Tag: no management

  • Lack of Autonomy: The Plague of the Modern Workplace

    Radical Self-Organization is a way I tend to label organizational design that we adopted at Lunar Logic. It’s been dubbed The Lunar Way too on occasions. Anyway, it draws from different approaches to design organizational structure in a very flat, non-hierarchical way. Describing what we do is probably worth a separate post on its own, yet this time I want to focus on one underlying principle: autonomy.

    Our evolution toward Radical Self-Organization was experimental and emergent. Initially we didn’t set a goal of distributing authority, autonomy, and all the decision-making power across the whole organization. It emerged as a sensible and possible outcome of further evolution on the path we set ourselves onto. This means we were figuring out things on our way and quite often explored dead-ends.

    The good part of such approach is that, we wanted it or not, we needed to understand underlying principles and values and couldn’t just apply a specific approach and count on being lucky with the adoption. No wonder that on our way we had quite a bunch of realizations what was necessary to make our effort successful.

    One of the biggest of such realizations up to date for me was the one about autonomy.

    A traditional, hierarchical organizational structure that distributes power in a top-down manner is ultimately a mechanism depriving people of autonomy.

    Let me explain. Top-down hierarchy addresses challenges of indecisiveness and accountability. We ideally always know who should make which decision and thus who should be held accountable for making it (or not making it for that matter). So far so good.

    The problem is, that the same mechanism discourages managers throughout a hierarchy to distribute the decision-making power to lower levels of organization. After all, if I am held accountable for a decision, I prefer to make the final call myself. Even if I end up being wrong it’s my own fault and I don’t suffer for mistakes of others, i.e. my team.

    In short, as a manger in a traditional structure I’m incentivized to double-guess and change the decisions proposed by my team even if I go as far as consulting my calls with the team. In other words, I am discouraged to distribute autonomy.

    This has fundamental consequences. Autonomy is a key prerequisite of being motivated at work. Lack of motivation and disengagement is a plague at modern workplace. In 2013 Gallup reported that worldwide only 13% of employees were engaged. We can’t expect our team to be creative, highly productive and responsive to ever-changing business environment when they simply don’t give a damn.

    And it’s not teams’ fault. We create systems where autonomy, and as a result engagement, simply is not designed in.

    It’s not managers’ fault either. We set them up in a structure where they are punished for distributing autonomy.

    The biggest problem is that hierarchical structure is a prevailing management paradigm, which we are taught from the earliest contact with the education system. The very paradigm is the plague of the modern workplace.

    There is one important side note to mention here. Autonomy doesn’t equal authority. The two works well as a pair but neither is a prerequisite to have the other.

    I can give people authority to make project related decisions, e.g. that we terminate collaboration with a client. They can formally do it. However, if I instill enough fear of making such a tough call so that everyone is too afraid to do so people won’t have autonomy to make such a decision.

    On the other end, we may not distribute authority formally, but we may live up to the standards of “what’s not forbidden is allowed” and may believe that “it’s easier to ask forgiveness than it is to get permission”. In such an environment people will be making autonomous calls even if they don’t always have authority over the matter.

    Coming back to the argument about disengagement, it’s about lack of autonomy, not lack of authority. In other words, simply giving people power to make some decisions won’t solve the issue. It’s about real autonomy, which unfortunately is so much harder to achieve.

    If we agree that lack of autonomy is the problem we have quite an issue here. Since the root cause of the problem goes as deep as to the way we design organizations. Changing how we think about the domain is a huge challenge.

    The other day I was reading an article that mention a guy who opened a branch office in another city and let it run as a Teal organization with no managers and huge autonomy. His summary of his own story was something along the lines: there are 30 people with no management and they are doing great, but I think by the moment there are 50 of them we’ll hire a director.

    This shows how strongly we are programmed to think according to old paradigm. It’s like saying “it’s going great, let’s kill it because, um, my imagination doesn’t go as far to imagine the same thing in a slightly bigger scale.”

    It also shows how big of a challenge we are about to face. Simply changing how the power is distributed in an organization won’t do the trick. Unless such a change is followed with the actual change in power dynamics, enabling autonomy in lower levels of an organization it would simply mean paying a lip service. The most difficult change that needs to happen to allow for such a transformation is the one happening in the mindset of those in power, i.e. managers.

    That’s bad news. If we consider power as privilege, and I do perceive it so, it means that many managers would be oblivious to the notion that they are somehow privileged over others. It means that we first need to work on understanding of domain. Once there, there’s another challenge to face: giving up the privilege. It can’t just be done by setting up different roles. That would be simply distributing authority and that is not enough.

    The real game changer is distributing autonomy: the courage to make decisions even when—especially when—a decision would go against manager’s judgement. After all, the plague of the modern workplace is not lack of authority, but lack of autonomy. Without addressing it we should neither expect high motivation levels nor high engagement.

  • Autonomy and Authority

    These days I speak extensively about how we designed Lunar Logic as an organization. After all, going through a transition from a traditional management model to a situation where company has no managers at all is quite an achievement. One of the pillars of managerless organizational design is autonomy.

