10 Reasons Why Obama Should Appoint Romney as Secretary of Business

In a surprising move, President Obama has appointed Governor Romney as Secretary of Business, in charge of new business creation and with the mandate to drastically simplify the regulations for small businesses.

Fantasy, you say? Yes, for now, but this would be a brilliant move. Here’s why.

Obama needs to demonstrate what he means by change. Obama’s second term is, among many things, about fixing Washington’s gridlock, putting America back to work, and delivering on the American people’s wish for change. A defeated Republican Presidential candidate as a key Cabinet member would definitely be a good way to state that Obama is serious about fixing the gridlock.

Business is Romney’s specialty. Business is also arguably the area where Obama’s first term achieved the weakest results. This was Romney’s claim, but the American people likely agree for the most part. In fact, there is a widespread belief that if the 2012 Presidential election had indeed been simply a verdict on the economy, Obama would have lost.

Fixing the gridlock in Washington demands grand gestures. Both Obama and Romney have talked about the importance of reaching across the aisle. True bipartisanship must be concrete. You must have something to show for. It also demands great symbolic acts of faith. Romney as Secretary of Business would definitely be an act of faith.

Obama has succeeded with surprising appointments before. When Obama defeated Hillary, he realized two things: he needed to heal the divisions in the party and he needed support from the Clinton camp. What did he do? He appointed Hillary Clinton as Secretary of State. This was a surprising, smart move which rapidly healed the wounds the defeat had made, at least in the eyes of the public.

Obama would rub in Romney’s flip flopping nature. President Obama would in one move show the contradictions of Mitt Romney (during his campaign, Romney said there was no point in having both a Secretary of Commerce and a Secretary of Business)

Obama would show there is opportunity for all. Paradoxically, by putting Romney on the job, Obama would also demonstrate that he is prepared to put the best people in the top jobs in his second term, regardless of background. This would be change. This would be the new, emerging America, one where all ethnicities and social demographics should be electable for office—even rich white men with track record from Wall Street and Bain Capital. There were times during the recession and during the campaign where it seemed Obama disliked the “fat cats” so much he was unable to listen to any of their advice.

Romney would reach across the aisle. Being the Secretary of Business is likely a real vantage point from which it would be possible to demonstrate real leadership that matters to jobless, entrepreneurial, hardworking Americans. These were issues he campaigned on. Spending 800 million dollars on a campaign would then have been a worthwhile investment. His legacy, almost regardless of whether he himself would generate true improvements, would be that of a pragmatic business person with real intention to make politics work for business. Paradoxically, with Romney, the Secretary of Business might actually become important. Without him, the role might be unclear at best. It would get lost among other Cabinet roles and would add little value.

Republicans would get an ideal platform to renew the GOP. Republicans would get a chance to make contributions to their favorite agenda: favoring business. They would get a chance to show that this also means helping small business. Romney would need to make his ideas concrete: he would help bring about tax reform, regulatory simplification etc. If Romney succeeded, Republicans would have a real card to show for the 2016 Presidential elections: their bipartisan efforts enabled tax reform, made entrepreneurship and business creation the competitive advantage of America again. The alternative; four more years of gridlock, would certainly not help the GOP.

Obama would get credit for trying to fix his relationship to business. He would have put the person near half of America’s electorate believes is the best for the top job in charge of one of the key priorities of the nation: helping business to ensure economic recovery across the board. Obama would also take a step closer to Wall Street again, after a few missteps and mistrust.

Obama and Romney working together would be leadership from below. Appointing Romney as Secretary of Business, both Obama and Romney would embody true leadership from below. They would demonstrate a willingness to contribute wherever their skills are needed, regardless of prior formal position. Leadership from below is a question of attitude, not position.

In reality, of course, Americans wish that Washington would realize that America—its demographics, ambitions, methods, even its identity—has already changed. What America has changed into, is going to be the central question of Obama’s second term. It will demand even more of Obama than appointing Mitt Romney as Secretary of Business, but it is a start.

