2020-12-28

No bosses, no wages, no problem

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by Neil Godfrey

Yanis Varoufakis

Extract from a “science fiction” novel, understanding that “science fiction is the archaeology of the future” . . .

‘OK, here is how we do things,’ began Kosti’s account of the corporation in which he worked. ‘No one tells anyone what to do. We choose freely the persons or teams that we want to work with and also how much time to devote to competing projects. Everything in our company is in flux. Staff move about, new teams are formed, older projects die, new undertakings are concocted. No bosses to order anyone around. Spontaneous order and personal responsibility overcome the fear of chaos.’

This constant flux was a design feature of corporate life in the Other Now, Kosti explained. When hierarchies are used to match people with particular roles and teams, the result is clumsy, inefficient, oppressive. Status anxiety and the need to satisfy one’s superiors make full transparency impossible. People are kept in the dark about the relative attractiveness or drawbacks of working with particular managers or colleagues, how happy or dysfunctional teams are, how rewarding or boring different projects. Hierarchies simply perpetuate and expand themselves, resulting in a terrible mismatch between a person’s standing and what they actually contribute. Even the hierarchy’s great advantage, of ensuring that all posts are staffed at all times, is a hidden loss.

Under the flat management model, Kosti acknowledged, there are frequent gaps. But the fact that they are observable to all makes them useful. When people notice an empty spot where David’s desk used to be on the sixth floor, and then discover on the company’s intranet that he moved to the fourth floor to work with Tammy, Dick and Harriet, everybody learns something important about the value of the work being done in that nook on the fourth floor. With people voting freely with their feet, an ongoing collective assessment takes place of each project’s relative value. If unpredictability is the price of staff autonomy, it is a small one to pay, Kosti reported.

Pie in the sky? Not so, but a model based on reality:

A $4-billion company with no managers? Can it be?

Global video-game producer says employees can spend 100 percent of their time developing whatever they want. There isn’t even a human resources department. Is this sustainable?

At Google, employees are granted 10 percent of their time to work on any project they like. At Valve, a video-game producer, they have pushed that autonomy to 100 percent of employees’ time. Is such a free-form business model sustainable? 

. . . .

The company prides itself on the fact that there are no bosses, at least in the traditional sense of the word, Varoufakis says in the interview, posted at EconTalk. “It is a bit disconcerting for people who enter Valve, because there is no one there to tell them what to do,” he says. “So it’s a flat management, spontaneous order kind of operation, which creates a very interesting phenomenon from a managerial perspective, and actually from the perspective of people who try to live and work within it.”

‘But surely there must be a hierarchy when it comes to recruitment?’ Costa asked. ‘Surely there are menial tasks that no one would choose to perform?’

‘No, no hierarchy is involved at any level – not even in recruitment or the assignment of shitty chores,’ replied Kosti. New staff are taken on informally, he explained, without the need for a personnel department. If Tammy and David need, say, a graphic designer to work with them but cannot find one within the firm, they post a notice on the intranet announcing themselves as the initial search committee, inviting others to join them if they wish. Once assembled, the impromptu committee places an ad on the company’s public website to solicit applications. The committee then compiles a shortlist and conducts interviews, which anyone in the company is entitled to witness either remotely, via the intranet, or in person. Finally, Tammy, David and the rest of the search team post their recommendation, and anyone who wants to is able to cast a vote either against or in favour of their chosen candidate.

The same process is used, no matter the job, including for secretarial or run-of-the-mill accounting positions for example. New staff are recruited on the understanding that, once in the company, no one can force them to be secretaries or accountants. And indeed, Kosti explained, it is often the case that people recruited for these tasks eventually branch out into more creative roles in a way that no hierarchy would ever allow. But more often than not, perhaps out of a sense of moral obligation, they provide the services for which they were originally employed for sufficiently lengthy periods.

Varoufakis brands this style of anti-management as “anarcho-syndicalism,” but a less academic term for it may be that it is a highly entrepreneurially charged culture. In fact, he notes, compensation is based more on bonuses than actual fixed salary, which is a minimal part of the package. A couple of decades back, John Naisbitt, a business futurist, predicted that businesses would evolve into “confederations of entrepreneurs” — and Valve may be a classic example of such a confederation, or clustering of startups and small ventures.

Teams are ad-hoc, and people voluntarily join with others to collaborate on new projects in which they are interested.

There is no pressure for employees to be at their desks or workstations at any time, but people are expected to fit in and contribute value . . . . 

‘But what about pay?’ Costa was impressed but still incredulous. ‘Surely someone must decide who gets what?’ Continue reading “No bosses, no wages, no problem”