Are Managers An Endangered Species?

2. The Elephant in the Room • The “unsolved problem” in Agile • Traditional management doesn’t work • This problem is often ignored • So … history April 3, 2014 Copyright 2014, All Around The World http://www.flickr.com/photos/hbarrison/7522705738/

4. Feudalism Oversimplified • Local allegiances • Poor internal communication – No price signals – Thus no markets (in the modern sense) • Command-and-control from king to serf April 3, 2014 Copyright 2014, All Around The World

13. Why Do Corporations Struggle? • Why don't big companies innovate more? (Forbes) • Why big companies can't innovate. (Harvard Business Review) • Why is innovation so hard for large companies? (Game Changer) • Why small companies have the innovation advantage. (entrepreneur.com) • The Dark Side of Analyst Coverage: The Case of Innovation. (Journal of Financial Economics) April 3, 2014 Copyright 2014, All Around The World

14. Public Companies • Share prices tied to compensation • Share prices tied to job security • Share prices vis-à-vis company takeover • Share prices as a measure of success April 3, 2014 Copyright 2014, All Around The World

17. Inefficiencies • Feudal societies were inefficient – Local allegiances – Poor internal communication • No price signals • Thus no internal markets (in the modern sense) – Command-and-control from king to serf April 3, 2014 Copyright 2014, All Around The World

18. Inefficiencies • Corporations are inefficient – Local allegiances – Poor internal communication • No price signals • Thus no internal markets (in the modern sense) – Command-and-control from CEO to grunt April 3, 2014 Copyright 2014, All Around The World

20. People (a.k.a. “resources”) • Little personal incentive • Groupthink • Risk averse/hide-and-seek • Blame avoidance • Large projects bring prestige April 3, 2014 Copyright 2014, All Around The World

31. Booking.com Strengths • Relatively flat hierarchy • Excellent customer service • A/B testing experts • Strong continuous deployment • Focus on customers, not code April 3, 2014 Copyright 2014, All Around The World

32. Booking.com Challenges • Extensive technical debt • Lack of Perl developers • Dutch tax law changes • Poor US market penetration (*) • Focus on small projects April 3, 2014 Copyright 2014, All Around The World

36. VALVE • Entirely self-funded • Own their intellectual property • “Hiring well is the most important thing in the universe. Nothing else comes close.” April 3, 2014 Copyright 2014, All Around The World

42. Ricardo Semler April 3, 2014 Copyright 2014, All Around The World •http://en.wikipedia.org/wiki/Ricardo_semler •http://www.semco.com.br/en/ • 27% average annual growth for 25 years •http://www.slideshare.net/camilletaper/semco • "Leading by Omission" speech (Google it)

46. Open Questions • Can “managerless” succeed long-term? • What social changes might this entail? • Where are managers required? • Can public companies effectively compete? April 3, 2014 Copyright 2014, All Around The World

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