Self-Governing Online Worker Communities
Carl Bialik from the WSJ writes "Oil-services company Schlumberger is doing something unusual for a big corporation: fostering the creation of online groups of employees with similar interests and allowing these communities to govern themselves and choose their leaders. Wall Street Journal columnist David Wessel talks to John Afilaka, a geological engineer who was elected to lead the company's rock-characterization community. 'Mr. Afilaka campaigned to increase technical professionals' influence on top management's research-and-development priorities and to forge better links among various communities. He claims progress on both.' Richard McDermott, a consultant, tells Wessel such a management structure is unusual: 'People...see it as a real democratic institution in what is otherwise an authoritarian institution, a business.' Wessel notes: 'Other companies, apparently, are scared of that.'"
If you give the employees not only tools to effect real positive change but also a sense of ownership, some say in operations and a voice of some type, they'll work harder, do better work, and stick around. Why isn't this common knowledge? I've been workplaces where this was the M.O., and it was great.
You are not the customer.
The article talks about how business-related interest groups can be developed and how they can help the bottom line, but they don't talk about all the other non-business, 'special-interest' groups and how they function within the corporation and how they help productivity & morale, even if the results are less than fiscally apparent.
Reminds me of this article that someone linked to yesterday about how companies can do wonders for recruitment if they use low-cost, high-value devices to lure workers (free soda, juice, lunch, etc).
Also, did anyone else read 'Wall Street Journal columnist David Wessel' and think 'nuklear' ?
I'm all for democracy in the workplace, after all, why only demand democracy and freedom from our governments. But really, if a company views this as a way to motivate its workers to improve the bottom line, then it isn't genuine -- you just give your workers enough freedom so that they shut up and work harder for you. Can the workers fire the CEO? Cap his/her salary? Decide the company should do good in the world rather than just exist to enrich shareholders?
There are steps towards genuine democracy in the workplace, like the recuperated factory movement in Argentina where factory workers refused to shut down the factories that were closing and instead, run them themselves, for themselves, and for the community. We really need to recognize that we don't live in a fully democratic society if we spend most of our waking hours working in what is effectively a tyranny.
Deconstruct the State
The US economy is more efficient than the Soviet ever was precisely because decisions can be made by those with better access to relevant information and individuals are free to make decisions that best suit their own interests. They voluntarily align their interests with others through enforceable contracts. Control from the top over how individuals allocate their resources is counterproductive. What is important is a stable, predictable legal framework and a solid, unmanipulated currency.
The same principle also work with a corporation. Investable assets should be controlled by those who have proven their good judgement and how they invest those assets, say in new products and services, should be guided by the information they have, not directives from on high (not that those are never suitable, sometimes they are).
There are many mechanisms which can put into place that leverage the capabilities of a free market. This is quite different, actually, from democracy, where everyone decides what the organization does. Each player actually decides the best use of the assets he has, rather than trying to decide what others should do.
In such an environment, leadership focusses on building this framework, creating incentives and making the system work better, rather than on dictating what should be done within the framework.