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Leader 3.0. From a Carrot and Stick to the Culture of Happiness

15/ 12/ 2017

Author: Vache Davtian, the businessman with 26 years of experience, Chief Happiness Officer and the leader of the companies «Promkabel Electrika», «Pan Elektro», the founder and the business coach of Leadership development School «LeaderWay»

What problems do you face in business – high turnover of staff, low motivation, the conflicts. All this exhausts the energy of a team, and you lose clients. Perhaps the reason what you didn’t adjust processes? There now, you ground system of work, set the objects. But for some reason they don’t inspire people. What to do? To become the Leader 3.0.

During the information era neither the principle of leadership 1.0 based on hierarchy and force doesn’t work nor the principles of leadership 2.0 on the basis of only an economic benefit. People don’t need to survive anymore, they want much bigger, than simply material benefits. And there comes the era of leadership 3.0 and culture of happiness.

The leadership 1.0 based on natural instincts have dominated for a lot of millennia. In the natural environment  all living beings are at war for a survival. And social beings are united into communities in which it is easier to satisfy basic requirements – food, safety and a reproduction. There are hierarchical structures where the strongest win more status. And it meant more benefits, more chances of a survival. In the basis of leadership 1.0 there was fear and violence till an industrial era until people received a relative freedom of choice.

With the development of technologies the concept of hierarchy changed. More status was received not by the strongest, but by smarter and more flexible people. Then leadership 2.0 appeared. It was based on an exchange of the benefits «You – to me, I – to you». Leaders 2.0 started uniting teams by means of carrot and stick method that is if you unload the truck, you will receive more money, if you work for 5 years, you will be promoted.

It worked well several centuries ago at the time when the algorithmic (repeating) tasks dominated that can be registered in business processes or in instructions. At the beginning of the 2000-s the fourth industrial revolution started and as a result of it the mechanisms, programs and robots undertook the mechanical and repeated tasks. Traditional professions disappear, and this tendency only gains the strength. Drivers, security guards, accountants, lawyers and a lot more professions won’t be necessary soon. New spheres of business appear instead of them. They are connected with creative thinking, flexibility, ability to make decisions quickly. Knowledge becomes outdated quickly, and it isn’t necessary to become a mega-professional any more. Now it is important for leaders to study new things quickly and to forget the old ones.

In this culture leaders create the most flat structure where the atmosphere of equality, justice, game rules. The leader assumes the functions of the companion and the mentor, helps people to develop themselves and become self-actualized. He/she is an example in behavior and in following the values for them. The greatest sin of such leader is a micromanagement. Therefore he/she should delegate tasks and power as much as it is possible. He is also engaged in strategic development of the company.

The changes happen so quickly that it is necessary to generate ideas every day to watch trends and to change business constantly. It is one more role of the leader – a visionary who creates a culture of training, generates creative ideas, changes continuously from below.

How to develop all roles of the leader 3.0?

1. Authority – you have to be an example and take the responsibility.

It is impossible to force the employee to arrive on time if the leader himself is late for work and for meetings. As a leader you have to be an example of such behavior which you want to see. The company is a mirror of the leader. It is sometimes difficult for him/her to take a detached view of him/herself. Therefore, you have to ask for the feedback. You should hire a “Devil’s Advocate» who will tell you the truth.

2. Visionary – you have to dream, create ideas, follow the trends, define strategy together with the team.

One should read and discuss articles and books about the future, about trends in 5-20-50 years, study and go on the excursions to the companies from different spheres. You have to communicate with successful people, study their experience and study on the mistakes. You can have a look at the list of 73 best books that was made from 1500 books read by Vache Davtyan here.

3. Teacher – study and develop your team.

You have to tell about the corporate culture to a new employee and how to do everything correctly. You should give a feedback to experts. You should be both a couch and a leader. You have to ask questions and help them to find the correct answers independently. You need to delegate tasks to get rid of micro management. You have to do only those things that only you can do. All the rest should be given to others. You should give the right for a mistake; otherwise, nobody will not take the responsibility.

4. Friend – you have to create the atmosphere of trust and mutual support in the team.

You need to concentrate not only on the weaknesses but also on the strengths of the team. Your support and encouragement are important for people. You have to say at least 3-5 compliments to people by 12:00 p.m. every day and don’t forget to praise them, attract to the decision-making process and listen to the different points of view.

It is important for the true leader to get rid of destructive roles, to learn how to inspire the team and to create the atmosphere of happiness in the company.

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