Matt Asay just posted about Red Hat’s new mission, which he discovered on a visit to our Westford office in one of our “bathroom briefings” (important aside: we post some internal company news right front and center in the bathroom… if you want people to read something, post it in the bathroom– not everyone reads mailing lists, but everyone pees! Remember, internal communications is a strategic role at Red Hat!).
It’s not a secret, so I don’t mind that he saw the mission or posted about it. In fact, we are pretty happy with the transparent process we employed to get it done. Those of you who have read some previous posts know how strongly I feel about having the entire company aligned on mission and vision and values– the core stuff.
Last week a colleague told me IBM had reorganized it’s marketing and communications functions. In the new order, the entire marketing organization would report into communications. Typically it has always been the opposite, with brand groups like mine and public relations reporting into a Chief Marketing Officer. Until recently, that’s been the way it worked at Red Hat too– over the years I’ve worked for mostly VP of marketing or CMO-types (although now I work as part of a group called People & Brand, a subject I’ll save for another post).
So I spent some time thinking about what this change meant for IBM, why they were doing it, and did a little research online. In the process, I stumbled upon this report from the Arthur W. Page Society entitled “The Authentic Enterprise.” Turns out that one of the co-chairs of the Authentic Enterprise task force was John Iwata, the SVP of Communications for IBM. My guess is that this report, which came out in 2007, had significant impact in making the changes at IBM.
Thought I’d call out a few choice quotes from the report that I loved.
I was emailing back and forth with my friend Todd Barr the other day. Catching up with him reminded me of an idea we used to talk about quite a bit that I still think is the best idea that we haven’t made good on: Red Hat Nation.
The basic idea is that a company like Red Hat, based on open source, has an opportunity to completely redefine what a business looks like in the 21st century. The traditional 20th century business is often very black and white: either you work for the company or you don’t. You are inside it’s walls, or you are not. There are clear distinctions between employees, partners, and customers. The most common way of depicting a company in this 20th century model is by showing its building.
In the traditional model, if I was to say I work for Red Hat, you would assume it means I am a Red Hat employee, and that they give me a paycheck, benefits, a desk, all the normal stuff.
But imagine for a second that the image used to illustrate the 21st century company is not a building, but instead a flag.
A flag is often a rallying point for nations, a symbol that represents a common set of beliefs. You see flags at the front lines of troops in battle. You see flags hanging outside the door of homes. You see flags on clothing, at sporting events, in many places where people who share common traits gather.
My friends Jeff Mackanic and David Burney both recommended that I read Gary Hamel’s latest book, The Future of Management, which was named the best business book of the year by Amazon in 2007. I was absolutely blown away. The whole way through, I was like, “tell it, brother!”
The basic thesis of the book? The management model developed in the late 19th and early 20th century and integral to the success of the industrial revolution is starting to show signs of wear. It is being replaced by a new model, embodied by companies like Whole Foods, Google, and W.L. Gore (the makers of Gore-Tex); all three are highlighted in the book.
Red Hat, and the open source movement in general, are another perfect case study of this new management model. Concepts like the meritocracy of ideas, transparency & openness, collaboration, authenticity, and a whole host of other ideas that have made Red Hat successful appear over and over in the book.
When we are at our best at Red Hat, we have a leadership culture instead of a management culture.
What’s the difference? My favorite example of understanding the difference is from Malcolm Gladwell’s book, Blink.
The story is about US General Paul Van Riper, who is trying out some military strategies to see how they will work in the field. In the book he says:
“The first thing I told my staff is that we would be in command and out of control.”
Most companies have a culture of management. The people in charge are in command and in control of everything. Managers give the orders, decide the strategy, and the workers follow the orders, implement the strategies. This is the way 90+% of businesses work and have worked for a very long time. It’s a good model for lots of businesses. Keeps things running efficiently, keeps chaos in check.
This model does not work very well in an open source world. Why? A couple of key reasons: Continue reading