The 7 myths of the Liberated Enterprise

A few days ago, we read this article entitled “L’Entreprise Libérée, entre communication et imposture”. At the end of this reading, we had only one desire: to testify to our experience and dispel the myths we too often see about the Liberated Enterprise.

But first of all, we need to ask ourselves what a Liberated Enterprise is. What is the enterprise liberated from? It’s true, it’s become a buzzword. But for us, the Liberated Enterprise has a real meaning, a human meaning, and we are working to apply it on a daily basis (in our work methodologies, internal and external exchanges, in our developments, our decision-making, our recruitment, etc.). When we speak of the Liberated Enterprise, we mean liberating the potential of each and every member of our team. Out with traditional management, out with imposed hierarchies. We’ve chosen a different model.

The counter-truths we encounter on the subject of the Liberated Enterprise are varied. Between fantasies, errors of judgement and misunderstandings, one might think that the Liberated Enterprise is a miracle recipe for curing all the ills of the economy (remove your managers and support functions, then equalize your employees by adding a good dose of respect. When your preparation is ready, put it in the oven. Finish with a sprinkling of “agility” and you’re ready to go).

At Fasterize, we’ve been building our Liberated Enterprise for the past 5 years. Here are our answers to the 7 most common untruths.

The 7 main untruths about the Liberated Enterprise

1. The Liberated Enterprise as opposed to the traditional enterprise

Why oppose the Liberated Enterprise to the traditional enterprise? Is there only one model?
We don’t think one is better than the other. They’re all different ways of working, and it’s up to each individual to choose the one that suits them best.
Some people are more comfortable and productive when they’re supervised. Many people dream of becoming a manager.

However, the traditional model is not for everyone.
A Gallup study (quoted by Isaac Getz) states that:

• “61% of employees are “disengaged” in the company, i.e. they come in, do what’s asked of them, but half-heartedly, and often look at the clock while impatiently waiting for the moment to leave.”
• “28% of employees are “actively disengaged”, meaning that not only do they have no motivation for their work, but they also spend their time destroying the motivation of others.”

Source : umana.fr

This is one of the reasons why so many employees are moving towards greater independence and setting up their own businesses.

If we all have different desires and ambitions, why should only one model prevail?

2. The Liberated Enterprise, a solution to all corporate ills

When we hear about the Liberated Enterprise, it’s often to list all the “benefits” it has on profitability, employee commitment, motivation and agility.
Is the Liberated Enterprise a recipe that can simply be applied to cure all corporate ills? We’ll stop you right there. The answer is no.

Let’s go back point by point to the “benefits” listed above:

• • Enhanced profitability: if you’re thinking of becoming a Liberated Enterprise to cut costs, think again!
    If this has been the case for some companies that have changed their model, it’s because the managers and support functions that were eliminated were not adding much value. If this is not the case, value is only created in other ways, or, if not done properly, lost. In this case, costs could rise.

• • Commitment/motivation: commitment is clearly part of the Liberated Enterprise, since everyone is given responsibility for their actions (in the event of success or failure).
    Of course, this involvement improves motivation. But beware, it also means an extra weight on the shoulders.

• Agility: it’s not the Liberated Enterprise that makes an organization agile. But it is a prerequisite for any company wishing to follow this path.

The Liberated Enterprise is not a recipe for success. It’s a process that needs to be worked on every day, and adapted to each company’s specific needs.

3. Eliminating middle management: a loss of expertise

There are two important points here:

1. 1. Eliminating middle management does not necessarily mean losing expertise.

At Fasterize, we still have our experts: accounting experts, technical experts, sales experts, marketing experts and so on.
Expertise is important for a company to run smoothly. Far be it from us to part with it.
But that doesn’t mean we want to create silos in which experts are confined to working on their own subjects.

For example, we recently decided to upgrade our website. Even though this was a marketing mission, several profiles (technical and sales) spontaneously contributed to improving the website. And this was more out of interest in the subject than to contribute their business expertise (which differs slightly from multi-skilled project teams).

1. 1. There is no question of eliminating all support and managerial functions.

