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The key to developing an organization is making the best possible use of it resources. One of the most important of these resources is its personnel. Even poorly educated or inexperienced employees can have creative ideas that can increase profitability by literally millions. However, in most organizations access to these ideas is limited to a suggestion box, "open door" policy, or other limited means of communication.

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The difference between interactive management and most other forms of management is that interactive management involves everyone who holds a stake in the organization in the planning and policy making processes of the company. It also allows managers to coordinate easily with other managers both vertically (above and below them in the organization) and horizontally (across divisions).

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This level of interaction is achieved by giving each manager a board, much as the CEO has the Board of Directors, to help with the following functions:

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• Planning for the part of the organization for which the manager is responsible.

• Setting policy for that manager's part of the organization.

• Coordinating activities vertically through the organization - making sure plans and policies don't conflict with those at higher levels.

• Integrating activities between units at the same level of the organization - avoiding conflict and duplication of effort.

• Keeping employees informed of organizational direction and activities and happy with their quality of work life.

• Evaluation of the manager whose board it is.

 

These boards are composed of the manager whose board it is, the manager's supervisor, and the manager's subordinates. The board can also include others that its members feel may be helpful. However, it is important not to have too many or too few people on a board. Six to eight people is an optimal size for most boards.

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Once boards have been established, it is generally best to allow them to operate by consensus, which is not the same as voting. In voting the majority of board members can have an idea that is not acceptable to some members of the minority. In consensus everyone agrees as to the course of action to take, even if no one thinks it is the best course of action. If unanimous agreement can't be reached then consensus is reached on a fair method for choosing a course of action.

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Boards can meet as often or as infrequently as their members feel is necessary. They may need to meet fairly frequently after they are initially formed and can reduce the meeting frequency as appropriate once they are operating smoothly.

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Establishing these boards creates a democratic hierarchy. The chain of command is preserved to enable efficient decision making, but subordinates collectively have control over their superiors. This yields a circularity of control - true democracy - that prevents both tyranny of leadership and tyranny of the majority. It gives everyone in the organization a voice in defining the policies that affect them. This level of participation opens an avenue for unleashing the creative potential of the organization, promoting its development, and increasing the quality of work life for all of its members.

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If you would like to learn about interactive management, need help implementing it in your organization, or just have questions about it, please try reading the section on interactive management in Empowerment Book I: Fundamentals or Empowerment Book II: Foundation. You can purchase a hard copy or download them free here. You can also learn about interactive management from its creator, Dr. Russell Ackoff, in the first part of his book Recreating the Corporation: A Design of Organizations for the 21st Century. Please also feel free to contact us with your questions.