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Lessons from a startup that scaled up | Kurtis McBride | TEDxUW


when I was 12 years old I ran a mouse

when I was 12 years old I ran a mouse Empire in my parents basement it all

Empire in my parents basement it all

Empire in my parents basement it all started with a drive to PJ’s pet center

started with a drive to PJ’s pet center

started with a drive to PJ’s pet center in the family station wagon we all piled

in the family station wagon we all piled

in the family station wagon we all piled in drove out to the pet store I got to

in drove out to the pet store I got to

in drove out to the pet store I got to pick out a mouse found a nice orange one

pick out a mouse found a nice orange one

pick out a mouse found a nice orange one brought it home set up the cage put

brought it home set up the cage put

brought it home set up the cage put shavings in food water as a 12 year old

shavings in food water as a 12 year old

shavings in food water as a 12 year old this was one of the most exciting

this was one of the most exciting

this was one of the most exciting moments of my life and over the next

moments of my life and over the next

moments of my life and over the next couple of weeks I fed this mouse and I

couple of weeks I fed this mouse and I

couple of weeks I fed this mouse and I watched it get rounder and rounder and

watched it get rounder and rounder and

watched it get rounder and rounder and rounder and one morning I woke up and

rounder and one morning I woke up and

rounder and one morning I woke up and there wasn’t one Mouse anymore there

there wasn’t one Mouse anymore there

there wasn’t one Mouse anymore there were eight and I ran downstairs all

were eight and I ran downstairs all

were eight and I ran downstairs all excited told my parents I have a pet

excited told my parents I have a pet

excited told my parents I have a pet mice this is the greatest thing ever

mice this is the greatest thing ever

mice this is the greatest thing ever but they weren’t so excited about this

but they weren’t so excited about this

but they weren’t so excited about this they had agreed to have one pet mouse in

they had agreed to have one pet mouse in

they had agreed to have one pet mouse in the house but weren’t so happy about eat

