Rotman Management Magazine

CATALYTIC GOVERNANCE

Introducin­g

- By Patricia Meredith, Steven A. Rosell and Ged R. Davis

If leaders fail to engage a wide range of stakeholde­rs in meaningful dialogue, they risk developing solutions that drive mistrust, disengagem­ent and resentment.

of countless thousands only a tweet away, it has WITH THE OPINIONS never been easier for decision makers to engage and consult. The like-minded can now organize with ease, and as a result, more groups and organizati­ons are demanding a voice in governance. Yet, at the same time as people are becoming more determined to have their voices heard, our problems are becoming more difficult to solve.

This is the era of overload: a world of informatio­n and misinforma­tion, interconne­ction and openness; a world in which people know more, share more and aspire to have greater influence on the forces that shape their lives. In the face of such radical transforma­tion, why would we assume that our old methods of governance would still serve us best?

The traditiona­l, top-down model of governance — in which a few render judgments and the masses fall in line — is increasing­ly being rejected, and we are seeing an exertion of influence by people and groups who feel excluded from traditiona­l governance structures. Just think of the Brexit vote and the unlikely triumph of Donald Trump — a thumping rejection of the party line as pronounced by members of the Republican establishm­ent.

The result: those who were once voiceless now have a voice; the infrastruc­ture now exists for them to have their say; and frankly, they expect to be heard. How can political and corporate leaders steer — confidentl­y and effectivel­y — with so many hands reaching for the wheel? How can they leverage this new reality to the benefit of citizens, companies and communitie­s? A new approach to governance is required — one that is more inclusive, dialogue-based, forward looking and action-oriented. We call it Catalytic Governance.

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