Beyond Leadership From Below

I recently spoke to a group of Product Marketing students at KU Leuven, the famous and ancient university in Belgium. Despite my warnings that they were taller, smarter, and funnier than me and that there was no reason to think that I should give them advice, rather the reverse, they actually listened to me for almost an hour.

The Leader Who Had No Title

Cover of "The Leader Who Had No Title: A ...

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Since I wrote Leadership From Below in 2008, there has been a steady flow of management books about bottom-up leadership. In The Leader Who Had No Title (2010), speaker Robin Sharma has put together a modern fable on success in business and in life. There are no revolutionary insights in this book, but its speaks to the frustrated, overworked American, which seems to be in the majority. Sharma also avoids being too patronizing. Instead of the traditional format he chooses a narrative form, which incidentally, means that instead of offering any kind of evidence, we are asked to trust the experience of the author indirectly.

We follow Blake, an uninspired worker who is presented with the chance to meet four somewhat unlikely leadership teachers in one day, a maid who is deeply passionate about her job, a surfer and skier who says to lean in on the steep slopes, seek out and face danger head on,  a former CEO now passionate about gardening who explains that business is all about relationships, and a shoe shiner who says you need to be a great person to be a great leader. All are lessons that ring true in the postmodern leadership scene where results only come if you balance your pursuits so that life and work mesh together.

The message might still be a bit radical for most people, although those who have thought about life and death more than once might agree at times:

All those things we believed were so important, things like titles, net worth and social position turn out to be so very unimportant.

As I predicted several years ago, it seems like the Zen of everyday life is becoming key to the western man and woman’s quest to reinvent reality.

But does that mean that hierarchies are going away? Or, does it mean that making a contribution as a team leader, a manager, a VP or a CEO does not matter anymore? Far from it, in my opinion.  The Forbes book reviewer and himself a leadership expert, SangeethVarghese, has it wrong, though, in dismissing the book in Everyone must be a leader. So What?:

Sharma seems to confuse leadership with mere exemplary work. He depicts leadership as a matter not of heading a team or directing change but simply of focusing on excellence in the work you do.

Rather, leadership from below, which is more an attitude to life regardless of your various roles, becomes important even as hierarchies matter. So, both Sangeeth and Robin are right: whatever you do, only take the lead if you mean it.

The Slow Birth of Entreprenocracy: Part III

Digital image of the 1326 Oriel College Charter

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Taking forward the debate on Murray’s End of Management foray in WSJ recently, the new model is, in my view, not exactly Murray’s model.  Instead, it is simply a hybrid of bureaucracy and entrepreneurship. Let’s call it entreprenocracy.

A few weeks ago, I went to a wedding at Oriel College in Oxford, UK. We had a wonderful time and as in all weddings, I eventually had to explain what I do for a living. It was late, so I resorted to the explanation that I was a “persuader”. Needless to say, this prompted more questions. I ended up having to take them through the reality of strategy and public policy as it intersects with many fields but always has as its end game to enact some sort of conceptual change in your constituency and doing so as silently as possible.

In earlier days, when writing my Ph.D on What the Net Can’t do, I described the the process that underlies my own model of society’s work relevant knowledge flow as some type of “convincing” work. The fact that you constantly have to convince someone, your co-workers, your boss, your wife, your kids, your investors, your tax man, your police officer, in order to move on to the next thing in life, improve your lot, and avoid negative consequences of your actions, is actually the most salient characteristic of modern work. In enterprise terms, the new model that is emerging in the 21st century is precisely that, but occurring at all levels of action simultaneously. Even computer systems have to convince each other these days and the best one, the most flexible, wins.

Entrepreneurship is indeed fully dependent on having a persuasive founder, team, board, investor, and first customer. Bureaucracy is dependent on having a rational structure that makes sense to most of its participants, and one capable of organizing actions beyond the whims of individuals. Without sounding too much like the sociologist I once was, I simply put the two terms together and describe it as a new form of organizational governance.

