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The limits of self-organized teams

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Holger Reinhardt
Holger Reinhardt

This document discusses the challenges of disruptive innovation and how even well-managed companies can resist changes that disrupt their existing business models and value networks. It notes that operational efficiency prioritizes sustaining innovations over disruptive ones, causing companies to ignore emerging threats. Applying these concepts to teams, it hypothesizes that highly autonomous teams aligned around a specific culture, technology, or structure will resist realignments seen as disruptive. Lessons from Buffer suggest management must balance creating autonomy with ensuring the right alignment across teams.

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Kurswechsel UND die Grenzen der Selbstorganisation
Philosophen haben die Welt nur verschieden interpretiert, aber es kommt darauf an, sie zu ver辰ndern Karl Marx, 11. These in der Kritik zu Feuerbach
Innovators Dilemma The Innovators Dilemma (Christensen) Intrinsic inhibitors because of the cost structure and value networks of a company The other side of innovation (Govindarajan) Operational efficiency is fundamentally incompatible with disruptive innovation Well-managed companies excel at sustaining innovation but disruptive innovation finds initial niche outside of established market The very purpose of management is to strive for operational excellence and risk reduction and thereby will resist pursuing disruptive innovation
Value Network Value network of a company Cost structure, Processes, Suppliers and Channels Within a value network, each firms competitive strategy, and particularly its cost structure and its choices of markets and customers to serve, determines its perceptions of the economic value of an innovation. Innovators Dilemma Sustaining innovations are so important and attractive, relative to disruptive ones, that the very best sustaining companies systematically ignore disruptive threats and opportunities until the game is over.
Execution of (product) strategy is an (team alignment) function of
Product strategy over time Speed Safety Inflection
Value Network (of teams) Value network of a team company Cost structure, Processes, Suppliers and Channels Within a value network, each teams firms competitive strategy, and particularly its cost structure and its choices of markets and customers to serve, determines its perceptions of the economic value of an realignment innovation. Inventors Dilemma Sustaining alignment innovations are so important and attractive, relative to disruptive ones, that the very best sustaining aligned teams companies systematically ignore disruptive threats and opportunities until the game is over.
Hypothesis The very purpose of management is to strive for operational excellence and risk reduction and thereby will resist pursuing disruption An team aligned around certain culture, technology and structure will resist a realignment. The higher degree of autonomy, the higher the degree of resistance to change
Lessons from Buffer (OSCON 2016) buffer.com is a self-declared culture-first startup experimented with Holocracy, but re-introduced management There is no balanced individual, but only balanced teams. And the only task of management is to create the right balance https://open.buffer.com/product-team-evolution/

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The limits of self-organized teams

  • 1. Kurswechsel UND die Grenzen der Selbstorganisation
  • 2. Philosophen haben die Welt nur verschieden interpretiert, aber es kommt darauf an, sie zu ver辰ndern Karl Marx, 11. These in der Kritik zu Feuerbach
  • 3. Innovators Dilemma The Innovators Dilemma (Christensen) Intrinsic inhibitors because of the cost structure and value networks of a company The other side of innovation (Govindarajan) Operational efficiency is fundamentally incompatible with disruptive innovation Well-managed companies excel at sustaining innovation but disruptive innovation finds initial niche outside of established market The very purpose of management is to strive for operational excellence and risk reduction and thereby will resist pursuing disruptive innovation
  • 4. Value Network Value network of a company Cost structure, Processes, Suppliers and Channels Within a value network, each firms competitive strategy, and particularly its cost structure and its choices of markets and customers to serve, determines its perceptions of the economic value of an innovation. Innovators Dilemma Sustaining innovations are so important and attractive, relative to disruptive ones, that the very best sustaining companies systematically ignore disruptive threats and opportunities until the game is over.
  • 5. Execution of (product) strategy is an (team alignment) function of
  • 6. Product strategy over time Speed Safety Inflection
  • 7. Value Network (of teams) Value network of a team company Cost structure, Processes, Suppliers and Channels Within a value network, each teams firms competitive strategy, and particularly its cost structure and its choices of markets and customers to serve, determines its perceptions of the economic value of an realignment innovation. Inventors Dilemma Sustaining alignment innovations are so important and attractive, relative to disruptive ones, that the very best sustaining aligned teams companies systematically ignore disruptive threats and opportunities until the game is over.
  • 8. Hypothesis The very purpose of management is to strive for operational excellence and risk reduction and thereby will resist pursuing disruption An team aligned around certain culture, technology and structure will resist a realignment. The higher degree of autonomy, the higher the degree of resistance to change
  • 9. Lessons from Buffer (OSCON 2016) buffer.com is a self-declared culture-first startup experimented with Holocracy, but re-introduced management There is no balanced individual, but only balanced teams. And the only task of management is to create the right balance https://open.buffer.com/product-team-evolution/