Companies like Google and Apple are attracting great thinkers and doers - not because they promise to tell their employees what to do but precisely because they pledge to give them the autonomy to do what they are best at and to act as critical players no matter their position in the organizational structure. There, people recognize that the most powerful thing in this new world is a good idea in the hands of a capable entrepreneur. It does not work in today’s fast-paced, change-is-the-name-of-the-game world and it will not work tomorrow.Ĭompare once-powerful Detroit to Silicon Valley. This command-and-control approach works in a relatively static world where most tasks are repetitive - such as building cars on an assembly line. Henry Ford and his small group of managers did all the thinking and told everyone else what to do. Which organizations, cities, and institutions are leading the pack? Where are the smart and capable people migrating?įifty years ago, Detroit was the symbol of American ingenuity and prosperity. We are transitioning from a world in which a small elite runs everything to a world in which everyone needs to be a player. In fact, the sector is now generating jobs two-and-a-half to three times as fast as business is. (More than half of these start-ups change national policy within five years.) Consequently, the citizen sector is halving the gap between its productivity level and that of business every 10 to 12 years. We have supported and witnessed the game-changing effects they have had in area after area. Ashoka has invested in more than 2,700 of these entrepreneurs from every part of the world. Social entrepreneurs emerged with new system-changing ideas. Government agencies and traditional charities and philanthropies no longer monopolized the world’s efforts to solve social problems. In 1980, however, a new citizen sector began to make the leap to the entrepreneurial architecture of the private sector. Here there was no competition, so a huge productivity gap opened between the private sector and the public sector, with the latter characterized by low performance, dismal pay, and low self-esteem. This progress seemed to have bypassed the public sector - government, foundations, and nonprofit organizations. Average per capita income rose 20% in the 1700s, 200% in the 1800s, and 740% in the last century, and the world - especially the pioneering world of business and commerce - was forever changed. This allowed the West to break out of 1,200 years of stagnation. A more open architecture developed in Northern Europe, where better ideas were rewarded and entrepreneurial innovation was born. A small surplus meant that only a small elite could create culture and control resources. The agricultural revolution set up a pattern that still exists today.
We are on the cusp of a fundamental change - a worldwide change in the skills everyone needs to succeed, in the nature of organizations, and in how businesses must be led.
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