I worked at this one hierarchical software firm. It had a massive, seemingly never ending upwards hierarchy. I could never figure out who managed what, or who was who's manager. The advantage to a self-organizing company is that a lot of this complexity/inefficiency isn't there.
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Everyone had Official Titles. I learned that a "Director" doesn't really direct, which seemed very strange. There were constant and never-ending secret meetings. Secrets were rampant and normal. Much like an intelligence agency.
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When applying for a job at a hierarchical firm, if they really desire you they will hand you some powerful-sounding Official Title. Like "Senior Director of Advanced Mission-Critical Technology". Remember that titles cost a company absolutely nothing.
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At one hierarchical firm I had so many new titles assigned to me as I "Climbed the Ladder" that I had a big cardboard box full of little boxes containing updated Calling Cards. New cards had to be ordered as I received new titles.
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The Peter Principle (people in a hierarchy tend to rise to their "level of incompetence") applies strongly at hierarchical firms. Managers can appear like an absolutely crazy concept when viewed through the eyes of a self-organizing firm.
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At one hierarchical firm, I watched as around 10 developers followed around their manager at an event. When their manager said "let's go!", they all followed like a little army following their general. It was totally hilarious: A bunch of full-grown adults following some dude.
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As a worker inside one rigid hierarchical firm, the tree of relationships was almost impossible to navigate. I was more or less outside the hierarchy, beneath someone very high. But I wasn't part of the manager club. It was a very opaque structure, super resistant to outsiders.
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One large hierarchical firm scales up by taking a pre-designed Company Office Template and just stamping it out all over the world. New offices can form up around existing small teams that are acquired.
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The satellite offices at these companies can have very different cultures. One office I nicknamed "The Pirate Ship". The workers hated their managers here, and were threatening to walk at any moment. They were particularly mad about the lack of office space.
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I treated one rigid hierarchical firm like I was at a self-organizing company. I just optimized to Get Something Done. It was hilarious, as I broke every rule in the book to get this one important thing accomplished. I was near the "top" outside the manager hierarchy so it worked
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There is a rule book in business? :)
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