the house but weren’t so happy about eat

the house but weren’t so happy about eat but we agreed that we should let these

but we agreed that we should let these

but we agreed that we should let these mice grow up a little bit but we were

mice grow up a little bit but we were

mice grow up a little bit but we were going to take them back to PJ’s pet

going to take them back to PJ’s pet

going to take them back to PJ’s pet center so after a few weeks these mice

center so after a few weeks these mice

center so after a few weeks these mice had grown to a certain size we piled

had grown to a certain size we piled

had grown to a certain size we piled back in the family station wagon and we

back in the family station wagon and we

back in the family station wagon and we drive out to PJ’s Pet Center and we go

drive out to PJ’s Pet Center and we go

drive out to PJ’s Pet Center and we go in and we say here we have these extra

in and we say here we have these extra

in and we say here we have these extra mice and they say thank you very much

mice and they say thank you very much

mice and they say thank you very much we’re gonna give you 50 cents for every

we’re gonna give you 50 cents for every

we’re gonna give you 50 cents for every white Mouse and we’ll give you $1 for

white Mouse and we’ll give you $1 for

white Mouse and we’ll give you $1 for all the brown mice so I’m 12 years old

all the brown mice so I’m 12 years old

all the brown mice so I’m 12 years old and I’m thinking this is unbelievable I

and I’m thinking this is unbelievable I

and I’m thinking this is unbelievable I just make $5 so I go home and

just make $5 so I go home and

just make $5 so I go home and immediately I start working on my first

immediately I start working on my first

immediately I start working on my first business plan and a couple days later I

business plan and a couple days later I

business plan and a couple days later I come down to the kitchen table say mom

come down to the kitchen table say mom

come down to the kitchen table say mom dad I have this business plan instead of

dad I have this business plan instead of

dad I have this business plan instead of making $5 once I’m gonna make literally

making $5 once I’m gonna make literally

making $5 once I’m gonna make literally dozens of dollars a month so to this day

dozens of dollars a month so to this day

dozens of dollars a month so to this day I’m not sure why they agreed but they

I’m not sure why they agreed but they

I’m not sure why they agreed but they let me go get another mouse a male mouse

let me go get another mouse a male mouse

let me go get another mouse a male mouse and we went from having two mice in the

and we went from having two mice in the

and we went from having two mice in the house to five to 10 and ultimately I was

house to five to 10 and ultimately I was

house to five to 10 and ultimately I was producing 40 mice a month and selling

producing 40 mice a month and selling

producing 40 mice a month and selling them to PJ’s pet center at this point my

them to PJ’s pet center at this point my

them to PJ’s pet center at this point my landlords aka my parents

landlords aka my parents

landlords aka my parents said 40 mice is a little bit stinky it’s

said 40 mice is a little bit stinky it’s

said 40 mice is a little bit stinky it’s really awkward when our friends come

really awkward when our friends come

really awkward when our friends come over so how about this we’ll give you an

over so how about this we’ll give you an

over so how about this we’ll give you an allowance but you got to go and get rid

allowance but you got to go and get rid

allowance but you got to go and get rid of all these mice and so ended my first

of all these mice and so ended my first

of all these mice and so ended my first business with my first successful exit

fast-forward now I graduate from

fast-forward now I graduate from university I decide you know having gone

university I decide you know having gone

university I decide you know having gone through co-op decide I don’t want to go

through co-op decide I don’t want to go

through co-op decide I don’t want to go and work for someone else I’m gonna

and work for someone else I’m gonna

and work for someone else I’m gonna start my own business go out and buy a

start my own business go out and buy a

start my own business go out and buy a book like good – great which talks about

book like good – great which talks about

book like good – great which talks about how you build a really strong nucleus

how you build a really strong nucleus

how you build a really strong nucleus for your company by bringing the right

for your company by bringing the right

for your company by bringing the right people in we grow the company a little

people in we grow the company a little

people in we grow the company a little bit we start to you know have to figure

bit we start to you know have to figure

bit we start to you know have to figure out products we buy books like crossing

out products we buy books like crossing

out products we buy books like crossing the chasm or the lean startup that help

the chasm or the lean startup that help

the chasm or the lean startup that help you you know find product market fit and

you you know find product market fit and

you you know find product market fit and get your first customers and that allows

get your first customers and that allows

get your first customers and that allows us to continue to grow the business

us to continue to grow the business

us to continue to grow the business we’re now approaching 70 people and

we’re now approaching 70 people and

we’re now approaching 70 people and something starts to happen this this

something starts to happen this this

something starts to happen this this team worked this engagement level this

team worked this engagement level this

team worked this engagement level this culture we had starts to waffle so we do

culture we had starts to waffle so we do

culture we had starts to waffle so we do what we’ve always done we go to chapters

what we’ve always done we go to chapters

what we’ve always done we go to chapters and we buy a book this time on hierarchy

