The Insurrection: New Organizational Paradigms

An insurrection has begun! 

Traditional workplace structures are under attack.  Conventional hierarchies and command and control models are being ditched.  Progressive young companies are experimenting with fresh organizational paradigms designed to foster collaboration, agility and speed.  The next generation has arrived!!

So what is the genesis of this workplace transformation?  How will these new frameworks help high growth businesses sustain their pioneering cultures as they scale?

As start-ups reach their Transition Stage, rapid staff increases can spawn structure, processes and procedures.  Cross-departmental bottlenecks and approval chains generate organizational friction, which grinds innovation to a halt.

To stem the tide of bureaucracy, Founders and start-up leaders can look for its roots.

In his book Reinventing Organizations, Frederic Laloux reviews the history of organizations from the earliest tribal cultures to today’s robotic corporations. Hierarchies are designed for efficiency and optimization - systematized people machines built to deliver the highest return for investors.  With the past as a good proxy for the future, these classic structures rely on highly predictive planning and precise execution to achieve budget targets. 

In the bureaucratic model, the “thinkers” are separated from the “doers”.  The most intelligent sit at the top developing strategy, handing down assignments and commanding their team.  The sole responsibility of the “doers” is to implement these directives.  Thus authority is limited and information is tightly controlled.  Employees are considered untrustworthy and communicated with on a need-to-know basis.   Internal compliance protects the company from the staff’s “selfish” intentions.

We are all familiar with bureaucratic side effects; political maneuvering and power plays, silos, turf battles, lack of authenticity and finger-pointing.  Staff engagement is low and innovation stagnates.

These 20^th century designs falter in our current technology driven, networked economies where the future is impossible to predict.  With market uncertainty nullifying planning, these lumbering hierarchies are rendered clumsy and ineffective.  

Today’s young firms are creating flatter, more flexible workplaces.  Speed is king.  Innovation outweighs efficiency.  Progress trumps perfection.  Navigating uncharted waters necessitates a team of “thinkers”; aggressive risk-takers constantly experimenting, iterating and pressing forward.  

These organizations thrive in the early days.  However, when the Transition Stage dawns and the heat is turned up, they can lose their way.  Falling short of revenue targets or missing release dates raises urgency levels.  The burden to deliver more with less creates frustration and inner conflict.  If financing rounds are in play, the crucible gets even hotter.

I have witnessed winning start-ups implode, more from organizational meltdowns than competitive forces.  In stressful times, cultural norms take a back seat.  Feeling pressured, leaders become more directive.  Decision-making authority is consolidated.  Information is held close to the vest as the circle of trusted advisors gets smaller.

The staff senses the changes.  Limited transparency creates skepticism.  The loss of their autonomy is alienating to many. The best and the brightest didn’t sign up to be part of an organization shrouded in secrecy or telling them what to do.  Ping-Pong tables and office happy hours can’t mollify these concerns.  Soon, they leave

“Now What?!?”

Organizational Strength is essential for crossing this chasm. Firms that survive the Transition Stage learn to leverage the collective wisdom of the team rather than rely on the smarts of a few.  Their leaders trust their staff and give away authority. They look to inspire and enable rather than direct and control.

These thriving young businesses are testing revolutionary workplace designs to unlock the innovation of their teams and return to their high growth trajectory. 

Holocracy™ is one such groundbreaking model.  Zappos’ implementation of this manager-less structure is chronicled in the press for its successes and stumbles.   Holocracy™ requires full immersion, a complete commitment to strict governance, styles of interactions and “resolving tensions”.  

New terminology and rigid meeting protocol feels awkward and oppressive.  Months of facilitation are needed to adopt these sweeping changes.  During the introduction of Holocracy™ at Zappos, 15% of their staff quit.  15%!!

Having sat through their indoctrination training, I would equate Holocracy to organizational base-jumping – radical!! 

Not many companies can handle such extreme change.  I believe there are more natural transitions to promote teamwork, innovation and employee engagement as a business scales. 

A new organizational paradigm (I dubbed a Collaborarchy™) is founded on a set of five Cornerstones.   These concepts are not foreign.  In fact, some may already be implemented in your company.  Rather, it is the intentional integration of these ideals that transforms an organization and enables the business to scale effectively.

Autonomous, cross-functional teams tap the creativity and insights of the entire crew.  Assimilating teams that include those touching the customer daily with those designing and building products enables more rapid iteration and better learning.  Distributed authority places decisions in the hands of the people closest to the problems.  A culture of transparency elevates trust.  Compliance becomes unnecessary when information is distributed liberally.  And with everyone working as their authentic self, co-workers build faith in one another.  Peer accountability is the most reliable means to ensure promises to customers and teammates are kept.  And when Leaders act as Catalysts and Coaches rather than Commanders, their teams work with passion and purpose. 

Customizing this framework to your culture and adopting these Cornerstones at your own pace provides the best chance for success.  Staff members welcome the opportunity to participate in the process.  With an extensive feedback loop and continuous communication, your firm can internalize the changes and adjust along the way.  Iteration on an organizational model works as well as iteration on software design to determine the best workplace framework for you. 

Over the coming weeks, we will dig deeper into each of these five Cornerstones.