Self-manager: Zappos' Tony Hsieh © Zappos
When I first wrote last year about Zappos’ efforts to introduce a self-managing system called Holacracy, I said that for most companies to adopt such an approach would take “time, a leap of faith and an act of unusual self-effacement by their leaders”.
An extraordinary memo from Tony Hsieh, chief executive of the Amazon-owned online shoe retailer, has underlined just how difficult it is. In the memo, published by Quartz this week, Mr Hsieh says that in the face of potential resistance, the company is now going to take a “rip the bandaid” approach to accelerate its progress towards self-management.
Quartz reports that some of the things I predicted would be stumbling blocks — confusion about the absence of titles, defection of staff — have already affected the transition. Mr Hsieh is not giving up; indeed he’s offering severance packages to staff who are not comfortable with the new approach. The fact that a chief executive has to order a change to a system with no chief executive is only one of the apparent contradictions here.
“To become a bigger company, we need to try something new”, Yamaha Motor’s chief executive Hiroyuki Yanagi told the FT recently. The novelty in question is a two-seater “city car”, cleaner and more fuel-efficient than existing vehicles, that the motorcycle manufacturer could launch in 2019.
Nicole Kidman looks very relaxed in Etihad Airways’ new advertisements, as she floats gently down on to a bed in its three-room Residence first-class cabin — a mere $20,000 to fly Abu Dhabi to London. The same cannot be said of rivals to Etihad, Emirates and Qatar, the Gulf airlines that are roiling the business of air travel.
Whenever chief executives babble about “ecosystems” — as they often do — I picture one of those school biology diagrams of a pond: bacteria at the bottom, algae floating on top, and maybe a stickleback or two darting about below the surface.
It’s reasonably well-known that WPP stands for Wire & Plastic Products, the wire basket manufacturer that Sir Martin Sorrell chose 30 years ago as a vehicle for his plan to build a global advertising and marketing business. Wire & Plastic Products, operating from an industrial estate in Hythe, Kent, is still part of the group.
Wire & Plastic Products’ pre-history is a little more obscure. In researching my recent FT Magazine profile of WPP’s chief executive, I dug out the FT advertisement for the flotation of the original company in April 1971. Read more
The San Francisco trial pitting Kleiner Perkins Caufield & Byers, one of Silicon Valley’s oldest and most venerable venture capital firms, against Ellen Pao, a former junior partner who claims that she faced sexual harassment and discrimination, has forced an institution that prefers to remain private into the public gaze. Among other things, it has raised questions about how well John Doerr, its de facto leader, knows his own firm.
After Etsy revealed its plans to go public on March 4, discussion forums for sellers using the online craft marketplace ignited with a mixture of those two great stock market emotions: fear and greed.
On the 50th anniversary of Berkshire Hathaway, the investment fund-cum-industrial conglomerate that now employs 341,000 people and is the fourth most valuable company in the US, the question is: is Warren Buffett inimitable? Or could the Sage of Omaha be cloned?
A colleague who headed an overseas editorial bureau of the Financial Times once called me to ask my advice: did I think he should devote more time to managing the journalists in his team or to writing front page scoops?
Stuart Gulliver’s crisp explanation this week of why he once held his annual bonuses in a Swiss private bank account via a Panamanian company was plausible yet somehow more puzzling than if he had been evading tax.
© Henrik Sorensen/Getty
Remember those days when long-haul flights were sometimes only a half, or even a third full? The joy of sprawling out across four seats in economy for the original “flat bed” experience?
Airlines’ use of technology to manage their flights more efficiently has largely killed that 20th-century pleasure. I’ve struggled to count more than a handful of empty seats on most of the flights I’ve been on in recent years.
Now “big data” seems to be on the cusp of streamlining many other workplaces in a similar fashion — with consequences for workers that go far beyond a mere bad night’s sleep.