and we buy a book this time on hierarchy

and we buy a book this time on hierarchy and talks about the CEO needs to hire

and talks about the CEO needs to hire

and talks about the CEO needs to hire VPS who needs to happen need to hire

VPS who needs to happen need to hire

VPS who needs to happen need to hire directors who hire managers and this

directors who hire managers and this

directors who hire managers and this will fix your problem so we set about

will fix your problem so we set about

will fix your problem so we set about and we implement this structure and we

and we implement this structure and we

and we implement this structure and we nearly destroyed the company and having

nearly destroyed the company and having

nearly destroyed the company and having gone through this we sort of realized

gone through this we sort of realized

gone through this we sort of realized like hierarchy is not for us this was

like hierarchy is not for us this was

like hierarchy is not for us this was not for us at least was not the solution

not for us at least was not the solution

not for us at least was not the solution and we start having a conversation

and we start having a conversation

and we start having a conversation internally about you know what made us

internally about you know what made us

internally about you know what made us so unique and so effective when we were

so unique and so effective when we were

so unique and so effective when we were smaller and we come to this conclusion

smaller and we come to this conclusion

smaller and we come to this conclusion that it’s this idea that individual

that it’s this idea that individual

that it’s this idea that individual engagement is what drives businesses

engagement is what drives businesses

engagement is what drives businesses forward so today I’m going to talk to

forward so today I’m going to talk to

forward so today I’m going to talk to you guys about an alternative way to

you guys about an alternative way to

you guys about an alternative way to think about organizational structure we

think about organizational structure we

think about organizational structure we believe that if you focus organizational

believe that if you focus organizational

believe that if you focus organizational structure on the individual experience

structure on the individual experience

structure on the individual experience as opposed to hierarchy and the rigid

as opposed to hierarchy and the rigid

as opposed to hierarchy and the rigid structure that comes with it you’ll get

structure that comes with it you’ll get

structure that comes with it you’ll get higher engagement from individuals and

higher engagement from individuals and

higher engagement from individuals and ultimately higher engagement from your

ultimately higher engagement from your

ultimately higher engagement from your company I’m going to talk today

company I’m going to talk today

company I’m going to talk today where did hierarchy come from how do we

where did hierarchy come from how do we

where did hierarchy come from how do we find ourselves in the situation where

find ourselves in the situation where

find ourselves in the situation where that book was even on the shelf and the

that book was even on the shelf and the

that book was even on the shelf and the PERT in the first place I’m gonna talk

PERT in the first place I’m gonna talk

PERT in the first place I’m gonna talk about why we believe the hierarchy is

about why we believe the hierarchy is

about why we believe the hierarchy is fundamentally broken and we’re going to

fundamentally broken and we’re going to

fundamentally broken and we’re going to talk about how we’ve gone about

talk about how we’ve gone about

talk about how we’ve gone about implementing a different structure

implementing a different structure

implementing a different structure that’s worked what worked well for us so

that’s worked what worked well for us so

that’s worked what worked well for us so first let’s look at wereld hierarchy

first let’s look at wereld hierarchy

first let’s look at wereld hierarchy come from why do so many companies

come from why do so many companies

come from why do so many companies operate this if you go back to the 20th

operate this if you go back to the 20th

operate this if you go back to the 20th century a lot of the large companies of

century a lot of the large companies of

century a lot of the large companies of the day they made things the jobs people

the day they made things the jobs people

the day they made things the jobs people did were highly mechanical material

did were highly mechanical material

did were highly mechanical material would come in one end of the building

would come in one end of the building

would come in one end of the building you stamped some metal you’d pop some

you stamped some metal you’d pop some

you stamped some metal you’d pop some rivets and you’d ship it out the other

rivets and you’d ship it out the other

rivets and you’d ship it out the other end and the tasks were largely

end and the tasks were largely

end and the tasks were largely repeatable the other thing that was true

repeatable the other thing that was true

repeatable the other thing that was true about the 20th century organization was

about the 20th century organization was

about the 20th century organization was the communication had a very high cost

the communication had a very high cost

the communication had a very high cost to it if I wanted to communicate out to

to it if I wanted to communicate out to

to it if I wanted to communicate out to a thousand people who worked for me I

a thousand people who worked for me I

a thousand people who worked for me I needed a way to cascade that

needed a way to cascade that

needed a way to cascade that communication through various levels of

communication through various levels of

communication through various levels of Management to get it down to the people

Management to get it down to the people

Management to get it down to the people who actually did the work but now if we

who actually did the work but now if we

who actually did the work but now if we fast forward to the 21st century through

fast forward to the 21st century through

fast forward to the 21st century through automation through outsourcing the types

automation through outsourcing the types

automation through outsourcing the types of jobs that we do in large large

of jobs that we do in large large

of jobs that we do in large large organizations are largely creative not

organizations are largely creative not

organizations are largely creative not mechanical the other thing that’s

mechanical the other thing that’s

mechanical the other thing that’s changed is communication the cost of

changed is communication the cost of

changed is communication the cost of communication has gone virtually to zero

communication has gone virtually to zero

communication has gone virtually to zero we have thick tools like email like

we have thick tools like email like

we have thick tools like email like slack like video broadcasts that allow

slack like video broadcasts that allow

slack like video broadcasts that allow people in organizations to on mass

people in organizations to on mass

people in organizations to on mass communicate with thousands of people

communicate with thousands of people

communicate with thousands of people really efficiently so the environment in

really efficiently so the environment in

really efficiently so the environment in which we all work in the 21st century

which we all work in the 21st century

which we all work in the 21st century has evolved but yet we’re still stuck in

has evolved but yet we’re still stuck in

has evolved but yet we’re still stuck in the 20th century in terms of how we

the 20th century in terms of how we

the 20th century in terms of how we think about organizational structure so

think about organizational structure so

think about organizational structure so when we talk about the individual

when we talk about the individual

when we talk about the individual experience let’s unpack that a little

experience let’s unpack that a little

experience let’s unpack that a little bit let’s figure out what we mean and

bit let’s figure out what we mean and

bit let’s figure out what we mean and I’ll go back to the conversations we

I’ll go back to the conversations we

I’ll go back to the conversations we started having internally around the

started having internally around the

started having internally around the time we decided hierarchy just wasn’t

time we decided hierarchy just wasn’t

time we decided hierarchy just wasn’t for us and one of the things that we we

for us and one of the things that we we

for us and one of the things that we we started to hear as we had these

started to hear as we had these

started to hear as we had these conversations was that to get people to

conversations was that to get people to

conversations was that to get people to a point where they were most engaged

a point where they were most engaged

a point where they were most engaged they wanted to work on a business need

they wanted to work on a business need

they wanted to work on a business need it was best aligned to something they

it was best aligned to something they

it was best aligned to something they were passionate about and something they

were passionate about and something they

were passionate about and something they were good at so passion skill and need

were good at so passion skill and need

were good at so passion skill and need you know in all the different

you know in all the different

you know in all the different conversations we were having that was

conversations we were having that was

conversations we were having that was the common

the common

the common theme that was coming up and the more we

theme that was coming up and the more we

theme that was coming up and the more we researched it this wasn’t necessarily an

researched it this wasn’t necessarily an

researched it this wasn’t necessarily an idea that was unique to us there’s a guy

