Man will occasionally stumble over the truth, but usually manages
to pick himself up, walk over or around it, and carry on. - Winston Churchill
We took the daytime flight from Boston to London's Heathrow
Airport and arrived about 9:00 P.M., which allowed for a quick taxi ride
to one of our favorite Greek restaurants, Anemos, on Charlotte Street in
London's Soho district. It was near closing time and only a few tables
were occupied. Nevertheless, vibrant Greek music filled the room, which
was all decked out in murals of images of Greece both ancient and modern.
We had barely begun to eat when Kypros Pesekanos, the manager, emerged from
the kitchen carrying a stack of dinner plates. It was time for a tradition
that has been going on in Anemos for twenty-five years: Pesekanos began to
toss the plates onto the small dance floor, white fragments scattering
everywhere. Beaming, and bearing a paunch that proclaimed a life-long
dedication to being a trencherman, Pesekanos was quickly into the spirit of
the thing. Crash! Crash! Crash!
The plate
throwing at Anemos is a continuation of an old tradition from the homeland,
which, Pesekanos explained to us, was a means of letting off steam at bars
called Pouzouki (the name of an instrument like a lute). "Youd get away from
the demands of work and family life for a while, drink ouzo, throw some plates
to get rid of frustrations and annoyances. And then youre ready to dance--in
the rubble," Pesekanos explained.
Urged on by
Pasekanos, we joined a group of half a dozen people in vigorous plate tossing,
and danced amidst the mosaic of white shards. For us it was a wonderful way of
throwing off the crimps of our transatlantic flight.
Afterward,
we joined our fellow revelers around a big table and we began to talk. They were
from Denmark, and in the textile business. They were traveling through Europe,
checking on sources of fabrics they were using for their designs. "Business has
changed for us," they told us. "How so?" we inquired. "Now whats most important
is paying attention to the people you do business with," they explained.
"Business is not just commerce anymore; its about developing relationships.
Honesty and connection is what we look for, in our employees and in our
suppliers. You can see it in the eyes. What were building is a community; this
is our leverage for business success."
What our
dancing companions were saying reverberated deeply with us. We had been talking
to various businesses in the United States and in Britain, and we were hearing a
similar phenomenon occurring among them. A shift is taking place in the world of
business, where valuing people and relationships is not just a good or espoused
idea, but a conscious management action that has a positive outcome on the
economic bottom line. We were hearing that by genuinely caring about people in
the workplace, the economic bottom line often benefits as well.
This
encounter at Anemos was in the fall of 1997. We were about a year into our
study, which involved talking with people in a dozen companies, of different
sizes and different business sectors. Some we interviewed several times, for a
longitudinal perspective; and often we did a cross section of interviews, from
CEO to secretary. We were interested in companies that were following principles
from the new science of complexity in running their business. All we had to
begin with was an understanding that businesses are complex adaptive systems,
and the principles that underlie such systems. Some of the companies we talked
to were using complexity principles explicitly to guide how they operated;
others reached this place intuitively. It didnt matter which was the case for
our work. We found these organizations mostly by word of mouth.
We will
delve into complexity science in more detail in later chapters, but suffice it
to say here that the new science is the latest attempt to understand the
structure and dynamics of complex systems in the natural world, including human
social systems such as business organizations. Complexity science views such
systems as being like living organisms, which adapt and evolve, rather than
being like machines, which has been the traditional perspective. Companies whose
management is guided by principles of complexity science are organizationally
flat, have fewer levels of hierarchy, and promote open and plentiful
communication and diversity. Complexity science argues that these properties
enhance businessess capacity for adaptability, thus giving them a cutting edge
in these fast-changing times. The companies we chose for our study therefore
shared the properties of being organizationally flat and having rich, open
communication. But initially we had no idea what our study would find in the
realm of organizational dynamics, of management style, and peoples way of
working.
