South West Growth Service associate Nick Parker explores how the purpose of work can be revitalised through adopting the values and approaches of what Frederic Laloux refers to as "Next Stage" organisations.
General
Reinventing work in the South West
Posted on 2nd October, 2017 in General
"Evolutionary purpose + wholeness + self-management = enhanced performance"
Modern organisations, large and small, have brought about sensational progress for humanity. But, arguably, the current way we run those organisations has been stretched to its limits. We are increasingly disillusioned by organisational life. Many staff, managers, executives, owners and board directors report dreading the drudgery and emptiness of working within organisations, rather than experiencing passion and purpose. Power games, politics and infighting take their toll on everyone. In his book, "Reinventing Organizations", Frederic Laloux asks, ‘Could we invent a more powerful, more soulful, more meaningful way to work together, if only we change our belief system?’ His research takes him to organisations across the world and he identified successful exemplars which he refers to as 'next stage’ organisations.
‘Next stage’ organisations are different because they are better able to cope with the complexity and ambiguity of the contemporary social and commercial environment. They enable flexibility, creativity and dynamism through distributed leadership rather than hierarchical structure. Most use an advice system for decision making. Endless meetings and consensus are not required. The need for the management function disappears, significantly reducing cost. They adopt near flat structures where the leader holds the space for self-management to emerge and develop. Organisational purpose evolves from within rather than being prescribed by the leadership. The organisation exudes a sense of wholeness where everyone can be who they are at work rather than wearing a mask or acting out a charade to comply with the organisational status quo.
Staff tend to work in small teams of 12 to 20 with personal and/or electronic communication systems that enable each to communicate effectively with the rest of the organisation. For example, Zappos is a £1bn Amazon acquisition with 1500 staff that is evolving to ‘next stage’; Buurtzorg is a Dutch community nursing organisation with 14,000 staff that has been founded on next stage principles; Matt Black Systems at Poole is a successful manufacturer with 12 staff that avoided collapse by adopting self-management and now exhibits all the hallmarks of a ‘next stage’ organisation.
Looking at these organisations and many others, there are 2 principal commonalities. First they have visionary, principled leaders that have the strength of character to hold the space as the organisation transitions to ‘next stage’. Second, there is an acceptance that not everyone will welcome the different style of working in a ‘next stage’ environment and some will leave.
Evidence shows that the benefits of ‘next stage’ are significant. Buurtzorg delivers community nursing for 40% less cost than the model that preceded it. Growing rapidly, the social enterprise has low staff turnover, high patient satisfaction and reduced patient attendance at hospital and doctors surgeries. Matt Black Systems has evolved from a low quality, late delivery, high cost manufacturer, to a high quality, consistently punctual, high profit organisation. Zappos has chosen to use Holacracy ( a decentralised management system) as the structure through which it moves to ‘next stage’. This has thrown up some challenges but Amazon, its parent company, has chosen not to intervene, suggesting that they can see the longer term benefits.
Working with companies across the South West, our ambition is to make this part of the world a crucible for the ‘next stage’ organisation, disseminating best practice and providing mutual support. A network of engaged businesses is already emerging with 200+ organisations having engaged with workshops in Truro, Plymouth, Exeter, Barnstaple, Taunton and Bristol. Some are actively on the journey to becoming ‘next stage’. We suspect others are doing it but we have yet to find them.
If you would like to find out more about how your organisation can become a next stage organisation, come to our next workshop - book here
Nick Parker is based in Exeter and is a South West Growth Service associate. His aim is to make the South West a crucible for the 'next stage' organisation. He has helped to found a range of local organisations and businesses and utilised that experience in Whitehall and with governments overseas.