idea that was unique to us there’s a guy

idea that was unique to us there’s a guy named Dan pink who gives a great talk

named Dan pink who gives a great talk

named Dan pink who gives a great talk about autonomy mastery and purpose which

about autonomy mastery and purpose which

about autonomy mastery and purpose which we believe are just different words for

we believe are just different words for

we believe are just different words for passion skill and need and there’s a

passion skill and need and there’s a

passion skill and need and there’s a real science around getting people to

real science around getting people to

real science around getting people to that sweet spot where they can work on

that sweet spot where they can work on

that sweet spot where they can work on the things that link to their passion

the things that link to their passion

the things that link to their passion skill in need and their engagement level

skill in need and their engagement level

skill in need and their engagement level so that was great you know that told us

so that was great you know that told us

so that was great you know that told us a little bit about the individual but in

a little bit about the individual but in

a little bit about the individual but in order to think about organizational

order to think about organizational

order to think about organizational structure we had to look at leadership

structure we had to look at leadership

structure we had to look at leadership so let’s take this the business need of

so let’s take this the business need of

so let’s take this the business need of leadership well we start having these

leadership well we start having these

leadership well we start having these same conversations what do you guys

same conversations what do you guys

same conversations what do you guys expect from your leaders you know hey

expect from your leaders you know hey

expect from your leaders you know hey leaders what do you think your jobs are

leaders what do you think your jobs are

leaders what do you think your jobs are and the three things that come up in

and the three things that come up in

and the three things that come up in these conversations is this idea that we

these conversations is this idea that we

these conversations is this idea that we expect our leaders to turn vision into

expect our leaders to turn vision into

expect our leaders to turn vision into strategy we expect our leaders to

strategy we expect our leaders to

strategy we expect our leaders to execute a plan and we expect our leaders

execute a plan and we expect our leaders

execute a plan and we expect our leaders to coach and mentor and have empathy so

to coach and mentor and have empathy so

to coach and mentor and have empathy so that’s great we now we can say okay well

that’s great we now we can say okay well

that’s great we now we can say okay well the business need of leadership are

the business need of leadership are

the business need of leadership are those three things but now let’s apply

those three things but now let’s apply

those three things but now let’s apply this idea of the individual and their

this idea of the individual and their

this idea of the individual and their skills and their passions and what we

skills and their passions and what we

skills and their passions and what we found was and I’ll take myself as an

found was and I’ll take myself as an

found was and I’ll take myself as an example what we found was that on these

example what we found was that on these

example what we found was that on these three dimensions that we expect all

three dimensions that we expect all

three dimensions that we expect all leaders to do everyone who’s a leader

leaders to do everyone who’s a leader

leaders to do everyone who’s a leader has one of these that they were just

has one of these that they were just

has one of these that they were just born with so in my case turning vision

born with so in my case turning vision

born with so in my case turning vision to strategy I love doing it I’m super

to strategy I love doing it I’m super

to strategy I love doing it I’m super passionate about it it’s been my you

passionate about it it’s been my you

passionate about it it’s been my you know life purpose since I was 12 years

know life purpose since I was 12 years

know life purpose since I was 12 years old trying to build a mouse empire

old trying to build a mouse empire

old trying to build a mouse empire leaders generally have learned a second

leaders generally have learned a second

leaders generally have learned a second one you know they got into leadership

one you know they got into leadership

one you know they got into leadership they’re passionate about being leaders

they’re passionate about being leaders

they’re passionate about being leaders they want to get better at it so in my

they want to get better at it so in my

they want to get better at it so in my case coaching mentoring empathy I’ve

case coaching mentoring empathy I’ve

case coaching mentoring empathy I’ve learned to say good morning to people

learned to say good morning to people

learned to say good morning to people learn to say thank you but I have to

learn to say thank you but I have to

learn to say thank you but I have to think about that and it’s a skill I’ve

think about that and it’s a skill I’ve

think about that and it’s a skill I’ve developed over time on the third one

developed over time on the third one

developed over time on the third one usually leaders have one of these

usually leaders have one of these

usually leaders have one of these dimensions that they have a blind spot

dimensions that they have a blind spot

dimensions that they have a blind spot for that they are not passionate about

for that they are not passionate about

for that they are not passionate about that they’ve never been good at for me

that they’ve never been good at for me

that they’ve never been good at for me its execution you don’t trust me

its execution you don’t trust me

its execution you don’t trust me you to plan so I want to just kind of

you to plan so I want to just kind of

you to plan so I want to just kind of stop and really drive this point home

stop and really drive this point home

stop and really drive this point home because these two concepts drive the

because these two concepts drive the

because these two concepts drive the rest of my talk right so we have this

rest of my talk right so we have this

rest of my talk right so we have this individual model passion skill need

individual model passion skill need

individual model passion skill need that’s what drives people to be the most

that’s what drives people to be the most

that’s what drives people to be the most engaged and the most productive then we

engaged and the most productive then we

engaged and the most productive then we have this leader model where we expect

have this leader model where we expect

have this leader model where we expect leaders to drive strategy execute plans

leaders to drive strategy execute plans

leaders to drive strategy execute plans and have empathy for the people that

and have empathy for the people that

and have empathy for the people that they work with so let’s watch what

they work with so let’s watch what

they work with so let’s watch what happens when we put these two concepts

happens when we put these two concepts

happens when we put these two concepts into a hierarchy so there’s me driving

into a hierarchy so there’s me driving

into a hierarchy so there’s me driving vision saying thank you being horrible

