Identifying when a social enterprise is moving towards autocracy requires a keen eye for shifts in power dynamics, decision-making processes, and organisational culture. Because social enterprises often have a strong mission and a desire for efficiency, autocratic tendencies can sometimes be disguised as "strong leadership" or "streamlining."
Here are key warning signs to look for:
-
Centralisation of Decision-Making:
-
Decisions made solely at the top: A noticeable decrease in consultation with team members, beneficiaries, or other stakeholders on significant strategic, programmatic, or operational decisions.
-
Lack of transparency in decision-making: Decisions appear to come down from on high without clear reasoning or an understanding of how they were reached.
-
Reduced input from the board: If the board of directors, which should provide oversight and strategic guidance, becomes a rubber stamp for the leader's decisions, or if the leader actively marginalizes board members who challenge them.
-
Suppression of Dissent and Alternative Views:
-
"Yes-person" culture: Employees or team members who consistently agree with the leader are rewarded, while those who offer constructive criticism or alternative ideas are subtly or overtly sidelined, ignored, or punished.
-
Lack of open forums for discussion: Meetings become monologues from the leader, or opportunities for open debate are removed or actively discouraged.
-
Fear of speaking up: Team members express reluctance to voice concerns or different opinions, fearing repercussions.
-
Public shaming or private reprimands for dissent: Individuals who challenge the leader are publicly or privately humiliated or disciplined.
-
Erosion of Democratic Processes and Norms:
-
Changes to internal governance: Alterations to bylaws, policies, or operational procedures that concentrate more power in the hands of the leader or a small inner circle.
-
Manipulation of data or reporting: Information presented internally or externally becomes increasingly curated to support the leader's narrative, rather than reflecting objective reality.
-
Disregard for established rules: The leader or leadership team starts to bypass or selectively apply rules and policies, especially if they impede their desired outcomes.
-
Weakening of accountability mechanisms: Internal checks and balances (e.g., internal audits, performance reviews) become less rigorous or are controlled by the autocratic leader.
-
Shift in Communication Style:
-
Top-down communication only: Information flows primarily from the leader downwards, with limited channels for upward feedback or horizontal communication between teams.
-
Lack of genuine dialogue: Conversations are less about collaborative problem-solving and more about the leader issuing directives.
-
Secrecy and information hoarding: Key information is withheld from relevant team members or stakeholders.
-
High Turnover and Disengagement:
-
Loss of experienced or innovative staff: Talented individuals, especially those who value autonomy and collaboration, leave the organization.
-
Decreased morale and motivation: Team members appear disengaged, uninspired, or are simply "going through the motions."
-
Increased absenteeism or quiet quitting: Employees start to withdraw their full effort.
-
Focus on Personal Power over Mission:
-
Cult of personality: The organization's identity becomes increasingly tied to the individual leader, rather than its mission or collective impact.
-
Self-serving decisions: Decisions appear to benefit the leader's status, power, or personal interests more than the organization's mission or beneficiaries.
-
Suppression of external scrutiny: The organization becomes less open to external evaluations, partnerships, or collaborations that might challenge the leader's authority.
-
Rigidity and Resistance to Change (from the bottom up):
-
Inflexibility: The organization becomes less adaptable to new ideas or changing external circumstances if they don't originate from the leader.
-
Stagnation of innovation: New programs, approaches, or creative solutions become rare, as they are not fostered or are actively suppressed.
Why these matter specifically for social enterprises:
Social enterprises often rely on collaboration, community engagement, and a participatory approach to achieve their social mission. Autocratic tendencies directly undermine these core values. When a social enterprise becomes autocratic:
-
Its impact can diminish: Without diverse input and genuine engagement, solutions may be less effective or miss the true needs of the community.
-
Its legitimacy can be questioned: Stakeholders and beneficiaries may lose trust in an organization that doesn't practice the values it preaches.
-
Its talent pool shrinks: Mission-driven individuals are often drawn to social enterprises precisely because of their values and opportunities for meaningful contribution, which an autocratic environment stifles.
Observing a combination of these signs, especially a trend of increasing centralization and decreasing openness, would strongly suggest a social enterprise is moving towards a more autocratic style of management.