
The potential-driven institution is vibrant and dynamic, like a Kandinsky painting.
Everyone’s talking about the future of business these days. More and more, they’re talking about the future of work, too. But we need more discussion about the relationship
between these two futures, for
the future of work and the future of business are inextricably intertwined, and they both need reimagining. Our current institutional models make it nearly impossible for either work or business to encourage human flourishing in any meaningful way, and look at the consequences:
employees are disengaged, and
corporate profits ≠ societal prosperity.
The existing model may enrich a few in the short term, but ultimately, there is no such thing as a successful business that does not also nourish human potential, not only that of its employees but also its vendors, suppliers, customers and even society at-large. With that in mind, I’d like to propose a unified way to think about our ways of working and conducting business, one that recognizes their interdependence and is rooted in human potential, rather than profit potential. I call it the potential-driven institution, and it can be characterized in three verbs: create, collaborate, construct.
Create.
For all the talk we hear of employee “empowerment”, most organizations still divide their employees into “thinkers”, who make the strategy, and “doers”, who execute. A single, painful call to almost any customer service line proves the inefficacy of this approach. But the difference between thinkers and doers is largely imagined. In a potential-driven institution, everyone – employees, business partners, vendors, even customers – needs to be both thinking and doing. That is, everyone must have the authority to imagine solutions and the autonomy to execute them within their spheres of expertise. For example:
- Zappos. Much of Zappos’ success comes from the fact that leadership trusts, indeed expects, its employees to be creative and exercise their own best judgment when helping customers. Rather than forcing them to stick to a script or crippling them with top-down corporate policies, Zappos gives employees the authority and autonomy to do what’s necessary to “Deliver Happiness”. The results have made Zappos into a customer service legend.
- Threadless. Online t-shirt retailer Threadless is a great example of how to foster and empower creativity among external stakeholders in your business, both for their benefit and yours. Threadless works like this: People design and submit ideas for t-shirts online, the Threadless community votes on the submissions, and the top-voted designs are made into t-shirts. Anyone can submit a design or a slogan, and if your submission is chosen, you get paid a nice sum. Threadless proves that integrating creativity into your business needn’t and shouldn’t be limited to internal employees.
Collaborate.
First, it’s important to understand that meaningful collaboration is not the same thing as having lots of meetings, working on a project team, dividing up responsibilities or participating in “team building” exercises. Meaningful collaboration is about bringing forth the collective potential of individuals in the name of a common purpose. It requires trust and autonomy as much as it requires “team work”, because all ideas must be given space, and everyone must be trusted to bring their best work to the group. They must also be given the freedom to do that best work in the absence of micromanagement or death by committee. Importantly, in the potential-driven institution, collaboration extends beyond the organization to include external stakeholders such as vendors, suppliers, customers and even society. It’s not just a way of working but a way of conducting business. For example:
- GOOD and Ford Motors. In a joint effort called Reinventing the Outdoors, forward-thinking magazine GOOD teamed up with Ford Motors to encourage outdoor sports and grant $50,000 to one of six socially minded non-profits. GOOD subscribers read the non-profits’ stories and voted for the winner. The campaign isn’t perfect, but it’s a good example of how two businesses can form an unexpected partnership and collaborate on something worthwhile, both for mutual benefit and the common good.
- OpenIDEO. Started by design firm IDEO, OpenIDEO is an online platform where creative people can come together to brainstorm solutions to complex social problems, in the form of challenges sponsored by IDEO and its partners. Anyone who signs up can collaborate on a challenge. Ideas are proposed and vetted, and at the end of each challenge, a fully concepted solution is ready and waiting to be implemented by an enterprising organization or individual. This is a beautiful example of meaningful collaboration that transcends the traditional boundaries of business and focuses on unleashing human potential.
Construct.
Creativity and collaboration set the foundation for what matters most – constructing meaningful things. Umair Haque calls this “thick value“, aka “awesome stuff that makes people meaningfully better off”. All key stakeholders in the potential-driven institution – employees, partners, customers, communities, even governments – should not only benefit from this constructive, meaningful value; ideally, they should be empowered to participate in its very construction. It’s the ultimate bringing forth of human potential, a complete reimagining of the relationship between institutions and society. Very few organizations even come close to being truly constructive in this way. It’s not impossible, though, and when it does happen, it’s quite extraordinary.
-
COMMON. The best example I’ve found of a truly constructive organization, one designed explicitly and intentionally to bring forth human potential, is COMMON. Founded by Alex & Ana Bogusky, Rob Schuham and John Bielenberg, COMMON is, in the founders’ own words, “about connecting people together and harnessing the power of true, rule-breaking creativity to launch socially beneficial businesses. Businesses that are designed to spread love and prosperity to all stakeholders.”
It’s not just a better way of doing business. It’s not just a better way of working. It’s both, and it’s so much more. COMMON has created a community where individuals can come together and share ideas, brainstorm and prototype possible solutions and transform them into world-changing ventures. In other words, a place to…
Create. Collaborate. Construct.
The potential-driven institution recognizes that the way we work and the way we conduct business are not two separate institutional challenges, but as related as leaves to the roots of a tree. It treats the business and its stakeholders, both internal and external as part of a larger, interdependent web and seeks to bring forth the potential within that web, for the betterment of all. While my discussion has focused mainly on business, the importance of building creative, collaborative and constructive institutions holds true for government, non-profits, education, media and our many other institutions that need reimagining, as well.
At present, these institutions are like a Socialist realist painting: drab, banal, rigid and riddled with ideology. The potential-driven institution is more like a Kandinsky: vibrant, dynamic, wildly creative, absent strict delineations and brimming with possibility.
I’d love to hear your thoughts on this. What does a potential-driven institution look like? And how can we make it the norm, not the exception?
Like this post? Subscribe to free updates via email or RSS.