Who’s Really Sitting at the Top of Every Organizational Chart

New Org Chart 1cFacebook moved into a new office complex earlier this year, which Mark Zuckerberg has described as “the largest open floor plan in the world.” With over 400,000 square feet, it is reported not to offer a single private office. There are conference rooms, shared spaces, and all kinds of creative gathering areas meant to protect the startup environment that is core to the company’s zeitgeist as it evolves into a corporate behemoth. It’s a wild, energetic, real-time experiment in organizational development that is already being praised and criticized from inside and outside the company. Whatever your assessment might be, it’s a test of human behavior worth watching.

For a moment, I’d like to think of the Facebook campus not as a model of space planning, but as a model of team planning. Long before the debate raged on whether private offices had run their course of usefulness—and just how truly dreadful the industrial cubicle could be—company leaders were debating the “optimal” way to arrange organizational charts in the Information Age. If you’ve spent any time with me in product development, you know I like to quote the sometimes overused phrase, “People in companies get stuff done in spite of org charts, not because of them.” It’s a bias I maintain for all kinds of reasons, not the least of which is seeing it in action almost every day. Another bias I hold applies to the “optimal” way to build these org charts. I’ll confess to that in a moment, but the title of this article has likely already given away my leaning.

Let’s start with the basics. The rise of the Industrial Revolution in the 18th Century, emerging from prior Agrarian Societies, led to thousands of individuals working for single companies, for the most part creating efficiencies in the manufacturing model. Most of us are familiar with the innovation of Henry Ford as something of the father of mass production with his 20th Century Assembly Line. The premise of the organizational charts for these early corporate conglomerates surmised that a few knowledge workers and a Big Boss would send instructions down the pyramid to a wide base of workers who hopefully wouldn’t ask too many questions. Executives were at the top, middle managers squeezed in the sandwich, and individuals contributors down below busy doing their hands-on functions repeatedly. If the model sounds blunt and easy to follow, there is a reason for that—it dates back to the earliest days of broad warfare, mostly perfected by the Romans. You have an Emperor, you have Generals, you have Captains, and you have Soldiers. It worked for thousands of years in capturing terrain, albeit at the cost of mostly Soldiers, and it worked for hundreds of years in mass producing products, too often without much consideration of job satisfaction.

As education and information became more available in later decades, and asking questions became the norm, the inflexible org chart became a lot more difficult to maintain. As workers collaborated more and followed instructions less, human resources departments (formerly known as personnel offices) looked to break out of the traditional top-down structures and unleash creativity. Standard org charts evolved along the lines of two basic models: Functional Departments and Cross-Functional Teams.

Functional Departments place similarly skilled workers into groups led by senior individuals with advanced experienced in a discipline. This creates a Legal department, an Art department, an Engineering department, a Finance department, a Sales and Marketing department, and the like. Over the course of your career you might aspire to become the VP of Finance or the VP of Marketing, and these VPs, now sometimes called C-Level executives (Chief Financial Officer, Chief Marketing Officer) point the functional expertise of their teams into a Chief Executive Officer. Your company may organize itself this way. It is a very common and familiar way to organize. It’s also still very close to the old military hierarchy.

Cross-Functional Teams break the model of Artist reporting to Art Director and Engineer reporting to Engineering Director. They place multi-disciplinary groups under a generalist manager who is often more “cat herder” than boss. In this model, a smaller group of people with engineering, finance, marketing, design, and manufacturing expertise might all report to someone called a Project Lead, Product Manager, or General Manager, who is in essence a mini-CEO. Unlike Functional Departments, Cross-Functional Teams are likely to be less “permanent” in structure. The team might be ad hoc, assigned to an initiative, ready to be broken up and redeployed following a product release. Functional experts on the team might have a dual reporting relationship to the team leader and a senior expert in their area of expertise offering professional mentorship, so that a team leader who doesn’t know the law doesn’t have to render legal oversight (always a good idea). Over time Cross-Functional teams can evolve into more permanent Business Units with profit and loss responsibility for a specific line of products and extensions. If you have ever been in a company comprised of Battling Business Units , you know it can be even less fun than being buried on a Functional Team.