What we
began to hear consistently was a new way of doing businessfrom Babels family
paint and decorating stores of thirty-five people, to St. Lukes Advertising
Agency of a hundred, to Monsanto Company of 22,000. For these organizations,
people had become the new bottom line, not simply for humanistic reasons, but as
a way to promote adaptability and business success. In todays business
environment of rapid change, a collective effort, a recognized need for others,
becomes the means of survival and success.
Reflecting
on the plate-throwing evening, we realized that this old tradition was a timely
analogy for what we were hearing as being the current climate in these
companies: breaking of old ways of doing things, seeking a new freedom, and
trying to have fun while doing it. Pesekanos had told us that Anemos means
"wind," which was apt, too, because a wind of change is blowing through the
business world, bringing with it a new hope and a potential for a deep human
resonance within organizations, which we all seek deep in our hearts. But it
also brings anxiety, uncertainty, and fear, because it is predicated on far less
control and far less predictability than is assumed in traditional management
practice. Bending with these winds, business practice is becoming more like an
improvisational dance on the broken plates of change.
A World in
the Throes of Change
The
business world is in the throes of revolutionary change, a time when business
leaders are frantically preoccupied with change itself. Modern management theory
borders on being obsessed with change of one sort or otherhow to generate it,
how to respond to it, how to avoid being overcome by it. The reason is not hard
to find. Pick up any newspaper, magazine, or business book and there it is:
chaos reigns. At the cusp of the twenty-first century, we are experiencing
structural shifts in our economy brought about by the revolutions in computation
and communication technologies. But, as Intels Andy Grove indicates, change is
not exactly a welcome guest in business: "With all the rhetoric about change,
the fact is that we managers hate change, especially when it involves
us."
The change
is not only real, but it is also accelerating, driven by rapid technological
innovation, the globalization of business, and, not the least of it, the arrival
of the Internet and the new domain of Internet commerce. A new kind of economy
is emergingcall it the information economy, the connected economy, call it what
you will. The world of business is transforming, a shift that rivals the onset
of the Industrial Revolution in its impact on society and the way commerce is
transacted. With this shift, managers are finding many of their background
assumptions and time-honored business models inadequate to help them understand
what is going on, let alone how to deal with it. Where managers once operated
with a machine model of their world, which was predicated on linear thinking,
control, and predictability, they now find themselves struggling with something
more organic and nonlinear, where limited control and a restricted ability to
predict are the order of the day. No wonder most managers and executive
professionals are uneasy, and eagerly seek new ways of coping. One thing is
certain in all this, however: you cant figure out what to do in the future by
looking at how you did things in the past.
What About
People?
We attended
many conferences on complexity science in business, which typically focused on
computer algorithms that made difficult operational problems tractable. Time
after time, at the end of the day we would hear people say, "This all has great
potential and it will be important in business, we know that. But what
about me? What about people?"
Yes, what
about people? "Business is about people" has been bandied around for some time,
and yet rarely addressed with a any human depth. Consequently, the feeling of
not being valued is pervasive in the business world, and a few writers recognize
the fact. "Too many people feel insecure, threatened, and unappreciated in their
jobs," writes Tom Morris, a philosopher and business consultant. "Overall job
satisfaction and corporate morale in most places may be at an all time low."
Peter Senge, director of the Center for Organizational Learning at MITs Sloan
School of Management and author of The Fifth Discipline, notes that the
prevailing mechanistic model of business encourages managers to see people as
machines, not as people. "We deeply resent being made machinelike, in order to
fit into the machine," he says. Henry Ford once said, "How come when I want a
pair of hands, I get a human being as well?" A manager in todays
knowledge-based economy might paraphrase this: "How come when I want a mind, I
get a heart as well?"
And how
come there commonly continues to exist a denial in the business mind, a stark
omission of the importance of people and valuing them for not only the revenues
they bring in, but simply as human beings? How come we refuse to see the
obviousthat when people are treated as replaceable parts, as objects to
control, are taught to be compliant, are used as fuel for the existing
systemthat inevitably you are going to have an organization that is fraught
with frustration, anger, and isolation, which ultimately is detrimental to the
business?
