Pawel Brodzinski on Leadership in Technology

Whatever it takes to lead a team, build a product, and run a business

Tag: radical self-organization

  • Autonomy and Transparency: Both or Neither

    How does transparency feel? Early in my career, I had an occasion to experience that. I was working in a typical organization where lots of things, payroll included, were secrets. Then the salary list leaked out. It wasn’t a huge leak, i.e. it didn’t go public, but I was close enough to the source that I could take a look.

    When I was about to open the spreadsheet with the data, I was thinking about my expectations. I hoped that information about salaries would help me to make sense of how people in the company are perceived by the leaders. I thought that it might provide me with role models to look up to. I was ultimately looking forward to transforming new knowledge into some inspiration and motivation for myself.

    That was totally not what happened.

    What I saw on the payroll was a lot of unfairness. I saw numbers I couldn’t possibly justify. I couldn’t make sense of the system that produced these numbers. Most of all, I was painfully aware that there was literally nothing I could do to change that. After all, I shouldn’t have seen the data in the first place.

    Ultimately, I got frustrated.

    Transparency without Autonomy

    With the benefit of hindsight, I see a broader picture of that experience. On one hand, I am aware that back then I couldn’t have had the whole perspective on what was valued in the organization and thus my sense of unfairness might have been exaggerated. I didn’t have insight on systems thinking to be able to rationalize the shape of the payroll as a pragmatically predictable outcome. Should I understand that my outrage and my frustration wouldn’t be that big.

    The bottom line remains the same. I should have been expecting frustration as the only logical outcome of such an experiment. I put myself in a situation when I was about to get access to data that was important to me on an emotional level and yet I knew I had no influence whatsoever on shaping the future state of that data.

    I got transparency with no autonomy to act. Heck, I couldn’t even ask all my “whys” to better understand what was going on. I put myself in a position where my frustration was guaranteed.

    Transparency without autonomy is a recipe for frustration.

    It’s like telling people stuff that they don’t like, or agree with, and then telling them to live with it. You don’t like who gets a raise? Live with it. You don’t agree with who gets promoted? Live with it. You don’t agree with disparities on the payroll? Live with it. You get the idea.

    A side note: I refer to autonomy and not authority. There’s a significant difference between the two. For the sake of this discussion, the crucial part is autonomy defined as the actual use of decision-making power, not just the availability of decision-making power.

    Autonomy without Transparency

    What about the opposite situation? Can we let people act while keeping them from accessing sensitive data? The answer to this case is rather obvious, I think. Acting in an organizational context means making decisions. Can we then make decisions with limited access to relevant information?

    Yes, we can. The question is: would that be good decision-making? Even though a common perception that more information available to a decision maker would result in a better decision is a myth, it is still crucial to have access to a few most important bits of data.

    In our context most important often translates to most sensitive and thus available to few. If we let people decide without making such information accessible we’d set them up to fail. Their decisions simply won’t be informed and thus random and low quality.

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

    Don Reinertsen

    To stick with the original example, just try to imagine people deciding on raises without knowing what salaries are.

    Transparency and Autonomy

    OK, so neither autonomy nor transparency alone does make sense. What does, then? If we aim to improve either one we need to think about both at the same time.

    Each time we loosen transparency constraints we should answer: how can people act on newly accessible data? What will they be able to do if they aren’t satisfied with what they see? The answer doesn’t have to be full control over changing the part of reality that we’ve just made transparent. They do need to have influence, though.

    When we were making salaries transparent at Lunar Logic we didn’t give people the power to set the salaries. Well, not initially. We gave them as much as, and as little as, influence: an option to start a discussion about a salary and space to share their opinions about any raise under discussion. Even if the final decisions were still being made by the same person as before the change there were clear options anyone could exploit if they were dissatisfied with any number on the payroll.

    While eventually influence has transformed into full control over decisions, the key move was the initial one. The one that gave people influence.

    The guidance is much more straightforward if we start with the intention of extending autonomy. We simply need to answer what information we consider when making this kind of decision and then make that information available.

    Most often the hard part is realizing what range of information we really consider. When we started experimenting with the decision-making process at Lunar Logic, the first step was to let people spend company money without asking permission. The part of the process was, and still is, what we call the advisory process.