No cuts are made without thought. We’re simply changing the distribution that everyone has come to expect, by diluting certain functions among our employees.

In our case, we have chosen to dilute Human Resources.
Here, for example, the people who will be working with the new recruit are in charge of recruitment. The HR function, in our case, is no longer the exclusive property of one person. We break down the silos. It’s not an economic choice, but a human one.

4. The Liberated Enterprise means putting everyone on an equal footing

There is a misconception that the Liberated Enterprise is a democracy, that “one person = one vote”. But no, we’re not looking for consensus. That would not be easily adaptable, and we could lose responsiveness.
If the Liberated Enterprise were to resemble a political regime, it would be more like a “liquid hierarchy” (cf. liquid democracy). Just because everyone can participate doesn’t mean that everyone is legitimate to make any decision. Decisions are taken by those most concerned and most competent in the matter. This allows us to be much more responsive.

Here’s the decision-making process we’ve jointly defined within the team:

1. Anyone can make any decision.
2. The decision-maker must seek the opinion of those (he/she deems) competent on the subject and those concerned.
3. The scope of the people involved will (also) depend on the importance of the decision (for example: an expense may concern all employees, but depending on the amount, it may not be useful to consult everyone).
4. Finally, the decision-maker alone decides, taking into account (or not) the opinions of those consulted.

5. Free enterprise = power games

For some, the absence of a clearly identified leader with the means to regulate dysfunctions makes the Liberated Enterprise a place ripe for political games.
But when power is equitably distributed and legitimately obtained (through expertise, for example), political games have no place.

To think that the Liberated Enterprise is anarchy because there are no managers, shows how little confidence we can have in Man.
In the Liberated Enterprise, trust is at the heart of the way things work.

And what about the founder?
The Liberated Enterprise must come from the founder. He or she must not simply adhere to it. He has to be the driving force, play the game and make sure he doesn’t keep all the power. The same goes for all levels of management. Shareholders must also be included in the decision-making process.

6. Career development within a Liberated Enterprise is impossible or non-existent

Career development is often reduced to a manager’s position, as if this were the only way up the corporate ladder.
Of course, those with such vertical ambitions will not find their place in a Liberated Enterprise.

On the other hand, the Liberated Enterprise facilitates functional evolution. As silos no longer exist, it’s much easier to move from one set of tasks to another. In this way, we simplify horizontal evolution.

Once again, it’s up to each individual to define what suits him or her best.

7. The Liberated Enterprise: a new form of servitude

It’s a paradox: the more freedom you have, the more you can feel “chained” to the company. Responsibilities (and the fears that can accompany them), the possibility of working anytime, anywhere, can be perceived as the servitude of “having” to work all the time. The boundaries between private and professional life can quickly become blurred. Servitude is indeed a risk.

That’s why it’s so important to manage your time and maintain a sustainable rhythm. At Fasterize, we take great care to ensure that this is the case, because working 70 hours a week is not sustainable, and the quality of our services could suffer as a result.

What’s to prevent this from happening? Freedom (to organize oneself as one wishes) and trust. Without this, the company cannot be truly liberated.
Of course, this implies two things:

• we must learn to be free : we must each learn not to let ourselves be overwhelmed, and to take the power available to us. It’s a first step to have the right, but you still have to know how to take it.
• recruitment is essential: it’s important that every new recruit embraces the Liberated Enterprise, contributes to it and plays the game.

The Liberated Enterprise is a territory we’re breaking new ground in every day. It’s a territory where the French Labor Code is sometimes far removed from our reality.
For example, the French Labor Code does not allow for unlimited leave (for insurance reasons, among others). But this is something we want to make official at Fasterize. So it’s up to us to adapt the Labor Code.

The Free Enterprise is not a recipe. It’s not a matter of listing ingredients, throwing them into a common bowl, mixing them and waiting.
As we said at the start of this article, it’s a process. An approach that can certainly be inspired by other Liberated Enterprises. Every idea or best practice we learn from these testimonials needs to be adapted to our own reality, our own desires, our own way of working.

Read also: How does the Liberated Enterprise work at Fasterize?