A633.3.3RB_McNerneyLeighAnn

St Lukes Communications is a fairly newer advertising company in the UK who has developed into a polyarchy organization. At St Lukes there is not a hierarchy system in place, rather a more un-formal group of employees following a few simple rules in order to accomplish tasks efficiently. Andy Law is the organization’s cofounder and chairman and he believes the company’s success lies in “the firms determination to continuously reinvent itself in a world populated by dotcoms and mega-ad agencies”. Dotcom and mega-ad agencies are traditional styled companies that fall short of achieving excellence. Andy chooses a very untraditional style of leadership by “carefully managing a paradox: it pushes its people to take enormous risks, but it has built a working environment that feels as safe to its employees as, say, a small-town bank in the 1950s”.

            All of this combined St Lukes has hard and soft aspects that create an environment where creativity flourishes throughout. The company has no bosses and is entirely owned by employees and this is considered normal now to employees who are working at St Lukes, and many believe “this is what the element of fright is all about”. Employees at all levels are constantly being required to evaluate “not only how you perform but also who you are. People tell you exactly what they think of you.” Hearing what people think of you in this type of openness can be a little but difficult to endure. Andy states “Individuals who are used to hiding behind power-or talent-have trouble getting used to it”. This is an effective way I believe to mange employees because it creates a degree of trust and also gives everyone an opportunity to be a coach as well as be coached during their time at St Lukes. (HBR: Creating the Most Frightening Company on Earth)

At Morning Star their strategy is to involve and devolve to keep productions flowing efficiently. Morning Star also practices an polyarchy styled approach and finds that “inefficiency stems from a top-heavy management model that is both cumbersome and costly…As decisions get bigger, the ranks of those able to challenge the decision maker get smaller…it's the hierarchical structure that systematically disempowers lower-level employees.” Morning Star's goal, according to its organizational vision, is to create a company in which all team members "will be self-managing professionals, initiating communications and the coordination of their activities with fellow colleagues, customers, suppliers, and fellow industry participants, absent directives from others." At Morning Star they empower employees to better themselves while bettering the company. Having employees that can take the initiative will not only create a connection based on trust and loyalty, but will foster creativity enabling them to take the company beyond what was originally planned. (HBR: FIRST, LET'S FIRE ALL THE MANAGERS)

Companies like these two are few and far in today’s world as most organizations are stuck in the past of traditional oligarchy strategies, however I believe I work for a more polyarchy structure at ERAU. ERAU enables their employees to better themselves by giving them free education as an incentive. Not only can the employee attend school, but their spouses and dependents can as well. Employees are given many opportunities to grow within the organization as well as they prefer to promote within rather than outsource. ERAU is a very diverse and complex environment, we serve students, teachers and employees globally, valuable skills that they can utilize in their everyday lives. ERAU is current with technologies and we are always advancing and setting the example for others to follow; giving a helping hand to help other colleges when help is needed. ERAU practices upward communication and an open door policy. At all times we have the ability to bring our thoughts and concerns to our managers to gather their input or have an issue resolved.  

Employees at ERAU are given a few simple rules and the four+four principal s is in place to advance employees to a Level 5 Followership. My current director also gives his employees an opportunity to speak up if we dislike a process or asks how we can better it. There is never a moment when I don’t feel appreciated. Although there is still a hierarchy system in place I feel that they are well on the way to continuing to be the example for other universities to follow. Giving employees a chance to learn and expand their current skills gives employees and their managers a chance to see their true potential while also reinforcing their value. Engaging with employees and having a strong relationship also improves efficacy in that employees because they are less fearful to bring their directors any issues that may need to be addressed and also any hiccups that could be fixed prior to them unfolding into a larger disaster. I can foresee ERAU continuing to expand the organization, letting go of more responsibilities to employees so our leadership can focus on bigger tasks to enable us to keep going above and beyond what’s expected.

References

Hamel, G. (2011). FIRST, LET'S FIRE ALL THE MANAGERS. (Cover story). Harvard Business Review, 89(12), 48-60.

Coutu, D. L. (2000). Creating the Most Frightening Company on Earth. Harvard Business Review, 78(5), 142-150.