It is at the intersection of these two models that we all learn the necessity of Matrix Management, which unfortunately in the Information Age is the only real way we have to collaborate in an ongoing manner. Sometimes we need a Functional Department to help us advance in our area of expertise, and sometimes we need a Cross-Functional team to get stuff done with people who are good at different things. Most companies go back and forth between Functional Departments and Cross-Functional Teams, and just when you think your company has settled into a comfortable structure, along comes the inevitable memo announcing the company re-org. Companies re-org over and over in search of optimizing their growth models, but the truth is, neither approach is perfect, and whichever one your company is currently utilizing, be prepared to have it change. Re-orgs are certain because change is certain. The opposite would be sameness, and as much as you might think you want that, running in place is the surest way possible to go out of business.

Oh, about that bias of mine—I believe anything in a company that leads to entrenched fiefdoms stalls creativity. Functional Departments are usually fiefdoms. Business Units are usually fiefdoms. Again, this is why Matrix Management is a reality, particularly in managing empowered, innovative individuals who join together in a mission that is unlikely to last a lifetime, but has a real chance to change the world now. If we take that back to the visual metaphor of the open floor plan, I tend to see greater strength in the output and engagement of Cross-Functional Teams than I do Functional Departments. That doesn’t mean I am against having an exemplary CFO, CTO, or CIO setting the bar for excellence in a discipline. It just means that whatever the org chart says at the moment, I don’t want any walls between artists talking to engineers, lawyers talked to sales people, accountants talking to marketers, or anyone so distant from customers that they forget who pays everyone’s salary.

You see, at the root of all this, there only is one Emperor, one General, one CEO, one Boss who matters most. That is the voice of the Customer, whom we almost never place on the org chart. Start by putting the Customer at the top of the hierarchy, and you’ll soon understand why who reports to whom doesn’t really matter when it’s time to tally the scorecard. That’s why the walls gotta go, figuratively or literally. Go out on the floor and try to bump into a few people. You may be surprised how much you learn and how good it feels.

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This article originally appeared on Inc.

Rotten Choices, Rotten Jobs

Tenure 2010 BLSMaybe I’m getting a tad older. Or maybe with a few added laugh lines I can see a tad more clearly. Here’s what I see:

Too many people leaving too many jobs much too quickly.

What might that mean?

When I look around, I see way too many folks I know pushing themselves to perspiration to land a job, then in the first few weeks discovering they don’t like it (or it doesn’t like them). They leave in a year or less, maybe two years, three becomes a stretch. Then they leave and step on the conveyor belt anew.

What’s going on here? Is it generational? Is this a millennial thing?

Afraid not. It’s an epidemic. I am seeing it across the board, people of all ages and levels of experience. We might like to believe the way of the world now is job-hopping and we should get used to it, but I would like to suggest it’s more than “internet time” that’s wasting these human cycles. I think too often we bring it on ourselves and then make excuses for it.

Perhaps all this casual turnover is a symptom of a more pernicious ill—the unstructured, undisciplined application of choice.

Rotten choices. Rotten jobs. Crappy bosses treading in goo. Crappy performances by individuals biding their time before they get caught dialing it in.

Gee, Ken, there’s a dose of optimism! So glad I stopped by the open door.

Don’t worry, the optimism is coming, down in the punchline at the end. First let’s look at why these jobs are so short-term. I’ll give you four legs of the stool (metaphor intended):

1) Mediocre Products: Seriously, how can anyone do a great job jamming a me-too knock-off? On my weekly radio spot with Barb Adams last week we talked at length about the failure of Google Plus. Imagine working that hard on a death march with all the resources of a powerful company behind you, only to release a weak knock off of your rival, Facebook. A very quick way to burn up the employee-employer relationship is to sound the rallying cry of importance, then have to explain why it was all words and little action. Solution: Think strategy before you think deployment of resources. Ask What and Why before How and When—what customer problem are you solving, and why are you the right company to solve it. Then grind!