vision saying thank you being horrible

vision saying thank you being horrible and execution so what do I do well I do

and execution so what do I do well I do

and execution so what do I do well I do something logical I hire people around

something logical I hire people around

something logical I hire people around me who are good at execution but the

me who are good at execution but the

me who are good at execution but the problem is by the very nature of this

problem is by the very nature of this

problem is by the very nature of this model they’re good at execution but

model they’re good at execution but

model they’re good at execution but they’re not good at something else maybe

they’re not good at something else maybe

they’re not good at something else maybe maybe they’re not good at saying thank

maybe they’re not good at saying thank

maybe they’re not good at saying thank you maybe they’re not good at

you maybe they’re not good at

you maybe they’re not good at communicating strategy and as you build

communicating strategy and as you build

communicating strategy and as you build out this or this hierarchy what happens

out this or this hierarchy what happens

out this or this hierarchy what happens is this dilution of those three things

is this dilution of those three things

is this dilution of those three things by time you get to the bottom of the

by time you get to the bottom of the

by time you get to the bottom of the pyramid no one knows what the strategy

pyramid no one knows what the strategy

pyramid no one knows what the strategy is

is

is there’s execution going in all different

there’s execution going in all different

there’s execution going in all different directions and no one feels valued and

directions and no one feels valued and

directions and no one feels valued and these are the leaders of the

these are the leaders of the

these are the leaders of the organization so now the people that work

organization so now the people that work

organization so now the people that work for those leaders are confused they

for those leaders are confused they

for those leaders are confused they don’t feel valued and they ultimately

don’t feel valued and they ultimately

don’t feel valued and they ultimately are disengaged they don’t want to work

are disengaged they don’t want to work

are disengaged they don’t want to work there and this was what we had

there and this was what we had

there and this was what we had experienced so we went through this

experienced so we went through this

experienced so we went through this exercise we sort of unpacked

exercise we sort of unpacked

exercise we sort of unpacked you know engine being engineers we did a

you know engine being engineers we did a

you know engine being engineers we did a root cause analysis and we figured out

root cause analysis and we figured out

root cause analysis and we figured out that this was what was going on an

that this was what was going on an

that this was what was going on an organization so the insight that we took

organization so the insight that we took

organization so the insight that we took away from this was this idea of

away from this was this idea of

away from this was this idea of functionalizing a leader so we don’t

functionalizing a leader so we don’t

functionalizing a leader so we don’t have managers anymore we have three

have managers anymore we have three

have managers anymore we have three functions that do the things that a

functions that do the things that a

functions that do the things that a manager used to be responsible for doing

manager used to be responsible for doing

manager used to be responsible for doing we still have this individual but now

we still have this individual but now

we still have this individual but now each individual has these three

each individual has these three

each individual has these three functions of leadership that they

functions of leadership that they

functions of leadership that they interact with it’s supposed to push and

interact with it’s supposed to push and

interact with it’s supposed to push and pull and help them get to that sweet

pull and help them get to that sweet

pull and help them get to that sweet spot where they can be most engaged and

spot where they can be most engaged and

spot where they can be most engaged and most productive so let’s look at what

most productive so let’s look at what

most productive so let’s look at what that does to the hierarchy so these are

that does to the hierarchy so these are

that does to the hierarchy so these are now individuals right we said before

now individuals right we said before

now individuals right we said before we’re going to focus on the individual

we’re going to focus on the individual

we’re going to focus on the individual experience as opposed to the tyranny of

experience as opposed to the tyranny of

experience as opposed to the tyranny of structure so these are the individuals

structure so these are the individuals

structure so these are the individuals we invert

we invert

we invert the pyramid so now we have these leaders

the pyramid so now we have these leaders

the pyramid so now we have these leaders and their job is to support the

and their job is to support the

and their job is to support the individual not to be their boss each of

individual not to be their boss each of

individual not to be their boss each of the individuals in a team has a

the individuals in a team has a

the individuals in a team has a relationship which with each of those

relationship which with each of those

relationship which with each of those three types of leaders that give them

three types of leaders that give them

three types of leaders that give them each of the three things and those

each of the three things and those

each of the three things and those leaders go and work on the type of

leaders go and work on the type of

leaders go and work on the type of leadership that they want to work on

leadership that they want to work on

leadership that they want to work on based on their passions and their skills

based on their passions and their skills

based on their passions and their skills you get a way more engaged leadership

you get a way more engaged leadership

you get a way more engaged leadership sphere and as a result you get a way

sphere and as a result you get a way

sphere and as a result you get a way more engaged individual and team now one

more engaged individual and team now one

more engaged individual and team now one of the the the problems with this model

of the the the problems with this model

of the the the problems with this model is it looks a bit chaotic there’s lines

is it looks a bit chaotic there’s lines

is it looks a bit chaotic there’s lines going everywhere how does an individual

going everywhere how does an individual

going everywhere how does an individual actually experience this in their in

actually experience this in their in

actually experience this in their in their average day one of the things that

their average day one of the things that

their average day one of the things that we’ve done is we’ve organized people we

we’ve done is we’ve organized people we

we’ve done is we’ve organized people we kind of stole up a a play a page from

kind of stole up a a play a page from

kind of stole up a a play a page from agile we organized people around

agile we organized people around

agile we organized people around business needs as opposed to function so

business needs as opposed to function so

business needs as opposed to function so instead of having a marketing team and a

