The Weakness of “Progressive” Organizations

May 08 2022, by Matt Perez

Co-management is a move away from the Fiat hierarchy, and that’s good. But it doesn’t last: we must have decentralized ownership, which we call co-ownership, for robust and stable governance.

The Weakness: Owner-Boss

Co-management is a move away from the Fiat hierarchy, and that’s good. But it doesn’t last: we must have decentralized ownership, which we call co-ownership, for robust and stable governance.

In a recent Corporate Rebels post, Joost Minnaar identifies ten progressive organizational structures ∇  which he calls Amoebas, Cells, Circles, Chains, Fractals, Honeycombs, Lattice, Micro-communities, Mini-factories, and Squads.

Unfortunately, except for WL Gore, all the organizations given as primary examples have an owner-boss at the top. In these cases, the owner-boss sees himself as a “servant leader” or some other benevolent ”benevolent” crap.

Co-Ownership Brings Robustness

It is great, in fact, that these companies have experimented with co-management. They have shown that it works and that we don’t need the Fiat hierarchical system we live under. Unfortunately, co-management is not enough because it doesn’t last.

Most of these “progressive” companies have fallen back to the Fiat hierarchical model once the benevolent owner-boss.is out of the picture.

For governance to be decentralized in a robust and long-term way, decentralized management must be accompanied by decentralized ownership or co-ownership, as we call it. ∇ 

Robustness Emerges from a Simple Foundation

Rather than specific practices or strict methodologies, this foundation allows you to discover out what works for you, while helping you to keep grounded on what’s important,

people Meaning & Belonging
commitments Decentralization & Transparency
practices Experimentation

Description,

Meaning and Belonging

These are important things to people, finding meaning in what they do and belonging to a community that helps them.

Decentralization & Transparency

I tried, but I didn't find a way to reduce it to one word. You need both. Decentralization and transparency specify a range, they are vectors. You can be mvoe towards more or less decentralization and more or less transparent depending on choices you make, decision you take.

Experimentation

Finally, experiment. Be explicit about what you expect (e.g., tomato paste with 50% acidity) and then don’t be afraid of experimenting. If your results match your expectations, call it an innovation and celebrate. Otherwise, learn from it.

ENDNOTES

By: Matt Perez
Co-founder RADICAL World

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