What does entreprenocracy look and feel like? First of all, it is not currently the true and complete description of any organization I know of. All enterprises that survive the 21st century, however, will have entrepenocracy as its dominant logic.

In 1996, my old mentor, Manuel Castells, wrote a trilogy about the Network society. I was at first very fascinated with the concept. In fact, I still am. However, I quickly grew a scepticism towards the Castellsian notions that the network logic had somehow overtaken the former hierarchical and place based logic over a period of a small generation, because of the advances in microelectronics and software in Silicon Valley since the 1970s. The network, while powerful and capable of underpinning numerous innovations in the next decades as well, alone it is not. Rather, it complements and in some cases extends the reach of traditional bases of power, authority. Revenge of the Titans, so to speak. The giants on whose shoulders we stand, refuse to put us down. They start interfering in our affairs.

Leadership from below, the notion that attitude is more important than position in a hierarchy when you try to enact change, is my conceptual contribution to this debate. In my eponymous 2008 book on the subject, I explain how attitude, not position in a hierarchy, will determine whether you get something done or not. What I saw was similar to what Murray sees now. Change. Networks. Failure of top leadership across society. Inefficiencies in large organizations. Now, two years later, I am ready to admit the following: leadership from below is not enough. Leadership from the top is also needed. How? Why? What does that mean? And how is it related to WSJ’s Murray?

First, some formative experiences in my life include working for one of the largest and most complex public bureaucracies on the planet, the European Commission. As part of a 30K workforce from 27 member states, I was able to part take in the grand experiment of power sharing, project based identity and diplomacy that is the EU. Second, I now work for Oracle Corporation, with 105K, among the largest corporations on the planet, and also in its own way a complex bureaucracy. I have also started numerous non-profits, organized myself in action networks and earning absolutely nothing on the pursuit. Finally, early in my career, I ran my own start-up and gave advice to other start-up. In other words, I have experienced the entire value chain of organizational enterprises. What I have learned from this thoroughly multi sector life is the following: while no one size fits all, there are common approaches that work across context. A while back I published best practice advice on e-government in an article called Best practices in eGovernment: – on a knife-edge between success and failure. As I wrote back then, generic success factors exist, and lessons learned for practitioners include:

  • Achieve leadership buy-in
  • Keep technology as simple as possible
  • Get early stakeholder and user involvement
  • Gain momentum
  • Plan for sustainability

The lessons for today’s discussion on the supposed “End of Management” are similar, but there is the need to sharpen the organizational context of innovation:

  • Getting something done is always difficult
  • You cannot do it alone
  • Recruiting believers in what you are trying to do is essential. You cannot skip it regardless how good your idea is, what existing power base you may believe you possess
  • Initially, all initiatives appear to be without structure, but inevitably a structure forms

The theory of organizational ecosystems has tried to explain things like “emergence” in organic terms (see the work of the Society for Organizational Learning, SOL). However, in reality, change in social systems has nothing to do with ecosystems, because humans are infinitely more complex in their motivations than nature as such, although ecosystem could be as useful metaphor a metaphor as anything else, for lack of better ones.

Once entreprenocracy, the fusion of entrepreneurship and bureaucracy has been properly understood….these things will start to happen;

  • folks will be more realistic about organizational change
  • change makers will redouble their efforts to innovate within existing frameworks
  • the value and esteem of incremental innovation will increase
  • energy will be freed up to concentrate on innovation, wherever needed.

How can I say this with certainty? Hasn’t history proven that change is unpredictable? True, but some processes remain the same. The birth of entreprenocracy might be slow, but it is coming.

Beyond MacroWikinomics

World map of the Queen's Dominions at the end ...