instead of having a marketing team and a

instead of having a marketing team and a sales team we have a sales team or a

sales team we have a sales team or a

sales team we have a sales team or a sorry a territory team focused on all

sorry a territory team focused on all

sorry a territory team focused on all the things that you need to do inside a

the things that you need to do inside a

the things that you need to do inside a territory customer support sales

territory customer support sales

territory customer support sales marketing and that’s what we interface

marketing and that’s what we interface

marketing and that’s what we interface with the leaders the other critique of

with the leaders the other critique of

with the leaders the other critique of this model is that what happens if

this model is that what happens if

this model is that what happens if there’s a tie

there’s a tie

there’s a tie what happens if someone’s career path

what happens if someone’s career path

what happens if someone’s career path and the strategy are in conflict or what

and the strategy are in conflict or what

and the strategy are in conflict or what happens if someone’s strategy and and

happens if someone’s strategy and and

happens if someone’s strategy and and the need to execute in the short term

the need to execute in the short term

the need to execute in the short term are in conflict so what we’ve done is at

are in conflict so what we’ve done is at

are in conflict so what we’ve done is at any given time one of those three

any given time one of those three

any given time one of those three functions of leadership is in charge and

functions of leadership is in charge and

functions of leadership is in charge and they can break the tie but it’s not

they can break the tie but it’s not

they can break the tie but it’s not always the same group if we’re trying to

always the same group if we’re trying to

always the same group if we’re trying to make culture better one year we might

make culture better one year we might

make culture better one year we might make it the coaching and empathy side of

make it the coaching and empathy side of

make it the coaching and empathy side of the side the leadership team if we’re

the side the leadership team if we’re

the side the leadership team if we’re trying to drive strategy for you might

trying to drive strategy for you might

trying to drive strategy for you might make the strategy team in charge and we

make the strategy team in charge and we

make the strategy team in charge and we found that this allows us to move

found that this allows us to move

found that this allows us to move quickly not get stuck in in little

quickly not get stuck in in little

quickly not get stuck in in little Quagmire’s while still maintaining this

Quagmire’s while still maintaining this

Quagmire’s while still maintaining this idea that leaders can support

idea that leaders can support

idea that leaders can support individuals using what they’re good at

individuals using what they’re good at

individuals using what they’re good at and what they’re passionate about now as

and what they’re passionate about now as

and what they’re passionate about now as I was putting this talk together I was

I was putting this talk together I was

I was putting this talk together I was imagining being in the audience and I

imagining being in the audience and I

imagining being in the audience and I know what you guys are all thinking

know what you guys are all thinking

know what you guys are all thinking here’s this guy up here talking like a

here’s this guy up here talking like a

here’s this guy up here talking like a professor showing lots of diagrams about

professor showing lots of diagrams about

professor showing lots of diagrams about organizational structure

organizational structure

organizational structure so the next part of this talk I actually

so the next part of this talk I actually

so the next part of this talk I actually want to give you guys some practical

want to give you guys some practical

want to give you guys some practical experiences that we’ve had in terms of

experiences that we’ve had in terms of

experiences that we’ve had in terms of how you apply this so that you don’t

how you apply this so that you don’t

how you apply this so that you don’t think this is all just theory and that

think this is all just theory and that

think this is all just theory and that you know that it can actually be

you know that it can actually be

you know that it can actually be effective so the first lesson is you

effective so the first lesson is you

effective so the first lesson is you have to hire the right types of people

have to hire the right types of people

have to hire the right types of people not everyone can thrive in this type of

not everyone can thrive in this type of

not everyone can thrive in this type of environment

environment

environment people have to have to want to what we

people have to have to want to what we

people have to have to want to what we call flow have to want to go find that

call flow have to want to go find that

call flow have to want to go find that intersection of their passions skill and

intersection of their passions skill and

intersection of their passions skill and you need if they’re complacent it

you need if they’re complacent it

you need if they’re complacent it doesn’t work so we spend a lot of time

doesn’t work so we spend a lot of time

doesn’t work so we spend a lot of time trying to find the right types of people

trying to find the right types of people

trying to find the right types of people we’ve gone as far as codifying using

we’ve gone as far as codifying using

we’ve gone as far as codifying using what we call core values what those

what we call core values what those

what we call core values what those right types of people are and what we

right types of people are and what we

right types of people are and what we find is if you if you fill the

find is if you if you fill the

find is if you if you fill the organization up with the right kinds of

organization up with the right kinds of

organization up with the right kinds of people you can build all of your

people you can build all of your

people you can build all of your business processes around this idea of

business processes around this idea of

business processes around this idea of trusting your employees which I know

