The “aura” of liberated companies… By Alice DE FOUCHIER

Unemployment is a problem that is getting worse and our region, Auvergne-Rhône-Alpes, has not been spared… Can we create more jobs and can those jobs be productive, long-term and fulfilling? We need to encourage the setting up of efficient businesses that are innovative in both their product/service and their management methods…

Good news: new types of businesses have been and are being developed and, as a result, employees, managers and business leaders are happier and healthier. Let me describe one such type of business: the “liberated company.”

The precursor of the liberated company was created by Bill Gore and his wife in 1958 in the United States (Gore-Tex). They were disappointed by the very hierarchical organization of ordinary companies. They started to think about a new type of organization in which employees would have greater responsibilities and autonomy. In France, François Zobrist was probably the first to be inspired by Gore’s management methods when he launched his firm, FAVI, in 1972.

The purpose of liberated companies is to put an end to Taylorism. Employees are trusted. In fact, they make decisions which they consider to be the best without asking their superiors or going through time-consuming procedures. This type of management was not very well-known; it was only in 2009 that two researchers became interested in this new concept. They marketed it with the name of “liberated companies” in a book-manifesto entitled: Freedom, Inc. which is nowadays a management best-seller.

There isn’t only one way to become a liberated company. Each company has its own history, so it will adapt to liberated company methods differently. Freedom, Inc. suggests different ways to change a company. Nevertheless, there are a few basic steps to follow.

First, managers and employees must adopt a common vision for their company, agree to share the values of kindness, respect and trust, and determine each person’s workspace and responsibilities.

Then, the company has to:

• empower employees (if you give more freedom to your employees, they are more fulfilled and therefore more productive);
• get the employees to write down and then apply work procedures;
• allow self-checking by employees (this is less stressful than being inspected and encourages them to do their best);
• only keep the most important indicators for reports (in order to save time);
• encourage the leader to act as guide (backup) for the employees, checking that the vision of the company is adhered to.

The liberated companies concept can be applied to all types of businesses. An example is PerfHomme, a French recruitment, consulting and Human Resources company based in Clermont-Ferrand. It has eleven employees. In 2012, it decided to become a liberated company and it took six months to successfully apply the concept.

The principles can also be applied to very big companies. For example, Michelin began its shift in 2000. It has taken a very long time, because of the sheer size of the company and because it has implemented the methods during several experimental phases. Change also takes time because it has to be understood and accepted by the managers and workers; this is slow in a very large firm.

There are difficulties in running a liberated company. One is the risk that the company manager who implemented the concept retires and his/her successor does not share the same vision. For example, Harley Davidson was in crisis in 1980 and, in order to keep the business running, the head of the company reorganized (successfully) the entire business model. Last year, the boss retired; his successor doesn't have the same management style and the employees have started to leave the company… Another risk is in regards to middle management. It is complicated for managers to change from a leadership role to a counselling one. A minority of employees also reject the changes because they do not like to take on responsibilities.

In our new and bigger region, Auvergne-Rhône-Alpes, we must encourage liberated companies and new management methods in order to fight dehumanization in the workplace and in society at large. In AURA, we should pioneer new businesses and better ways of running them. If young people are going to stay in AURA, they don't just need jobs, they need good jobs!