    As a part of advisory processes, I was often consulted about planned expenses. The most important lesson for me from the advisory processes was how unaware I was of all the data, experience and mental models I was using when I was making decisions myself. This, in turn, made me realize how much more transparent with all these we need to become to get autonomy working. A simple example: if we want people to spend company money wisely they should know what’s the financial health of the company and how specific expenses may affect it, i.e. regular financial reports should be available to everyone.

    Moving the Bar

    The bottom line is this: when we raise the bar of transparency we need to raise the bar of autonomy as well. And vice versa.

    It is not as obvious as it sounds. Each change fuels and influences another. It is more of a balancing act than a prescribed set of moves one could repeat in every situation.

    There is a caveat too. Transparency is a one-way street. You simply can’t undo making salaries transparent. You can’t make people unsee the payroll. Then again, transparency doesn’t go alone. It must be followed by autonomy. This means that changes on both accounts are almost impossible to reverse.

    In fact, rolling autonomy back is a bad idea not only because it is connected to transparency. Even if we looked at autonomy in isolation there’s a painful penalty to pay for removing autonomy that has already been granted. It is an equivalent of saying “we weren’t serious in the first place about giving you that power”. Not only we are back to the square one but also people would be discouraged to embrace autonomy in the future because they got burned.

    The obvious advice in this context would be to tread carefully and to take one’s time. We will find ourselves in a place where we feel like we took a step to far. What we can do is to take a break until we learn how to embrace the new situation.

    At Lunar Logic it happened sometime after we made salaries transparent and gave people influence over raise decisions. Suddenly we found ourselves in the middle of what we now call the raise spree–a lot of raises were happening simultaneously with little consideration of their ripple effects. Instead of removing autonomy or double guessing individual decisions, which would end up the same, we focused on educating ourselves. How individual raises would influence other decisions about salaries and the overall financial condition of the company. Only as soon as we felt comfortable with the autonomy we had we moved the needle again.

    Neither or Both?

    If we stick to the assumption that increasing autonomy and transparency should go together, the question we should ask is: should we even bother? If it’s the choice between both and none, why not to choose none and stick with the status quo?

    The younger version of me would say that more transparency is always better than less. Well, now I would argue with my younger self. There are edge cases, like the one that I started with. However, in general, I believe that it is easier to lead a company when more information is available to everyone. At least in a part, it comes from a fact that not only is it more transparency, but also more autonomy. The latter releases a part of the burden of people in leadership roles.

    I do have a better answer when it comes to autonomy. Dan Pink points autonomy as one of the crucial factors that our motivation depends on. Little autonomy, little motivation, he says. Given how discouraged autonomy is the modern workplace we can only do good if we pursue it more. It won’t happen unless we care about autonomy and transparency together.

    For me the answer is obvious. It’s both; not neither. As difficult as the evolution can be, it’s worth it.

  • Agile Self-Organization: Band-Aid for a Broken Leg

    One of the concepts that has been widely popularized by Agile movement is self-organization of teams. It lands very nicely in any Agile context, no matter the discussed method or even a general approach one might have to Agile implementations.

    It is, after all, an idea that appeals to line employees and managers alike. Let’s give atomic teams power to decide how they would work within safe constraints. Safe here means safe for managers, of course. In one swift move we address, at least to some point, two issues. One, we increase empowerment across team members as they get more say over how they work. Two, we remove managerial burden of work organization at a the most detailed level, at which managers’ competence can frequently be challenged.

    All but the most micromanagerial types should be satisfied.

    Since how the work gets done is decided closer to where it actually gets done, we increase odds of good processes and policies. At the same time, through more autonomy we improve motivation and engagement.

    It’s not without a reason that self-organization at a team level got its way into common practice.

    History of Agile (Oversimplified)

    The starting point for self-organization as a technique or a practice is not unlike other agile practices. Early Agile methods were focused on a team. The perspective might have differed, but the atomic entity in consideration was always a team. Be it Scrum, XP, Kanban or anything else, in their early forms there was little mention on interoperability across teams either horizontally or vertically.