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MacroWikinomics, the sequel to the bestselling book Wikinomics is out this week. Should we rejoice? Sadly, no. Sure, the book has raving pre-publication commentary. The topic is cool: the prospect that each and every one of us is changing the world. But unlike the more methodical vision of Bill Drayton’s Ashoka, where “everyone a changemaker” actually refers to taking real actions towards becoming social entrepreneurs in your everyday interactions with your local community, the Tapscott/Williams vision is mostly hyperbole, echoing the cliché that “we need to come together as global citizens”. Just listen to the sound of this phrase at the beginning of the book, taken from the BusinessWeek excerpt of MacroWikinomics:

there is now a historic opportunity to marshal human skill, ingenuity, and intelligence on a mass scale to reevaluate and reposition many of our institutions for the coming decades and for future generations. After all, the potential for new models of collaboration does not end with the production of software, media, entertainment, and culture. Why not open-source government, education, science, the production of energy, and even health care.

what follows is a populist criticism of virtually every institutional framework in existence:

…[M]any of our institutions are stalled, lacking vitality, leadership, and dynamism. It’s like every last ounce of oxygen has been squeezed out, leaving a mess of deflated expectations and chronically underutilized resources.

As FT reviewer Richard Waters writes in his book review of MacroWikinomics, entitled “How the web will save the world”:

The difficulty with books such as MacroWikinomics is that they take interesting phenomena like these, then apply a heavy dose of messianic fervour to produce an absolutist view of the future.

The problem, however, does not lie in messianic fervour. Fervour is exciting, and sometimes warranted, depending on the cause. The issue is the lack of a deeper analysis. You cannot just dismiss all current governments, companies, industries and individuals and say open source collective collaboration through the web will change the world for the better. Where is the evidence? How do you know? What is the better world you are looking for? The problem with most “collective” problems is that each and every one of us has a different view of what the problem is not to mention what the solution would be. This is only one reason why collective innovation runs into problems.

Every decade or so, the visionary discourse of how globalization and technology will change the world seems to gain intensity. Unfortunately, in this case, the visionary talk is cyclical and repetitive. In 1999-2000, the vision every trend watcher was talking about was the “nomadic worker” who would be able to work anywhere, anytime. In my Ph.D, What the Net Can’t Do (2002), I showed through fieldwork that even in such a conspicuous place such as Silicon Valley, nobody really, really believed their own hype or had any plans of acting on it. Venture capitalists told me they would never invest in a company that was further away than a short car ride before lunch. Marketeers and engineers alike admitted they did not themselves use the Internet and its applications the way their advertisements said people would.

In reality, only workers who are willing to accept a rapidly descending status and relevance in the workplace, and who previously have worked up quite a reputation in some relevant sphere, can afford to go off the grid. Even for them, every minute counts. Every minute away from bosses, customers, markets, cities and inspiration, or from friends and family for that matter, takes away from your presence, relevance, and engagement with those who do tend to stay in one place or at least meet up face-to-face on a regular basis. In short, quantity time is still more valuable than quality time. Presence is still more valuable than virtualized co-presence.

In 2010, the visions are even grander. Now, the web will save the world, apparently. Fine, maybe it will, after a while and together with a bunch of interrelated and non related phenomena. However, and regardless, one cannot just assume that most institutional frameworks, indeed anything that is not related to individual expression, lacks legitimacy. The age-old visions of direct democracy share the deficiency that hampers any such vision of change: the lack of awareness of how human motivation works. I do not discount that the web has facilitated and indeed spurred many ongoing experiments in mass collaboration. It is not unlikely that a few of them will change the world as we know it, or at least alter important aspects of our world. However, social change is complex.

First of all, in all honesty, many institutions, governments, and collective actors are alive and well. Sure, there are many things wrong with any given healthcare plan, school or public agency, but the alternative is not so clear. Individualism is great, for sure, but will, arguably, never completely outgrow community. The two seem to build on each other, even complement each other. Society will always fight back.

