The Democratic Enterprise

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"Lynda Gratton has crafted a new classic. Democratic Enterprise draws on Greek and political traditions about democracy -- demo (people) and kratos (rule) -- and applies them to modern organizations. By defining employees as citizens and investors, Gratton identifies six tenants and three building blocks of the democratic and delightful organization. These ideas are conceptually interesting and actionable. They will help individuals figure out how to succeed in their role in the modern corporation; human resource professionals architect individual and organizational systems; and leaders engage employees and create organizations that win. It is a masterpiece that connects individuals and their organizations with rich theory and realistic action." - Dave Ulrich, Professor of Business, University of Michigan

"In Unilever, we are determined to foster an environment that provides everyone the opportunity and support to find and harness our natural swing -- so we can all deliver outstanding results within a framework of shared values, goals, and purpose. I do not believe there is shortage of great talent. There is, however, a shortage of great environments and leaders who create such environments. It is therefore encouraging to find that we are not alone in this. Professor Lynda Gratton has captured, in a very profound way, the emerging realization of what truly matters in transforming businesses: people, purpose, and participation. In a word, democracy."- Niall FitzGerald, Chairman, Unilever

"From time to time, a new idea crops up in the world of business that most managers consider to be absurd but that end up transforming companies. Zero defect was one such idea. The democratic enterprise is another. It is an aspirational quest but, as Lynda Gratton demonstrates in this marvellously written book, there is enough that corporate leaders and human resources specialists can do today to embrace the power of democratic processes to both raise the economic performance of their companies and build delightful organizations". - Sumantra Ghoshal, Professor of Strategy and International Management , London Business School

"Gratton's book is timely and important. She is one of a small but influential band of business academics who have begun to question the "ideological gloomy paradigm" - the overwhelmingly negative assumptions about human nature that historically underpin management theorising. The Democratic Enterprise is one of the first interventions to crystallise these dissatisfactions and offer steps to a positive alternative model.

..The revolution is democracy and it starts here." - Simon Caulkin, The Observer.

"... provides an fascinating insight into staff motivation and development. "

Professional Investor

(Pearson)

Professor Lynda Gratton is Associate Professor of Organizational Behaviour at London Business School and a global authority on the people implications of strategy. At London Business School she directs the world-renowned executive programme 'Human Resource Strategy in Transforming Organizations.' Her ideas about human resource strategy have profoundly influenced managers all over the world. Her book Living Strategy: putting people at the heart of corporate purpose published by FT Prentice Hall in 2000 has become a classic for HR professionals and an important part of the toolkit for line managers. Over the last decade Dr Gratton has created a clear agenda for how organizations can become inspiring and meaningful. How each can become a 'democratic enterprise'.

(Pearson)

PREFACE

ONE: CITIZENS TALES

The story of Greg Grimshaw at BP
The story of Nina Bhatia at McKinsey
The story of Stewart Kearney at BT
The value of the Democratic Enterprise

TWO: WHAT DEMOCRACY MEANS

A short history of democracy
The tenets of the Democratic Enterprise

THREE: DEMOCRACY AT WORK

Adult-to-adult relationships
Individuals as investors
Expression of Diverse Qualities
Participation and choice
Liberty without expense
Accountabilities and Obligations

FOUR: THE DRIVERS TO DEMOCRACY

The shift in individuals
The shift in technology

FIVE: BUILDING INDIVIDUAL AUTONOMY

The citizen investor
The elements of human capital
Leveraging human capital
How individuals become autonomous
How organizations support autonomy
How organizations understand employees

SIX: CRAFTING ORGANIZATIONAL VARIETY

Pioneers of democracy
Variety of job assignment
Choice of job content
Choice of training
Choice of developmental relationships
Choice of rewards and benefits
Choice of location
Choice of time
The lessons of building variety

SEVEN: SHAPING SHARED PURPOSE

Goals
Accountabilities and Obligations
Trust and power

EIGHT: LEADERS AND CITIZENS AT WORK

The role of the leader
The role of the team leader
The HR role

NINE: THE FIVE REASONS TO BECOME A DEMOCRATIC ENTERPRISE

Employee engagement
Win-Win solutions
Justice and Fairness
Agility
Integration

(Pearson)