Columns

Consult to lead

Nov 08 issue

Asking others for advice isn’t a sign of weakness. Their responses can help you decide what not to do, writes Chris Ingram

Big companies usually have a hierarchy with layers of execs between the boardroom and the customer. Committees and project teams abound, but as the marketing senior VP at Mitsubishi said: ‘Change isn’t a time for democracy. No one follows a committee into battle. You need one empowered leader.’

Legendary ad man David Ogilvy did everything to discourage that signature of democracy: the committee. Famously, he pointed out that no one ever erected a statue of a committee.

It’s true: you don’t want to go “over the top” into battle with one of your squad questioning whether you are wearing the right boots or carrying the right rifle.

As I’ve said before, I’m a firm believer that democracy doesn’t work, certainly not in business. It has to be absolutely clear who is boss. I haven’t changed my view one iota on that, but the dictatorship part does come at the end of a longer, deliberative process that requires a degree of consultation. This demands that you:

start with an enquiring mind
decide where you are going with a stretching, but attainable objective
seek out the best standards: check your competitors – don’t look for their weaknesses for this particular exercise, look for their strengths
listen to ideas for improving your business wherever they come from: senior or junior, young or old (so you’d better create a climate where they’re not afraid to tell you)
use the internet actively, not just to check out your competitors, but to listen to your customers. The opportunities are now endless with blogs, chatrooms and social networks
above all, hire outstanding people – and listen to them.

When you have done all the above, you’ve finished the consultation phase and it’s time for you – and you alone – to decide what happens next.

Even with the popularity of “social democracy” in Europe and a charismatic new Democrat US president about to be installed,I have no doubts that “consultative dictatorship” is the only way to build a company quickly and effectively.

Hands-on approach

At a time of recession, there is an even greater need for firm, fast leadership. For smaller companies especially, this allows them to move decisively, although they don’t have the protection of the range and breadth of a big, diversified, international group.

This is an argument I hear from those who believe in outright dictatorship. They believe anything else slows things down unacceptably and that any form of democracy undermines firm leadership.

As far as I’m concerned, this doesn’t need to be the case and I have a simple means to get round this issue called the inertia management principle.

This approach goes hand-in-hand with consultative dictatorship. It demands that you consult before taking a key decision. You will give everyone the chance to comment, but there is a strict deadline by when those comments have to be made. However, be warned: some of these comments will be in direct contradiction with each other. A leader will then take on board the different opinions – reinforcing the point that there needs to be one decisive voice at the end of the process – and act accordingly.

The benefit of this route is that it marries two often-contradictory principles of leadership: decisiveness and shared ownership of ideas.

Chinese walls
Few realise that this approach of consultative dictatorship has been adopted quietly by the Chinese. The West has seen the swing from communism to capitalism, but assumed that the common strand is a single-minded dictatorship behind it. Well, the comeback to that is ‘yes’ and ‘no’.

In Mark Leonard’s fascinating book What Does China Think?, he describes how ‘public consultations, expert meetings and surveys are becoming a central part of Chinese decision-making’. A group of smart academics are encouraged to debate and question the way forward. In the city of Chongqing where the population is around 30 million, they are running a giant experiment in participation. I sense the cynical smile on your lips, but where in the West would you have a public hearing on the price of train fares and, as a result, reduce the fares by 85 per cent?

It is a living laboratory based on strengthening the rule of law, but consulting the public over major decisions. Leonard neatly describes this process as deliberative dictatorship.

The West has arrogantly assumed that capitalism and democracy are inseparable and, particularly following the collapse of the Soviet Union, it is the only system that can work. Given our efforts to bring democracy to Iraq and the implosion of the West’s financial sector, it just might be time to allow that there could be an alternative way.

I don’t know if it will work for 1.3 billion people, but I’m sure it’s worth a try. However, what I do know is that deliberative dictatorship works for business.