Or, maybe we should start with something a bit more basic: society exists. When will the visionary, absolutist, determinist, technocrats realize this? Their arguments are quite stunning, really. All in the name of progress. Progress from what? To what? This reminds me about a long standing discussion I have with a dear friend about whether progress actually exists. He claims all of civilization, all advances in societies and markets and capital show progress. On what grounds do people tend to claim progress? What is the measure? For him, of course, with the frame of reference being the “great civilizations” of Greece, Rome, and the British Empire, it is simple. Wealth, art, industry was created and some of it is timeless and important. Well. Yes. However, every time we claim to progress, the counterargument can be made, some (other) people are worse off. So, for instance, the surplus of the colonies created palaces and industry in Europe. Conversely, it set Africa on a path of perennial decline for centuries. Or, as Richard Waters writes:

It would be nice to believe that Tapscott and Williams have history on their side, and that projects such as Linux foretell a world where anyone with an internet connection and an hour to kill will give generously of their cognitive surplus.

The problem is, most people’s cognitive surplus is quite limited, measured and must be applied sparingly to only the most important projects at hand. So, I might get involved in my kids’ school, a charity or two, a local political debate, or in global debates in my field of expertise. But, I will not get involved in everyone’s schools, all charities, all political debates and in global debates across the globe. We are all situated actors with our own bounded, focused frame of mind. We cannot focus everywhere. We cannot spend all of our energies on all good things. We must choose and we do. Daily. Ruthlessly. Most of us do it based on an analysis of what means the most to us. What we care the most about. Most of all, we make the decision based on where we are. Place making is difficult. Only with labour do we make the world our own. And when we do, we celebrate that, try to enjoy it, rather than look elsewhere. Psychologically, that is also the sane attitude. If you walk around trying to engage in anything, anywhere, you are delusional, and most likely, ineffective.

Empowering citizens is a great aim. I believe it can happen. I believe it does happen. It just does not happen all the time, and the web is not the cause of it. And, we need institutions to organize ourselves. Every time a problem is complex, recurring, or demands fair solutions, an institutional arrangement seems a quite fruitful way to go. Also, there is nothing morally wrong with organizing human societies in representative arrangements, governments, bureaucracies, and corporations. This is not to say that checks and balances are not needed and that the web is not useful in this regard.

In 2008, I wrote the book Leadership From Below. I argued that leadership is more about attitude than position. My intention was not to say that formal leadership will disappear or has disappeared. Rather, what I was pointing out is that influencing others demands that you acquire followers, or even better, that you simply channel the energies that are latent in the group you are working with. For instance, you will be more successful at innovation if you work with other people’s ideas, shaping them together rather than always asking people to work on your ideas. This applies almost always, and even if your idea is better. Psychoanalysis has brought forward this insight, although it must have been known to man (and especially women) for centuries. My grandmother knew. My mom, my wife, and my daughter all know this. I merely write about their insight and sometimes discover their plot as an afterthought.

MacroWikinomics is a nice phrase and will likely sell quite well. Its ideas, however, are shallow. There is nothing wrong with collaborative innovation but it is not at all new or completely web related. It would be nice to believe that every problem requires a given amount of resources, say 1, 10, 100 or 1000 man months. But this is not true in practice. A problem can get solved just like that, if an innovative idea comes forward. A team might be astonishingly inefficient or very efficient, depending on what happens in their group process. A huge problem might actually require an enormous amount of energy to resolve, but the exact quantity needed can seldom be determined beforehand.

Arguing against the limitless opportunities of the web sometimes feels like being against fighting climate change, aids, or corruption. In short, it is perceived as being against progress, against the politically correct, against reason itself. However, my cause is not to try to stop positive change. But naïve faith in the impossible: namely the belief that everyone we will change the world for the better simply by taking part in online collaboration surely is also damaging to the intellect, and possibly to society.

