Working democratically unleashes staff potential, drives stronger service: CEO

The CEO of an organization recognized for its workplace democracy says having democratic values is rewarding for individual employees and clients, as well as the organization as a whole.

“By working democratically we’ve been able to unleash more potential in all the staff and deliver stronger services,” says Richard Woo, CEO of The Russell Family Foundation (TRFF), a philanthropic group based in Washington State.

TRFF funds grassroots leadership initiatives, environmental sustainability projects and groups working on issues of peace and security.

The foundation has seven employees and a “fairly non-hierarchical” setup.

“We put a lot of emphasis on teamwork,” says Woo.

Each quarter the foundation staff develops goals collectively. Benchmarks are agreed to by consensus. If the goals are achieved, the team as a whole receives financial recognition.

Annual performance reviews take place with the input of every team-member on the evaluation of every other team-member, including entry-level staff and the CEO. The foundation also solicits feedback from clients on its service.

While the latter may not be particularly unusual among organizations, Woo points out that it is another way that TRFF reinforces the sense of involvement, accountability and democracy in the workplace.

Leadership teams to direct various programs include staff of all levels.

“The beauty of that is that we get ideas from all different levels and experiences of these people,” says Woo, adding that various innovations that have bubbled up from staff have been implemented within TRFF.

“I think when people participate in this way they feel really well-used, they feel like they’re contributing and investing in the outcomes of the work.”

Woo suggests that the democratic approach can lead to better health on a number of fronts.

“When people spend less time holding back their feelings and spend more time contributing 100 per cent of who they are then they get more alignment professionally and personally,” he says. “They get more satisfaction and I think it leads to better health physically, mentally and organizationally.”

The foundation was created by the Russell family when they sold their business, at the time called the Frank Russell Company, now called Russell Investments.

The company is known for being values-driven and a good place to work. It consistently rates highly in Fortune Magazine’s annual rankings of the "100 Best Companies to Work For."

“There’s a certain kind of workplace culture that’s embedded in the DNA of the (Russell) family and therefore in the organizations they create, whether for-profit or non-profit,” says Woo. “And that’s led to the creation of workplaces that are fair, equitable, balanced, and good places to work.”

Last year the foundation was ranked the No. 1 non-profit in Washington state as a result of the annual rankings of best places to work for by Washington CEO Magazine.