Many organizations are governed by top-down or command and control management. This management approach is based on the notion that the boss has all the answers and that the employees will be slackers if not kept in line (also known as Theory X by psychologist Douglas McGregor). By contrast, Theory Y depicts employees as intrinsically motivated with a participatory approach to problem-solving.
Although the latter may sound like a good idea--helping to bring out the best in employees--it is difficult to implement on a factory floor or in an office setting. It requires a cultural shift that isn't prevalent in schools, government and organizations. Sociocracy, or Dynamic Governance, is an organizational structure developed by Gerard Endenburg, a Quaker born in the Netherlands who was the CEO of Endenburg Elektrotechniek during a downturn. Sociocracy provides a non-authoritarian organizational structure that empowers people to make decisions within their domains, and fosters trust and effective decision-making.
Sociocracy organizes participants in circles, has feedback loops and uses consent (not consensus) decision-making. Circles elect delegates to represent their circle as a member of a higher circle. The top circle in a corporation would include the CEO, the board, and at least two members from the general management circle, with all members participating fully in decision-making. The organizational structure assumes that all participants have a piece of the "answer" or a special contribution, thus encouraging all voices to be heard.
"Everything is done with an aim," explains Jerry Koch-Gonzalez, while leading a sociocracy workshop for Belfast Ecovillage. "The greater the divergence of the group [regarding the aim], the harder it is to work together."
"All these things support everyone having a voice," explains Gonzalez. " Nobody can be ignored. Feedback loops allow people to keep learning."
Beyond the walls of a single corporation, sociocracy can be applied to link various stakeholders. For example, small farmers can gather to form a cooperative business to negotiate contracts with retailers or shipping rates with transportation companies. Woodbury University utilizes sociocracy to foster trust and collaboration between departments. Nonprofit organizations are using sociocracy to boost participation and incubate innovative ideas and Mondriaan, a large mental health facility in the Netherlands is using it to create distributed leadership. Cohousing communities, including Belfast Ecovillage and Pioneer Valley are attempting to reduce the time spent in meetings for all members by delegating tasks to small groups.
Image credit: Flickr/Baltic Development Forum
Sarah Lozanova is a regular contributor to environmental and energy publications and websites, including Mother Earth Living, Green Building & Design, Triple Pundit, Urban Farm, and Solar Today. Her experience includes work with small-scale solar energy installations and utility-scale wind farms. She earned an MBA in sustainable management from the Presidio Graduate School and she resides in Belfast Ecovillage in Midcoast Maine with her husband and two children.
Sarah Lozanova is an environmental journalist and copywriter and has worked as a consultant to help large corporations become more sustainable. She is the author of Humane Home: Easy Steps for Sustainable & Green Living, and her renewable energy experience includes residential and commercial solar energy installations. She teaches green business classes to graduate students at Unity College and holds an MBA in sustainable management from the Presidio Graduate School.