hierarchy

BetterMeans: a new app for running your organization the open source way

Last week I received a heads up about a new web application launching today from a company called BetterMeans with an impressive goal: to build the infrastructure (processes, technology, governance, etc.) to make an open organizational structure like we talk about here on opensouce.com a reality.

From their website:

BetterMeans.com is a web platform where people can start and run companies in a new decentralized way.

– Teams self-form, self-organize, and self-manage using an issue-tracking tool
– There is no management class, only natural hierarchies.
– Leadership emerges organically by users earning other users’ confidence
– Compensation is based on contribution
– Strategy and ideas are crowd-sourced
– There’s full accountability and transparency. Relationships are built on trust.
– Ownership is distributed
– Capital allocation and decision-making are decentralized

If a traditional company was a network architecture, it would be client-server.

We’re building a platform for peer-to-peer companies that are more agile, resilient, and innovative.

The video below explains what they are doing and why.

[Read the rest of this post on opensource.com]

The open source organization: good in theory or good in reality?

On occasion I get the opportunity to speak publicly about some of the things I’ve learned over the years applying the open source way in organizations.

In almost every case, when the Q&A session arrives, I’m greeted with at least one question from a poor soul who loves the idea of applying the open source way to management and culture, but doesn’t think it would ever work in his/her specific organization. Usually the comment is accompanied by some horror story about an evil co-worker, hierarchical boss, crappy HR policy, or some other impediment that would cause the open source way to fail.

And the sad truth? These folks are probably right. Many of these concepts wouldn’t work in their organizations.

So why do I waste my time talking about things that may not work in many organizations? Two reasons:

1) hope

2) the wind

Hope

Let me be honest. I’ve never run into a perfect model of the open source way in practice (if you have, please point it out to me!).

There are clearly some organizations that have figured out how to build open source principles into their DNA better than others. Wikipedia is a good example. The Fedora Project is another. Still, my guess is the people who are deeply involved in those projects on a daily basis would probably be able to show you some warts, places where old-skool practices are still evident.

We’ve set our company New Kind up as a corporate lab for the open source way. But we can’t make a case for perfection here either. We are still learning and prototyping.

So why not be more realistic? Why not give up and accept that some of these principles work better in theory than they do in practice?

Simple: I have hope.

What gives me hope? Two things. First, I have seen first-hand many examples of great things that happen when open source principles are applied within organizations. From the collaboratively-designed mission of Red Hat to the work of Fedora marketing team, I’ve personally witnessed the power of open source principles in action.

Second, I believe in the pursuit of perfection. Why not aspire to create better companies than we have today? What do we have to lose? I don’t know that we will ever see a perfect open source company. But by pursuing perfection, we are likely to get a heck of a lot closer than where we are today.

[Read the rest of this post on opensource.com]

Jim Whitehurst: 20th century companies already hiring 21st century employees

Last night, Red Hat President and CEO Jim Whitehurst gave a talk to a group made up of mostly students and faculty at the NC State School of Engineering. Nice writeup of it in the student newspaper here. His ideas were very timely for me; just the other day, I wrote a post with some tips for companies with 20th century cultures trying to make the move into the 21st century.

Your future employee sez: I'm going to need a bit more collaboration and meritocracy up in here! (photo by D Sharon Pruitt)

Jim Whitehurst is in a rather unique position  because he has managed both an icon of the 20th century corporation (Delta Airlines) and what we’d like to think is a good example of the 21st century corporation here at Red Hat.

Because of his experiences, Jim is able to clearly see and articulate the differences between the old model of corporate culture, based on classic Sloan-esque management principles, and the emerging model, based in many ways on the power of participation broadly (and in our case, the open source way specifically).

One very simple point Jim made that really struck me: Companies with 20th century business models need to realize that they are already hiring 21st century employees.

People coming out of school today have grown up in an age where the ability to participate and share broadly is all they’ve known. These folks have grown up with email accounts, the Internet, Facebook, and all of the other trappings of a connected world.

So when they graduate from school and take jobs working in old-style corporate cultures, where progressive principles like transparency, collaboration, and meritocracy lose out to the old world of control, power, and hierarchy, what happens?

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Jack Welch on transparency, meritocracy, and the death of hierarchy

On Tuesday I’m heading up to New York to share an open source perspective with GE marketing executives at the legendary GE leadership center in Crotonville. I wrote a post a few months ago praising GE Chairman Jeffrey Immelt’s compelling new vision for corporate America, and I have an enormous amount of respect for GE as an innovation engine. I’m excited about the opportunity to exchange ideas with the smart folks there.

In 2009, Forbes ranked GE as the world’s largest company, so I’ve figured before I went up to Crotonville it’d be a good idea to do some homework and see what elements of what we call the open source way are already in practice within one of the most successful companies in history. I’ve found some interesting stuff in my research.

One piece in particular grabbed me. Sitting on the beach today over the holiday weekend, I finished the 2001 biography of Jack Welch (the legendary predecessor to Immelt as Chairman of GE) entitled Jack: Straight from the Gut. I thought I’d share a Jack Welch prediction (written almost ten years ago) that fits right in with our open source view of what the 21st century organization looks like.

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