Blockchain Technology & Leadership
Blockchain technology enables new levels of transparency and collaboration that revolutionize strategy and operations by offering a decentralized, secure means to store and handle data. Organizations can use blockchain technology to build a shared, impenetrable database to keep track of assets, transactions, and communications between participants.
This eliminates the need for expensive intermediaries and manual reconciliation by providing a single source of truth that everyone can rely on. But for the organizations to fully profit from this transformative technology, their executives must adopt a strategic approach.
How Blockchain will Impact Leadership?
In the past, leaders oversaw centralized, top-down decision-making institutions. However, in this digital era, decentralized solutions are gaining popularity. Turkish President Recep Tayyip Erdogan recently said, “It is apparent that we cannot disregard this potential while we are preparing for the Century of Turkey. We want to be the nation to make use of this resource.” There are four ways that blockchains will affect leadership in the years to come.
According to a new IBM survey, senior executives believe that blockchain technology will greatly boost managerial transparency, making it simpler for leaders to be held accountable for their activities. According to Serge Baloyan, “Blockchain enables all transactions to be stored on a public ledger that anyone can observe.”
He thinks that transparency will level the playing field between companies and workers. The employer has often benefited from knowledge asymmetry in the past, according to Baloyan. Employees may track their development and performance with a blockchain, which helps them better grasp their company’s chances of progress.
Power is distributed among many people in a decentralized system as opposed to being concentrated in the hands of a few. Because there is no centralized authority controlling the network, a change will allow employees more power and control over their careers. Consensus can be used to make decisions instead. Nadia Zahoor, a researcher at Queen Mary University of London, stated that “decentralization of authority will allow employees more input in how their organization is handled.”
In the past, workers were frequently at the whim of their managers. However, she thinks that with a blockchain, workers will directly influence decisions and result in a more democratic workplace where everyone has a say.”
According to a Deloitte report, Blockchains increase business productivity, because the technology can automate many operations, giving managers more time to concentrate on other duties. According to Bryan Ritchie, CEO of Simba Chain, “Blockchain’s intrinsic transparency offers large-scale enterprises the visibility they need to optimize operations. This operational upgrade will boost effectiveness. Businesses may eliminate third-party intermediaries, which frequently add needless cost and delay, by embracing blockchain.” He continued, “Blockchain technology’s increased efficiency and decreased costs will help to empower leaders and give them the resources they need to make better decisions.”
New Leadership Models
As blockchain technology develops, new leadership models, such as holacracy and the Decentralized Autonomous Organization (DAO), will emerge. A set of guidelines stored on the Ethereum blockchain govern the decentralized organization known as the DAO. Max Krupyshev, CEO of CoinsPaid, stated in an email that the DAO is “becoming a prominent force in empowering ordinary company stakeholders with decision-making abilities and integrating unprecedentedly accurate market demand statistics into every move.”
Anyone can contribute to the DAO, and decisions are made democratically. The holacracy system, on the other hand, uses decentralized decision-making to organize businesses. According to Krupyshev, it is built on the democratic idea and advances corporate governance by allowing employees to have a say in how a firm is managed. “Soon, we may see traditional organizations integrating these new technologies into their corporate structure, enabling them to be more effective and flexible, as well as enhance transparency and communication,” he said.
In the years to come, blockchain technologies will bring about many changes. The emergence of new leadership models, the need for new leadership competencies, and a shift toward more collaborative decision-making are anticipated by various organizations. Those who can adapt to these changes will have a better chance of success. Because being ready for what comes next is ultimately what leadership is all about and leaders need to start preparing now.