Information technology is good for many things. However, whereas IT excels at underpinning efficiency and effectiveness of relatively well framed challenges, its track record in underpinning boundless innovation in any given area is shorter, and less distinguished. We simply do not know enough. Could the web be essential to solving the world’s most pressing problems? Possibly. Could it at least help. Sure, but saying that is so trivial that one does not need to write a book about it.

Instead, what we need is a cognitive framework for what each of us can do where we are, and an awareness about what has been done by those we are surrounded by. The old phrase “on the shoulders of giants” used to mean that we all build on our ancestors. The new phrase might become “on each other’s shoulders”, but I just would not bet on it yet. It is absurd to purport an absolute faith in the wisdom of contemporaries. History shows that societies that do so, only do so at their own peril. Look at the latter parts of the Greek, Roman, British Soviet or US empires. They all became completely paralysed by the obsession with running themselves. They stopped caring about anything outside themselves. Obsessing over their own inventions, they thought themselves invincible. From this perspective, the web might be the last innovation of the West? Who knows?

Mass collaboration by individuals, whether or not they are connected, co-located, know each other or not, has obvious limits related to the inefficiency and psychological complexity of masses. The old crowd psychologists, from Gustave LeBon onwards, were sceptical of the masses. Tapscott and Williams seem overly optimistic. The truth is somewhere in between. The web is a platform, a very efficient platform for innovation. However, it is not a panacea. In itself, it does not solve anything. Only humans do. Sometimes.

The Slow Birth of Entreprenocracy: Part II

Pročitano u 2005. godini

Continuing the debate on Murray’s End of Management foray in WSJ recently, I would say that the true changes brought about by openness have been here all along. Whether we have put them to use depends on the culture. In Norway, an egalitarian country, health informatics is not just something the IT industry tries to push on doctors. The Oslo Innovation Clinic Offers Treatment for Ideas, writes Gaurav Bhalla in a Harvard Business Review guest blog:

The first-of-its-kind Clinic of Innovation at Oslo University Hospital works a lot like an outpatient health clinic, but treats ideas rather than patients. Ideas walk in, are diagnosed, and are treated or referred; some are sent home with a prescription for further development, and an appointment for a follow-up visit.

The underlying solution, developed by the up-and-coming Norwegian IT company Induct, is brilliantly simple. Anybody can submit an idea or a challenge which goes onto their service-based platform that allows companies to easily practice true “open innovation” through the creation of corporate Innovation Communities.

Creating structures that motivate and inspire workers is correctly pointed out by Murray as a contemporary challenge for any corporation. However, knowing how to inspire is a challenge equally huge in the cases of Wikipedia or Linux. When it comes to motivating the next generations of volunteer programmers to contribute to Linux or individual hobbyist online lexicographers to contribute to Wikipedia, this is not easy. A very slim percentage of the online population is actually an online participant or creator in a significant way, the largely self-serving web 2.0 crowd included.

Where Murray excels is in providing a summary of the elements of the “new model” that he feels has to emerge. Truthfully, though, the new model is emerging as we speak even without him. But let’s give him the benefit of the doubt: he has described some valid trends. These are things like fostering entrepreneurial spirit in all work, delegating authority, culling ideas from outside the company, increasing the importance of team work and peer relationships, and making investments in the welfare of workers in their workplace. So far, such initiatives have often boiled down to providing services like food, cleaning, or massage for free or subsidized as part of the work day.

However, clearly, all organizations will constantly need to get more creative in trying to retain their skilled labor force, whether or not they are for profit, not for profit, or part of the new phenomenon Ashoka‘s Bill Drayton has coined, that is, hybrid value chains where profit and non profit is intermeshed.

Murray’s thoughts are interesting but not as carefully worded as they should have been, perhaps. For instance, he ends on the observation that “ The old methods won’t last much longer”. However, calling management a “method” is fine when referring to Peter Drucker‘s version of management science. It is not fine when it applies, as it does, to the practice of managing people as such. I would be willing to bet that need will never go away.

