A month ago, I wouldn’t have said that organizational structure and management was one of my interests. I’m interested in hardware mods, and exercise, and coffee. Company organization is a thing that exists, I understand, but Replica Labs is the most start-uppy of startups, and worrying about that kind of stuff is a waste of time at this point.
Boy howdy, was I wrong. It turns out that I’ve been pondering this subject for a long time; I just never had something to call my way of thinking. Through the course of Replica’s development, I’ve noticed several issues come up again and again:
- As more people have joined the team, there comes a certain point where communication becomes strained. People wonder who to approach in order to get things done, or plow ahead with a project that no one really needs. In the worst case, communication completely breaks down, and ties are cut.
- Replica has brought on some of the smartest and capable individuals from around the world (in my humble opinion). This also has the unavoidable side effect of producing an extremely distributed team. How does one keep such a team motivated given this environment? Conflict resolution is next to impossible as well.
- What makes a good team member? Is it loyalty, or efficiency, or innovation, or just being bold? How does one recognize when someone new doesn’t fit in with the company, or someone experienced is no longer productive?
I didn’t think about these things as concretely as I do now, of course; it was all in the abstract. However, I did recognize appealing ideas when I saw them:
Netflix: “Values are what we Value”. Netflix practices a culture of Freedom and Responsibility among their employees. They break down exactly what behaviors they look for in talent and make it clear that, if you add value to the team, you will forever have a place there.
Valve: “A fearless adventure in knowing what to do when no one’s there telling you what to do.” Valve has produced one of the most popular handbooks on company culture. It emphasizes self-management above all else; if you’ve been hired, it means that you have good ideas and the motivation to execute them… so don’t be afraid to do just that.
Zappos: “Deliver WOW through service.” Though the tagline is a bit cheesy, the core concept is all about making everyone happy. Happy is a big word here: impeccable customer service is a goal for everyone in the company, and being driven to achieve should come from within, not from a manager breathing down your neck.
Someone like-minded recommended that I peruse the book Reinventing Organizations, by Frederic Laloux. Zappos had recently restructured their company based partly on this work, and he (and later, I) was interested in the philosophy that led to the outcome.
I love this book.
I mean, I’m going to be honest: I’m only about halfway through. Shame on me, I know, but at the end of every chapter I’ve read, I’ve found myself saying “OF COURSE THAT’S HOW THINGS WORK!” Laloux’s explanation of the evolution of organization is interesting, but it’s the practicality of his suggestions about creating a trusting and productive work environment that grab me the most.
This notion of trust is key to the whole concept. Laloux gives numerous examples of companies that place an inherent amount of trust in their employees, treating them like capable adults, with incredible results. Self-evaluation and self-management are cornerstones; do you think a big project is worth pursuing? Go for it. Want more pay? Write a note evaluating your own performance, and submit the number you’re aiming for. You’ll probably get it. This structure doesn’t rely on authority figures to make company-wide choices, nor does everyone have to agree on everything to move forward. Instead, employees practice open and forward communication among themselves to decide what is best for the team or project. The person who heads a project takes these opinions into account and carries out the decision. If it worked, it is a success; if not, it is a learning opportunity. Either way, everyone stays motivated to produce great work.
Conflict resolution is similar. If you have an issue with someone, talk to them directly; don’t make it into a spectacle of office politics. When a third party is necessary, they only serve to moderate the discussion. It’s ultimately still up to the warring parties to solve their problems. Again, all of the power is given to the employee, not a higher-up that probably doesn’t know the real problem anyway.
This sort of structure obviously doesn’t lend itself to hierarchies. CxOs do exist, to be sure, but their roles are radically different from that of the traditional manager. They’re there for support, mostly; if a conflict has gone through several moderators without success, they might be the final word on the matter. They probably serve as the public face of the organization, taking the meetings and writing the memos. At the end of the day, though, their freedoms are no different than every other member’s; in the best case, their mindset just lends itself to bigger ideas and changes, leading to a better company, and justifying the salary that they earn. This whole concept may sound like a bit of a pipe dream, but it seems that those who fit into this environment excel at whatever they take on (and that can vary a lot when one has full autonomy). Those that don’t fit usually recognize that for themselves and leave of their own accord. No breakdowns. No blame.
All of this thinking has changed the way I approach my own management style. It’s true that Replica Labs is a start-uppy startup, and I haven’t learned everything on the matter, but there’s so much to be applied here already. I’m guilty of a lot of these failures myself: I’ve felt the tension of not knowing (or not telling), wresting away projects from perfectly capable people, and feeling distrust in the intentions of others without openly discussing the issues and finding a resolution. I’ll also be the first to admit that this behavior doesn’t do anything for progress. We’ve come a long way as a company in the last year, and I’m confident that we can go a lot farther if we keep some of these concepts in mind.
Now I just have to finish the rest of the book.