The End and The Beginning Redux

In March of 2011, I wrote a post called The End and The Beginning.  Here's an excerpt.

What I see is:

    The Beginning of the End of the Progressive ideal.

     The  End of the Beginning of the Capitalist model.

     The Emergence of freedom and democracy on a global scale.

The first two, Progressivism and Capitalism, along with modern Science, are the principal products of the age of Enlightenment.

The Progressive ideal believed, and still does by many of its advocates, that through government control of science and industry a free, equitable and peaceful world could be achieved. Conceived during the 19th century as a belief that society could be perfected, and as a counter-balance to the industrialization taking place in Europe and the United States, it was an utopian belief in a well-order, controlled, uniform world.

The Capitalist model was born in a belief that each individual should be free to pursue their own economic welfare, and not be forced by government rules or economic servitude to do that which they choose not to do. It was the ideology that provided the basis of the industrialization out which has come prosperity for more people in history and the rise of the modern middle class.

Both the Progressive ideal and the Capitalist model have brought great benefits and liabilities to society. They form the two sides of virtually every divisive issue confronting the world today. They are quite similar, yet in very different ways. Both are organized around the control of power and wealth. Both have been institutionalized in the large, hierarchical organizations in Washington and on Wall Street, and in similar institutions throughout the world.

Over the past decade, the Progressive ideal and the Capitalist model have begun to show their age. The assumptions that underlie these ideologies are being challenged by forces of change that are beyond their control. Because the control of global forces of change is problematic and less realistic.

I wrote this before the Occupy Wall Street movement began.

I have thought for a long time that there was an evolutionary cycle of institutional decline taking place. Some of this change was the result of out-dated organizational and leadership philosophies, and some of it the emergence of technologies that provide for a more boundary-less environment for communication and collaboration.

This change is an organic process that will ultimately transform or replace most organizations. While I still believe this to be true, I also see that there is a revolutionary cycle of institutional destruction taking place as well.

Read these two different views of the Occupy Wall Street movement. First, Naomi Wolfe's The Guardian article, The Shocking Truth about the Crackdown on Occupy. Then read Matthew Continetti's The Weekly Standard editorial, Anarachy in the USA.

If both are right, then what we are seeing is the rise of political violence on a broader scale in America than we have seen since the late 1960's / early 1970's.  I see parallels from my youth in this generation of young people who rush to join the protests, without really knowing what they hope to change. Their frustration is shared broadly.

A few times over the past few months, I have heard business people in differing contexts say something like, "I'm not making any investments in equipment, no acquisitions of companies, and no hiring until after next year's election."  The reason, instability, a lack of clarity about the rules. In effect, they don't know how their investments will be taxed. As a result, they are forced to sit and wait, contributing to a further erosion of jobs and economic sustainability for families and communities.

This fits with the trends picture presented by Charles Hugh Smith in his post The Future of Jobs. Look closely at the 5Ds at the end of this list.

Most cultural and economic trend changes begin on the margin and then spread slowly to the core, triggering waves of wider recognition along the way. Thus some of these long-wave trends may not yet be visible to the mainstream, and may remain on the margins for many years. Others are so mature that they may be primed for reversal.

The key here is to be aware of each of these, think on which are most likely to impact your current profession and how, and estimate when that impact is likely to be expressed so that you can position yourself wisely in advance:

