
The uplifting message of Reinventing Organizations has resonated with readers all over the world, and they have turned it, one conversation at a time, into a word-of-mouth phenomenon. The book has helped shift the conversation from what’s broken with management today to what’s possible. It is inspiring thousands of organizations—corporations and nonprofits, schools and hospitals—to adopt radically more powerful, soulful, and purposeful practices. The book resonates widely, but not everyone has time to devote to a dense 360-page management book. This illustrated version conveys the main ideas of the original book and shares many of its real-life stories in a lively, engaging way. Don’t be surprised if you find it hard to put down and end up reading it almost in one sitting. Welcome to the conversation on next-stage organizations!
I founded a company that grew from 1 person 26 years ago to 850 people and is now 270. I think about the topics in the book quite a bit. And a while back I reached the same conclusion that companies need a different governance structure to not succumb to financial gravity.
I feel your book overlaps with Reinventing Organizations by Frederic Laloux. His book explores how organizations can move beyond traditional command-and-control management toward self-managed, purpose-driven, and more human-centered ways of operating. It gives a number of examples of companies operating in this way. But it does not focus on governance structure. In fact, one of the companies died because of a change of ownership.
Your book also provides many examples of which I was not aware. It is always inspirational to hear of other companies trying to do things differently, even if it is not directly applicable to your business.
I like your use of gravity as a metaphor and particularly that you can harness it to your advantage. I also believe strongly that we should not accept the way things are and we can change them.
You mention in the book that companies in the s&p 500 live about 18 years, when in the past they would live 60 years and one of the reasons for this is financial gravity and in particular the change that happened in the 1980s where companies started solely serving investor interests. In thinking about companies, I use the metaphor of waves and surfing. I feel 100 years ago the waves were very infrequent. What has happened in the last several decades is that the time between waves has shortened. Companies have had to deal with changes like the internet, smart phones and social media, and now AI.
Alvin Toffler in Future Shock (written in 1984) argues that the accelerating pace of technological, social, and economic change can overwhelm people's ability to adapt. Toffler calls this condition "future shock"—a state of stress, confusion, and disorientation caused by too much change in too little time. He predicted exactly what we are experiencing now. I think companies are also going through this kind of shock and likely the average life span of companies will continue decreasing.
Going back to the waves and surfing. A company is a bunch of people on a surf board and the waves are coming faster and faster. Waves can be opportunities or they could kill the company. And so we need to think about how to structure a company so that it is agile and can catch waves or get out of the way of waves. I feel companies need to be much more fluildly structured so they can adapt to fast moving changes in the environment. Most companies are structured too rigidly.
Another metaphor for thinking about companies is as a multicellular organisms, where individual cells are people. As with multicellular organisms, companies will need to evolve into more advanced organizations. The way this happens with organisms is through death and mutation and can take millions of years. The same thing happens with companies, they die, and people leave to join or start another company, taking some of the lessons with them. This rate of evolution is very slow, so we need to think about how we can change the dna of an existing company. I feel structure and environment within the company can play a role here.
Also, I feel gravity applies to individual self-interest of which financial is a subset. With any organizational group, you are trying to take individuals with their own self-interest and are trying to align them to achieve something that is greater. If you can pull it off, each individual can realize much more of their potential and the group can achieve far more. But the force of self-interest is always pulling to break things apart, and for this you need to put in structures that maintain integrity.
Again, thanks for writing the book. I enjoyed it.
ICs will need time to adjust to a flat structure, and some people will do anything to fight the absence of the restrictions they've always known. Hiring a bunch of senior ICs from traditional industry roles and saying "we're not going to have managers!" is always going to fail.
For a CTO/founder it's even easier: If you're building a VC-funded start-up where the plan is to grow fast exit in a few years — what's the point? Why invest the effort and energy to making flat work when the moment you get bought out the hierarchy is back anyway.
There are examples of stable large companies with flat org charts that do work, they're just not the hypergrowth scale-ups. The book "Reinventing Organizations" covers several in depth, and is a good intro to the topic. So my objection is the implication that a flat structure can never work, or that there is something fundamental about a flat org and human nature that means it's unstable. It is simply that it requires long-term investment to get right, and the market isn't setup to reward long-term investment.
Better and healthier organizations are possible, as Laloux writes about. They are rare though -- and difficult to sustain in our current Western society. As with Creo, you definitely need enlightened management or enlightened major shareholders to "hold the space" as Laloux writes.
The question of "who is ultimately responsible" changes based on how we see the organisation. In organisations where the chief decides everything, its up to the chief to decide if they should place blame on someone or not. In a modern corporation, people at the bottom of the hierarchy are shielded from the consequences of their actions by the corporation. But there's also a weird form of infantilisation that goes along with that. We don't actually trust people on the ground to take responsibility for the work they do. All responsibility goes up the management hierarchy, along with control, power and pay. Its sort of assumed that people who haven't been promoted are too incompetent to make important choices.
I don't think thats the final form of how high functioning teams should work. Its noble that you're willing to put your head on the chopping block, but I think its also really important to give maximal agency to your employees. And that includes making people feel responsible and empowered to fix problems when they see them. You get more out of people by treating them like adults, not children. And they learn more, and I think that's usually, in the long run, better for everyone.
I agree that if a company has a bad process, employees shouldn't be fired over it. But I also think if you're an employee in a company with a bad process, you should fight to make the process better. Never let yourself be complicit in a mistake like this.
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It's packed with real-life examples of companies doing things differently and practical tips on how you can too.
And if you’re on the hunt for more books that tackle change in the workplace, check out this list: https://www.readupnext.com/list/best-change-management-books
It's a great resource for finding similar reads!