Are Managers An Endangered Species?
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It's long been noticed that public companies tend to be less innovative. There's also a trend in many Agile companies to eschew management. Are private, Agile companies without managers the future?
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Are Managers An Endangered Species?
- 1. Are Managers An Endangered Species? If team are self-directing, why do we need managers? Curtis "Ovid" Poe http://allaroundtheworld.fr/ Copyright 2014, All Around The WorldApril 3, 2014
- 2. The Elephant in the Room • The “unsolved problem” in Agile • Traditional management doesn’t work • This problem is often ignored • So … history April 3, 2014 Copyright 2014, All Around The World http://www.flickr.com/photos/hbarrison/7522705738/
- 3. Hunter-Gatherers • Follow the leader • … or die • Tend to be more egalitarian • Tend to be more communal April 3, 2014 Copyright 2014, All Around The World
- 4. Feudalism Oversimplified • Local allegiances • Poor internal communication – No price signals – Thus no markets (in the modern sense) • Command-and-control from king to serf April 3, 2014 Copyright 2014, All Around The World
- 5. The Feudal Era April 3, 2014 Copyright 2014, All Around The World
- 6. The Corporate Era April 3, 2014 Copyright 2014, All Around The World
- 7. Wait, what? April 3, 2014 Copyright 2014, All Around The World
- 8. Startup April 3, 2014 Copyright 2014, All Around The World
- 9. Growth April 3, 2014 Copyright 2014, All Around The World
- 10. Mature April 3, 2014 Copyright 2014, All Around The World
- 11. Senile April 3, 2014 Copyright 2014, All Around The World
- 12. Progressive April 3, 2014 Copyright 2014, All Around The World
- 13. Why Do Corporations Struggle? • Why don't big companies innovate more? (Forbes) • Why big companies can't innovate. (Harvard Business Review) • Why is innovation so hard for large companies? (Game Changer) • Why small companies have the innovation advantage. (entrepreneur.com) • The Dark Side of Analyst Coverage: The Case of Innovation. (Journal of Financial Economics) April 3, 2014 Copyright 2014, All Around The World
- 14. Public Companies • Share prices tied to compensation • Share prices tied to job security • Share prices vis-à-vis company takeover • Share prices as a measure of success April 3, 2014 Copyright 2014, All Around The World
- 15. Share Prices Keeping share prices high requires minimizing risk April 3, 2014 Copyright 2014, All Around The World
- 16. Share Prices Minimizing risk means minimizing innovation April 3, 2014 Copyright 2014, All Around The World
- 17. Inefficiencies • Feudal societies were inefficient – Local allegiances – Poor internal communication • No price signals • Thus no internal markets (in the modern sense) – Command-and-control from king to serf April 3, 2014 Copyright 2014, All Around The World
- 18. Inefficiencies • Corporations are inefficient – Local allegiances – Poor internal communication • No price signals • Thus no internal markets (in the modern sense) – Command-and-control from CEO to grunt April 3, 2014 Copyright 2014, All Around The World
- 19. April 3, 2014 Copyright 2014, All Around The World If we are willing to die for Democracy and Capitalism … why do we forbid it in our corporations?
- 20. People (a.k.a. “resources”) • Little personal incentive • Groupthink • Risk averse/hide-and-seek • Blame avoidance • Large projects bring prestige April 3, 2014 Copyright 2014, All Around The World
- 21. Why Do Feudal Corporations Exist? April 3, 2014 Copyright 2014, All Around The World
- 22. Why Do Feudal Corporations Exist? • Brand recognition • Mature products • Financial reserves April 3, 2014 Copyright 2014, All Around The World
- 23. How Do Large Corporations Cope? • BBC Blue Room • Funding startups • Litigation instead of innovation (“Hello, RIAA”) • Going Agile April 3, 2014 Copyright 2014, All Around The World
- 24. Existing Agile Corporations April 3, 2014 Copyright 2014, All Around The World
- 25. 37signals • Basecamp, Highrise, Campfire, Rails • 38 employees • Self-organizing teams • Reluctantly trying “middle manager” role April 3, 2014 Copyright 2014, All Around The World
- 26. Github • Github! • 200+ employees • Self-organizing teams • Reluctantly trying “middle manager” role April 3, 2014 Copyright 2014, All Around The World
- 27. Priceline (profits courtesy Booking.com) April 3, 2014 Copyright 2014, All Around The World
- 28. Booking.com Copyright 2014, All Around The World Goal Sell more hotel rooms Strategy An Agile company Tactics P.O.P. (ish) April 3, 2014
