What are management sciences? A discipline undergoing significant reevaluation, one that must reflect on the role of the organization, its decisions, and its stakeholders in a world undergoing profound change. This leads to a rethinking of the connections with existing models and other social sciences.
In this spirit of renewal, revisiting history can be a source of valuable reflection and lessons. Let’s go back in time to a concept that is absent from management science: self-management. The late 1960s were marked by a sudden and intense thirst for freedom, including within the corporate world. The term was very much in vogue at the time, becoming, it seems, the subject of history rather than of our discipline. It took on a political dimension, highlighting the self-sufficient economic model of non-aligned countries such as Algeria.
The purpose of this article is to define the concept of self-management from a managerial perspective. Let’s take an inductive approach and examine two seemingly disparate cases: Lip, a19th-centurywatchmaking company in Besançon that identifies as a self-managed enterprise, and… the Dominican monastic order, on which I have written a study. Although this organization is rarely discussed in management studies and has the potential to enrich our thinking, it can be seen as a pioneer in this field.
Lip: “We make it, we sell it, we get paid.”
A radical approach—the philosophy of the French watchmaker Lip can be summed up in a slogan: “It’s possible: we make it, we sell it, we pay ourselves.” In a nutshell (and in a way), this outlines the framework of a self-managed company: total horizontal organization.
The company’s early days were marked by hardship—and even struggle. Founded in 1867 in Besançon (Doubs), the Swiss consortium Ébauches SA—the majority shareholder—parted ways with its iconic CEO, Fred Lipmann, the founder’s grandson, in 1971. In June 1973, a layoff plan was being prepared at the Lip factory in Palente amid a watch market in free fall. Inside a board member’s briefcase was a document with the note: “480 to be let go.”
Workers' Wages and Rotating Shifts
In response, 100,000 people demonstrated on September 29, 1973. For nine months, a collective operated outside the bounds of the law, drawing on a surprising mix of supporters ranging from progressive Catholics to the self-managed left—from the Dominican friar Jean Raguénès to Michel Rocard, from Catholic Workers’ Action to the Unified Socialist Party (PSU) and the labor unions.
In practice, inventory is removed from the factory and 50,000 watches are hidden; production continues, and the Lip members sell their watches and pay themselves. “Workers’ wages” and commissions—for security, production, and catering—are organized. Each employee rotates through different positions and serves on a committee, regardless of their skills or position in the hierarchy. Watches are sold directly in the factory. Ideas abound and are put into practice throughout the day.
This saga came to an end in January 1974 with the conclusion of the self-management experiment. A new phase—intended to give the factory fresh momentum—was launched, led by Claude Neuschwander. The context had changed; Lip once again became a “traditional” company.
Liberalism: The Cause of Lip’s Failure?
Lip demonstrated that the self-management experiment was feasible, but the fact that it has been overlooked—or that there has been a lack of in-depth research in the field of management science—prevents us from truly understanding the causes of its failure.
The growing theoretical formalization of the liberal economic world during the same period put this experiment at odds with a structured self-management model. Economist Milton Friedman was already influential with his theory of shareholder value maximization. The new rule of a 15% return on equity (ROE) would soon emerge—the standardized return expected by shareholders in exchange for their investments. The mechanisms of liberalism were taking shape, far removed from the LIPs’ goal of saving jobs.
Agency theory, a central tenet of liberal thought, was published by Jensen and Meckling in 1976, just as Lip filed for bankruptcy. It formalizes the management of the relationship between the decision-maker and the person responsible for execution —the principal (the shareholder) and the agent (the executive). These ideas are a far cry from the vision of self-management.
Another point seems just as interesting and warrants further exploration. Lip was a unique figure, full of panache, astonishing creativity, and spontaneity—but could his isolation have been his undoing?
Self-Governed Middle Ages
We have to go back to the Middle Ages to find other self-governing organizations: the monastic orders. They often developed far from economic centers—and thus isolated from the wider world—with a horizontal approach to relationships, breaking with the medieval world where hierarchical verticality dominated. They enjoyed true autonomy from the dual authority of their order and the Vatican.
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To enable this freedom, monastic orders rely on a fundamental and innovative principle: the chapter. It is a time for deliberation during which the leader engages with the members of the organization in a very horizontal relationship. Each order has its own culture and identity.
The Dominicans have a specific form of chapter. It is during this time—at the local level with the friary, the regional level with the province, and the global level for the entire Order—that the communities determine the issues to be addressed during the coming term, as well as who will be responsible for carrying them out. It should be noted that no one runs for office: the voters determine who the candidates are and then cast their votes. Terms of office are limited in number and duration. Once the term ends, the leader returns to being an ordinary member of the organization. This elective structure is based on the dual principles of subsidiarity/delegation and trust. Whatever can be accomplished at a lower level must be done there.
Intrapreneurship at the Convent
This highly flat organizational structure, along with these principles and this culture, has given rise to a multitude of projects. These projects generate the revenue necessary for the organization’s economic stability. In this regard, it is possible to interpret the concept of intrapreneurship within this seemingly unusual framework.
Thus, inthe 21stcentury, students took the initiative to use the Internet, first to post sermon transcripts online, and then—seeing the potential of this technology—they adapted their sermons to the screen format. From its beginnings as a local experiment at the student convent in Lille, through a period of rapid growth, to its establishment as a permanent initiative, this project was initially managed by the students completely independently, without formal oversight from the order, with a leader serving for a limited term. A rotating position… just like at Lip.
Its necessary professionalization was formalized by the chapter, which elevated its status:“Retreat in the City” became a sustainable initiative. It is characterized by a strong horizontal structure, streamlined processes, and different leaders from one year to the next, yet the project’s progress remains undiminished.
Self-management is therefore a form of organization in which hierarchy and control are minimized and participants enjoy a high degree of autonomy. Leadership and action are not separate. The ability to endure over time depends on a strong, cohesive culture and integration into a broader ecosystem. These conclusions can be observed in the Dominican Order, an organization that, at first glance, seems far removed from management science. Were these elements present at Lip, and could the experiment have lasted beyond a few months? We will never know…
