ViewsPixar executives recall Mr. Iger joking that if he ever decided to write a book, it would be titled “I’ve Been Bought,” because the two merger experiences were so formative for him.
Disagreements between Jobs and then-Disney Chairman and CEO Eisner made the negotiations more difficult than they otherwise might have been. They broke down completely in mid-2004, with Jobs declaring that Pixar was actively seeking partners other than Disney.Despite this announcement, Pixar did not enter negotiations with other distributors. After a lengthy hiatus, negotiations between the two companies resumed following the departure of Eisner from Disney in September 2005.
Pixar and Disney had disagreements after the production of Toy Story 2.
This is part three of a five part post that explores various types of organizational structures that either already exist in today’s business landscape or are starting to emerge as viable options for the future of work. Each post will explore one of these structures and then I’ll provide a final summary post on all five. These concepts and ideas are taken from my book,
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Disagreements between Jobs and then-Disney Chairman and CEO Eisner made the negotiations more difficult than they otherwise might have been. They broke down completely in mid-2004, with Jobs declaring that Pixar was actively seeking partners other than Disney.Despite this announcement, Pixar did not enter negotiations with other distributors. After a lengthy hiatus, negotiations between the two companies resumed following the departure of Eisner from Disney in September 2005.
Pixar and Disney had disagreements after the production of Toy Story 2.
The Future of Work: Attract New Talent, Build Better Leaders, and Create a Competitive Organization. The five types of organizational structures that I will explore are:
- The traditional hierarchy (part 1 is already available)
- Flatter organizations (part 2 is already available)
- Flat organizations (part 3 is already available)
- Flatarchies (part 4 is already available)
- Holacratic organizations (part 5 is already available)
Unlike any other corporate structure that exists, flat companies are exactly that..flat. Meaning there are usually no job titles, seniority, managers, or executives. Everyone is seen as equal. Flat organizations are also oftentimes called or referred to as self-managed organizations (there can be some differences but for our case we will put them together). The most famous example of this comes from Valve, the gaming company responsible for classics such as Half-Life, Counter-Strike, Portal, and many others. At Valve there are no job titles and nobody tells you what to work on. Instead all the employees at Valve can see what projects are being worked on and can join whichever project they want. If an employee wants to start their own project then they are responsible for securing funding and building their team. For some this sounds like a dream for others, their worst nightmare.
There's quite a lot that can be said about this type of structure. While it does have benefits and is interesting to consider I don't see this as something that is practical or scalable for larger organizations when we think about the future of work. Smaller and some medium size companies might be able to operate in this type of an environment but when you get to organizations with thousands of employees then it becomes challenging. Most of the companies that are known as being "flat" started that way and then grew. For example W.L. Gore & Associates which now has over 9,000 employees scaled their flat structure over many years since the company started. This wasn't a sudden decision they made after they grew to 9,000 people. Even at Gore, as the company began to grew, some structure had to be put in place.
Flat organizations like every other type of structure, also have their own challenges. For starters, informal hierarchies automatically get created based on seniority, people who are at the company longer just tend to be viewed as being more senior. The lack of structure can also make accountability and reliability a bit of an issue as well. Finally, the company tends to develop cliques (think high school) where groups of people tend to support and work with each other but oftentimes prefer to stay to themselves, this of course can cause challenges for communication and collaboration. In fact, I did a podcast interview with one of the pioneers of self-management at The Morning Star Company, Paul Green. In it we talked about some of these, and many other issues. If you're interested in learning more about this type of a structure then I highly recommend you give it a listen.
The big challenge with this type of an approach is that if a larger organization decided to implement it, the process would take many years and would require enormous amounts of capital and resources to execute. Imagine going into an organization with 60,000 employees around the world that is hierarchical in nature and quite literally doing everything in the exact opposite way. It brings new meaning to "don't throw the baby out with the bathwater." This doesn't mean I don't believe in self-management or don't see its merits, I absolutely do and the companies that have implemented it have done well. However, it's simply not realistic for 96+% of companies in the world. This is why I think the "flatter" structure is the most scalable and practical for most organizations. So what type of a company can a flat structure be suitable for? Small organizations, some medium size companies, or companies that are created on the idea of being flat and then scale this approach as the company grows. I do want to emphasize that this series of posts isn't designed to say which structure is the most superior, instead it's meant to give you perspective around what is available and what other organizations are implementing. Your company may decide to take bits and pieces of all the different types of structures and create something that is unique to just them.Perhaps in the next few decades the idea of having a flat company might catch on and become more mainstream, especially as we see the freelancers economy start to grow, but at least for the foreseeable future the idea of having a completely flat company..falls flat (see what I did there?)