Some
managers recognize the lack of humanity in their organizations, and are
frustrated with the perceived impossibility of doing anything about it, anything
genuine that is. Alan Briskin, author and business consultant, quotes a
manager in a large conglomerate as follows: "Were so busy moving people around,
trying to meet our deadlines, trying to influence people to believe in what
were doing, that we just dont want to really look into anybodys eyes and see
they have souls. We should start with the premise that we have souls. But souls
are difficult to manage. And even if we talked about people having souls, it
would probably be from a corporate viewpoint." The managers last point is that
making "soul" into some kind of company slogan would be worse than not
recognizing the existence of workers souls in the first place. But more to the
point, trying to influence people to believe in what they are doing, without
seeing who the person is, wanting them to be something for you rather than
recognizing them for who they are, is an act of imposition, not engagement. To
be blunt, its dehumanizing. And people will resist when theyre not included in
the process and have things imposed on them.
Even
Michael Hammer, one of the developers of reengineering, eventually came to
realize that management is not just about organizational structures or process
teams. In an interview in The Wall Street Journal, he admitted that in
his enthusiasm to make companies more efficient and profitable he forgot about
people. "I wasnt smart enough about that," he conceded. "I was reflecting my
engineering background and was insufficiently appreciative of the human
dimension. Ive learned thats critical." Trust is critical if organizations are
to excel, as the European business consultant Charles Handy argues forcefully in
his recent book The Hungry Spirit. And trust was one of the major
casualties in the rush to downsize in the name of reengineering. More than 70
percent of U.S. companies are struggling with low morale and lack of trust,
principally as a result of the trauma of downsizing, according to a 1997 Wharton
School survey. The same is true in the Europe.
"In the
living company, the essence of the underlying contract is mutual trust," says
Arie de Geus, a former senior executive of Royal Dutch/Shell. "Before they will
give more, people need to know that the community is interested in them as
individuals." An important reason why some companies fail, he says, is that
"managers focus exclusively on producing goods and services and forget that the
organization is a community of human beings that is in businessany businessto
stay alive." It is common sense that if people are treated as machines, not as
people, they are unlikely to give loyalty and trustthey will not give of their
best. And yet, unfortunately, to use Voltaires phrase, "common sense is not so
common."
Many
companies that are anything but human-oriented in their management practices
survive and even thrive, of coursefor a time. "If youve drained the tank of
human goodwill and motivation, you can continue to coast downhill for a while,
even at a pretty rapid clip," observes Tom Morris, "but heaven help you if you
encounter any big bumps in the road or the competition forces you into an uphill
struggle." Senge is even more emphatic about the matter. "As we enter the
twenty-first century, it is timely, perhaps even critical, that we recall what
human beings have understood for a very long time," he says: "that working
together can indeed be a deep source of life meaning. Anything less is just a
job."
It
is possible for people to be valued for themselves in the workplace, not
just their function; for peoples souls to be nurtured and allowed to emerge
where they work. In short, it is possible for work to be more than just a
job, that work can be fulfilling and a life-enhancing experience, with all its
trials, tribulations, and thrills. This is precisely what we observed for the
most part in the companies we talked to.
To the
manager who says, "This all sounds soft and unbusinesslike," beware: these
companies are all very successful in traditional bottom-line terms, not
despite being human-oriented, but rather, as many of the CEOs we talked
with argue, because of it. To the executive who says, "Okay, that sounds
easy, Ill try it," beware: its not easy; its hard, perhaps the hardest of all
management practices. And to the manager who says, "That sounds all well and
good, but I cant afford to spend time on relationships," beware: you are not
getting the best out of your company. In fact, its more a question whether you
can afford not to. It doesnt have to be either/or, a dichotomy between
money and people. In fact, it cant be. Our world is too complex.
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