Posts Tagged‘corporate structure’

On Valve’s Corporate Structure (Or Lack Thereof).

I was a big believer in the typical corporate structure for a very long time, mostly because I wanted to be the one at the top of it. There’s something attractive about being the one at the top and for quite a long time I tried to position my career in such a way that I could become an executive in some nameless company at an undetermined point in the future. I didn’t realize how bad I was at the whole management thing after I killed my university project, no it took me another 2 years to figure out that being at the top of a corporate structure wasn’t for me. I needed to be the one building things.

That’s not to say I can’t succeed in such structures myself, far from it. Being in Australia’s capital city, a town that is basically a giant shrine to bureaucracy, I’ve come to learn how to operate within traditional management structures in a such a way so that I have an incredible amount of freedom whilst also staying within the confines of my designated role. Sure I might not be able to simply up and change my job whenever I feel like it but I’ve rarely felt my creative freedom restrained when it comes to solving the various problems that get thrown my way. Still I’ve always been fascinated with non-traditional management structures and yesterday I came across an incredibly novel one.

It was that of the game development company Valve.

Yesterday one of my long time friends linked me to Valve’s new starter guide book, a typical document you’d expect from pretty much any organisation. It made for some incredibly fascinating reading mostly because it’s unlike any other that I’ve read before. Where there’s usually pictures of organisational charts, links to company policies and reams of out dated information there was instead a comprehensive guide to how Valve functions as a company and how all the employees fit into it. Astonishingly the biggest revelation in there, for me at least,  was that there is in essence no organisational structure at all.

For someone who cut his teeth in a world ruled by bureaucracy such an idea seems incredibly foreign, so much so I initially struggled to figure out how it would work. I mean how does anyone get any work done if there isn’t someone controlling the whole process from the top? As it turns out the process mimics what I envision happens when a lot of talented people get together: ideas start circulating and once they reach a critical mass of supporters they form a cohesive group in order to achieve that vision. Valve in that sense is a kind of idea incubator that enables their employees to chase their passions and should those passions resonate with others it will find its way into reality.

That to me feels like an inspired way of creating a company. The guide admits that whilst this idea works for Valve they’re not sure it would work for everyone as rogue agents operating in such an environment can do incredible amounts of damage. However when you note that Valve makes more profit per employee than Apple or Google  then you have to figure that their process has some merit to it. Being fully privately owned also helps them quite a bit as I’m sure that share holders would be uncomfortable with a company that seems to be in a constant flux.

Would I start a company with a mantra like Valves? I definitely believe in some of the core principles (like hiring people smarter than you) and I do tend to favor less management than more so I could see some form of it working for a company that I’d like to start. Maybe it’s just the residual “I need to be at the top” mentality inside me that’s having trouble letting go of the idea but Valve’s way of doing business seems a lot better than the way I’ve been thinking about it.