Monday, June 12, 2023

Networked Leadership is Better


The global economy is a rough place. The hours and pressure are extreme, and often you work for people who do not appreciate your sacrifices. It takes an emotional toll and impacts your personal and family life. It is why I spend much of my career advocating for new approaches to work. I authored a blog about moving from business transformation to one centered and delivery. The last and most crucial piece of that puzzle is a change in leadership styles because the old ones are beginning to fail. 

The business world is a feudal system with power concentrated at the top and responsibility and labor holding up the power structure. Since this system is not democratic and only answers to shareholders, it has all the dysfunctions and drawbacks of other authoritarian systems. Information is hoarded and used as a weapon. Anyone who upsets the status quo is considered a threat, and finally, corruption lingers in organizations and erodes their ability to provide the goods and services it offers. It is bleak. 

What makes matters worse is business leaders with a sense of privilege and entitlement, similar to monarchs from the dark ages. They bark orders and expect unquestioning obedience and execution. I have spent my career around these individuals, and it is never easy because they have yet to experience hearing the word no. Unfortunately, these individuals often rise in corporate organizations because of their entitlement and connections. As a result, these leaders' promises keep the people who work with them stuck in impossible situations. Authoritarian organizations look strong on the outside but are brittle because they struggle to respond to outside pressure. 

I have recommended more networked organizations resembling a rhizome rather than a traditional command and control structure. Organizations like this rely on expertise and collaboration to get things done. These systems still have leaders but are more interested in accomplishing goals than preserving personal power. 

I think about this whenever there is a discussion about returning to the office. Business leaders from Elon Musk to Jamie Dimon believe that working from home hurts business efficiency despite countless studies contradicting this perception. Business leaders like Diamon and Musk cannot imagine any other way of working. They can afford to live close to the office and have easy commutes. People with this perspective also outsource childcare to spouses and nannies. Finally, since they are monarchs in office, they can lord over others. It may work for these industry captains, but it only works for some of the staff, particularly women and the families they support. For business leaders accustomed to bossing people around, it looks like mutiny. The truth is that employees deliver value to customers and that being a boss undermines this relationship. Organizations that are more networked and focused on customers will be more successful in the long run.

I look forward to being proven correct about this. 

Until next time. 


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