We live in a knowledge economy. The core assets of the modern business enterprise aren't its buildings, machinery, and real estate, but the intelligence, understanding, skills, and experience of its employees. Harnessing the capabilities and commitment of knowledge workers is arguably the central managerial challenge of our time. Unfortunately, it is a challenge that has not yet been met. Corporate ownership structures, governance systems, and incentive programs--despite the enlightened rhetoric of business leaders--remain firmly planted in the industrial age. In this article, the authors draw on history to lay out a model for a democratic business organization suited to the knowledge economy. Some 2,500 years ago, the city-state of ancient Athens rose to unprecedented political and economic power by giving its citizens a direct voice and an active role in civic governance. The city's uniquely participative system of democracy helped unleash the creativity of the Athenian people and channel it to produce the greatest good for society. The system succeeded in bringing individual initiative and common cause into harmony. And that is precisely the synthesis today's companies need to achieve if they're to realize the full power of their people and thrive in the knowledge economy. The Athenian model of organizational democracy is just that--a model. It does not provide a simple set of prescriptions for modern managers. What it offers is a window into how sizable groups of people can, in an atmosphere of dignity and trust, successfully govern themselves without resorting to a stifling bureaucracy.
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