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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
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/
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
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
The Feudal Era
April 3, 2014 Copyright 2014, All Around The World
The Corporate Era
April 3, 2014 Copyright 2014, All Around The World
Wait, what?
April 3, 2014 Copyright 2014, All Around The World
Startup
April 3, 2014 Copyright 2014, All Around The World
Growth
April 3, 2014 Copyright 2014, All Around The World
Mature
April 3, 2014 Copyright 2014, All Around The World
Senile
April 3, 2014 Copyright 2014, All Around The World
Progressive
April 3, 2014 Copyright 2014, All Around The World
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
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
Share Prices
Keeping share prices high
requires minimizing risk
April 3, 2014 Copyright 2014, All Around The World
Share Prices
Minimizing risk
means
minimizing innovation
April 3, 2014 Copyright 2014, All Around The World
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
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
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?
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
Why Do Feudal Corporations Exist?
April 3, 2014 Copyright 2014, All Around The World
Why Do Feudal Corporations Exist?
• Brand recognition
• Mature products
• Financial reserves
April 3, 2014 Copyright 2014, All Around The World
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
Existing Agile Corporations
April 3, 2014 Copyright 2014, All Around The World
37signals
• Basecamp, Highrise, Campfire, Rails
• 38 employees
• Self-organizing teams
• Reluctantly trying “middle manager” role
April 3, 2014 Copyright 2014, All Around The World
Github
• Github!
• 200+ employees
• Self-organizing teams
• Reluctantly trying “middle manager” role
April 3, 2014 Copyright 2014, All Around The World
Priceline
(profits courtesy Booking.com)
April 3, 2014 Copyright 2014, All Around The World
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
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
Priceline Record Growth
April 3, 2014 Copyright 2014, All Around The World
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
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
April 3, 2014 Copyright 2014, All Around The World
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
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
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
VALVE
• No managers
• None
• Really
April 3, 2014 Copyright 2014, All Around The World
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
VALVE Struggles
• “Valve Time”
• Mentoring
• Disseminating information internally
• Long-term predictions
• High barrier to entry
April 3, 2014 Copyright 2014, All Around The World
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
April 3, 2014 Copyright 2014, All Around The World
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)
Other “Managerless” Comapanies
• Morningstar, Inc.
• Gore-Tex ®
• Zappos.com
• Medium.com
• … and many more
April 3, 2014 Copyright 2014, All Around The World
Process Versus Product
• Products over process
• Managers are often “Process”
• Hence, minimizing management
April 3, 2014 Copyright 2014, All Around The World
Managerless companies
• Generally agile/lean
• Usually tech companies
• Almost always privately funded
April 3, 2014 Copyright 2014, All Around The World
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
Summary
• Corporate management resembles feudalism
• Agile teams are self-directing
• Many companies are eliminating management
April 3, 2014 Copyright 2014, All Around The World
Questions?
?
http://www.allaroundtheworld.fr/
April 3, 2014 Copyright 2014, All Around The World

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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

Hinweis der Redaktion

  1. Though generally more egalitarian than today’s societies
  2. Local allegiance. No price signals.
  3. You can leave the company. Room for advancement. Incentives and motivations are different.(Watch Office Space again)
  4. You can leave the company. Room for advancement. Incentives and motivations are different.
  5. You can leave the company. Room for advancement. Incentives and motivations are different.
  6. You can leave the company. Room for advancement. Incentives and motivations are different.
  7. You can leave the company. Room for advancement. Incentives and motivations are different.
  8. I tiny team dedicated to innovation, while the rest of the company remains static
  9. Dark side of analyst coverage: study demonstrating the more financial analysts cover your company, the less innovative you are
  10. Obviously, private companies have more freedom (ValvE)
  11. 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
  12. Oracle atRentrak
  13. Some corps fund start-up "incubators" to tap into startup innovationsIf you can’t stop your competitors, crush them.
  14. Kawasaki: “Beat Yamaha”. Kennedy: “Go to the moon”.How many people can succinctly describe cPanel’s mission statement?
  15. Much
  16. Much of this is unsubstantiated research