Sally Helgesen on the sudden arrival of post-capitalist society

Home advantage

Workers reclaiming the means of production from factories and offices to their homes is a pivotal chapter in the capitalist story, writes Sally Helgesen

In 1993, Peter Drucker published Post-Capitalist Society. It has extraordinary lessons for leaders today, as we seek to emerge from the confusion, pain and jarring disruption of 2020.

What did Drucker mean, then, by

‘post-capitalist society’? And why did he use that phrase to describe what is more often called post-industrial society?

Drucker was referring to the fact that capitalism became ascendant as the primary means of production through a scale and complexity requiring significant capital investment. Capital had by far the greatest value in the chain of production – so it grew expensive, while labour became relatively cheap. As a result, the primary means of production – industrial machinery – had to be centralised in factories and, later, offices. Which in turn meant that most people could no longer work from home.

Those two factors combined to vest That’s what distinguishes the knowlprimary power in those who either pro- edge economy. It’s the reason why a vided the capital for an enterprise, or were new idea can quickly make 100 years of hired to exercise it as proxies – otherwise thoughtful and intensive capital develknown as management. But Drucker opment obsolete overnight. It is also the foresaw that the econom- reason why we now view ics of digital technology A new idea leadership as something would reverse this basic logic. The digital tools that can make that should be distributed throughout organisations, have made such a transfor- 100 years rather than the sole premative impact in the past 20 years are vastly more of intensive rogative of those at the top. In 2020, this dynamic dependent upon human capital assumed fresh relevance knowledge and creativity than upon raw materials or development as individuals around the globe had to spend months heavy machinery. obsolete working from home, and As Drucker presciently noted, those tools began to overnight as organisations adapted to this new reality. It’s forreverse the balance of pow- tunate that technology has er between people and capital, since people reached a point where it permits this – began to own the primary means of pro- and that the trend towards working from duction – which is lodged in their heads. home was already well underway.

So, what will the future hold if the primary means of production is engaged within people’s homes – the places where they were housed before the Industrial Revolution?

And what will it mean that we will be mostly working on what, over the last 200 years, has been recognised as female turf? The sphere where women exercise their authority and skills - that is, the home?

The post-capitalist society that Drucker foretold almost 30 years ago is now suddenly and, with force, upon us. Its consequences will reshape our organisations, and our lives, for the next century.

Sally Helgesen is a coach, author and speaker cited in Forbes as the world’s premier expert on female leadership. Her latest book is How Women Rise