trusting your employees which I know

trusting your employees which I know sounds obvious but is not how most

sounds obvious but is not how most

sounds obvious but is not how most organizations run we design for the 99%

organizations run we design for the 99%

organizations run we design for the 99% the people we can trust given that we’ve

the people we can trust given that we’ve

the people we can trust given that we’ve hired the right people as opposed to

hired the right people as opposed to

hired the right people as opposed to designing business processes around the

designing business processes around the

designing business processes around the 1% that you can’t trust which is how

1% that you can’t trust which is how

1% that you can’t trust which is how most hierarchical organizations run so

most hierarchical organizations run so

most hierarchical organizations run so what happens if I bring someone in who’s

what happens if I bring someone in who’s

what happens if I bring someone in who’s got a passion for a business need they

got a passion for a business need they

got a passion for a business need they have the skills to do it over time let’s

have the skills to do it over time let’s

have the skills to do it over time let’s say they finished the project or the

say they finished the project or the

say they finished the project or the business grows something changes that

business grows something changes that

business grows something changes that business need I brought them in for is

business need I brought them in for is

business need I brought them in for is no longer needed because they finished

no longer needed because they finished

no longer needed because they finished their project so the second concept and

their project so the second concept and

their project so the second concept and this is I think the most important part

this is I think the most important part

this is I think the most important part of this whole thing is this idea of the

of this whole thing is this idea of the

of this whole thing is this idea of the bench and by bench what we mean is that

bench and by bench what we mean is that

bench and by bench what we mean is that if you don’t provide people with a safe

if you don’t provide people with a safe

if you don’t provide people with a safe place to go when they’ve when they’ve

place to go when they’ve when they’ve

place to go when they’ve when they’ve finished the business need using the

finished the business need using the

finished the business need using the thing that their passion doing the thing

thing that their passion doing the thing

thing that their passion doing the thing they’re passionate about using they’re

they’re passionate about using they’re

they’re passionate about using they’re skilled then they they crave security

skilled then they they crave security

skilled then they they crave security they don’t want to move off of that role

they don’t want to move off of that role

they don’t want to move off of that role right and then they get stuck in this

right and then they get stuck in this

right and then they get stuck in this area where now they’re not passionate

area where now they’re not passionate

area where now they’re not passionate anymore or their skill isn’t being

anymore or their skill isn’t being

anymore or their skill isn’t being useful isn’t being used where they’re

useful isn’t being used where they’re

useful isn’t being used where they’re working on a business need that doesn’t

working on a business need that doesn’t

working on a business need that doesn’t matter anymore

matter anymore

matter anymore so if you have someone let’s say for

so if you have someone let’s say for

so if you have someone let’s say for example who’s great at building teams

example who’s great at building teams

example who’s great at building teams but doesn’t love operating the team at

but doesn’t love operating the team at

but doesn’t love operating the team at some point the team is built and that

some point the team is built and that

some point the team is built and that person needs to be able to move to the

person needs to be able to move to the

person needs to be able to move to the side without

side without

side without feeling like they’ve failed so for us

feeling like they’ve failed so for us

feeling like they’ve failed so for us the bench is something we actually

the bench is something we actually

the bench is something we actually celebrate if someone finishes executing

celebrate if someone finishes executing

celebrate if someone finishes executing on a business need and they move to the

on a business need and they move to the

on a business need and they move to the bench that’s that’s awesome because now

bench that’s that’s awesome because now

bench that’s that’s awesome because now they can go and they can take some time

they can go and they can take some time

they can go and they can take some time and they can find the next thing where

and they can find the next thing where

and they can find the next thing where they can find that intersection of their

they can find that intersection of their

they can find that intersection of their passion skill need one of the types of

passion skill need one of the types of

passion skill need one of the types of transitions that we see people make is

transitions that we see people make is

transitions that we see people make is they go from being contributors to being

they go from being contributors to being

they go from being contributors to being leaders and that brings me to our third

leaders and that brings me to our third

leaders and that brings me to our third lesson in hierarchical organization you

lesson in hierarchical organization you

lesson in hierarchical organization you know I imagine that a higher leader

know I imagine that a higher leader

know I imagine that a higher leader leader comes in they get down on one

leader comes in they get down on one

leader comes in they get down on one knee

knee

knee some guy takes a sword anoints them you

some guy takes a sword anoints them you

some guy takes a sword anoints them you are now a leader you’re the boss

are now a leader you’re the boss

are now a leader you’re the boss right you have this power now you can go

right you have this power now you can go

right you have this power now you can go and do boss things in our environment we