  1. Automation enabled by the Web…
  2. The cost structure of the US economy—the system-wide cost of housing, food, energy, transport, education, health care, finance, debt, government, and defense/national security--is high and rising, even as productivity is lagging. …
  3. The stress of operating a small business in a stagnant, over-indebted, high-cost basis economy is high, and owners find relief only by opting out and closing their doors. …
  4. The Central State has been co-opted or captured by concentrations of private wealth and power to limit competition and divert the nation’s surplus to Elites within the key industries of finance, health care, education, government, and national security. ….
  5. Financialization of the economy has incentivized unproductive speculation and malinvestment at the expense of productive investment. …
  6. The U.S. economy has bifurcated into a two-tiered regulatory structure. Politically powerful industries such as finance, education, health care, oil/natural gas, and defense benefit from either loophole-riddled regulation or regulation that effectively erects walls that limit smaller competitors from challenging the dominant players. …
  7. Selective globalization and political protection has created a two-tiered labor market in the US. …
  8. Financialization and the two-tiered labor market have led to a two-tiered wealth structure in which the top 10%'s share of the nation’s wealth has outstripped not just the stagnant income and wealth of the lower 90%, but of productivity, the ultimate driver of national wealth.
  9. … Looking farther out, there are emerging trends I call “the five Ds:” definancialization, delegitimization, deglobalization, decentralization and deceleration. …
  10. Definancialization. Resistance to the political dominance of banks and Wall Street is rising, and the financial industry that thrived for the past three decades may contract to a much smaller footprint in the economy.
  11. Delegitimization. The politically protected industries of government, education, health care, and national security are increasingly viewed as needlessly costly, top-heavy, inefficient, or failing. Supporting them with ever-increasing debt is widely viewed as irresponsible. Cultural faith in large-scale institutions as “solutions” is eroding, as is the confidence that a four-year college education is a key to financial security. 
  12. Deglobalization. Though it appears that globalization reigns supreme, we can anticipate protectionism will increasingly be viewed as a just and practical bulwark against high unemployment and withering domestic industries. We can also anticipate global supply chains being disrupted by political turmoil or dislocations in the global energy supply chain; domestic suppliers will be increasingly valued as more trustworthy and secure than distant suppliers.
  13. Decentralization. As faith in Federal and State policy erodes, local community institutions and enterprise will increasingly be viewed as more effective, responsive, adaptable, and less dysfunctional and parasitic than Federal and State institutions.
  14. Deceleration. As debt and financialization cease being drivers of the economy and begin contracting, the entire economy will decelerate as over-indebtedness, systemic friction, institutional resistance to contraction (“the ratchet effect”), and political disunity are “sticky” and contentious.

So, a picture emerges that promises the economic and political environment to be more unstable and volatile over the coming year. I believe this requires us to make a change in our perspective about the way we view the evolutionary changes that are working in tandem and at time against the revolutionary changes of the past few months.

Understanding the Transition

Many of the people I am with on a daily basis feel a strong ambiguity towards institutions, like government, business and religion. Many of these institutions are failing, declining, or evaporating before our eyes. I don't need to go into the reasons why. It really doesn't matter that much because to a great degree, it is a function of the transition from one era to the next. I don't believe we can stop those changes. Our course of action is to be different. Here are some of the ways we can adapt to this changing social landscape.

1. Develop Parallel Structures that provide a buffer against the disintegration of legacy institutions. Creating parallel and redundant structures provides a greater margin of security against the shifts that are taking place. The thinking process behind this is to define the four Connecting Ideas of Mission, Values, Vision and Impact for your organization, and then answer, How do we create the structures that can fulfill the potential that resides in this ideas?

2. Develop Networks of Trust that provide a community of collaborators who stand with one another as economic conditions worsen. If society moves towards a more anarchic, violent place, then having a network of trust is essential for security and safety.

3. Develop a Long View / Big Picture that projects out how new ways of working can become sustainable.  Right now, using traditional plannng methods, it is very difficult to create a long range plan for development. Yet, without some clarity about the Big Picture, we are at the mercy of the current fashionable idea. Build a Long View / Big Picture around the Values that are most important to you and to those who are in your network of relationships. Strong values lived out in our relationships are an essential strength for being more adaptible in the face of revolutionary change.

4. Develop an Independent, Adaptable Mind that is able to discern the Big Picture in the moment of decision. Don't let someone else tell you what to think. Think for yourself. Do your own research. Read broadly. Think critically, with a view to understanding context, trends and what the Big Picture is. Engage in conversation, ask questions, change your mind, and build a network of people who are just as independently like minded.

5. Develop the Character of Resiliency that refuses to quit or fail, but continues to adapt and learn. This resiliency comes from an inner strength of courage and confidence that we can go through any difficult situation and remain true to ourselves. To be resilient requires us to see ourselves as more than the victim of current circumstances, but able to adapt and change to create the structures and relationships needed to advance forward.

6. Develop Traditions that Celebrate Values that unite people together as communities of shared mission and responsibility.  Of the four Connecting Ideas, Values is the only one that does not change. Our values are the glue that holds us together in times of crisis and stress. It is the core strength of every lasting institution. Those people and institutiosn that are able to change are the ones whose values are greater than its organizational structure.

7. Develop the Leadership of Personal Initiative in every social and organizational setting you touch. The attitudes and behaviors of entitlement and dependence, which have been nurtured by the institutions that are declining will not sustain society in the future. The freedom of the individual is the freedom to lead through their own personal initiative. The key is understanding that this initiative is the leadership of the future, as person who are free to act, join with others to create the parallel structures that are needed to replace the structures in decline.

The End and The Beginning Redux

I'm still convinced that we are witnessing the decline of Progressivism as a viable system for society. I'm also convinced that Capitalism as it has developed in the late 20th / early 21st century is not sustainable. I am more convinced than ever that individual freedom and the liberty of democracy are the trends that will carry us through the violence of the next generation. I say so because the era that is passing away before us will not go quietly. But go away, it will. That too I am firmly convinced.


