Professor Benjamin Laker of Henley Business School in the UK is an expert in leadership who is putting the spotlight on blockchain technology and how it is set to change leadership strategy.
“Blockchain technology provides a decentralised, secure way to store and manage data, enabling new levels of transparency and collaboration that transform strategies and operations,” he said.
Professor Laker said, “With blockchain technology, organisations can create a shared, tamper-proof database to track transactions, assets, and interactions among parties. This provides a single source of truth that everyone can trust, eliminating the need for costly intermediaries and manual reconciliation.
“But leaders must take a strategic approach to ensure that their organizations can reap the full benefits of this transformational technology,” he said.
Professor Laker has identified four ways in which blockchains will impact leaders and their roles within organisations in the years to come:
1. Increased transparency will lead to more accountable leaders
According to a recent IBM study, senior executives believe blockchain technology will significantly increase managerial transparency, making it easier for leaders to be held accountable for their actions. “Blockchain enables all transactions will be stored on a public ledger that anyone can view,” agreed Serge Baloyan, CEO and founder of x10 agency—a Web3 firm—in an email. He believes the aforementioned transparency will level the playing field between employers and employees. “In the past, information asymmetry has typically favoured the employer,” said Baloyan. “But with a blockchain, employees can track their progress and performance, therefore garnering a better understanding of opportunities for advancement within their company.”
2. Decentralised decision-making will give employees more power
In a decentralised system, power is distributed among the many rather than concentrated in the hands of a few. A shift will give employees more power and control over their careers because no central authority controls the network. Instead, decisions can be made by consensus. This view is asserted by research undertaken by Nadia Zahoor from the Queen Mary University of London. “Decentralisation of power will grant employees more say in how their company is run,” said Zahoor in an interview. In the past, employees have often been at the mercy of their leaders. But with a blockchain, she believes employees will have a direct say in decisions. “This will effectuate a more democratic workplace where everyone has a voice,” said Zahoor.
3. Improved efficiency will result in more productive leaders
A study undertaken by Deloitte found that blockchains improve business efficiency because the technology can automate many processes, freeing up time for leaders to focus on other tasks. This benefit aligns with a view held by Bryan Ritchie, CEO of Simba Chain, who said, “Blockchain’s inherent transparency offers large-scale organisations the visibility they need to optimize workflows” in an email. Ritchie believes this operational improvement will improve efficiency. “By using blockchain, businesses can remove third-party intermediaries, which often add unnecessary cost and delay”. He added, “The improved efficiency and reduced costs that blockchain technology offers will help to empower leaders and give them the resources they need to make better decisions.”
4. New leadership models will emerge
As blockchain technology evolves, new leadership models will emerge, such as the Decentralized Autonomous Organization (DAO) and the holacracy. The DAO is a decentralised organisation run by a set of rules encoded on the Ethereum blockchain.
Anyone can contribute to the DAO, and decisions are made democratically, meaning “they’re becoming a prominent force in empowering ordinary company stakeholders with decision-making abilities and integrating unprecedentedly accurate market demand statistics into every move,” said Max Krupyshev, CEO at CoinsPaid—a payment gateway service provider—in an email. Holacracy, on the other hand, is a decentralised way of organising companies and making decisions.
It’s based on the principle of democracy, enabling employees to have a say in how a company is run, which, according to Krupyshev, is a significant step forward in developing corporate governance. “In the near future, we’ll likely see traditional companies implementing these new technologies in their corporate structure, helping them to be more efficient and agile, as well as improve transparency and communication,” he said.
In summary, Professor Laker said, “blockchain technologies will lead to many changes in the years to come. We can expect to see new leadership models emerge, new skills required of leaders, and a more collaborative decision-making style.
“Those who can embrace these changes will be in a better position to succeed. As such, leaders need to start preparing now because, at the end of the day, that’s what leadership is all about: being prepared for what’s next.”