Management is, perhaps, becoming less important, or it at least appears so. Certainly, leadership is becoming more important, that is, if we define management as handling tasks and leadership as handling people. Management, in that view, is purely the aspect of efficient resource allocation, whereas leadership is related to motivating individuals to actually carry out the tasks needed. However, even this simplistic definition of these two terms leaves Murray with conceptual problems. It is actually better to say that management lives on, and leadership challenges increase at the same time.

However, leadership has its own limitations as a concept. The new model Murray talks about would will have to reinvent leadership, too. For instance, the thought that there would be a particular group of people who could provide vision and others who would follow or get inspired by that vision is profoundly shaken and stirred.

In the age of web 2.0., inspiration comes from many places. Yet, the very process of inspiring somebody follows the model aptly described by Seth Godin as “recruiting your tribe”. Whether you work in a corporation, in government, for a non profit, or simply act on something from your own living room as a consumer, a parent, or some other type of social role, you do need to do the very same thing. You need to let your voice be heard, enlist allies, and build some kind of consensus in a relevant social group.

You might need to build momentum with new people on ad hoc basis, or you may need to take into account existing groups and navigate their interests. However, you cannot change anything alone. Not even the internet provides you with that opportunity.

Toddlers become Leaders

A PlantSim toddler.

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There is a growing trend to use toddlers as a model for positive (and negative) leadership traits.  This is not lost on FT’s Lucy Kellaway who in the FT Business Life On Work column on 13 September 2010 describes Nicholas Brann’s theory of leadership:

● Toddlers are full of energy and enthusiasm. You can’t beat a toddler who is really into something and going for it 100 per cent.

● Toddlers are natural risk-takers. They throw themselves into climbing down the banisters in the boldest, bravest fashion.

● Toddlers are persistent. When told not to smear jam on a DVD, they will wait a couple of minutes and then do it again.

● Toddlers are inquisitive. They will not be fobbed off with a stock reply but go on asking “why? why? why?”

● Toddlers are creative. Their felt-tip drawings on walls and sofas betray the liveliest imagination.

● Toddlers have great interpersonal skills. They are good at thawing the hardest heart with hugs and sloppy kisses.

Leadership from below takes some getting used to.  Toddler leaders can be exhausting, demanding, and unreasonable. But they are effective. The interesting thing to start paying more attention to, is what happens in a group of toddlers. Think a toddler birthday party. There will be plenty material for new theories, books, and challenges to the initial theorem.

Bottom-up lessons from European CEO magazine

President George W. Bush, left center, joins f...

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European CEO magazine is currently running a story called: What’s missing from this picture? Oliver Mack, head of learning at Common Purpose writes:

“MBAs…left managers in a bubble…eventually we all need to step outside of our team or department where our position makes us the boss”.

The reason is that the problems we need to solve typically take place outside of our formal sphere of influence.  Mack continues to argue for education based on challenging leaders in “real life situations that shake them up” rather than relying on tutorials, leadership models, and Powerpoints from MBA professors.

Despite the obvious need to somehow involve professors, one could wonder what puts MBA programmes at such a disadvantage in terms of providing case study experience.   Also, Mack’s alternative to an MBA is a two day workshop, hardly a substitute, I would say.   However, Mack is essentially spot on: leadership from below is a significant source of power in the network society and knowledge handled top down won’t cut it.

So how can we all learn more self awareness?  Based on recent experience, I suggest keeping a job, having kids, remaining happily married, and living to tell the tale.   None of those situations really involve top down authority of any sort.  Only that there are very few hours to sleep should you choose to pursue that multi-tasking approach.  I would gladly take an MBA instead, if I thought it would help.  Mack’s two day workshop seems to be an easy way out, even if he will shake me up.

Cultivating Leadership

ASCII to Binary encoding of the word "Wik...

