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The phrase “you should” doesn’t even exist in the Apache language. Coercion is a foreign concept.
when we’re used to seeing something in a certain way, it’s hard to imagine it being any other way.
This is the sixth principle of decentralization: as industries become decentralized, overall profits decrease.
With so much traffic, we asked Craig, why don’t you have any ads on the site? Jim swiveled his chair back and quickly interjected: “Our users didn’t ask for banner ads or text ads.”
On the other hand, when circles take on more than fourteen or so members, the bond breaks down. Members become more anonymous, and that opens the door to free-riding or destructive behavior. No longer does everyone have to pull their weight.
Iron is a catalyst. In chemistry, a catalyst is any element or compound that initiates a reaction without fusing into that reaction. In open organizations, a catalyst is the person who initiates a circle and then fades away into the background.
Ideology is the glue that holds decentralized organizations together.
quixotic.
“champion.”
Lao-tzu, “a leader is best when people barely know that he exists; not so good when people obey and acclaim him; worst when they despise him.”
This is the cause of awkwardness in casual social situations. We talk to people we don’t really know about stuff that we don’t really care about, and it creates a sense of unease.
The catalyst starts the organization and then takes on the role of constant cheerleader.
In meeting people where they are, catalysts can inspire change without being coercive.
To a catalyst, emotional connections come first. Once there’s an emotional connection, then and only then is it time to brainstorm and talk strategy.
Tolerance for Ambiguity
That’s because a decentralized organization is so fluid that someone who needs order and structure would quickly go mad.
Want to figure out an innovative way to promote a new product, expand into a new market, build a community around your company, or improve employee relations? By all means, bring in a catalyst.
The Founding Fathers realized the importance of power distribution. The Constitution is therefore based on two key starfish principles. First, the government is divided into three branches, each of which is fairly autonomous and independent. Second, the Constitution purposely keeps the federal government weak, delegating significant power to the states.
Similarly, given that eliminating the catalyst is a futile effort at best, and given that when you go after circles new ones quickly emerge, the only part of the decentralized organization that you can realistically go after is the ideology.
With a more rigid power structure, the Apaches became similar to the Aztecs, and the Americans were able to control them.
STRATEGY 3: Decentralize Yourself (If You Can’t Beat ’Em . . . Join ’Em)
In the decentralized revolution, old strategies don’t work. A company or corporation must explore new options in order to effectively fend off a starfish attack. As we’ll see, sometimes it’s best to draw upon both the centralized and decentralized worlds—what we call “the combo special.”
eBay is a centralized company that decentralizes the customer experience.
In all of these cases, organizations introduced decentralized elements by giving their customers a role: eBay turned over the policing of the site to its users; Amazon encouraged any reader—however educated or well read—to review book titles; and Oprah created circles where her viewers became a coveted customer bloc in the publishing industry.
Every time you click on a story, you in turn increase its importance.
The company could spend resources developing competitive products, but chances are they ultimately would lose out. The open-source movement simply has too much momentum.
Once one company offers decentralized open-source software, its competitors must follow suit in order to stay in the game.
“appreciative inquiry.”
Because along with his praise he suggested that GM continue innovating and adopt more starfish concepts—for example, by asking customers what worked for them and what didn’t and incorporating that feedback into corporate strategy
Drucker later recalled, “I taught them that communication is to be upward if it is to work at all. . . . I taught them that top management is a function and a responsibility rather than a rank and a privilege.”
‘Zen approach.’ The purpose of learning is self-improvement. It qualifies a man to do his present task with continually wider vision, continually increasing competence, and continually rising demands on himself.”
RULE 1: Diseconomies of Scale
As diseconomies of scale increase, the cost of entering a new market dramatically decreases.