"While it's true that Valve has no official job titles or promotions, compensation varies greatly among employees and many teams have an obvious pecking order. There is no formal management structure, but it's clear that some people have substantially more control over project direction and the work of others."
"Because teams are intended to be self-forming, it's rare that enough people will want to assume risk to all collectively embark on a new project. It's too safe and too profitable to just contribute to something that's already successful. Even though failure is supposed to be tolerated and even encouraged so that employees will try new ideas and experiments, there is little evidence of this. After a few rounds of bonuses, folks learn quickly what is rewarded, and what is not."
"The idealistic paradise is ultimately undone by a flawed review system. The lack of managers means that a peer review system is necessary, and Valve is very proud of theirs. But their review model is best described as a "popularity contest masquerading as data""
"Those who get stock options do extremely well, and the others do not. It’s an unacknowledged two-class system."
"The rational response to this uncertainty is to find a patron – somebody who can guarantee you a good review if you do their bidding. These patrons (the knights) guarantee themselves good reviews by doing the bidding of a higher-level patron (a baron), and the barons pledge fealty to the board members. This unofficial structure necessarily evolved and you opt out of it at your peril. The irony of a hierarchical structure spontaneously forming in Gabe Newell’s company after he has spoken so strongly about the problems of “command-and-control type hierarchical systems” is delicious. As was noted in “The Tyranny of Structurelessness”, “structurelessness becomes a way of masking power”, and this masked power is more insidious than formal power."
"So, I quit in order to get better compensation, an acknowledged hierarchy, and appreciation for my work."
"This organization has a purposely opaque, hierarchical, secretive, and very rigid management structure."
"Some projects can go on literally for 5+ years wandering around pointlessly without shipping, with little to no direction, and no accountability. This company is terrible at writing and shipping large scale software"
"The random mass firings of 2013 tanked moral, and the stream of talent leaving the company during 2014 didn't help."
"The yearly review process lacks feedback, transparency, and coverage. This company has no formal HR, so good luck if you need to give genuine feedback about troublesome coworkers."
"The lack of solid structure in management reduces the company to schoolyard politics where bullies and loudmouths reign." (Title: "It's like being in high school again")
"The culture at Valve is a bit like a cult. There's a party line and if you veer from that, it is discouraged with one-liners rather than discussion."
"The incentives are setup so the people who place themselves around upper management the most and are the loudest about what they're doing (that jives with what upper management likes) will be compensated several times more than those who don't."
And pretty much all of the kinds of obvious things that you'd expect to see in a "self-organizing" environment are called out.
- de-facto hierarchy takes its place (at valve it seems that there are several overlapping hierarchies, all of which are toxic)
- highly centralized power at the top results in the de-facto highest people jockying for favor and acting as gatekeepers
- innovation stops
- complex projects take forever
- risk taking gets turned into position jostling
- unclear structure leads to unclear reviews
- nobody to resolve disputes
- secrets and rumors dominate information flows
- these problems remain unacknowledged
Look at reviews for other large flat organizations and you'll see the same issues echoed over and over again. Anybody who's worked for a reasonably sized "flat" org will recognize all of these problems as persistent and near universal.
Zappos will be no different. It's just a terrible way to organize labor.
http://www.glassdoor.com/Reviews/Valve-Corporation-Reviews-E...
Here's some choice quotes:
"While it's true that Valve has no official job titles or promotions, compensation varies greatly among employees and many teams have an obvious pecking order. There is no formal management structure, but it's clear that some people have substantially more control over project direction and the work of others."
"Because teams are intended to be self-forming, it's rare that enough people will want to assume risk to all collectively embark on a new project. It's too safe and too profitable to just contribute to something that's already successful. Even though failure is supposed to be tolerated and even encouraged so that employees will try new ideas and experiments, there is little evidence of this. After a few rounds of bonuses, folks learn quickly what is rewarded, and what is not."
"The idealistic paradise is ultimately undone by a flawed review system. The lack of managers means that a peer review system is necessary, and Valve is very proud of theirs. But their review model is best described as a "popularity contest masquerading as data""
"Those who get stock options do extremely well, and the others do not. It’s an unacknowledged two-class system."
"The rational response to this uncertainty is to find a patron – somebody who can guarantee you a good review if you do their bidding. These patrons (the knights) guarantee themselves good reviews by doing the bidding of a higher-level patron (a baron), and the barons pledge fealty to the board members. This unofficial structure necessarily evolved and you opt out of it at your peril. The irony of a hierarchical structure spontaneously forming in Gabe Newell’s company after he has spoken so strongly about the problems of “command-and-control type hierarchical systems” is delicious. As was noted in “The Tyranny of Structurelessness”, “structurelessness becomes a way of masking power”, and this masked power is more insidious than formal power."
"So, I quit in order to get better compensation, an acknowledged hierarchy, and appreciation for my work."
"This organization has a purposely opaque, hierarchical, secretive, and very rigid management structure."
"Some projects can go on literally for 5+ years wandering around pointlessly without shipping, with little to no direction, and no accountability. This company is terrible at writing and shipping large scale software"
"The random mass firings of 2013 tanked moral, and the stream of talent leaving the company during 2014 didn't help."
"The yearly review process lacks feedback, transparency, and coverage. This company has no formal HR, so good luck if you need to give genuine feedback about troublesome coworkers."
"The lack of solid structure in management reduces the company to schoolyard politics where bullies and loudmouths reign." (Title: "It's like being in high school again")
"The culture at Valve is a bit like a cult. There's a party line and if you veer from that, it is discouraged with one-liners rather than discussion."
"The incentives are setup so the people who place themselves around upper management the most and are the loudest about what they're doing (that jives with what upper management likes) will be compensated several times more than those who don't."