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PAGE 18 | Business Executive | Issue 123 Viewpoint


Less control means performance


It’s time for leaders to relax formal power, ease control and empower employees, says Vlatka Hlupic


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mpowering employees can boost morale and productivity – particularly in tough times. But, regrettably, few organisations are genuinely taking such an approach. There is certainly a need for a new


mindset and leadership skills, but putting them into action remains a challenge for many. So conventional leadership and management styles that reflect an organisational culture based on rules, command and control and formal relationships are still very much the norm. This approach works in predictable and stable


environments, but in dynamic and complex business environments such an approach inhibits creativity and innovation. It also decreases staff engagement, motivation and productivity.


Alternative forms of leadership could be more relevant today than ever before. There is a lot of evidence pointing to a community-based, collaborative approach. In this leaders give up formal power, delegate responsibilities rather than tasks, and relax their control. They empower employees to make decisions on the basis of their knowledge, skills and experience, rather than on their formal position in the organisational hierarchy. Encouraging self-organisation and informal networks of community interest leads to more interactions, experimentation with new ideas and knowledge sharing. Strategic implementation of this collaborative approach has a markedly positive impact on the bottom line. When a community-based culture is


implemented, employees are better motivated to perform well, a strong team spirit develops, staff engagement is improved and levels of stress and absenteeism are reduced. For leaders – paradoxically perhaps – giving away formal power means getting more power back; more is achieved with less effort. They will develop and lead more motivated, innovative, and energised employees.


Research study on collaboration and freedom


CSC Germany is a division of a leading global IT consulting and services firm. After experiencing poor financial and market performance in 2008, the division realised that moving away from a command and control style of leadership was necessary. It had to improve communication, reduce bureaucracy and boost profits. The enterprise content management unit


of the division implemented a new corporate strategy. This was for a knowledge culture based on collaboration and freedom for employees in decision making. Management’s view at the time was that the problem was not simply the market, or a skills deficit among their people. They realised it was the type of management; staff were not getting as involved as much as they could be. Leadership had previously been focused


on delegating tasks and monitoring results. An emphasis on hierarchy had slowed


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