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Improve Your Organizational Efficiency

Rethinking Organizational Assumptions:

Lessons from Roundabouts vs. Traffic Lights


Imagine two roads crossing, presenting a simple challenge: how do we prevent collisions while maintaining maximum traffic flow? The signal-controlled intersection, with its elaborate rules and technology, assumes that people cannot be trusted to manage the intersection on their own. They need to be told what to do. The roundabout, however, operates on a different set of assumptions. It trusts that drivers can use their judgment and follow simple rules, leaving room for social coordination to handle the rest.


But the differences don't stop there. Signal-controlled intersections require a vast infrastructure to function properly. There are control stations staffed with personnel monitoring the situation constantly, ensuring that the lights change at the right time and that everything runs smoothly. If something goes wrong, the whole system can grind to a halt, causing frustration and delays for everyone involved.


Roundabouts, on the other hand, are largely self-sufficient. They don't require constant monitoring or intervention. Once they're built, they can function independently, with drivers navigating the flow of traffic on their own. This not only saves money on maintenance and staffing but also makes the system more resilient and adaptable to changing conditions.


As Aaron Dignan points out in his book "Brave New Work," the differences between these two systems are starker than we might think.

"One allows for a surreptitious text message or two while we wait," he writes. "The other keeps things moving. One has a huge apparatus behind it, with control stations and staff monitoring the situation constantly. The other is left to its own devices."

Despite the clear advantages of roundabouts, they're surprisingly rare in the United States. There's about one roundabout for every 1,100 intersections. So, you might assume that signal-controlled intersections are superior. But the data tells a different story. Roundabouts are safer, more efficient, and cheaper to maintain than their signal-controlled counterparts. They reduce injury collisions by 75%, fatal collisions by 90%, and delays by 89%. They cost $5,000 to $10,000 less per year to maintain. And they continue to function normally during power outages.


Organizations Filled with Similar Assumptions


Our organizations are filled with similar hidden assumptions that we rarely reconsider. They're like an operating system running silently in the background, inspiring practices that create what I call "organizational debt." Just as technical debt in software development leads to complexity and inefficiency over time, organizational debt emerges when our practices and structures fail to trust people's judgment, hinder their growth, and limit their potential.


As leaders, it's our responsibility to examine these assumptions and consider alternative approaches that empower our teams and reduce organizational debt. This is especially crucial in today's rapidly changing world, where Darwin's model of generational evolution is no longer sufficient for our organizations to remain viable. We must develop the ability for inner-generational development; the ability to retool ourselves many times within our lifetime.


Practical steps and questions to consider:


  • Identify the "signal-controlled intersections" in your organization. What policies or practices assume the worst of people and require constant monitoring and control?


  • Consider how you might replace these with "roundabouts" that trust people's judgment and allow for social coordination. What simple guidelines could you provide instead of elaborate rules and oversight?


  • Reflect on your own leadership style. Do you tend to micromanage and control, or do you trust your team to make decisions and navigate challenges on their own?


By questioning the status quo and embracing a more human-centric mindset, we can create organizations that are not only more efficient and effective but also more fulfilling and purposeful for everyone involved. So, the next time you encounter a signal-controlled intersection in your organization, ask yourself: could a roundabout work better here? The answer might just surprise you.

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