The business world is experiencing a powerful shift: more and more companies are embracing self-managing organisations as a transformative model for success. Gone are the days of rigid hierarchies and endless power struggles; in their place, we find empowered teams, decentralised decision-making, and a whole lot more trust. This change isn’t just refreshing—it’s revolutionising productivity, creativity, and leadership in the modern workplace. Let’s explore why self-managing organisations represent such a positive shift in today’s business landscape.
Power: Sharing it makes us stronger
In traditional organisations, power is often concentrated at the top. The classic command-and-control model relies on a few key decision-makers, with everyone else waiting for instructions. But in a self-managing structure, power is distributed. Teams and individuals have the authority to make decisions and solve problems on their own, without waiting for higher-ups to give the green light.
The result? A workforce that feels trusted and motivated. When employees are empowered to act, they feel more ownership over their work, which in turn boosts engagement and productivity. This shift away from centralised power allows innovation to flow freely, as teams are no longer bogged down by bureaucracy.
Case in point: Zappos and holacracy
One company leading the charge is Zappos, which adopted the self-managing model known as Holacracy. In this structure, traditional managers are replaced by “circles” of employees who collaborate to make decisions. By sharing power, Zappos has been able to foster a culture of agility and innovation, where employees are constantly experimenting and improving without needing to climb the corporate ladder for approval. It’s a workplace where every voice matters—and that’s exactly the kind of empowerment that fuels creativity.
Control: Loosen the reins, gain more results
Control is a double-edged sword in leadership. The more you try to hold onto it, the more anxious you become—and the more you stifle your team’s potential. In traditional setups, leaders often micromanage out of fear that something might go wrong. But in self-managing organisations, leaders let go of this need for control and trust their teams to do the work.
This doesn’t mean chaos reigns. Quite the opposite—self-managing teams operate with clear roles and responsibilities, allowing for fluid collaboration. Agile practices, which are often used in self-managing organisations, allow for constant adjustment and improvement, so employees can manage their own tasks and timelines.
Spotify’s Agile Approach
Take Spotify, for example. The company uses Agile frameworks like squads and tribes to foster self-management within teams. Teams have the autonomy to decide how they’ll approach projects, allowing them to adapt quickly to changes in the market. Leaders don’t control every detail—instead, they support and coach teams to excel. This creates an environment of trust, reduces anxiety, and fuels high performance across the board.
Anxiety: Trust reduces stress
Anxiety is a hidden productivity killer in many workplaces. When leaders hold onto control and power too tightly, they inadvertently create a culture of fear—where employees are afraid to make mistakes or innovate. But in self-managing organisations, trust replaces fear.
When employees are given the freedom to manage themselves, they feel a greater sense of accountability and ownership. More importantly, they feel trusted. This can significantly reduce workplace anxiety, leading to happier, more engaged employees. Research has shown that trust in leadership is directly linked to reduced stress and higher job satisfaction. A Gallup report found that engaged employees show 21% greater profitability and are far less likely to experience burnout.
Business models for self-management success
The Teal Organisation Model, outlined by Frederic Laloux in his book Reinventing Organisations, is a perfect example of the benefits of self-management. In Teal organisations, decision-making authority is distributed throughout the workforce, and employees are encouraged to bring their whole selves to work. These companies operate on principles of wholeness, self-management, and evolutionary purpose, where trust and human connection are at the forefront of business success.
Buurtzorg, a Dutch home-care company, is a shining example of this model in action. By allowing nurses to self-manage and organise into small teams, Buurtzorg has achieved outstanding levels of patient satisfaction and employee happiness, while reducing overhead costs dramatically. It’s proof that trust, autonomy, and a shared sense of purpose can lead to both human and business success.
Conclusion: The Future of Leadership is Empowerment
The shift towards self-managing organisations represents a fundamental change in how we view power, control, and leadership. Instead of focusing on tight control and hierarchical structures, businesses today are finding success in empowering their employees, reducing anxiety, and fostering innovation. Self-management is not just a trend; it’s a positive shift that’s helping organisations tap into the full potential of their workforce, leading to happier employees, stronger teams, and, ultimately, better business outcomes.
If you want to see your organisation thrive, it might be time to loosen the reins, trust your people, and embrace the future of work with self-managing models. It’s a win-win for everyone involved.
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