5. Taylor ‘s Prescription, 1911
“I
can
say,
without
the
slightest
hesita3on,'
Taylor
told
a
congressional
commi9ee,
'that
the
science
of
handling
pig-‐iron
is
so
great
that
the
man
who
is
...
physically
able
to
handle
pig-‐iron
and
is
sufficiently
phlegma3c
and
stupid
to
choose
this
for
his
occupa3on
is
rarely
able
to
comprehend
the
science
of
handling
pig-‐iron.”
16. Agile Manifesto, 2001
“Build projects around
motivated
individuals. Give
them the
environment and
support they need, and
trust them to get the job
done.”
“The best
architectures,
requirements, and
designs emerge from
self-organizing
teams.”
Never talked about ‘structure’!
20. So, who does the “management”?
The “Team”
Pic
-‐
h#p://blogs.seapine.com/2012/02/agile-‐teams-‐self-‐organize-‐for-‐project-‐success/
21. Has that really happened?
Maybe / Maybe Not!
Hint: just search if companies claiming to be Scrum shops
still hire old-style managers?
22. Management 3.0, c 2011
“I believe that Agile software
development has overlooked the
importance of (line) management. If
managers don’t know what to do and
what to expect in an Agile
organization, how are they supposed
to feel involved in a transition to
Agile software development? What
is the message of Agile here? If it’s
just “we don’t need managers,” it’s
no wonder Agile transitions are
obstructed all over the world.(Page
27).”
Management 1.0
= Hierarchies
Management 2.0
= Fads
Management 3.0
= Complexity
24. What does Management 3.0
mean?
Energize People
• People are the most important part of an organization and managers must do all
they can to keep people active, creative and motivated
Empower Teams
• Teams can self-organize, and this requires empowerment, authorization and
trust from the management
Align Constraints
• Self-organization can lead to anything, and therefore it’s necessary to protect
people and shared resources and to give people a clear purpose and defined goals
Develop Competence
• Teams cannot achieve their goals if team members are not capable enough, and
managers must therefore contribute to the development of competence
Grow Structure
• Many teams operate within the context of a complex organization, and thus it is
important to consider the structure that enhance communication
Improve Everything
• People, teams and organizations need to improve continuously to defer failure for
as long as possible
25. Holacracy®
• Holacracy is a real-world-tested social technology
for purposeful organization.
• It radically changes
– how an organization is structured,
– how decisions are made,
– and how power is distributed.
• Is NOT Leaderless!
• Focus is on work, not people!
26. How it changes with Holacracy?
In Conventional Organizations
Formal
Structure
“Requisite”
Structure
h#p://holacracy.org/blog/whats-‐wrong-‐with-‐your-‐organiza<onal-‐
Extant
Structure
With Holacracy
32. #NoManager / Boss-free
• Flat / Horizontal Organization, Delayering
• No or very few levels of middle management
• Promotes employee involvement
– through decentralization and empowerment
• Rotating Team Leaders – 37Signals, Valve
• Open Allocation – Valve, GitHub Inc, Treehouse,
• No Manager – The Morning Star Company, Gore
33. “Become
leaders based
on ability to
gain the respect
of peers and to
attract
followers.”
“Relationships
are everything
at Gore”
“Everyone at
Gore has a
Sponsor”
• Team-based, Flat Lattice since 1958!
• Revenue: $3B, Staff: 10,000
• No traditional org charts, no chain of
command, nor predetermined channels of
communication
• “You will be responsible for managing your
own workload and will be accountable to
others on your team. More importantly, only
you can make a commitment to do something
(for example, a task, a project, or a new
role)--but once you make a commitment, you
will be expected to meet it. A "core
commitment" is your primary area of
concentration. You may take on additional
commitments depending on your interests, the
company's needs, and your availability.”
34. “We’ve been
boss-free since
1996”
Where
Google
boasts
20%
free
<me
for
its
employees,
Valve
boasts
100%
free
<me.
h#p://www.bbc.com/news/technology-‐24205497
• 400+ employees, $2B-4B revenue?
• anarcho-syndicalism. Effectively, free association of
employees with one another
• Valve's basic approach to "managing without managers"
is:
– hire only incredibly self-motivated people
– give them full autonomy to decide what project to
work on
– teach them to spot valuable projects, and to
understand what value they can add to those projects
– allow team structure to happen organically - teams
self-select, leaders are chosen by their peers
– encourage people to acknowledge and learn from
mistakes quickly to move forward
– make everyone responsible together for the success or
failure of projects
• and finally (and most critically):
– determine the value and compensation of each
employee by peer review
35.
36. Founded:
1999,
Calls
its
execu<ves
‘Monkeys’
Staff:
1500+,
Revenues:
$
2.1B
(2011)
2013
Nov:
Embraced
Holacracy
1-‐year
project
that
will
see
400
‘circles’
in
‘holarchy’
h#p://blogs.hbr.org/2014/01/a-‐company-‐without-‐job-‐<tles-‐will-‐s<ll-‐have-‐hierarchies/
37. Microsoft is changing…
Satya
Nadella
CEO,
Microsof
“So how do you create that selforganizing capability to drive
innovation and be focused? …To me,
that is perhaps the big culture change
— recognizing innovation and
fostering its growth. It’s not
going to come because of
an org chart or the
organizational boundaries.
Most people have a very strong sense
of organizational ownership, but I
think what people have to own is an
innovation agenda, and everything is
shared in terms of the
implementation.”
38. Why are they all changing?
Hierarchies
force
standardiza<on
and
compliance
–
and
kill
employee
mo/va/on
which
is
big
deal
for
any
industry,
any
company
today!
Hierarchies
create
predictability
–
which
is
good
in
short-‐term,
but
resist
change
and
kill
innova/on
which
is
bad
in
long-‐term
Hierarchies
are
too
slow
for
today’s
fast-‐paced
VUCA
world,
and
the
leaders
must
rely
on
360
Degrees
of
Wisdom
to
steer
their
ship
Hierarchies
are
too
costly,
especially
when
many
young
workers
don’t
like
“adult
supervision”,
esp
from
people
with
an<quated
skills
Hierarchies
create
func<onal
silos
that
impedes
collabora/on
and
generates
organiza/onal
inefficiencies
47. Adult
Supervision
on-demand
• Employees want to be left alone
• But managers should be there when
employees need them!
Horses for
courses
• Networks for innovation, agility and
speed
• Hierarchy for efficiency, predictability
and scale
Distributed
and Rotating
leadership
• Shared leadership and decisionmaking across the board
• No permanency or carry-over of roles