    Obviously, once Agile got traction there was a need for scaling the approach up. Initially, some makeshift approaches were being made to do that (anyone remembers Scrum of Scrums?). Eventually, whole methods were built to enable large scale Agile implementations—SAFes and LeSSes of this world.

    These approaches were built around a core method, typically Scrum, and took good parts of other methods whenever authors saw fit. Fundamentally, the value added of these methods was in a description how to roll everything out in a big organization. The desired outcome would be to see the core method implemented in multiple teams while ensuring some level of alignment across an organization.

    It was about scaling up the method and not scaling up the principles behind. It was about getting more Scrum / Kanban / whatever teams in an organization and not figuring out how the basic values and principles would have to work if they were applied on different levels of an organization.

    That’s exactly when we petrified self-organization as a technique relevant to a team and a team only.

    The Broken Leg

    Let’s look at the problem we are solving with self-organization. We give people autonomy and they organize work better as they are most knowledgeable how the work can be done optimally. At the same time, since we distribute autonomy, we increase motivation and engagement.

    So far, so good. I can’t help but ask: are these problems exclusive to the lowest levels of organizations, i.e. atomic teams, or are they more endemic?

    There’s no reason to think that the disease isn’t wide-spread. After all, for a century we are perpetuating Taylor’s and Ford’s ideas of separating the workforce from workflow design. It doesn’t happen on the factory floor only but throughout the whole hierarchy. A higher rank designs how lower rank works and what is expected of them. It is, in fact, the hierarchy itself that discourages us to distribute autonomy more than absolutely necessary.

    What we are looking at is not just a marginal problem of line employees going shallow into the higher ranks. The injury is not a scratch but a broken leg.

    The Band-Aid

    Despite how widespread the disease is the solution we have is far from enough: self-organization… but just at a team level. It is exactly the proverbial band-aid for a broken leg. It does the work, i.e. stop the bleeding, but only as long as the injury is skin-deep.

    We know it’s not the case.

    And yet we keep curing our broken organizational leg with just more band-aids of atomic teams embracing more autonomy. At the same time, we don’t address the structural problem of lack of autonomy throughout the hierarchy.

    There lies the root cause of the problem. Working only on the lowest possible level, i.e. teams, we already have hard constraints of how far we can go with autonomy (and it’s not far really). Unless we start working on self-organization systematically, we won’t get much long-term effect in an organization. It would be just one more band-aid.

    The Cure

    We got principles missing when we were figuring out how to scale Agile up. Interestingly enough, it had long been figured out in the military. Even more curious, the problem had been solved with tangible practices and not with some vague aspirations. The difference is that the military practices were designed as scalable from the very beginning.

    Take briefing and debriefing as an example. It is a pair of activities of sharing the goals and the context (the orders) by an officer to a unit and having the unit brief back to the officer what they understood. The goal of briefing and debriefing is for any rank to make sure that: a) a lower rank unit understands the goal (the purpose) of a higher rank officer and one rank above, and b) a lower rank unit understood correctly what was briefed.

    Such a practice is rank-agnostic. It can be applied at any level of a hierarchy without any specific adjustments. It is entirely not so with Agile self-organization practices that were immersed in 7 plus or minus 2 people as a definition of a team.

    If we aspire to see organizational transformations that would be an equivalent of turnaround of some of our teams, we need to reinvent self-organization. Autonomy distribution must become either a rank-agnostic practice or it has to have dedicated solutions for each organizational level.

    The former, while much harder to design and implement, is potentially much more applicable. It is the domain where tools such as decision making process, open salaries, or inclusive hiring process reside. The meta pattern here is that by default any decision is made after collective advisory process and at a lower level that it would have been made otherwise.

    I acknowledge that these examples may sound radical. They are, indeed. And yet adjusting them to a softer form is straightforward. It doesn’t have to be that anyone can decide about anyone else’s salary. It can be that anyone can decide about anyone else’s salary within their team and in accordance with budget constraints. What matters is that the decision is made at a lower level (a team mate and not a manager) and the whole team is invited to take part in the process.

    Such a change won’t happen overnight. Even in a small organization it likely requires years and not months to implement. However, unless there is a motion toward that direction, we are just paying lip service to self-organization and apply more band aid to broken legs.

  • 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.