Wednesday, August 13, 2014

Why Everyone Should Pay Attention to the Market Basket Case


I think what is happening at Market Basket is an indication of an incredibly deep rooted sociological upheaval that is happening everywhere. But you have to look hard to see it.

Like the underground coal mine fire of Centralia Pa, evidence of this “happening” can be seen as seemingly unrelated puffs of smoke that are appearing as things like The Arab Spring, Occupy Wall Street, The Tea Party; the breakdown of our bureaucratic educational systems; the push back against command and control leadership methods and in the Market Basket case.

What is happening and what is causing it to happen?

At the mega level I think we are witnessing the beginning of end of the age of institutionalism and the dawn of the age of entrepreneurialism. Entrepreneurialism is being defined in this case as the individuality, creativity and freedom of the individual.

Throughout history powerful institutions have been in conflict with individuals to determine who will reap the benefits from the creative mind power and manpower the individual possesses.

On one side of this conflict are governments, large institutions and bureaucracies, mega-corporations and financial institutions. One the other side are the individualists, business owners, the young and all those fighting for self determination and respect.

In the past, with few exceptions, the institutions have dominated. That is all changing now, albeit slowly and not without disruption(s).

The individual is mounting a serious challenge against the institution and it is a global happening.

While we are in the earliest stages of what will most assuredly be a decades long struggle for dominance, the battle lines are clearly drawn. The changing conditions of the last 40 years of the 20th century and the emerging conditions of the 21st century have determined the time for this struggle to start in earnest is now.  

This shift started when the Silent Generation of the 40's and 50's raised the Baby Boomers, who then raised the X'ers who are now raising the Millenials.

Each of these generations have raised children who are more independent thinking and who have more expectations of getting their way than the preceding generations. As a result while the Boomers fought for their independence and expectations, the X'ers expected them and now the Millenials demand them! 

As a result we now have three of the most educated, independent minded and empowered generations in the history of humanity either coming of age or already there.

Add to this sociological shift the fact the highly empowering, mind bending advances in technology that have occurred just within the last 10 years and you have a formula for independence, empowerment and mobility and freedom of the individual unlike anything ever experienced. 

Welcome to the age of entrepreneurialism. 

This is where the sparks that are fueling the fire that is beginning to burn and spread everywhere have begun, especially in the workplace. We now have three generations of workers who are not willing to simply give up majority control of their creative mind power or valuable muscle power without being respected, compensated or having a say in how either are used. 

Yet that is not how big businesses, government or institutions think. This individualism is a threat to their stability and to their ability to mine the human resources they need. This competition for control is creating conflict.

Which brings us back to the Market Basket case.

Market Basket was a very forward thinking company with a great culture. They enjoyed high levels of employee engagement and profit levels. Until very recently the CEO, and creator of the culture, was the beloved Arthur T.

Other family members were involved at the board level who didn’t agree with Arthur T’s management style. Enter Arthur S. Arthur S. is an old school, command and control, industrial age capitalist.

Arthur S. could be called an institutionalist and Arthur T could be called an entrepreneurialist. Well Arthur S ended up gaining control of the board and fired Arthur T. You could view this as a peaceful and free tribe being taken over by a competing tribal warlord.
 
This has set off a firestorm of protest from the workforce who loved their company, their culture and their tribal leader. Market Basket is now in a spiraling out of control and losing altitude fast.

If this were 50 or even 15 years ago workers would have simply adjusted the yokes on their necks, put their heads down and plowed ahead wistfully remembering the days when they were respected and their tribe prospered.

That is not what happened. Workers from the front office to the front line have joined in solidarity against what they view as an oppressive regime and a cutural regression.

They stood up for themselves. They stood up for their colleagues. They stood up for their principles. Then, after standing up, they walked in a show of solidarity that Norma Rae's could only dream about. 

In true entrepreneurial fashion, they put everything at risk and chose their principles over their paychecks. 

In response the institutionalists responded with power and force by firing key executives and threatening both managers and workers who dared challenge their authority.

The fired executives left their office and joined their colleagues on the picket lines. They were welcomed like the respected tribal leaders they are.

So, by eliminating a beloved CEO in order to get more productivity out of their people and more profits out of customers the new managers are losing both.

While it is too early to tell who will win this battle there is no doubt that the Age of Entrepreneurialism is here to stay. 

This is not to say that large companies and institutions will go away. But if they are to thrive or even survive in the modern age their leaders must change their corporate culture to fit the modern culture and the modern workforce it has created.

They will have to face the Age of Entrepreneurialism of face the consequences. The people are speaking.




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