The Initiative Generation

On top of Max Patch

Leadership is a product of personal initiative.  

It is a decision, a thought process, an act of the will, and an expression of identity and personality.

However, for initiative to constitute leadership, it also demands that it produce change, a change that matters, a change that makes a difference, a change that advances toward a goal.

The context for change is almost always some group of people socially connected around an idea that matters to them.

This is a basic understanding of what leadership is becoming in the 21st century. It is different than in the past because it is not based on wealth, social class, educational credentials, national origin, religious preference, geographic location or organizational title, position or rank.  

This new sort of leadership is based on personal initiative, social connection and the desire to make a difference. As a result, it is a kind of leadership that anyone can do.

Therefore, I think it is safe to say that, 

Passive followership is over; Personal initiative for impact is in. 

The implications of this shift are significant. If you are the senior executive leader of an organization, it means that the game of recruiting talent is changing.

This is an ongoing conversation that I'm having with Gretchen Zucker, Executive Director of Ashoka's Youth Venture. Recently, she gave a presentation on Talent for the 21st Century. She, graciously, shared her presentation with me for this blog post.

Gretchen points out that

"8 million jobs have been lost since 2008 in the US; nonetheless, employers are still having difficulty filling jobs with the right talent." 

She quotes Robert Litan of the Kauffman Foundation.

Between 1980 and 2005, virtually all net new jobs created in the U.S.were created by firms that were 5 years old or less. That is about 40 million jobs.

Who is creating these new businesses and the jobs that follow?

People who take initiative, are socially connected, and have a clear purpose that drives their desires to make a difference.  The difference though is in the numbers.

While there may be a long history of small business in the US, entrepreneurism did not become the world changing movement that it is until about 30 years ago. 

This came clearly to mind recently as I sat across a work table in the office of a web designer, colleague and friend who is in his mid-20s. As he took a call and left the room for a moment, the difference hit me that when I was his age in the late 1970s, I did not have a single friend or acquaintance, in my age group, who had started their own business. I know entrepreneurs existed, but I didn't know any. Sitting in my friend's office, I realized that his circle of friends were creating a new culture of entrepreneurism in our community.  

According to Paul Reynolds, entrepreneurship scholar and creator of the Global Entrepreneurship Monitor,

"by the time they reach their retirement years, half of all working men in the United States probably have a period of self-employment of one or more years; one in four may have engaged in self-employment for six or more years. Participating in a new business creation is a common activity among U.S. workers over the course of their careers."*

My own path to entrepreneurship began in the mid-1980's with the reading of Peter Drucker's Innovation and Entrepreneurship. My contact with people who had started their own businesses was very small. Not so today.

What this indicates to me is that there is a growing class of initiators whose leadership is changing not only the landscape of business, but of communities and nations worldwide.  

This is the point that Gretchen Zucker presents.

Gretchen's organization, Youth Venture is part of Ashoka, created by Bill Drayton, who coined the term social entrepreneur.  Ashoka and Youth Venture invest in people who are changemakers.  

Ashoka and Youth Venture are shaping an Everyone A Changemaker™ society: every individual will take initiative, develop solutions to social needs and drive positive impact.Every part of society will benefit from having more changemakers, from a company to a school to an entire country.

Ashoka and YV help ensure the success of any entity, region or field by finding the best new ideas, by cultivating the changemaker talent to act on those ideas, and by designing new ways to allow major change to happen.

Ashoka and Youth Venture are helping to nurture the people I describe above. Currently Ashoka is supporting 2,500 Changemakers in 60 countries. So you can see that as this trend continues, it not only changes the world within the proximity of each person who is a changemaker, but it also sets a standard by which their peers begin to understand themselves.  

This standard is appealing because it isn't based on someone else's idea about who they are, but their own. It is out of their passion and commitment that these Changemakers venture forward to change the world within their reach.

This is the world that is coming to schools, congregations, scout troops,  and businesses everywhere.  This is a societal change that is being led by children and young people. This is a grassroots, entrepreneurial movement that begins at an age young enough to care for the needs of the world that they can identify, even at six or eight years old.

Recently I asked Gretchen Zucker to respond to two questions.

What is the single greatest misperception that businesses have about the current generation of young people as employees?

Businesses need to realize that the current generation of young employees (Millennials) is very different from the last generation (GenX) or the generation before that (Baby Boomers).  Times have changed dramatically and Millennials reflect that accelerating change in a new information era.  Millennials are very purpose-driven, tech and information savvy, globally aware, highly engaged (volunteer at twice the rate as their parents), and struggling to come out from under the very broad wings of their parents.

