| 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. Q: What do you do to respond to your  employee constituents? A: I volunteered to display the weaknesses  of my 360-degree feedback for all employees to see. A lot of people said I was  crazy to make it public. I encouraged my senior managers to experiment with the  same idea and overcome the fear of having their flaws exposed. We launched it  with a positive mindset, not an evaluation mindset.  If you launch it to unlock value, for the  purpose of collaboration, people love it. You don't destroy the hierarchy, you  increase the accountability of leadership to employees the same way as it is in  a democracy. Q: Sounds like workplace democracy is  just a version of putting employees first. What happened to the customer always  being right? A: In our business, employees are the  products. Customers come to us for our employees. When we say employees first,  customers second, what we are saying is that we as management will create  systems and methodologies to nurture employees and allow them to create more  value than anybody else can create.  People used to say the customer is always  right, but we have moved away from product to experience. It's a different  paradigm.  Who creates the value for the customer?  Who does the customer want to deal with? Who is the organization for the  customer? The employee. What kind of company does a customer want to deal with?  The one where the employees are most important.  Q: Nation democracies have been around  since ancient Greece. If workplace dictatorships were not best, why have they  persisted for so long? A: In manufacturing, it's been command and  control, because it is a single process.  In service companies, especially  knowledge-based service companies, the value gets created in the interface  between the employee and the customer. When you travel on an airline, it is not  the CEO who makes a difference. Q: What about shareholder  democracy? A: Management started becoming more  accountable to shareholders 20 years ago. Companies have only become better.   That democracy, or reverse accountability  to shareholders, has brought positive energy into the stock market, and a huge  amount of value has been created. It has not created chaos.  Shareholders are not telling business what  do, but it has created a higher accountability. The same principle applies to  employees in knowledge businesses. It unlocks energy, ideas and  growth. Q: Do you know of other companies that  have tried workplace democracy? A: I'm not aware of any. A lot are in the  process of understanding it and trying it, especially our customers who have  seen the change in our employees. Q: What do you do with the employee  underperformer, the slacker? A: There is no difference in the way we  handle underperformers. Sometimes, you still have to let people go. People have  more opportunities to succeed in this environment than they do in command and  control. They gravitate toward their natural strengths, rather than being  suffocated in a job they are not aligned with.  But if they underperform despite the  enabled environment, the outcome is the same as a command-and-control  organization. Q: How about weeding out bad  managers? A: If I constantly get feedback that I'm a  poor manager, I'm going to look at other options, such as becoming an individual  contributor in a technical role. I will gravitate to that area because of the  feedback. Then, maybe I start excelling at something else.  With this system, you come to know whether  you are a good manager or not, whether you have good communication skills. You  can work on your weaknesses, but most people I've seen gravitate toward their  strengths.  Q: You have workers all over the world.  Will workplace democracy be easier to implement in some countries than  others? A: India for centuries has been a  command-and-control society. We even control our kids for 10 more years than you  control your kids, at least until age 27 or 28. We run their lives until they  get married.  Similarly, the workplace in India is very  command and control. I believe it's easier to introduce workplace democracy in  Europe and the USA. As a society, the U.S. is more open to feedback. It  gravitates more easily toward its strengths. But eventually, democracy works  everywhere. |