Value creation at the heart of a democratic organization

Leading an organization according to a particular view of humans has had far-reaching consequences for us. First and foremost, it has democratized our organization. Our human perspective has inevitably led us to the following decisions:

• Everyone can choose their own personal leader
• In the long run, everyone can serve as a leader for others
• Instead of permanent departments or teams, we have task-specific project teams
• Everyone is free to choose the professional areas in which they wish to participate and develop.

The fact that we have defined projects as the main way we work and create value for our partners has really meant a lot. Therefore, we have dissolved permanent organizational units and replaced them with project teams.

Thus, the project manager’s role has evolved from being a subordinate function in the department to probably one of the most important functions in the organization.

Choosing your own leader has led to a change in the organization, enabling the creation of new connections. It also means that the role we previously held as top management has changed to a support function.

We ask ourselves what it takes to ensure the success of our colleagues. What systems should be available to assist them in their daily lives and which ones should be avoided? How can we enable our colleagues to collaborate across various issues and create new connections?

Moreover, how do we communicate our vision and direction in a way that creates motivation, enthusiasm, and a sense of purpose for all?

Effects of the experiment

Just six months after we started the experiment, it becomes evident that not only have our roles changed significantly, but the behavior of the organization has changed as well.

Not all problems have been resolved, but we have found new ways to solve them. For example:

Problems are solved collaboratively and very close to the task at hand. In the past, colleagues would go to their manager, and the manager would often go further up the organization to get an answer to a problem. Today, we practice what we call “the revolving door”, where colleagues are asked to really attempt to solve the challenge bilaterally and directly with their colleague, not through a management hierarchy. Only when an issue cannot be solved “locally” or through sparring and mentoring from others, can it be taken further up.

The process of staffing projects has become fluid and organic. Previously, choosing which resources – that is, people – should be assigned to accomplish a particular task was often a painful administrative struggle. Moving people around and changing project staffing took up a lot of time. Today, the discussion about who works on which tasks is much more of a conversation between colleagues.

Our decision-making process has become faster and more agile. Many decisions used to be discussed in management meetings and forums; today, they are made close to the task.

Lastly, our productivity appears to have increased. The pandemic may also be contributing to this as there has been more work from home and thus less transport, as well as fewer trips and reduced project costs. However, we are experiencing an even higher level of responsibility, cooperation, and focus, since our colleagues are responsible for ensuring the success of the projects in the framework we have created. That is fantastic to see.

The importance of a guardian

So, what is the key to leading an organization from a human point of view? 

On the one hand, it is crucial that everyone knows, shares, and reflects continuously on the common principles. It has been our experience that a “guardian” can play a very important role.

This means that there is a human being – in our case, our COO Sune – who cares about the principles and acts as our collective conscience when they are forgotten. It was discussed, for example, whether all colleagues, even very young new employees, should have the opportunity to serve as managers in the long run.

Christian, the CEO, was sceptical. However, if we believe in our human perspective, colleagues will probably have to decide for themselves if they want to be led by a recent graduate. Eventually, the organization will regulate itself. 

Listen to the organization’s voice

Ultimately, this organization is meant to lay the right foundation for the success of our strategy. However, the organization has also meant a major change in the way we implement our strategy.

In the past, we would often develop a plan for implementation and outline what activities we should take, but now we spend a lot more time listening to colleagues and determining where we need to make a change.

It has even turned out that the internal team we set up to implement our strategy has become redundant and has shut itself down.

In our view, the journey with this experiment has just begun. We want to rethink how we measure results by putting behavior and well-being at the forefront. Rethinking our physical space is key to reflecting who we are, temporarily supporting project teams, and embracing a future where work is a hybrid of digital and physical presence – both outdoors and at home.

The world is changing. To be a positive contributor to the process, you must also change yourself.

This article was first published in Mandag Morgen on May 19, 2021. Read the article in Danish here.