The best thing a manager can do to maximize the productivity of young employees is to encourage and enable them to be changemakers.  They are craving this!  Don’t be threatened.  They will amaze you with their creativity, drive and ability to mobilize teams to get things done.  

I've seen this trend grow over the past twenty years. A tipping point is approaching that will mark a shift that is of historic proportions. This point will be when a critical mass of people worldwide decides that they are going to take personal initiative to make a difference, and do so within a social context of shared responsibility and commitment.  When they do, they will no longer look to institutions to take care of them, as in the past. They will join together to take care of each other and their communities. 

I asked Gretchen, 

"Where do businesses go to find people like Ashoka’s Changemakers?"

Any employer (businesses included) needs to look upstream to figure out how to get far more changemaker talent (entrepreneurial problem-solvers with strong team, leadership and empathy skills), as the proportion of our society who are changemakers today is only 2-3 percent, making the “war for talent” as fierce as it’s ever been.  By enabling and supporting dramatically more people – in particular at a young, formative age – become changemakers through actually experiencing taking initiative to address a social need and leading change. 

Once a young person experiences the power of entrepreneurship, teamwork, empathy and leadership, he/she will forever carry the mindset and skill set with him/her in all aspects of life.  As change accelerates and employers must stay ahead of that change, the single greatest factor of success will be the proportion of their community (staff, stakeholders) who are changemakers.  

So, you can see how monumental is this shift for organizations.

No more passive followers who care little about their company. No more disgruntled employees who only care about how well the company compensates them for the sacrifice of personal time and the personal inconvenience they must go through to be away from the things they do care about. Strangely, it means that owners and managers will have to respond to a higher form of expectation for how their organizations function.

The cause of poor morale in the workplace isn't the external realities that affect the business. Rather, the internal ones. Morale is not some mysterious human social phenomenon, but rather an outcome of organizational design and management. It is an indicator of uncertainty, and produces a passive aggressive followership which is antithetical to the genuine leadership of personal initiative. The talented and self-motivated will leave or force change.

Regardless, organizational leaders have a choice to make. To resist the emergence of a generation of leadership initiators and watch their organizations decline, or to embrace them as a beneficial movement by accommodating their energy, ideas and influence to create new opportunities.

What, then, must a business person do to create an environment that is most conducive to attracting the young men and women that Ashoka and Youth Venture support?

First, envision the possible.

See it in this illustration from Gretchen Zucker.

What if this was your typical employee?

"I saw a problem with our operations and so I got our team together to devise a solution, which we’re now working on implementing with the involvement of other colleagues. I just wanted to make sure with you that I’m moving in the right direction. Is this okay?"

Second, invest in people.

Read my post Return on Initiative: ROI for the 21st Century. You can take a regressive cost/benefit approach to the development of people. It isn't a zero-sum game. Instead, it is a game of survival. Every business' survival is dependent upon creating an environment that accommodates and nurtures the kind of social entrepreneurial initiative that Ashoka and Youth Venture are developing in people worldwide.

This shift changes the talent recruitment game from a race to hire the best credentialed person to the one who has demonstrated that they are a Changemaker.  

Third, understand what motivates people to take initiative to make a difference that matters. 

No one asks people to initiate. It comes from an inner desire to make the world a better place. Ancient philosopher Aristotle saw this motivation as a function of the purpose of every individual. Something inside points to something outside that connects the two together and creates what the ancient Greeks called eudaimonia which is happiness or human flourishing.

In simple terms, this desire for happiness, that is a kind of completeness, can be seen in three goals that I observe in people.  These goals are active reflections of their inner purpose. This is what people want from their life and work.

Life that is Personally Meaningful

Relationships that are Socially Fulfilling

Work that Makes a Difference that Matters

The children and young people that come to RandomKid** have these goals, as do those who work with Youth Venture. The people with whom you work, play golf, and share the subway have these goals. Each person's expression of them is unique. Yet, we are the same at a very fundamental level.

We look for social and organizational settings where these goals may be pursued. This is why children and young people are coming to RandomKid.

RandomKid's mission is to provide staff and services to youth, of all backgrounds and abilities, for the development, management and accomplishment of their goals to help others.

We educate, mobilize, unify and empower youth to directly impact local and global needs. By helping kids to become innovative and successful world problem-solvers, we are securing a better fate for our world now, and into the future. We don’t ask you to be a part of us; we become a part of you (emphasis mine).

In this sense, RandomKid provides an organizational structure for these young leaders to take initiative by creating projects that make a difference that matters to them. As Anne Ginther, RandomKid Co-Founder recently commented,

"What is most important to remember is that our mission is to help KIDS help others. It’s about empowering youth to make a difference. It’s about building the change-makers of tomorrow."