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– The leadership I want to explore here has nothing to do with position or authority; it is about influence and responsibility, it’s about leadership from below or from within, writes Patrick Bridgeman, in a new article on Cultivating Leadership in this Fall’s Positive Life.  Bridgeman is Editor of Positive Life, an Irish publication which aim to deliver uplifting, informative articles and information designed to enhance the quality of readers’ lives.  He continues:

I want to equate leadership not with being in charge but rather with the ability to inspire initiative and new thinking in those around us. At the core of this approach is the capacity to navigate new paths, build teams and broker between different points of view…

Sounds good to me! Although, I would not say that there is a contradiction between being in charge and being perceived to be in charge, nor between inspiring and actually being responsible for inspiring others.

The important thing is to maintain one’s grounding and facilitate other people’s growth, whilst still being able to focus your activity on the targets you have set for yourself and others.

So, what we need is a fusion between position based and place based authority, which is very different from believing the world is now unleashing an unbound process of wiki leadership as advocated by MacroWikinomics.  More about that later.

Nomadic Dreams and Business Realities

In a typical Fortune 500 company, on any given day, only half percent of the workforce reports to a traditional office. The rest work from home, at client sites, or are constantly in transit. Studies of economic activities between world cities like New York, London, Tokyo, Frankfurt, or Singapore over the last decade show increased inter-organizational activity and networking.

Being nomadic is today’s condition, but it is not at all that glamorous. Neither is it all that fun. I remember sitting in my room in the basement in a small suburb of an even smaller town in central Norway thinking: “wouldn’t it be great to travel and work globally. I would see so many people and places and still get paid for it”. Well, now I do, and it is not entirely without its problems. For instance, I am not a good sleeper, and being without sleep when travelling is a significant deterrent to long journeys. Secondly, I have a horribly inflexible biological clock, so any time difference takes me weeks to make up for. This pretty much rules out a seamless transition between the US and Europe, just to give an example of a trajectory I often follow. Thirdly, I have a family. I also happen to like my wife and kids, so I see no particular benefit in being away from them (apart from getting more work done).

The Spanish sociologist Manuel Castells has described the last decades as an evolution into a “network society.” This society has ever more computerized work processes. Employees travel more. Electronic flows enable the exchange of information through and between large cities. Information goes through the Internet, but also through corporate Intranets and other elite information networks. These enable access, communication, and action across great geographical distance.

If nomads float on the top, they lose influence. Their managers, meanwhile, struggle to hold teams, projects and companies together. Leadership From Below, Chapter 1: Finding Your Place of Impact, page 11.

The flipside of a nomadic workforce is a lack of influence over matters that require sustained interaction in one location. If nomads float on the top, they lose that influence. Meanwhile, their managers struggle to hold together teams, projects, and companies.
How should you manage your mobility to be most efficient as a leader? You need to be where it is strategically most important to be. If you cannot be there for some legitimate reason, you need to compensate, maybe with more frequent emails, phonecalls or action through proxies like colleagues, friends, gifts, or other indirect means of influence. Whatever you do, don’t assume that power resides on the surface. You are not powerful because you have frequent flier status on ten different carriers – you are powerful because you get your company’s view across. Leadership is almost always more forcefully expressed in the more mundane actions like remembering your contacts by sending them a Facebook message when their birthday comes up, or doublechecking to confirm that a speaker is indeed coming to the right address. The contemporary leader has in many ways become his or her own secretary. We cannot affort office support anymore. Moreover, we are not in the office, so there is nobody there to support. The mundane tasks, however, persist, and may lead to an unprecedented new level of boredom. Or, you may choose to embrace it.

To every bottom-up leader out there, whether you are a CEO or a clerk. Live a little. Have some wine by the computer! Those big board decisions will come, too. But your moment responding to an e-vite about the five-year birthday of a colleague’s son might be your smartest business move this year. Or, it may just make someone else happy. Both would be worth it.