and do boss things in our environment we

and do boss things in our environment we don’t do that ever

don’t do that ever

don’t do that ever leaders emerge in our organization and I

leaders emerge in our organization and I

leaders emerge in our organization and I always say leaders are people who lead

always say leaders are people who lead

always say leaders are people who lead you know if someone comes up to me and

you know if someone comes up to me and

you know if someone comes up to me and says hey I want I want to I want to be a

says hey I want I want to I want to be a

says hey I want I want to I want to be a leader great lead go do it and we find

leader great lead go do it and we find

leader great lead go do it and we find that that that approach makes it so that

that that that approach makes it so that

that that that approach makes it so that when you do bring in a leader because

when you do bring in a leader because

when you do bring in a leader because sometimes we do hire people we have a

sometimes we do hire people we have a

sometimes we do hire people we have a need business need for a leader we have

need business need for a leader we have

need business need for a leader we have someone who’s passionate about leading

someone who’s passionate about leading

someone who’s passionate about leading we have someone with the skills to lead

we have someone with the skills to lead

we have someone with the skills to lead we bring them in but we don’t give them

we bring them in but we don’t give them

we bring them in but we don’t give them the title we don’t give them the reports

the title we don’t give them the reports

the title we don’t give them the reports we just say welcome to the team and what

we just say welcome to the team and what

we just say welcome to the team and what happens every time is those people will

happens every time is those people will

happens every time is those people will rally the people who crave leadership

rally the people who crave leadership

rally the people who crave leadership they want to learn you want to know

they want to learn you want to know

they want to learn you want to know where to go they’ll rally around that

where to go they’ll rally around that

where to go they’ll rally around that person but if they don’t well then that

person but if they don’t well then that

person but if they don’t well then that person wasn’t a good leader in the first

person wasn’t a good leader in the first

person wasn’t a good leader in the first place and you’re better off to not have

place and you’re better off to not have

place and you’re better off to not have put them into that environment and said

put them into that environment and said

put them into that environment and said hey this is your boss because then I’ll

hey this is your boss because then I’ll

hey this is your boss because then I’ll lose credibility so to conclude on this

lose credibility so to conclude on this

lose credibility so to conclude on this there’s a new way to build organizations

there’s a new way to build organizations

there’s a new way to build organizations or an organizational structure it’s

or an organizational structure it’s

or an organizational structure it’s centered around the individual

centered around the individual

centered around the individual experience at the core of that idea is

experience at the core of that idea is

experience at the core of that idea is two truths one you have to build your

two truths one you have to build your

two truths one you have to build your organization in a way that allows people

organization in a way that allows people

organization in a way that allows people to find the intersection of their

to find the intersection of their

to find the intersection of their passion their skill and a business need

passion their skill and a business need

passion their skill and a business need and two if you want to be true be

and two if you want to be true be

and two if you want to be true be faithful to that idea for contributors

faithful to that idea for contributors

faithful to that idea for contributors you have to functionalize leadership you

you have to functionalize leadership you

you have to functionalize leadership you have

have

have to break leadership into three pieces to

to break leadership into three pieces to

to break leadership into three pieces to allow the individuals who are leaders to

allow the individuals who are leaders to

allow the individuals who are leaders to apply their passions and skills in each

apply their passions and skills in each

apply their passions and skills in each of those three areas execution strategy

of those three areas execution strategy

of those three areas execution strategy and empathy and if you do that you will

and empathy and if you do that you will

and empathy and if you do that you will have way more engagement inside your

have way more engagement inside your

have way more engagement inside your inside your company your company will

inside your company your company will

inside your company your company will perform better your turnover will go

perform better your turnover will go

perform better your turnover will go down and you’ll win in your markets and

down and you’ll win in your markets and

down and you’ll win in your markets and I’ll leave you with one final thought

I’ll leave you with one final thought

I’ll leave you with one final thought there is a revolution happening in the

there is a revolution happening in the

there is a revolution happening in the way that organizational design is done

way that organizational design is done

way that organizational design is done we hear it in terms of terms like hala

we hear it in terms of terms like hala

we hear it in terms of terms like hala cracy and agile and nodal organizations

cracy and agile and nodal organizations

cracy and agile and nodal organizations these are all words that we’re trying to

these are all words that we’re trying to

these are all words that we’re trying to use as a society to find our voice our

use as a society to find our voice our

use as a society to find our voice our common voice on this new type of

common voice on this new type of

common voice on this new type of organizational structure and I would say

organizational structure and I would say

organizational structure and I would say to you all as you go out into the work

to you all as you go out into the work

to you all as you go out into the work fete workforce as you build startup

fete workforce as you build startup

fete workforce as you build startup companies as you want to build your own

companies as you want to build your own

companies as you want to build your own Mouse empires don’t accept that

Mouse empires don’t accept that

Mouse empires don’t accept that hierarchy is the way that this has

hierarchy is the way that this has

hierarchy is the way that this has always been done because it

always been done because it

always been done because it fundamentally will make your

fundamentally will make your

fundamentally will make your organization’s slower and it will result

organization’s slower and it will result

organization’s slower and it will result in disengaged people who work for you

in disengaged people who work for you

in disengaged people who work for you embrace some of these new ideas find

embrace some of these new ideas find

embrace some of these new ideas find your voice on it and we will all build

your voice on it and we will all build

your voice on it and we will all build great organizations together thank you

great organizations together thank you

great organizations together thank you very much

very much

very much [Applause]

”

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