CEO's bold experiment: Management by democracy
— -- India is the world's largest democracy, so it seems fitting that the New Delhi-based information technology services giant HCL Technologies is attempting what may be the most ambitious effort yet at installing a workplace democracy. That may sound impossible, but so did running nations as democracies in past centuries.
CEO Vineet Nayar, 45, has written a case study about HCL's experiment for the Harvard Business School. He spoke to USA TODAY corporate management reporter Del Jones about his bold experiment and why he believes that in the future, democratic companies will outperform the command-and-control dictatorships that have persisted since the industrial revolution.
Q: When can I vote my boss in or out of office?
A: That would be a disaster. Rather, business should borrow from democracies the concept of reverse accountability. Just as elected officials are there to serve the public, management should not be commanding employees to create value.
Nelson Mandela and other great political leaders understood that their job was to enable people to find their own destiny.
Q: Sounds like a recipe for anarchy and chaos.
A: Employees aren't free to do whatever they choose. But if they want to collaborate with someone in Hong Kong, they don't need permission from hierarchy.
What we are changing is leadership's accountability to the employee. Employees remain accountable to the organization. What changes is the loss of command and control.
Q: Be honest. Shouldn't leaders have ultimate power, even if it's in their back pocket?
A: Command and control is the easiest management style. It may not be the most productive for the company, but it is very easy. The democratic, accountability model is very difficult on management, but it's very productive. Leaders must see themselves differently.
Q: If employees can't vote the executive bums out of office, then what can they do in a corporate democracy?
A: Any of our employees can open a trouble ticket on anyone in this company, on (human resources), on payroll, on a manager, on anyone. Those with trouble tickets have to respond. It's like a customer opening a trouble ticket. A response is required. Otherwise, some departments can become gods in an organization, because they control the power.
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