The latest edition of Harper’s magazine picks up on the growth of labour scheduling software in business, which, by matching shifts to demand more accurately, is helping to make sure businesses are not overstaffed. If only it stopped there. Read more
Here is a quiz: with which big three auto companies has Google partnered to build a self-driving car? If you guessed Ford, General Motors and Fiat Chrysler, you are wrong. The correct answer is Bosch, Continental and Delphi, three of the industry’s global suppliers.
Can a man speak for women’s experiences? It is a perennial issue, leading to charges in the Twittersphere of “mansplaining”, explaining things to women that they have more expertise on themselves.
The controversy re-emerged this week, centred on Vivek Wadhwa, a lecturer at Stanford University. A blogpost by Amelia Greenhall, a tech blogger, forcefully described her anger at Mr Wadhwa having become the go-to guy for opinions on women in the tech industry.
“Many tech feminists (such as myself) like to mock Vivek Wadhwa as “The Guy Who Gets Paid to Talk About Women in Tech,” but what he does is a serious problem that hurts women in tech in tangible ways. By appointing himself the unwanted spokesman for women in tech he has kept actual, qualified women’s voices from being heard widely in the mainstream media.” Read more
I am angry with Stephen Green. I am angry in part because HSBC’s former chairman (now Lord Green) presided over a financial institution where, it turns out, oversight was so distant that large-scale tax avoidance schemes could be peddled by a Swiss subsidiary, in breach of, at the very least, the spirit, if not the letter, of good banking.
Money laundering is when someone channels the cash from robbery, fraud or expropriation into a Swiss bank account, or an expensive apartment in Manhattan, to make it look clean. So what is the term for sullying profits from legal enterprise with tax evasion and shenanigans? Money staining, perhaps.
Project managed home life
The lean and flexible management model deployed by software developers is being adopted by companies in sectors beyond technology. A new book by Jeff Sutherland, co-creator of the Scrum project management process, encourages teams to work together by setting clear goals. The book, Scrum: The Art of Doing Twice the Work in Half the Time, claims that meeting regularly and having visual workflows can reduce workloads, raise productivity and speed up development.
A recent interview on the Harvard Business Review blog
discovered that executive coach
Frank Saucier applies such management methods to family life.
At home, as well as the office, he uses a board to display tasks that need to be done, are being done and done. So, “go bowling” gets added to a list, much like tasks in beta testing would.
In 1986, Tom Stemberg opened the first Staples superstore in Massachusetts. Stationery retailers have not stood still since. By 1990, Mr Stemberg’s disruptive bright idea had spawned dozens of lookalike office supply warehouses. “When people asked how it felt to be the father of the industry, my answer was ‘I wish I’d used a condom’,” Mr Stemberg tells me.
“Even if the truth is more complex than the headlines, re-establishing confidence in and respect for the banks will be a journey up a steep mountain.”
Stephen Green – now Lord Green – has not commented on the leak of files exposing tax-avoidance practices at HSBC’s Swiss-based private bank. But in 2009, the then chairman of HSBC put his whole philosophy of ethical business on the record in his book Good Value, sub-titled “Reflections on money, morality and an uncertain world”. The newly topical quotation above is an extract. Read more
Thomas Edison: entrepreneur, plain and simple © Getty Images
Thought leaders were bad enough. Changemakers were hard to cope with. Do we still have to put up with serial entrepreneurs?
The phrase has become alarmingly common — more than 15,000 people on LinkedIn have decided that “serial entrepreneur” best describes their career path.
Admittedly, there is a certain genius in co-opting a word whose better known application to careers has been as a preface to “killer”. And these days being an entrepreneur is more fashionable than shaving off your beard while binge-watching Netflix.
But that does not excuse the phrase serial entrepreneur. Read more
Uber – arming up (Getty)
I did a double-take at Uber’s decision to fund driverless car research in partnership with Pittsburgh’s Carnegie Mellon University. Not because I think it is a strange departure for a company whose relationship with drivers is key to its success (though if I were a young Uber driver, I wouldn’t count on the job for retirement income). It was the juxtaposition of the names Uber and Carnegie that stood out. Read more