    After all, decisions won’t just make themselves. Someone has to call the shots. Once we got rid of managers, who would normally make almost all decisions, we need everyone else to embrace decision making. For that to happen, we need to distribute autonomy.

    Interestingly enough, when Don Reinertsen, who I respect a lot, talks about decentralizing control he uses somewhat different wording.

    Decentralizing control requires decentralizing both the authority to make decisions and the information required to make these decisions correctly.

    Don Reinertsen

    Authority refers to a formal power to make a decision. However, I tend to make a clear distinction between authority and autonomy. Ultimately, as a manger, I can give my team authority to make a decision. However, at the same time I can instantiate fear or pressure on decision-makers so before they actually make their call they would ask me what I think about the topic and go with my advice. This mean that even if authority was distributed autonomy is not there.

    Corollary to that, I may not have formal authority but I can feel courageous enough to make a decision. If that is an acceptable part of an organizational culture it means that I may have autonomy without authority. By the way the latter case is interesting as it pictures the attitude I’m very fond of: ask forgiveness rather than get a permission.

    I’m not going to fundamentally disagree with Don Reinertsen, though. As a matter of fact, we are on the same page as he follows up with his train of thought.

    To enable lower organizational levels to make decisions, we need to give them authority, information, and practice. Without practice and the freedom to fail upon occasion, they will not take control of these decisions.

    Don Reinertsen

    In the first quote Don is talking about prerequisites to decentralize control. In the second he focuses on enabling it. He adds a crucial part: people need to practice. This, as a consequence, means that occasionally they will fail, a.k.a. make bad decisions.

    And that’s exactly what autonomy is in its core.

    In vast majority of cases autonomy is derived from authority. It doesn’t work the other way around, though. In fact, situation of having formal authority but no real autonomy to make a decision is fairly common. It is also the worst thing we can do if we want people to feel more accountable for an organization they’re with.

    Not only do they realize that the power they got is virtual but once it happens they’re not even back to square one. It’s worse. They got burned. So they’re not jumping on that autonomy bandwagon again when they are asked to get more involved in decision making.

    That’s, by the way, another case that portraits that cultural change are not safe to fail.

    Long story short, don’t confuse authority with autonomy. If you really care about your organization take care of distributing both, not only the former.

  • Decision Making Process

    I’m a strong proponent of participatory leadership model where everyone takes part in leading a team or even an organization. A part of leading is making decisions. After all if all decisions still have to be made, or at least approved, by a manager it isn’t much of participatory leadership.

    (Benevolent) Dictatorship

    The most typical starting point is that someone with power makes all decisions. As a result commonly seen hierarchies are just complicated structures of dictatorships. As a manager within my small kingdom I can do what I want as long as I don’t cross the line drawn by my overlord.

    Of course there are managers who invite the whole team to share their input or even distribute particular decisions to team members. There are leaders who use their power for the good of their people. It may be benevolent dictatorship. It is still dictatorship though.

    This model works fairly well as long as we have good leaders. Indecisiveness isn’t a super-common issue and if it is there’s at least one person who clearly is responsible. Often leaders have fair experience in their roles thus they are well-suited to make the calls they make.

    The model isn’t ideal form a perspective of promoting participatory leadership. If we want more people to be more involved in leading a team or an organization we want them to make decisions. And I mean truly make decisions. Not as in “I propose to do this but I ask you, dear manager, to approve this so that responsibility is, in fact, on you.” I mean situations when team members make their calls and feel accountable for them.

    I’d go even further and propose that in truly participatory leadership model team members acting as leaders would make calls that their managers wouldn’t.

    This isn’t going to happen with a classic decision making process.

    Consensus

    A natural alternative is a consensus-driven decision making process. A situation where we look for a solution that everyone agrees on.

    This one definitely allows escaping dictatorship model caveats. It doesn’t come for free though.

    Looking for consensus doesn’t mean looking for the best option, but rather looking for the least controversial option. These two are very rarely synonymous. Another issue is the tiredness effect. After a long discussion people switch to “I don’t care anymore, let someone make that decision finally and move on.”

    Not to mention that the whole decision making process suddenly gets really time-consuming for many people.

    While in theory consensus solves accountability problem – everyone agreed to a decision – in practice the picture isn’t that rosy. If I didn’t take active part in the discussion or my objections were ignored I don’t feel like it’s my decision. Also if the decision was made by a group I will likely feel that responsibility is distributed and thus diluted.

    One interesting flavor of consensus-driven decision making is when people really care about the decision even though it is controversial. It’s not that they want to avoid participation or even responsibility. It’s just consensus is unlikely, if even possible.

    Such a discussion may turn into an unproductive shit storm, which doesn’t help in reaching any common solution and yet it is emotionally taxing.

    Advisory Process

    There is a very interesting middle ground.

    My pursuit of participatory leadership decision making became a major obstacle. I declined to use my dictatorship power on many occasions encouraging people to make their own calls. The answer for a question starting with “Can I…” would simply be “Well, can you?” That worked up to some point.

    It builds the right attitude, it helps to participate in leading and it makes people feel accountable. The problem starts when such a decision would affect many people. In such a case we tend to retreat back to one of the previous models: we either seek consensus or look for a dictator to make that call for us.