Dana Leman, Co-Founder and Executive Vice President tells me that they have learned that kids want ownership, fun and measurable impact from their projects.

There is a parallelism between what I observe in people and what RandomKid has identified in their project leaders.

Personally Meaningful = Ownership

Socially Fulfilling = Fun

Make a Difference that Matters = Measurable Impact

There is no dividing line between the child and the adult in this regard. Their goals are one and the same, just expressed differently.

This is the environment that initiators and Changemakers want. This is not the business environment of the 20th century. It is of the 21st century. 

Dana Leman commented to me recently about what she sees in the kids who take on a RandomKid project. 

Today's kids are not about trying to fit their ideas into standard business models. They are trying to develop business models that fit their ideas. They think about process as an afterthought and tend to engage in a more organic and responsive approach to today's emerging markets.

This is why so many young people in their 20s and 30s are starting their own businesses. Because they don't see themselves fitting in the institutional setting of the last century. And what organizational leaders must understand is that their competition for talent is not within their industry, but rather between the business structures of the past and the future. Either accomodate or become irrelevant is the reality that we face.

I started this post with the following manifesto.

Leadership is a product of personal initiative. 

It is a decision, a thought process, an act of the will, and an expression of identity and personality.

However, for initiative to constitute leadership, it also demands that it produce change, a change that matters, a change that makes a difference, a change the advances toward a goal.

The context for change is almost always some group of people socially connected around an idea that matters to them.

This is the future of leadership. And its future can be seen in the 10 year olds, the 14 year olds, the 18 year olds and the twenty and thirty somethings who are taking initiative to follow their passion to make a difference in the world.

Sixteen year old RandomKid Co-Founder and CEO Talia Leman speaks of her organization's mission as 

Leveraging the power of kids worldwide to drive an economy of positive change.

This is the purpose they share with Ashoka's Changemakers and Youth Venturers. This is the 21st century talent pool that stands apart from the rest. 

If you want these young people to work for you, then you must become like them. You must become an agent of change by encouraging and equipping the people in your business to take initiative to create an environment that can make the difference that matters. 

This may seem to be one of many options for the course of organizations and businesses. I'm convinced that this is the future that is fast approaching.  It isn't an option.  

When Ori Brafman and Rod Beckstrom in their book The Starfish and the Spider write about "leaderless" organizations, they are advocating for a leader-filled organization.

In a traditional sense, it could be said that organizations like Ashoka, Youth Venture and RandomKid are developing the next generation of organizational leaders.  In reality, these kids are already leading random organizations of social connection that are making a difference in local communities across the globe. The future is now, not tomorrow or next year.

This new future may seem filled with ambiguity and doubt. The reality is that as you accommodate your organizations to the ingenuity and 21st century leadership skills of these young people, a level of impact that your organization has never known will emerge. I'm convince that our best years are ahead of us, and they are going to be fun.  Because the children who are leading us today would not have it any other way. 

The Initiative Generation is here. Welcome them with openness, support their initiatives, and celebrate the difference they are making now.

*Wikipedia: Entrepreneurship-http://en.wikipedia.org/wiki/Entrepreneurship

** Disclaimer: I am the Board Chair of RandomKid.


The Weekly Leader Series on Organic Leadership

Over the past several weeks, I've been writing a series of columns at Weekly Leader on what I call Organic Leadership. Here's what it's about.

We are in the midst of a dramatic change of approach to leadership and organization. We are shifting from an era of hierarchical institutions to ones organized around human interaction and initiative.  I'm not the only one who is saying this. However, what I don't find is sufficient attention given to is the structure of Organically led businesses.  Here are links to the columns in order of appearance.

Turn of the Tide

The Organic Imperative

The Organic Facilitator

The Organic System

The Organic Puzzle

An Organic Foundation

This shift in approach is not really about styles of leadership. Rather, it is about both the moral foundation of leadership and the structural systems of organizations.

Twentieth Century organizations were efforts in the systematization of processes, and highly successful at that. The modern consumer society would not be possible without a system of production that enabled high quality, inexpensive goods to be produced.

The 21st century is a different time. There is a moral and cultural shift taking place that is moving away from the predominant assumptions of the past two or three centuries. At the center of this shift is an emphasis on the importance and value of the person. We've heard this as an idea for a generation or more. We read books and hear speakers on the topic of personal excellence.

What is new is an understanding of how to organize businesses and organizations around individual purpose and initiative.  This is what this series on Organic leadership is focused on.

I welcome your comments, critique, stories and interaction.