Editor's View Business Bulletin Trailblazers Business Tools Finance Expansion Strategy Leadership Flotation Exits Columns Enterprise News Deal Listings Backchat	Columns Consult to lead Nov 08 issue Asking others for advice isn’t a sign of weakness. Their responses can help you decide what not to do, writes Chris Ingram Big companies usually have a hierarchy with layers of execs between the boardroom and the customer. Committees and project teams abound, but as the marketing senior VP at Mitsubishi said: ‘Change isn’t a time for democracy. No one follows a committee into battle. You need one empowered leader.’ Legendary ad man David Ogilvy did everything to discourage that signature of democracy: the committee. Famously, he pointed out that no one ever erected a statue of a committee. It’s true: you don’t want to go “over the top” into battle with one of your squad questioning whether you are wearing the right boots or carrying the right rifle. As I’ve said before, I’m a firm believer that democracy doesn’t work, certainly not in business. It has to be absolutely clear who is boss. I haven’t changed my view one iota on that, but the dictatorship part does come at the end of a longer, deliberative process that requires a degree of consultation. This demands that you: start with an enquiring mind decide where you are going with a stretching, but attainable objective seek out the best standards: check your competitors – don’t look for their weaknesses for this particular exercise, look for their strengths listen to ideas for improving your business wherever they come from: senior or junior, young or old (so you’d better create a climate where they’re not afraid to tell you) use the internet actively, not just to check out your competitors, but to listen to your customers. The opportunities are now endless with blogs, chatrooms and social networks above all, hire outstanding people – and listen to them. When you have done all the above, you’ve finished the consultation phase and it’s time for you – and you alone – to decide what happens next. Even with the popularity of “social democracy” in Europe and a charismatic new Democrat US president about to be installed,I have no doubts that “consultative dictatorship” is the only way to build a company quickly and effectively. Hands-on approach At a time of recession, there is an even greater need for firm, fast leadership. For smaller companies especially, this allows them to move decisively, although they don’t have the protection of the range and breadth of a big, diversified, international group. This is an argument I hear from those who believe in outright dictatorship. They believe anything else slows things down unacceptably and that any form of democracy undermines firm leadership. As far as I’m concerned, this doesn’t need to be the case and I have a simple means to get round this issue called the inertia management principle. This approach goes hand-in-hand with consultative dictatorship. It demands that you consult before taking a key decision. You will give everyone the chance to comment, but there is a strict deadline by when those comments have to be made. However, be warned: some of these comments will be in direct contradiction with each other. A leader will then take on board the different opinions – reinforcing the point that there needs to be one decisive voice at the end of the process – and act accordingly. The benefit of this route is that it marries two often-contradictory principles of leadership: decisiveness and shared ownership of ideas. Chinese walls Few realise that this approach of consultative dictatorship has been adopted quietly by the Chinese. The West has seen the swing from communism to capitalism, but assumed that the common strand is a single-minded dictatorship behind it. Well, the comeback to that is ‘yes’ and ‘no’. In Mark Leonard’s fascinating book What Does China Think?, he describes how ‘public consultations, expert meetings and surveys are becoming a central part of Chinese decision-making’. A group of smart academics are encouraged to debate and question the way forward. In the city of Chongqing where the population is around 30 million, they are running a giant experiment in participation. I sense the cynical smile on your lips, but where in the West would you have a public hearing on the price of train fares and, as a result, reduce the fares by 85 per cent? It is a living laboratory based on strengthening the rule of law, but consulting the public over major decisions. Leonard neatly describes this process as deliberative dictatorship. The West has arrogantly assumed that capitalism and democracy are inseparable and, particularly following the collapse of the Soviet Union, it is the only system that can work. Given our efforts to bring democracy to Iraq and the implosion of the West’s financial sector, it just might be time to allow that there could be an alternative way. I don’t know if it will work for 1.3 billion people, but I’m sure it’s worth a try. However, what I do know is that deliberative dictatorship works for business.