- 29. Booking.com • Third largest e-commerce site in the world • 200+ IT staff • Thousands of employees • No project managers April 3, 2014 Copyright 2014, All Around The World
- 30. Priceline Record Growth April 3, 2014 Copyright 2014, All Around The World
- 31. Booking.com Strengths • Relatively flat hierarchy • Excellent customer service • A/B testing experts • Strong continuous deployment • Focus on customers, not code April 3, 2014 Copyright 2014, All Around The World
- 32. Booking.com Challenges • Extensive technical debt • Lack of Perl developers • Dutch tax law changes • Poor US market penetration (*) • Focus on small projects April 3, 2014 Copyright 2014, All Around The World
- 33. April 3, 2014 Copyright 2014, All Around The World
- 34. VALVE • Half-Life Series • Counter-Strike Series • Team Fortress Series • Portal Series • Left 4 Dead Series • Steam April 3, 2014 Copyright 2014, All Around The World
- 35. VALVE • 250+ people • Better profits/employee than Google or Apple • The platonic ideal of Agile? • What are corporations for? April 3, 2014 Copyright 2014, All Around The World
- 36. VALVE • Entirely self-funded • Own their intellectual property • “Hiring well is the most important thing in the universe. Nothing else comes close.” April 3, 2014 Copyright 2014, All Around The World
- 37. VALVE • No managers • None • Really April 3, 2014 Copyright 2014, All Around The World
- 38. VALVE • No job titles, either (except on business cards) • Everybody is an expert • 100% Time • All desks have wheels • Evaluation by your peers April 3, 2014 Copyright 2014, All Around The World
- 39. VALVE Struggles • “Valve Time” • Mentoring • Disseminating information internally • Long-term predictions • High barrier to entry April 3, 2014 Copyright 2014, All Around The World
- 40. VALVE (Alleged) Struggles • Not always as flat as they appear • Excess cash can kill incentives • Windows lock-in April 3, 2014 Copyright 2014, All Around The World
- 41. April 3, 2014 Copyright 2014, All Around The World
- 42. Ricardo Semler April 3, 2014 Copyright 2014, All Around The World •http://en.wikipedia.org/wiki/Ricardo_semler •http://www.semco.com.br/en/ • 27% average annual growth for 25 years •http://www.slideshare.net/camilletaper/semco • "Leading by Omission" speech (Google it)
- 43. Other “Managerless” Comapanies • Morningstar, Inc. • Gore-Tex ® • Zappos.com • Medium.com • … and many more April 3, 2014 Copyright 2014, All Around The World
- 44. Process Versus Product • Products over process • Managers are often “Process” • Hence, minimizing management April 3, 2014 Copyright 2014, All Around The World
- 45. Managerless companies • Generally agile/lean • Usually tech companies • Almost always privately funded April 3, 2014 Copyright 2014, All Around The World
- 46. Open Questions • Can “managerless” succeed long-term? • What social changes might this entail? • Where are managers required? • Can public companies effectively compete? April 3, 2014 Copyright 2014, All Around The World
- 47. Summary • Corporate management resembles feudalism • Agile teams are self-directing • Many companies are eliminating management April 3, 2014 Copyright 2014, All Around The World
- 48. Questions? ? http://www.allaroundtheworld.fr/ April 3, 2014 Copyright 2014, All Around The World
Notas do Editor
- Though generally more egalitarian than today’s societies
- Local allegiance. No price signals.
- You can leave the company. Room for advancement. Incentives and motivations are different.(Watch Office Space again)
- You can leave the company. Room for advancement. Incentives and motivations are different.
- You can leave the company. Room for advancement. Incentives and motivations are different.
- You can leave the company. Room for advancement. Incentives and motivations are different.
- You can leave the company. Room for advancement. Incentives and motivations are different.
- I tiny team dedicated to innovation, while the rest of the company remains static
- Dark side of analyst coverage: study demonstrating the more financial analysts cover your company, the less innovative you are
- Obviously, private companies have more freedom (ValvE)
- Large companies often do large projects which means that blame avoidance is a critical strategy to keep your job (tied to ignoring sunk costs)http://www.ft.com/cms/s/0/863409bc-5fca-11e0-a718-00144feab49a.htmlHide-and-seek is easier when the management graph is complex
- Oracle atRentrak
- Some corps fund start-up "incubators" to tap into startup innovationsIf you can’t stop your competitors, crush them.
- Kawasaki: “Beat Yamaha”. Kennedy: “Go to the moon”.How many people can succinctly describe cPanel’s mission statement?
- Much
- Much of this is unsubstantiated research