Lynda Gratton asserts (and I wholly agree) that there are many compelling reasons for any organization -- regardless of size or nature -- to become and then remain what she characterizes as a "democratic enterprise." Here are five on which she focuses throughout this brilliant book:
1. Employees who experience democracy are more engaged.
2. Democratic enterprises create win-win situations.
3. Democratic enterprises are more just and fair.
4. Democratic enterprises are more agile.
5. Democratic enterprises are more able to integrate.
It is no coincidence that when Fortune magazine publishes its annual lists of the most admired, best to work for, and most profitable corporations, respectively, several names appear on all three and others appear on at least two. To varying degrees, all are (by Gratton's definition) democratic enterprises.
At this point, I feel obliged to reassure those who read my brief commentary that this book is mercifully free of esoteric theories, hypotheses, etc. which so frequently descend from various ivory towers like leaflets. She devotes all of the first chapter to what she calls "Citizens' Tales." She introduces her reader to three corporate executives -- Greg Grimshaw (BP), Nina Bhatia (McKinsey), and Stewart Kearney (BT) -- and carefully explains how why each is important to her/his company, what each has done to be the best he/she could be, and what her/his company has done to sup[port those efforts. Citing reasons such as those listed earlier is easy. Validating and verifying them in the careers of three people is infinitely more difficult and Gratton succeeds brilliantly.
Grimshaw, Bhatia, and Kearney are representative in that they "reflect the choices and dilemmas faced in day-to-day working lives...By observing them and the companies in which they work we are witnesses to the ebbs and flows of the contemporary enterprise...[They are] citizens rather than employees [because] they are adopting some of the conditions of citizenship and all are members of companies adopting some of the tenets of democracy." According to Gratton, it is in the best interests of institutions and organizations to serve the best interests of their "citizens." Why? First, by encouraging individuals to become autonomous and agile, they will themselves become more agile. Next, if they are committed and purposeful, their people will be committed and purposeful. Finally, the tenets of democracy (discussed in depth, pages 33-42) create an appropriate platform to integrate diverse business initiatives.
In Chapter Two, Gratton briefly examines various forms of democracy (classical, liberal, direct, competitive/elitist, and legal) and the aforementioned tenets of democracy. Then in the following chapters (Three through Eight), she discusses "The Democratic Study" (which explores the six tenets in greater depth), "The Drivers to Democracy" (e.g. shifts in individuals and in technology), "Building Individual Autonomy" (i.e. how both individuals and organizations can become autonomous), "Crafting Organizational Variety" (real-world examples provided by BP, McKinsey, SONY, Unisys, Goldman Sachs), AstraZeneca, and BT), "Shaping Shared Purpose" (i.e. dimensions of accountability, obligation, trust, and power), and "Leaders and Citizens at Work" (e.g. the roles of the leader as philosopher and visionary and the roles of the team leader as creator of space and goal setter). In a single volume, Gratton has achieved a stunning application of fundamental principles of democracy (most of which were formulated in ancient Greece) to business issues, challenges, and opportunities in the 21st century. Obviously, it remains for each reader to determine the nature and extent of relevance of the material to the needs of her or his own organization.
Those who share my high regard for Gratton's book are urged to check out Jim O'Toole's The Executive's Compass: Business and the Good Society and his most recent book, Creating the Good Life: Aristotle's Guide to Getting It Right, as well as David Maister's Practice What You Preach: What Managers Must Do to Create a High Achievement Culture and David Whyte's The Heart Aroused: Poetry and the Preservation of the Soul in Corporate America.