or a stick of dynamite. Instead, it must be dismantled, brick by brick. Detox and delegation are the first steps, but then what? Obviously itās not enough to change yourself and your team. Ultimately, you have to change the core processes by which your company is runāplanning, resource allocation, project management, product development, performance assessment, promotion, compensation, hiring, training, and all the rest. Each of these processes must be rebuilt atop the principles of humanocracy.