Five Org Design Things N° 4
Tesla and vertical integration; hotels and the theory of the firm; Shipt dystopia; Range's newest raise; digital service.
How can we get more of what we want, and less of what we don't want, from where we work? How do we do that with intention? How do we allow for emergence?
47 PostsTesla and vertical integration; hotels and the theory of the firm; Shipt dystopia; Range's newest raise; digital service.
Decentralized justice systems... might be the future of corporate governance?
The truth about most organizations, especially the big ones, is that they're structurally quite fast-moving and dynamic.
The correct answer to a question about the level of distributed authority doesn't just respond to the will of the people, or to some theoretical norm – it has to be in conversation with the market dynamics of the industry and the company's position in that market.
When we surveyed a bunch of organizations, we found that effectiveness was correlated with leadership helping create networks within the org.
Governance is recorded as either Roles or Policies. All of it is changeable with data on a cycle-by-cycle cadence, at open, facilitated Governance Meetings. Policies apply to teams that create them, and to any sub-teams. Everything else is up to your best judgement.
Three old technologies (rule of law, market forces, and transparency) can help us move toward seven universal performance criteria for organizations: purpose; fitness; vitality; fairness; power; connection; safety.
When it comes to organizing humans, the only thing that matters is legitimacy.
Are organizations degrading the human experience, or are they poised to accelerate our progress toward dignity and achievement in the 21st century? Yes.
Watch out for approaches that prioritize clarity above all else. Clarity can make you a cog in a machine, it can stunt your personal growth, and can pressure organizations to stick to the status quo.
Basic premise: because technology (and other factors), firms were able to flatten, putting more managers under the direct control of a senior leader.