Badass CEOs Leading Radical Change

Why go there?

You’re probably wondering why they would even go there. Why undergo a radical transformation from a traditional hierarchical model to self-managing teams, where you lose your influence and control? Not knowing what the outcome will be and if it will even work.

As different as the organizations of these CEOs (or general coordinators, as they call themselves) are, so were their reasons to make the change. Some faced declining performance and sought a way back to growth. Others grew fast and felt they were losing the human connection, looking for ways to balance freedom with responsibility. A few aimed to prove that beliefs and practices from the social sector could work in a privately owned company.

The common thread is that they all felt an urgent need for change—to do things differently. Radically different. And after the transformation, so were their results. In the two years following it, they saw an increase in profits between 25% and 300%, a 40% rise in productivity, and over 30% lower absenteeism compared to their peers.

But this is not why they did it. They warn anyone embarking on the journey with just those results in mind. Because there is one critical factor they all talk about for a successful transformation.

The foundation of it all

That foundation is trust. Fanatically acknowledging that people are the most important factor in the success of your company and putting them at the center of it all. This is unanimous advice from all these leaders: believe in people. Trust that they are capable of full responsibility and development. If you don’t believe this, don’t even bother starting the process.

Why? Because it will be hard. There will be huge challenges, failures where you expected success, and push-back when you expected cheerleaders. It is not an easy road. To persevere and withstand the temptation to backtrack, you need a rock-solid belief that it can and will be done.

Ismael said, “If you trust, sometimes people disappoint you, but don’t start controlling or distrusting. It’s just part of the price you pay, but it’s worth it.”

If you trust, the rewards are exciting. People will grow in unexpected ways, come up with ideas you wouldn’t have thought of, and be motivated beyond belief. As Bego put it, “It makes projects better, improves the lives of team members, and even your customers.”

Need any more motivation?

You gain some, you lose some. All of them gained some things and lost some as well. Here are some of the things that stood out.

Team members

They all lost some team members. All of them stated that this way of working simply isn’t for everyone. You have to be okay with that. Of course, try hard together, look for ways to make it work, and provide the necessary training, coaching, and feedback. But in the end, if it doesn’t work, don’t try to convince them. Let them go their own way and wish them well.

Ana said it beautifully: “This style is not for everyone, so dealing with those people who preferred to be told what to do was the hardest part. They left the organization in the months following the transition. They just didn’t feel comfortable assuming the responsibility all that freedom came with.”

On the other hand, she also got some surprising feedback. One team member said, “Since I’ve been working with this style in this organization, my problem now is that I won’t be able to work happily with the styles I’ve worked with before.”

You lose some team members who won’t fit the style, but you’ll gain loyal ones who will help you go the distance. Sometimes, the ones you lose even return after a while.

Power (to the people)

You lose power. It’s as simple as that. You don’t get to make all the choices. You give away your veto and have to follow the rules just like everybody else. Scary? Definitely! Does it feel like losing control? Yep, sometimes it does. It goes beyond the inconvenience of missing the ability to make a quick decision yourself. But it’s all worth it, according to these leaders.

Given the power, people can handle more than you think. Bad news, for instance. The responsibility to come up with ways to improve the business. Developing the necessary skills. If you trust and let go, you will be surprised. Yes, they will make decisions you wouldn’t have, but they will also achieve results you couldn’t have imagined.

A very welcome side effect is the liberation of not having to make all the (important) decisions. ‘Weight lifted off my shoulders,’ ‘a significantly lighter backpack,’ they all mention this effect. One of them says he sleeps better and that weekends are much more enjoyable (his wife agrees). Satur says it’s working less with better results. Basically, it comes down to them being happier because they don’t feel the constant pressure of a whole company relying on them.

Check your ego at the door

They all talk about gaining humility. I strongly suspect it was already there, to begin with; otherwise, they wouldn’t have been able to go through the process. When you go for this, you have to check your ego at the door or at least be prepared to get it bruised a few times. You’re simply not needed as much as before. This goes hand in hand with the power shift. For example, one CEO left the company for 1.5 years, finding himself in front of a commission of team members who had questions for him before he could come back.

What you gain here is evolving as a person. Ismael talks about how helping other people develop is the most rewarding (and most frustrating, as they have their own pace and desires) part.

Keys to change

When asked what is key to a successful transformation, these common denominators came up:

• Information Sharing: If you share responsibility, you need to share information. No way people can make the right decisions otherwise. So you need to expose all information (in the politically correct business kind of way).
• Clear Framework: You need a clear, almost stringent framework. No rules, no fun. Be clear on how decisions are made, how to handle conflict and escalation, who is responsible for what, and anything else needed for smooth operation. The process to get there, the actual transformation, can be more fluid, considering the circumstances and needs during different steps on the way. Give people time to get used to the change (especially mid-management).
• Soft Skills Development: Work on soft skills, develop emotional intelligence, and pay attention to personal development at all levels. Meditation, mindfulness training, connecting to your gut feeling before making decisions, and systemic skills—all were mentioned. Satur said, “You don’t have to change the parts of the system (the employees), just the relationship between them.” Ismael mentioned that “80% of success is hiring the right people (based on soft skills). The rest is purpose, wholeness, and self-management.”
• Letting Go: Ana and Ismael both mentioned that it’s equally important to say goodbye when needed. Getting rid of toxic people is necessary to give room for others to develop and grow. Ismael refers to it as ‘pruning the tree.’
• Personal Transformation: Be willing to change yourself. Personal transformation is not foreign to these pioneers. Satur, for example, had a company accident and was in the hospital for months. It gave him a different perspective. As he describes it, “Life stops you sometimes. A company is a mirror of your own leadership. I realized I was the problem. If you change yourself, then things around you change.” He went to the board, was open about his fears and dreams, and didn’t focus on the outcome (a completely new approach for him). It was the beginning of the journey.

Being human

Another common factor is the emphasis on being human. Focusing on the whole person instead of just the working version makes the bond even stronger. It helps people feel at home, safe, and appreciated, increasing the fun you have together.

Bego had a perfect example of this. During COVID, realizing people were banging their heads against the wall, they decided to use the office space to give people an escape and build a music studio. The beauty of it? It’s still there. It’s one of the biggest icebreakers now with their customers. Instead of putting them at a table in an office with a cup of coffee, they start their meetings with a tour of the company and the music studio. A nice side effect of genuinely regarding what team members needed most.

Others have family days, provide courses that have nothing to do with their business, or just show an interest in hobbies and help people pursue their personal dreams and goals. Actually focusing on the whole human being strengthens their cohesiveness and, as a side effect, boosts business. But it only works when that is not the aim in the first place. So catch yourself and check your intentions!

Crazy or brave?

Urgency is knocking at the door of most organizations. We live in a world that is changing so fast that no one person can oversee and assimilate all available information anymore. We need to work on being sustainable. It’s increasingly difficult to recruit the right people, let alone keep them engaged and happy. And there’s a new generation looking differently at work and challenging the status quo (rightfully so). We need to address this and do better. Be better.

There is no one-size-fits-all solution. But it seems these CEOs are onto something. They are looking for ways to do it differently, centralizing people and focusing on autonomy, purpose, and wholeness. They are experimenting to find ways that fit their team and business.

So, are they crazy or brave? I’ll let you be the judge of that. Whatever you call them, they’re pioneers and they will always be badass CEOs in my book.

I hope there are a lot more of those badasses out there who will change the way we work for the better, clearing the way for the rest of us to follow, making it easier to try new ways of working, and finding the fit that’s right for us.