New order requires collaboration and fewer hierarchies

Iused to be a disciple of the benevolent dictator. I am not convinced anymore. Lee Kuan Yew succeeded in transforming Singapore into the economic powerhouse it is today using the principles of meritocracy, pragmatism and honesty. But there are very, very, very few LKYs.

Dictators, or even wannabe dictators, are many. Some are already in power, others are prepared to do anything to get there. The risk of placing so much power in the hands of one person is just too great — the line between benevolence and despotism has already been crossed too many times to take the chance.

I’m not even convinced of hierarchy anymore. Again, too many mistakes. Too many nominations. Not enough objectivity. Nepotism, favouritism, alternative allegiance and historical debt are too often the drivers for promotion or appointment to positions of influence and gifted power. The result of such actions is always, always, always sub-optimal — if not disastrous — for any organisation, be it in the private or public sector.

When a position isn’t earned and merit isn’t the only selection criterion, the error of judgment becomes obvious soon enough, usually immediately after the first sycophantic engagement with the new incumbent. Soon enough, the symptoms of unwarranted authority are seen seeping through the cloak of the title adorned.

The first signs of that toxic mixture of incompetence and power are clear and obvious. People with inferiority complexes (we all have some, to be fair) get angry too quickly, get defensive too often. These outbursts of bravado are simply defence mechanisms to deal with their insecurities.

These people are selfish and mean. They are all bullies, using their positions of authority to bear down on people who need the job or are simply on a journey of learning, as once we all surely were.

The good people leave, because they don’t have to put up with it. The bad people stay, hoping that one day they will have sucked up enough to likewise be appointed, and betray their peers.

It is horrible, disgusting and all-too pervasive.

There is another way. Scrape off the mould that floats on the top and you’ll find the abundance of cream below.

Today’s successful leaders, be it in transforming companies (or countries), anticipating the next trend, or recognising the end of the current model, listen more than they used to.

But first they see the problem or opportunity, and

embrace it, fully. The Financial Times recently ran a story about Frank Mastiaux, who was sent in as CEO to prepare EnBW, owner of a fleet of traditional and nuclear power stations, for the inevitable changes the energy sector is facing.

He arrived at the time of EnBW’s highest profitability ever, but with the knowledge that the business model was no longer sustainable.

He had to move from an established mindset of doing things as they’d always been done — meticulous execution of established, optimised processes — to having minds open to the vast array of energy suppliers that would define the future landscape. He had to change culture. You always have to change culture.

BREAKING BARRIERS

It is tough enough to fix something that’s obviously broken; it’s much harder to change something that’s doing well, but has a limited future.

He literally broke down physical barriers in the office and was confident enough to invite broad participation.

Knowledge is no longer the preserve of management and experience, for appointed outsiders, never has been. You need shareholder and board support, common purpose and some time to get it done. You have to know you’re right.

Any distractors, white ants, teachers’ pets, nonbelievers, alternative agendas and selfinterested individuals must be banished straight away — they won’t go of their own accord. After that, make sure you bring along the people you’re going to need to make it happen.

It is no longer possible to succeed in a vacuum, regionally or even internationally. The rules and governance for operating in an isolated economy (as we once did) have to change if you want to be part of the real world, which you have to be if you want to grow and thrive.

This new order requires an openness to doing deals, partnerships and joint ventures, infrastructure and revenuesharing models, smaller, more nimble functional parts — anything but hierarchy, anything but rigid, anything but silos.

It is hard to cross these lines, but we’d better do it, lest our past holds sway over our future.

We have much to do, so let’s get going!