Purpose of this blog

Localism is the paradigm that the most efficient and effective way to live lives of human flourishing and to create sustainable and meaningful communities is to practice the five principles of localism: responsibility, reduction, replacement, regeneration, and reconnection.

Saturday, July 2, 2011

Peer-Based/Leaderless Management Vehicles


Peer Councils  (See pages 127ff of Myth of Leadership)

When an organization charters peer councils, composed of individuals from all ranks and areas of the organization, employees get out of their hierarchic roles and are able to see things differently. People from all over the organization get to know one another and learn how to communicate genuinely. People productively work together and cooperate when they share common goals, receive proper information, have the skill sets and are able to recognize, utilize and balance each other’s strengths and weaknesses. Many of these necessary elements are missing in the traditional rank-based organization with its centralized authority and top-down command structure. With peer councils, a greater sense of community is developed that fosters increased competency in all members of the organization. Councils provide the vehicle for this development by creating a space of genuine dialogue. The goals of peer-based councils are as follows:

·      To foster a sense of equal standing and genuine communication among all persons

·      To allow everyone in the organization to contribute to decision-making in the five functions of management

·      To ensure that everyone in the organization begins to think and act like a valued and important contributor

·      To provide everyone in the organization the opportunity to discover, develop, and increase their own unique set of skills and abilities

Striving for and achieving these goals, the peer councils tap into the whole intelligence and talent latent within the organization, giving it strength over any rank-based rival. In my consulting practice helping develop peer councils, I discovered five key peer councils that can be chartered to leverage the competitive advantage of our organizations. Council size can vary from between 10 to 150 council members. These councils are directly related to key areas of organizational decision-making. So we have the Strategy Council; Operations Council; Tactical Council; Resource Council; and People Council. These councils, through peer-based deliberation, possess responsibility and authority for the critical decisions in their respective management function.
Membership should be rotated in periods of three months, six months, nine months, and twelve months. Those who demonstrate great potential to contribute in any particular council can be made mentors or given rotational stewardship positions within the council. Selection to councils can be voluntary, random, or elected.

Rotational Stewardship Positions  (See pages 142ff of Myth of Leadership)

Obviously, not every decision can or should be brought before the entire council. Day-to-day and routine decision-making can be delegated to administrative positions within each council. The essence of rotational stewardship positions is those in administrative positions within the councils have definite term limits to fill their management assignment. These administrative positions are responsible to the council out of which they were selected. These stewardship positions are for individuals-, teams, or task forces. After their time is up, other individuals will be chosen and the rotation continues. This will keep the energy flow through the organization generative. Rotating who has important positions on a regular basis is a very effective way to begin fostering peer-based organizations. Rotating stewardship positions on a regular basis will give people a greater chance at participation and contribution. Also, the fact that people share in the ownership of leading means that they also share in the burden of communicating knowledge and information to others. This improves teamwork and knowledge sharing in a manner that makes organizations self-correcting.

Mentoring  (See pages 107ff of Myth of Leadership)

Mentors play the crucial role of linking the various peer councils with one another. They create the network. In many ways, mentoring replaces leading, and mentors replace leaders in peer-based, leaderless organizations. A leader leads followers, and the implication, given the myth of leadership, is that this leadership is “over” others. It is the command and control of others using rank-based authority. A mentor advises and counsels others. A mentor possesses greater expertise, knowledge, and experience and shares this with members of the organization who are lacking in these areas. It is a relationship, not of rank, but alongside of the one being mentored. The difference in symbolism is very important. A mentor is a person committed to the improvement of self and others. The commitment is an essential part of the mentor’s body, heart, and mind. With the body, the mentor models; with the heart, the mentor counsels; and with the mind, the mentor teaches. To the true mentor, the physical and emotional needs of others become his or her spiritual need.
The mentor teaches with the mind, not by lecturing, but by asking the right questions. Examples of mentoring questions are:

What do you care most about?
How are you being affected personally?
What do you believe is the main problem or issue?
What do you believe should be done?
What do you think others would say?
What do you hope for?

The mentor counsels with the heart through sincere, empathic listening. The mentor models with the body by being an example of the peer attitudes and values in interactions with others. Mentors counsel councils and rotational stewardship positions, but they do not vote or take an active part in the decision-making process. In council meetings, mentors are to play the role of sage.