Jacob Morgan is a keynote speaker, author (most recently of The Future of Work), and futurist. To have Jacob speak at your event, to get access to his videos, podcasts and articles, or to subscribe to his newsletter you can visit TheFutureOrganization.
'>This is part three of a five part post that explores various types of organizational structures that either already exist in today’s business landscape or are starting to emerge as viable options for the future of work. Each post will explore one of these structures and then I’ll provide a final summary post on all five. These concepts and ideas are taken from my book, The Future of Work: Attract New Talent, Build Better Leaders, and Create a Competitive Organization. The five types of organizational structures that I will explore are:
- The traditional hierarchy (part 1 is already available)
- Flatter organizations (part 2 is already available)
- Flat organizations (part 3 is already available)
- Flatarchies (part 4 is already available)
- Holacratic organizations (part 5 is already available)
Unlike any other corporate structure that exists, flat companies are exactly that..flat. Meaning there are usually no job titles, seniority, managers, or executives. Everyone is seen as equal. Flat organizations are also oftentimes called or referred to as self-managed organizations (there can be some differences but for our case we will put them together). The most famous example of this comes from Valve, the gaming company responsible for classics such as Half-Life, Counter-Strike, Portal, and many others. At Valve there are no job titles and nobody tells you what to work on. Instead all the employees at Valve can see what projects are being worked on and can join whichever project they want. If an employee wants to start their own project then they are responsible for securing funding and building their team. For some this sounds like a dream for others, their worst nightmare.
There's quite a lot that can be said about this type of structure. While it does have benefits and is interesting to consider I don't see this as something that is practical or scalable for larger organizations when we think about the future of work. Smaller and some medium size companies might be able to operate in this type of an environment but when you get to organizations with thousands of employees then it becomes challenging. Most of the companies that are known as being 'flat' started that way and then grew. For example W.L. Gore & Associates which now has over 9,000 employees scaled their flat structure over many years since the company started. This wasn't a sudden decision they made after they grew to 9,000 people. Even at Gore, as the company began to grew, some structure had to be put in place.
Flat organizations like every other type of structure, also have their own challenges. For starters, informal hierarchies automatically get created based on seniority, people who are at the company longer just tend to be viewed as being more senior. The lack of structure can also make accountability and reliability a bit of an issue as well. Finally, the company tends to develop cliques (think high school) where groups of people tend to support and work with each other but oftentimes prefer to stay to themselves, this of course can cause challenges for communication and collaboration. In fact, I did a podcast interview with one of the pioneers of self-management at The Morning Star Company, Paul Green. In it we talked about some of these, and many other issues. If you're interested in learning more about this type of a structure then I highly recommend you give it a listen.
The big challenge with this type of an approach is that if a larger organization decided to implement it, the process would take many years and would require enormous amounts of capital and resources to execute. Imagine going into an organization with 60,000 employees around the world that is hierarchical in nature and quite literally doing everything in the exact opposite way. It brings new meaning to 'don't throw the baby out with the bathwater.' This doesn't mean I don't believe in self-management or don't see its merits, I absolutely do and the companies that have implemented it have done well. However, it's simply not realistic for 96+% of companies in the world. This is why I think the 'flatter' structure is the most scalable and practical for most organizations. So what type of a company can a flat structure be suitable for? Small organizations, some medium size companies, or companies that are created on the idea of being flat and then scale this approach as the company grows. I do want to emphasize that this series of posts isn't designed to say which structure is the most superior, instead it's meant to give you perspective around what is available and what other organizations are implementing. Your company may decide to take bits and pieces of all the different types of structures and create something that is unique to just them.Perhaps in the next few decades the idea of having a flat company might catch on and become more mainstream, especially as we see the freelancers economy start to grow, but at least for the foreseeable future the idea of having a completely flat company..falls flat (see what I did there?)
Jacob Morgan is a keynote speaker, author (most recently of The Future of Work), and futurist. To have Jacob speak at your event, to get access to his videos, podcasts and articles, or to subscribe to his newsletter you can visit TheFutureOrganization.
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