Do we still need managers?
by Jonathan Winter | posted 14.12.2011
Some companies – like Apple – become famous for their products. A few – like Virgin, Oracle or Ryanair – become famous for a flambuoyant CEO. But – despite decades of evidence linking HR and performance – very few companies become famous for their management practices.
We can probably list them on one hand: W.L. Gore, Semco, Southwest Airlines, Zappos and more recently HCL in India. Today, prompted by a recent HBR article by Gary Hamel, we might add a little-known food processing company Morning Star.
Morning Star has no managers, Hamel reports. Or, to be more exact, “everyone is a manager”. Work is agreed between colleagues via a ‘letter of understanding’. Leaders emerge from below rather than being appointed from above.
Why is this democratic form of management so rare? I suppose part of the answer lies in the reluctance of today’s leaders to give up power. I remember speaking with a group of CEOs and being surprised (perhaps naively) at their hostility to the idea of a self-managed team.
An email I received last week posed some deeper challenges to my idealism. In it, cross-cultural expert Fernando Lanzer offered a critique of Western democracy compared with the high power-distance of Chinese society. Who are we to say that low power-distance is better?
I have sympathy for this critique. Western democracy (and the way we like to recommend or impose it on others) is flawed. But – whether in political systems or management systems – I would argue that too many bad outcomes result from power in the hands of the few.
Comments
I enjoyed reading this, Jonathan. Do we need managers? There are several examples where crowdsourcing yields better results. In investment, fund managers most often fail to beat the market. Economists do worse at predictions than non-experts. I think that management theory encompasses all that is rational and predictive – and therefore misses the essential randomness of events. We try science but business is an art. Perhaps the answer is ‘yes’ to managers but ‘yes’ also to a new ‘biological’ management style.
I appreciate the thoughts expressed. They challenge some of the prevalent structures of economy and politics in our society.
As a recent example, I heard the CEO of an amazing organisation, quite famous in UK- Timpsons. It was fascinating to see how they adopt an upside down organisation structure concept where managers keep responsibility but disseminate control /power.