Fourteen Principles of Peer-Based Design


The management philosopher, Peter Drucker, said:
I’m not comfortable with the word manager (leader) anymore, because it implies subordinates. I find myself using executive more, because it implies responsibility for an area, not necessarily dominion over people. The new organizations need to go beyond senior/junior polarities to a blend with sponsor and mentor relations. In the traditional organization – the organization of the last 100 years – the skeleton, or internal structure, was a combination of rank and power. In the emerging organization, it has to be mutual understanding and responsibility.                                                                                                                                         (May 1993)

Peer-based
Organizational Design

Fourteen Principles of Peer-based Organizational Design
1.     The peer principle (each person possesses the equal privilege to speak and shares an equal and reciprocal obligation to listen)
2.     Openness & Transparency
3.     Participation
4.     Persuasive influence
5.     Accountability
6.     Alignment I – design org space (systems & processes) to link status to contribution not control of resources
7.     Alignment II – design org space (systems & processes) in a way that matches skills and tasks and individual & org interests
8.     Compensation based on peer reviews and benchmarking
9.     Allow individuals to choose voluntarily their own manner of contributing to org decision-making
10.   Respect the need for irruptions of individuality – value individual expression within a participatory framework
11.   Create on the human scale – eye-to-eye contact, face-to-face interactions
12.   Charter peer councils to perform management functions, in place of leadership positions (see below)
13.   Use mentors to consult with and link the peer councils together and to advise and coach teams and individuals
14.   Use rotational stewardship positions and teams/task forces for critical assignments

Five management functions:
·      Strategic – Vision – See it
·      Operational – Planning – Plan it
·      Tactical – Doing – Do it
·      Resource – Funding – Energize it
·      People – Culture – Make it meaningful

Key Questions Regarding Leaderless or Peer-Based Communities



1.         What is the myth of leadership?
It is the set of assumptions that justify the significance we place on our concept of leadership and the privileges we bestow upon our leaders – frequently to the detriment of others in our organizations. The myth of leadership creates the powerful belief that only a relatively few “gifted” individuals can be made leaders and so trusted to make the decisions and do the commanding and controlling of everyone else. It makes false assumptions about both leaders and followers with detrimental consequences for both. The myth of leadership creates a dichotomy, two categories: one of leaders, a select and privileged few; and the second of followers, the vast majority. So we get the rank-based context of unequal power relationships that produces secrecy, distrust, overindulgence, and the inevitable sacrifice of those below for the benefit of those above. When we use the words “leader” and “leadership,” we immediately create a ranked division of people in ways that do not serve healthy organizational relationships. We waste too much human potential and do not allow life in our organizations to be as joyful, successful, and meaningful as it could be.


2.         Don’t we need leaders? Doesn’t someone have to be in charge? How can you run a business, or a community, without a leader?

These questions, and others like them, reveal both a positive intent as well as some hidden assumptions. The hidden assumptions are simply those of the rank-based myth of leadership. It is the mistaken belief that only a few select individuals in any organization or community have either the right or ability to monopolize power and control, to keep secrets and restrict both information and participation in decision-making. We are all aware of the deleterious effects of this rank-based management system. The positive intent is, however, the realization that a management system is required. Obviously, there are certain management functions that need to be performed in our communities and organizations. Things like setting goals and objectives, scheduling work, marshalling resources, solving problems, and making strategic decisions. Many people imagine that these duties can only be performed by some big chief or hierarchic leader. I disagree and present a peer-based model for managing our organizations through peer councils and the practice of rotational leadership.


3.         Isn’t leadership important for an organization or community?

When we raise this question, what we really mean, I believe, is that vision, wisdom, competence, teamwork, communication, and similar attributes are important to communities and organizations. What we fail to realize is that our very concept and practice of leadership privilege an elite few and disadvantage the vast majority in a way that creates a context of command and control that works against the very things we desire.


4.         Don’t we need strong leadership today?

We need wise people. We need visionary people. We need practical people. We need to be able to harvest the intelligence and strength of every member of our organizations and communities. But I believe that our very concept and practice of leadership immediately selects a small few and ignores the tacit knowledge of the many.


5.         Don’t some people have more leadership ability than other people?

The better question is, “Don’t some people have more ability than others do?” Yes, but when we add the adjective, leadership, we introduce the myth of leadership with all its associated bad assumptions. When you drop the “leadership,” you get rid of the connotations that those with fewer abilities should not and cannot participate in and contribute to the management of the organization. It does not diminish the contributions a person with many talents can make, but it does increase the opportunities for many more. Therefore, you open it up for many more to contribute to the success of the company.

The leader who thinks “I am better or superior to those beneath me, so I possess the right and ability to command both information and decision-making. If I need help, I’ll ask those just like me - other superior beings who hold high leadership positions that I gave them.” The person, who believes this, is going to fail.


