Think democracy means heading to the polls to vote for the next political leader? Companies all around the world, from Mexico to Malaysia, are showing that democracy exists in the workplace, and making a good business case for why it works.
On April 14, 40 organizations, representing nearly $12 billion in combined annual sales globally, were named on the WorldBlu List of Most Democratic Workplaces ™. In its third year, the WorldBlu list promotes democratic workplace practices by highlighting organizations who are adopting new management models rooted in democratic principles.
In response to the announcement of this year’s list, Noah Robischon from Fast Company wrote, “The vast majority of companies today are still organized under an antiquated hierarchical structure that was borne of an earlier era. But a movement toward organizational democracy--a more transparent style of workplace dedicated to employee self-governance--has been gaining steam in the last few years”.
Has it ever. Technology makes information easily accessible and the ever-changing marketplace makes innovation vital to business growth. In order to stay ahead of the curve and adapt to market changes, organizations are turning to more open and inclusive management structures.
An example is the trend towards democratic decision-making – a transparent process that encourages employee input. While democratic decision-making may take longer than traditional top-down decision-making, Traci Fenton, Founder and President of WorldBlu, believes a democratic process provides faster execution of a decision because employees are engaged in it.
This allows organizations to get the best from their people. By involving them in the process, employees are much more likely to commit to goals and take responsibility for getting things done.
DaVita, the largest dialysis services provider in the U.S., and part of this year’s WorldBlu list, is a great example of a company that has fully embraced democratic decision-making. Employees vote on decisions ranging from logos to new business initiatives. The company is also decentralized; each of the 1,400 clinics has its own set of guidelines developed by the local administrator and "teammates."
Traci Fenton offers a great quote to sum up why democracy in the workplace is good for business, “Democratic companies understand that the future of business is less about pomp and more about participation, less about titles and more about meaning, and less about fiefdoms and more about being flat in order to be competitive in this new, democratic age.”
