Blockchain technology provides a reliable, secure way to store and manage data, enabling new levels of transparency and collaboration that transform strategy and operations. With blockchain technology, organizations can create a shared, tamper-proof database to track transactions, assets, and interactions between organizations. This provides a single source of truth that everyone can trust, eliminating the need for expensive intermediaries and manual reconciliation. But leaders must take a strategic approach to ensure that their organizations can reap the full benefits of this revolutionary technology.
The way we think about leadership is changing, and blockchain technology is playing an important role. In the past, leaders were in charge of top level organizations making decisions from the ground up. But as we enter the digital age, decentralized systems are becoming increasingly popular.
President Recep Tayyip Erdoğan recently said at his government’s blockchain conference, “It is clear that we cannot ignore this possibility while preparing for the Century of Turkey. We want to be the country that uses this tool.” Erdoğan’s words emphasize that leadership is changing, and countries must change with the times or risk being left behind. Therefore, leaders must adapt because there are four ways blockchains will affect their roles in the coming years:
1. Increased transparency will lead to more accountable leaders
According to a recent IBM study, senior executives believe that blockchain technology will greatly increase management visibility, making it easier for leaders to be accountable for their actions. “Blockchain enables all transactions to be stored in a public ledger that cannot be seen by anyone,” agreed Serge Baloyan, CEO and founder of x10 agency-a Web3 firm-by email. He believes that the aforementioned transparency will level the playing field between employers and employees. “In the past, the asymmetry of information was usually in favor of the employer,” Baloyan said. “But with blockchain, employees can track their progress and performance, so they get a better understanding of their company’s development opportunities.”
2. Decentralized decision-making will give employees more power
In a decentralized system, power is distributed among the many rather than concentrated in the hands of the few. The change will give employees more power and control over their work because there is no central authority controlling the network. Instead, decisions can be made by consensus. This view is supported by research conducted by Nadia Zahoor from Queen Mary University of London. “Separation of power will give employees a chance to say how their company is run,” Zahoor said in an interview. In the past, workers were often at the mercy of their leaders. But with blockchain, he believes employees will have a direct say in decisions. “This will promote a democratic workplace where everyone has a voice,” said Zahoor.
3. Improved performance will lead to more productive leaders
A study 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 advantage is in line with the idea held by Bryan Ritchie, founder of Simba Chain, who said, “Putting things beyond the Blockchain gives large organizations the visibility they need to improve workflows” in an email. Ritchie believes these performance improvements will improve efficiency. “Using blockchain, businesses can eliminate third-party intermediaries, which often add unnecessary costs and delays”. He added, “The improved efficiency and reduced costs offered by blockchain technology will help empower leaders and give them the resources they need to make better decisions.”
4. New ways of leadership will emerge
As blockchain technology develops, new leadership models will emerge, such as Decentralized Autonomous Organization (DAO) and holacracy. The DAO is a decentralized organization governed by a set of rules coded into the Ethereum blockchain. Anyone can contribute to the DAO, and decisions are made democratically, which means “they become a dominant force in empowering ordinary company stakeholders with decision-making skills and integrating unprecedented accurate market statistics into every move,” said Max Krupyshev, CEO at . CoinsPaid—a payment gateway service provider—by email. Holacracy, on the other hand, is an empowered way of organizing companies and making decisions. It is based on the principle of democracy, which allows employees to have a say in how the company is managed, which, according to Krupyshev, is an important step in improving corporate governance. “In the near future, we will see traditional companies using these new technologies in their structure, helping them to work more efficiently and quickly, and improve visibility and communication,” he said.
In short, blockchain technology will lead to many changes in the coming years. We can expect to see new leadership models emerge, new skills required of leaders, and a collaborative style of decision-making. Those who can embrace these changes will be in a better position to succeed. Therefore, leaders must start now to prepare because, ultimately, that is what leadership is all about: preparing for the next.