    Not a particularly good choice.

    I found the solution while looking at how no management companies deal with that challenge. Basically, everyone acts as they had dictatorship power (within constraints). However, before anyone makes their call they are obliged to consult with people who have expert knowledge on the subject as well as with those who will be affected by the

    This is called advisory process. We look for an advice from those who can provide us valuable insight either because they know more about the subject or because their stakes are in play. Ultimately, a decision is made by a single person though. Interestingly enough, a decision-maker doesn’t have to take all the insight from advisory process into account. Sometimes it is not even possible.

    Accountability is clearly there. Healthy level of discussion about the decisions is there as well.

    Constraints

    The key part of going with such decision making scheme is a clear definition of constraints. Basically, a dictator, whoever that is in a given context, gives up power for specific types of decisions.

    The moment a team member makes a call that is vetoed the whole mechanism is pretty much rendered irrelevant. It suggests that people can make the decisions only as long as a manager likes them. This isn’t just a form of dictatorship but a malicious one.

    These constraints may be defined in any sort of way, e.g. just a set of specific decisions or decisions that don’t incur cost beyond some limit, etc. Clarity is important as misunderstanding on that account can have exactly the same outcomes as ignoring the rules. After all if I believe I could have made a decision and it turns are not to be true I will be disappointed and disengaged. It doesn’t matter what exactly was the root cause.

    Setting constraints is also a mechanism that allows smooth transition from benevolent dictatorship to a participatory model. One super difficult challenge is to learn that I, as a manager, lost control and some decisions will be made differently than I’d make them. It’s better to test how it works with safe to fail experiments before applying the new model to serious stuff.

    It also addresses a potential threat of someone willing to exploit the system for their own gain.

    Learning the ropes is surprisingly simple. It doesn’t force people to go too far out of their comfort zones and yet it builds a sense of leadership across the board. Finally it provides a nice option for transition from the old decision making scheme.

    And the best thing of all – it is applicable on any level of organization. It can be at the very top of the company, which is what no management organizations do, but it can be done just within a team by its manager.

  • No Management Mindset

    All sort of no management approaches are hot these days. It shouldn’t come as a surprise. Self-organization, empowerment and autonomy are inherent parts of Agile and Lean approaches. If you distill the essence of these and bring them up in the hierarchy it means quite a challenge for traditional ways of managing teams.

    Of course, few organizations are that far with their evolution and only handful, like Semco, Valve or (recently) Zappos, are really radical with no management. I’m not an orthodox though. I’m not going to draw a line that separates no management organizations from regular ones. I don’t see a point and I don’t care about labels anyway.

    The important part here is mindset – understanding why you are changing the approach to management and what expect to achieve with that.

    And honestly, I don’t expect us to see no management approach becoming a new trend in organizing companies, no matter how vocal its proponents are. There are a few reasons for that.

    We are so strongly rooted in traditional approach to management that I don’t expect many would find it easy to change their mindset. And they don’t need to. We may take pretty much whatever reasonable organization’s success criteria you want. Then, basing on the criteria we’ll find the most successful companies in the world. I’m almost sure that the top ones would be those with pretty traditional management approach.

    Of course statistics are against no management organization. I mean, there are only that many of them. However, if no management was so superior we should have loads of wildly successful followers. Sorry, that’s not what I see.

    The reason why I don’t see a rapid adoption of no management is that it is damn hard to make it work. And it’s way harder to make it work at scale. I would say that fixing dysfunctional management of an organization without changing the whole approach to management as a whole is a task that is an order of magnitude easier than a transition to no management.

    By the way, when we cease to have formalized management we flip one of systems thinking paradigms. In fact, no management means magnifying the fallacy of people versus system dichotomy. Suddenly we can’t just blame the system as everyone explicitly co-creates that system.

    A simple example. It happens so often that people delegate decisions and responsibility at a workplace asking “can I…?” Obviously, each “yes” or “no” answer, besides addressing a question, sets a constraint. This is allowed here and that isn’t. By the way, that’s how we define system at our organizations.

    What if there’s no definite answer? Or the only answer is that here are our high-level goals and everyone makes their own decisions so we get closer to achieving these goals? Everyone makes their own yes / no decisions and thus get involved in setting constraints. Everyone is, in fact, involved in defining and designing the system.

    The interesting part is that all it takes to get there is management distributing their power across the whole team instead of executing it.

    You don’t have to get rid of the management. You don’t have to become one of those hot no management organizations. It’s just a mindset change.

    This is also a reason for a very limited adoption of no management approaches. A mindset change only sounds simple. It goes against almost everything that we’ve learned about leading teams. Usually it goes against team’s expectations too. Even more so when people visualize scenarios taken from Zappos or Valve or W.L. Gore.

    There’s a good part too. If we are talking about mindset it means that it is applicable in all sorts of environments. You don’t have to be a full-blown no management organization to do this. You can push the limits pretty far with your team, even if you are a part of an organization that adopts more traditional way of managing teams.

    All it takes is to give up on power while still taking responsibility. Would you dare?