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Schumpeter - Montessori management

The backlash against running firms like progressive schools has begun

THE INTERNSHIP , a film about two middle-aged no-hopers who land work

experience at Google, is a dire offering even by the standards of Hollywood

summer comedies. But it does get one thing right: that it is rather absurd for

a technology firm to provide slides for staff to play on, and to let them wear

silly propeller-hats. Google is not alone in its juvenile tastes. Box, a

Silicon Valley company, has installed swings in its headquarters. Red Bull, an

energy-drinks firm, has a reception desk in the shape of a giant skateboard in

its London office. Businesses of all types have moved towards sitting workers

in groups in open-plan rooms, just like at nursery school. Time was when firms

modelled themselves on the armed forces, with officers (who thought about

strategy) and chains of command. Now many model themselves on

learning-through-play Montessori schools.

Montessori management has plenty of supporters in the higher reaches of

business. The bosses of Google (Larry Page and Sergey Brin), Amazon (Jeff

Bezos) and Wikipedia (Jimmy Wales) were all educated in Montessori schools. So

was Will Wright, a video-game pioneer. Messrs Page and Brin credit their

Montessori education with their enthusiasm for thinking differently. Mr Bezos

thanks it for his enthusiasm for experimentation for planting seeds and

going down blind alleys as he puts it. Mr Wright says SimCity comes right out

of Montessori .

The nostrums of some management gurus sound remarkably like those of the

progressive educationalists of the 1960s. For example Gary Hamel, of London

Business School, and Jeffrey Pfeffer, of Stanford Business School, praise

companies that dismantle hierarchies and encourage experimentation. It is not

just rich-world businesses that are buying into this philosophy: HCL

Technologies, an Indian software company, invites workers to write assessments

of their bosses and publishes them.

But it would be wrong to conclude that the success of Google and Amazon

vindicates Montessori management. Both companies have pragmatically mixed

progressive ideas with more traditional ones such as encouraging internal

competition and measuring performance. Mr Bezos is also an enthusiastic

employer of ex-military personnel. As in education, where traditionalists have

staged a counter-revolution against the progressives, some academics are now

questioning Montessori management s basic assumptions particularly its faith in

free-flowing creativity, endless collaboration and all things open-plan.

For example, Morten Hansen of the University of California, Berkeley studied

182 teams who were trying to win a contract on behalf of a

professional-services firm. He found that the more time they spent consulting

others, the less likely they were to win a deal. This shows, he says, that

collaboration has costs as well as benefits. These need to be weighed against

each other, instead of simply assuming that the more teamwork the better.

Mark de Rond, a Cambridge academic who once rowed for the university, argues

that the most successful teams are marked by internal competition and clashing

egos as well as Kum Bay Yah -style togetherness. A focus on interpersonal

harmony can actually hurt team performance, he suggests. Jake Breeden, a

management thinker at Duke Corporate Education, worries that too much reliance

on teamwork can create a culture of learned helplessness in which managers

are terrified to take decisions without yet another round of consultations.

Excessive collaboration can lead to the very opposite of creativity:

groupthink, conformity and mediocrity. It is especially damaging at the top of

an organisation. BlackBerry, a smartphone-maker, believed that having two CEOs

with complementary skills would produce the best of both worlds: Jim Balsillie

was a professional manager and Mike Lazaridis was a technician. The company

soon discovered the truth of Napoleon s dictum that one bad general is worth

two good ones .

According to one survey around 70% of all offices in America have gone

open-plan. Yet evidence is mounting that this is a bad idea. Over the past five

years Gensler, a design firm, has asked more than 90,000 people in 155

companies in ten industries what they think of this way of working. It has

found an astonishing amount of antipathy. Workers say that open-plan offices

make it more difficult to concentrate, because the hubbub of human and

electronic noise is so distracting. What they really value is the ability to

focus on their jobs with as few distractions as possible. Ironically, going

open-plan defeats another of Montessori management s main objectives: workers

say it prevents them from collaborating, because they cannot talk without

disturbing others or inviting an audience. Other studies show that people who

work in open-plan offices are more likely to suffer from high blood pressure,

stress and airborne infections such as flu.

Time for some discipline and separate offices

It was the unthinking and indiscriminate application of child-centred education

techniques, with little attention paid to outcomes, that eventually brought

about a backlash. The more thoughtful critics did not wish to turn the clock

back entirely and return to rote learning and tyrannical teachers; they simply

said that structure and order have their place too. The same seems to be

happening now in business. Mr Breeden argues, sensibly, that managers should

treat collaboration and creativity as techniques rather than dogmas. Diane

Hoskins of Gensler speculates that her company s findings about open-plan

offices are so striking that they may mark the beginning of a new era in

workplace organisation . When workers start being moved back into separate

booths, and the office slide is replaced with a noticeboard bearing a list of

staff instructions, you will know that the counter-revolution is well under

way.