Don't Overlook Democracy as a Management Model
Categories: Corporate Culture | Customer Service | Management Skills | Leadership | Ethics | Competitive Advantage
Posted by
Paul Orfalea
at
7:24 AM
4
comments
In his forthcoming book, Kamelot: Kinko's Brief Shining Moment in Business History, author Dean Zatkowsky makes the case that democratic principles formed the foundation for the company's growth and profitability from 1970-1999.
For example, Dean compares our Philosophy and Commitments to Communication to the US Constitution and Bill of Rights, as a touchstone for decision-making and a set of expectations to which we held one another accountable. His book explores the advantages of treating coworkers more as citizens than serfs, providing ample opportunities for participation and high levels of transparency in decision-making.
Dean and I are not alone in our belief that a bias toward democracy creates a more innovative and productive workplace, and that democracy means a lot more than voting on things.
An organization called WorldBlu was formed in 1997 to champion the growth of democratic organizations. Founder Traci Fenton identifies ten principles of organizational democracy, including transparency, accountability, decentralization, fairness, dignity, and choice.
Principle six on WorldBlu's list, Individual + Collective, was more or less enshrined in the Kinko's Philosophy, which stated, "...we encourage independent thinking and teamwork." This presents one of the great challenges of a democratic workplace, and one of the greatest benefits. The advantage of balancing independent thinking and teamwork comes from the unleashing of individual creativity. The challenge is the balance itself - keeping that creativity directed toward advancement of the organization's goals.
The answer is alignment of interests - if the coworker and organization are working toward the same goals, independent thinking IS teamwork. At Kinko's, we used widespread profit sharing and extensive coworker dialogue to stay focused on our primary objective: customer service, and our ultimate goal: mutual prosperity.
Other principles of democratic organizations, such as purpose, vision, integrity and transparency, contribute to the alignment of interest by giving meaning and direction to everyone's work. At Kinko's, the clear and very public statement of our purpose and vision gave us an edge hiring coworkers, who self-selected based on the values we espoused.
In the foreword to Dean's book, I note, "democratic principles made our company stronger, smarter, and more agile, even if we paid a price in frustration and inefficiency." Democracy is not a path to Utopia, but a formula for effective organizational advancement. The process is messy, but worth it.
Winston Churchill is often quoted as saying "democracy is the worst form of government except all the others that have been tried." This sentiment applies equally well to non-governmental organizations. Perhaps fifty years from now, business students will study Fenton's 10 Core Principles of Organizational Democracy the way we now study McGregor's Theory X and Theory Y. I hope so, because democracy is too powerful a business model to be taken for granted.
Comments
Jim Evers wrote on 07/04/09 9:43 AM
Thanks Paul for this blog posting and for your encouragement of democracy as a management model. As one who is helping to initiate this model into our schools, I was pleased to discover that you and your foundations are actively working with schools and universities. Thanks also for including Traci Fenton's Ten Principles of Democratic Workplaces. She gave me permission to include these principles in my free e-book, CRISIS IN SCHOOL MANAGEMENT: Making Schools Work for Everyone. I will now also include in my recommended resources your blog and Dean Zatkowsky's forthcoming book. And I've already mentioned your blog on my Twitter page.
People will pay attention to what you're saying because you're speaking from experience with the democratic model at Kinkos and I should also imaging at your foundations and in your other activities.
Good wishes for your continuing contributions of bringing respect for all in any organization,
Jim Evers
JLB wrote on 07/14/09 10:35 AM
I REALLY dislike Dean Zatkowsky's book title: Kamelot: Kinko's Brief Shining Moment in Business History. How could anyone think 30 years is a brief moment? And why would anyone want to read about a brief moment... no matter how shinning? It reduces Kinko's to some kind of short experiment, a fluke or fad. Kinko's was not Webvan. Kinko's was a global, massive and enduring success, which dominated a commodity service with a superior business culture. It changed the way hundreds of entrepreneurs continue to build companies. Making it sound romantic and brief like a high-school romance sounds so silly.
Laura Cimarelli wrote on 10/26/09 3:46 PM
I truly believe that democracy is the best tool for businesses. During my summer internship, I learned that democracy was a key value of my company. Every team member, regardless of position, sat at a circular table facing each other. Each team member relied on the other members to achieve a common goal. Several times I observed senior staff members explaining concepts and information to senior managers and even partners. Such an inclusive, democratic environment kept each member focused on the same goal because they felt like an important member of the team. As an intern, I felt appreciated and needed by every person I worked with. I felt compelled to do my work, not necessarily for my paycheck, but because my team members relied on my input. When teamwork and democracy are brought into the work environment, workers become vested in the success of their team and find the work more enjoyable and worthwhile. So many companies fail to see how a democratic environment can lead to a successful company. Workers within a team become bonded, produce better work, and enjoy being with their coworkers. The democratic environment of the company was one of the main reasons why I chose to work for this company.
Traci Fenton wrote on 07/03/09 12:59 PM
Hi Paul,
Thanks so much for the mention on your blog post and for so clearly sharing how Kinko's did put the democratic principles to work in a powerful and profitable way. I look forward to reading Dean Zatkowsky forthcoming book about Kinko's as well.
And I'd be remiss if I didn't add that I share your vision that that one day more business student will learn and imbibe the WorldBlu 10 Principles of Organizational Democracy. I think an understanding of the principles, shared around the world, would have an amazing ripple effect on building healthy businesses that bring out the best in human potential while having a positive impact for good on their communities as well.
My warmest wishes,
Traci