6.         Aren’t you exaggerating, or overestimating, the ability of the vast majority of people?

I believe in our common human capacity for goodness. I believe that each of us possesses remarkable talents to contribute towards the success of our communities and organizations, and we are naturally motivated to use our talents for something larger than ourselves. Rank-based organizations and communities prohibit many from making genuine contribution. I am not saying we are all equal - there is great diversity. As Thomas Aquinas said, “Diversity manifests the perfection of the universe.” What I am saying is that we have historically organized ourselves in rank-based ways that privilege the few over the majority. So the many never have the opportunity to fully develop their skills and abilities, but live less than meaningful and satisfying organizational lives. This time has passed. Peer-based organizations give everyone equal standing in information sharing and participation in decision-making. We will take on different roles and responsibilities. We will have different ambitions, but there will be no artificial barriers that keep anyone from fully contributing to the success of their community or organization. To do this, we need access to information and participation in decision-making.


7.         So how do you do it in my community or organization?

There isn’t a textbook, ready-made, off-the-shelf answer to this question. Peer-based organizations, or leaderless communities follow a vernacular not a universalist approach. Meaning – how it will take shape in any particular type of organization or community is in many ways dependent upon the type and nature of the community or organization. Part of the concept is that inherent in every community and organization is the wisdom and competence to make this happen and to apply the assumptions, logic, and practices of peer thinking to each unique situation. It’s not a model you simply superimpose on an organization, but it is a thinking that transforms the community from the inside-out. However, there are important guidelines that need to be understood and followed in creating a peer-based organization. These guidelines are presented in my book. I have also added a post on the fourteen principles of peer-based design.


8.         I still don’t buy it. Someone has to be in charge! Everyone can’t be involved in every little decision, can they?

You’re mistaken in assuming that in a peer-based organization no one has specific responsibilities - that it’s just laissez-faire with no direction or control. You’re mistaken in assuming that in a peer-based organization every minor decision must be brought before everyone in some huge committee meeting. It is a false dilemma to think there are only two options. One, either some big chief, hierarchic leader is in charge; or two, no one is in control. A peer-based or leaderless community or organization is managed through the per-based management vehicles of peer councils, rotational stewardship positions and mentors. I have added a post explaining these management vehicles.


9.         We tried that before and it didn’t work. Why should we think it will work this time?

Well, you just can’t turn people loose and say “Ok, we’re all peers, now go make it work.” There are certain intellectual skills required that everyone has the ability to develop, but not everyone has had the opportunity to develop. Things like decision-making, problem-solving, strategic thinking, and meeting management. All members of the organization need to develop these skills so they can fully contribute. Some training process is required to make this happen. Here is where the former rank-based leaders can be very helpful. They can adopt a mentoring role and coach others in the development of these important skills.


10.       Aren’t there examples of good rank-based leaders?

Of course, the myth of leadership is not an indictment of the individuals who hold leadership positions. This is an attack on the context of rank-based management and the inhumane and nefarious effects on rank-based leaders and followers alike. As Robert Greenleaf and Vaclav Havel have pointed out, the burdens and privileges of rank-based leadership positions have isolating and corrupting influences on the well-being and happiness of the leaders themselves. In my book, I discuss what I call the “catch-22 of rank-based management,” where I try and show the negative effects on the leaders themselves caught in the myth of leadership. Ultimately, however, the argument is that a peer-based organization will be strategically more competitive and successful than its rank-based counterparts will be. Good rank-based leaders will be even more effective as good mentors and coaches to the peer councils in their organizations.  


11.       So why call them “leaderless organizations?” Can’t we just redefine leaders as something like “peer leaders” and keep the idea of leaders and leadership?

Any conception of leadership that we could come up with will create a dualistic world. I have experienced this in every organization I have consulted. We create a dichotomy, two categories:  one of leaders - a select and privileged few; and the second of followers - the vast majority. So you get secrecy, distrust, overindulgence, and the inevitable sacrifice of those below for the benefit of those above. That’s why I have argued for creating peer-based organizations, and the wording here is terribly important. When we use the word “leadership,” we immediately create a relationship of leader and followers, which by its very nature is a relationship of unequal power. Unequal power relationships will always eventually lead to corruption and abuse of power. It produces a privileged elite who, no matter how sincere they are, will eventually be seduced by their position. Vaclav Havel points this out rather well in all of his writings. I define a leaderless organization as an organization of peers. In a peer-based organization, there are ways to perform the functions of management without rank-based leaders and in a manner that evokes the talents and diverse abilities of everyone in the organization.