Book Review #28
CEOs and senior execs often lament that people generally dislike change. Gary Hamel & Michele Zanini in their book 'Humanocracy' argue that this is managerialist rubbish and argue that humans have an insatiable appetite for changes and for new things – they are rather resilient, creative and passionate and it is organizations (and not individuals) that resist change due to bureaucracy. They make a case for Humanocracy to replace bureaucracy by placing humans (not structures or processes) at the center of organizations. Bureaucracy is debilitating and instead of building human-shaped organizations we are hammering out bureaucracy-shaped human beings. A Bureaucratic Mass Index (BMI) survey can help measure how bad it is in your organization
The path to humanocracy is different for every organization and hence more than specific practices it is important to focus on the seven Principles of Humanocracy
1) Power of Ownership – Companies have a wealth of talented employees. So, give up authority, empower them and grant ownership
2) Power of Markets – Harness the capacity of the organization's human wisdom by reducing central planning & mandates; keep only essential regulatory structures and let internal opinion markets test the merits of initiatives
3) Power of Meritocracy – Build natural hierarchies that are competency based and not on title or tenure. Increasingly tie compensation to peer-based competence and performance ratings
4) Power of Community – Human beings are programmed for community, and we are most engaged when we feel that we are part of something bigger than ourselves. So, build a mission that emotionally resonates with every team member
5) Power of Openness – Encourage diversity of thought, background and culture and most importantly everyone should feel free to voice different options and not have a compulsive need to agree with the boss
6) Power of Experimentation – Don't let only a crisis warrant a change. In good times and in bad, allow a high level of experimentation across to humanize the organization and constantly keep evolving
7) Power of Paradox – Paradoxes make life interesting. Keep an open mind whether you should explore or exploit, enable freedom or hold control and resist the urge to standardize trade-offs and eliminate organizational biases
Examples from Nucor, Haier, 3M and Michelin show how these principles can be practically implemented.
Hacktivism: Anyone who changed the world did not wait, didn't assume they’re helpless - they saw a problem, built a community and built solutions. They are hackers & activists or rather hacktivists. Organizations can’t change fast unless every employee is trained to think like an activist, knows how to build prototypes and build communities around them to try something new.
Overall, an inspiring book that makes a compelling case to bust bureaucracy and instill humanocratic DNA in modern organizations
#transformation #bookreview Gary Hamel Michele Zanini
