What is wrong with large organizations ?

Scott Berkun has a new book out (The Year Without Pants: WordPress.com and the Future of Work) in which he talks about his experiments working for WordPress.com.

One of the ideas he explores in the book is how small, smart, focused organizations are changing the way work is done in the “new world”. He describes the cynicism of “experts” who are quick to point out that while such-and-such is a great idea, it would hardly be scalable. Somehow that is supposed to mean that the idea is not practical.

Scott asks :

What good is something that scales well if it sucks? Why is size the ultimate goal or even a goal at all ?

As an employee at a large company, when you propose an idea, the first question that is asked is: can this work at the organization level ? Sure, this is a great idea for this specific group, but will it work across all departments ?

Now, most ideas do not work everywhere. Not all departments are the same, not all groups have the same problems/goals. Ideas come with context to the specific problem/goal that the specific group is trying to address. So, why are new ideas passed through this lens when they are proposed ? Why are ideas expected to work on a large scale as well as a small scale ?

I believe that this is where large organizations (and that includes most governments) fail to innovate. Large companies that do innovate are mostly those that work on small scales. ..those that have hundreds of small, focused groups instead of being one huge monolith.

Software development, especially is meant to work on micro scales. You build small programs that address specific problems and then try to integrate the smaller pieces into one big piece. Object oriented programming took us in that direction decades ago. That is how organizations should work as well. They should be made up of small groups (of 5-10 people) that address specific problems and do that well. It is, then, the task of the senior leadership to integrate these small groups.

We are quickly moving into an age when organizations need to build themselves around small groups (or even around individuals). There was a time when individuals molded themselves (and their style of working) around the organizations that they belonged to. That time is long gone.

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