2) Amateur Leadership: I’ve said it many times in these articles—people don’t quit jobs, they quit bosses. If you’ve never had a good boss, you probably will repeat the cycle and stink at it. It’s wonderful to see so much young energy driving the latest wave of startups, but as these New World startups get momentum, they take on many of the same problems as Old World companies. Battlefield promotions abound, and you can’t fake it in front of an army of grizzled veterans no matter how clever you think your quips are. Solution: Mentorship! If you never had a good boss, find one of those grizzled veterans who was a good boss and surgically attach yourself to him or her. You can do this privately or publicly, but don’t be afraid to ask innumerable questions, and whatever you may ultimately choose to do, be sure you LISTEN! Also remember that anytime you choose to have a boss you are leaving some money on the table (the value you create pays your boss’s salary), so if you are giving up income, you should be getting something for that, and it’s called LEARNING. Ask for this benefit upfront. If you’re not getting better at what you do because of your boss, you’re getting burned.

3) Hiring by SEO: Indeed I Love LinkedIn, but if the primary reason a manager makes a hire is because of the keyword overlap between what they need and what someone else has done (evidenced by lots of highlights in the overlay), start the countdown clock. This cuts both ways, company and applicant. Solution: Hire and accept a position for character and compatibility as well as competency. Every company has a culture (and if you think your company doesn’t have a culture, that’s the company culture). A hiring manager needs to Think Different as a team expands. A star individual achiever may not be a consensus player. Legendary companies begin and grow through culture, and that comes from people. And don’t forget diversity. Without it, your products are going to be mighty ordinary.

4) Job Application without Roadmap: If you the hiring manager don’t know what is going to light your fire, what makes you think the person with the offer letter has flint? You must have a notion of what you need now as well as where that relationship can evolve before you begin interviewing. A candidate also has to evaluate not just whether he or she is a fit today but where this position might lead over time. If you think of the opportunity as a relationship, you’ll know you need to leave room to let it expand. Solution: Get clear about yourself first, then start to think about soliciting or fielding offers. If you’re thinking short-term, don’t be surprised if the results are short-term. The immediate need before you is not an end in itself but a launching point. If you’re not thinking that way, the revolving door will soon be spinning.

There’s no question the employment landscape has changed significantly with the generational shift. There is now little stigma associated with short job tenure on a resume. Few pensions remain to hold people in place. Headhunters comb online profiles for middle management as well as senior positions (sometimes entry-level positions!). Self-employment and consulting are becoming increasingly viable alternatives to third-party employment. Many people now value lifestyle over career achievement and will dump a job if it underperforms their personal expectations. Yet even with all that, I hear one heartbreaking story after another about talented individuals departing gigs before they could make a lasting contribution or feel proud about their productivity. You can switch jobs all you want, but you still get one life. What do you want it to be about?

About that punchline and a scoop of optimism—try this on for size: Anyone can change the world, but few people will. You can change the world. That’s not a slogan and it’s not hyperbole. It’s the fuel of innovation, the only true gas in the tank of the companies we admire. Decide how you want to change the world, at any scale large or small, and connect that vision to an employer’s honest promise to let you have that chance. Do you think anyone could pry you out of that job with a flame-heated crowbar? Fat chance. You’ll stay where you’re wanted, and where people let you do the best work of your career. Find that, and the words “rotten” and “crappy” will be replaced by more upbeat adjectives than exist in any vocabulary.

Stop whining. Start growing. Stop offering and accepting dead-end gigs you already know are terminal. Our time is precious, and you’re running out of it. Change the world.

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This article originally appeared on The Good Men Project.

Why Revere Talent?

The People Factor
by Ken Goldstein
Second in a Series of Ten

Talent is a tremendously overused term, often in an almost commoditized sense.  Be advised, talent is not a commodity, not in the least.  Talent is a gift, and like anyone who has or receives a gift, it must be nourished, nurtured, protected, developed, and polished.  Talent is best developed by experience; without hard won field play, the full potential of talent is too often unrealized.  Talent is elusive and unpredictable, but realized in sweat and support.  You know it when you see it, and you know when you see it being wasted.  This is The People Factor, very real and very human, which drives the workplace… or not.

One of my favorite exchanges of all time on this topic is from the 1988 movie Bull Durham, where Kevin Costner’s Crash Davis, the catcher who could have been, let’s loose on Tim Robbins’s Ebby Calvin “Nuke” LaLoosh, the pitcher who could be —

LaLoosh: How come you don’t like me?
Davis: Because you don’t respect yourself, which is your problem. But you don’t respect the game, and that’s my problem. You got a gift.
LaLoosh: I got a what?
Davis: You got a gift. When you were a baby, the Gods reached down and turned your right arm into a thunderbolt. You got a Hall-of-Fame arm, but you’re pissing it away.
LaLoosh: I ain’t pissing nothing away. I got a Porsche already; a 911 with a quadrophonic Blaupunkt.
Davis: Christ, you don’t need a quadrophonic Blaupunkt! What you need is a curveball! In the show, everyone can hit heat.
LaLoosh: Well, how would you know? YOU been in the majors?
Davis: Yeah, I’ve been in the majors.

Crash wanted to stay in The Show more than anything in life, and he was good, but not good enough.  Nuke took The Show for granted, and did everything he could to let it slip away.  Crash found his real talent was mentoring, and showed Nuke that if he didn’t start taking his talent seriously, it hardly mattered that he ever had it.

Talent in the workplace is like that.  We are all born with some talent, sometimes we just don’t know what it is and we wish it were otherwise.  Yet once we come to a true sense of honesty about what that talent is, I believe we have an almost moral responsibility to put it to its test.  To squander talent is no more noble than to push cash in a barrel and burn it, because if you don’t give your talent its full work out, that’s what you are doing.

Likewise, as a manager, recognizing and mentoring talent is not just your job, it is your calling.  While some individuals will understate or overstate their own talent, it is a leader’s responsibility to cut through the muck and help talent rise to it’s potential.  The cream does not rise in the workplace all by itself, would that it were true, but bureaucracy and politics have a tendency to maintain the status quo and hold people back to keep the norm at the mean — hey, it’s easier to be graded when the curve is soft, we all know that!  So a manager has to see clearly, be bold, and be a champion for talent.  If you’ve been a boss, you know the difference between having empowered talent at your side and having mediocrity swamp you with excuses; you can’t win with mediocrity, not a chance.

Career fulfillment is part unlocking your own talent, but much more unlocking that of those around you.  As you experience the results of winning and just how much helping others achieve their potential matters, you come to understand that talent is not ordinary, it is rare.  When you are in the company of talent, everyone does better.  Helping others unlock talent is also one of the most satisfying experiences you can ever enjoy at work, and one you take with you when you leave any particular job and travel onward.

Never take talent for granted, it is precious.  Revere the gift!

What I’d Wish I’d Known

Ten Tips Now for Then
by Ken Goldstein

About a year ago I was asked to give a talk to a group of high school seniors with aspirations to pursue entrepreneurial careers.  I though at length about when I could tell a bunch of young men and women who hadn’t even left home yet, in a voice they might actually hear and not ignore.

The path I picked was a series of tidbits that I wish I had known at their age, that might have made the next thirty years a bit easier to navigate.  My thinking was that if they only remembered one of the ten for even the next few years of their lives, the talk would have been successful.  I invited them to contact me any time and let me know how it was going, and a few have been in touch.

I thought I would d share the summary of the those ten tidbits here, and then over the next few weeks riff on each with a bit of cake under the frosting.  Understand that these have been borrowed and adapted, cut and pasted from friends, writers, bosses, and colleagues over the years, so if you smell poetic theft, you smell correctly.  I promise attribution as best I can in the follow-on entries.  These are not necessarily in order of importance, but emotional resonance at this particular moment in time.

1) The most important career decision we make is who we choose as a life partner.

2) Talent is precious — and rare — revere it!

3) The world is filled with 90 percenters — a.k.a. good enough is not good.

4) Networking is not going to parties — it’s helping as many people as we can as often as we can.

5) Investing is not the same as speculating.

6) A plan is something you have,  until you get hit.

7) Our greatest strength are our greatest weaknesses.

8) The harder you work, the luckier you get.

9) Tell people what you are going to do, then do it.

10) The journey is the reward — it will take longer, cost more, and return less than you think, so you better enjoy it.

Stay tuned for a more detail on each individual theme…