[HN Gopher] Advantages of incompetent management
       ___________________________________________________________________
        
       Advantages of incompetent management
        
       Author : zdw
       Score  : 441 points
       Date   : 2024-07-04 17:09 UTC (3 days ago)
        
 (HTM) web link (yosefk.com)
 (TXT) w3m dump (yosefk.com)
        
       | advael wrote:
       | I like this, and it seems a lot of people are thinking this way
       | lately
       | 
       | A common theme is that optimization usually does mostly bad
       | things, while maybe arguably from someone's perspective doing one
       | thing really well. I particularly like the example of the
       | threshold cost to get something done versus the optimizer trying
       | to lower costs. Both stakeholders in that example in actuality
       | care about not going below the threshold, but the one drunk on
       | optimization is incentivized to be at odds with keeping that cost
       | center above it, let alone providing any cushion
       | 
       | The model many people here likely have for optimization is
       | compile-time optimizations, but that's actually a weird class of
       | special cases where you actually can prove you're not breaking
       | anything by doing so. Most optimization looks more like strip-
       | mining. It leaves the structures it touches barren and brittle
       | 
       | Most extant institutions have a desperate need to build better
       | resistance to optimization-like objectives
        
         | stoperaticless wrote:
         | > It leaves the structures it touches barren and brittle
         | 
         | If overdone - definitely.
         | 
         | But there are plenty of cases where people forgot to add an
         | index or used linked lists for search heavy stuff or issued rpc
         | for every keystroke.
        
           | advael wrote:
           | Yes, and _solving actual problems_ is a great way to frame a
           | goal. People often equivocate between  "optimization" and
           | "improving things", so I don't blame you for it in
           | particular. Optimization, by definition, requires that
           | something be "overdone", that an objective function is
           | maximized or minimized. Organizations with human
           | decisionmakers aren't incapable of assessing other factors,
           | what priorities not captured by the optimization objective
           | might be relevant, but by framing decisions as optimization,
           | especially throughout an organization or an economy, the
           | pressure against that kind of sanity check is implied and
           | grows the more "competent" an organization is
        
       | abraae wrote:
       | > Whatever objective you are expected to achieve, a bigger budget
       | makes it easier.
       | 
       | This should be true but I've seen bloated projects that would
       | have had better outcomes had the team been more constrained.
       | 
       | And to quote Fred Brooks:
       | 
       | > There are many examples from other arts and crafts that lead
       | one to believe that discipline is good for art. Indeed, an
       | artist's aphorism asserts,'Form is liberating' The worst
       | buildings are those whose budget was too great for the purposes
       | to be served. Bach's creative output hardly seems to have been
       | squelched by the necessity of producing a limited-form cantata
       | each week. I am sure that the Stretch computer would have had a
       | better architecture had it been more tightly constrained; the
       | constraints imposed by the System/360 Model 30's budget were in
       | my opinion entirely beneficial for the Model 75's architecture.
        
         | yosefk wrote:
         | Had Mr Brooks proven this belief in a revealed preference
         | sense, by voluntarily shrinking his budget, it would add a lot
         | of weight to what is otherwise a nicely sounding but not very
         | believable passage. But I doubt that anyone could be so insane
         | as to not trust _themselves_ with making a good use of a larger
         | budget. One 's underlings - quite possibly!
        
           | advael wrote:
           | Also it's just so much easier to get the benefits of
           | constraint without the downsides if one is in charge of the
           | decisions. Like if you can do something with $10k and have
           | $30k to work with, many adults manage to constrain themselves
           | by merely moving $20k to a savings account, and those who
           | lack the requisite executive function for this simple "out of
           | sight out of mind" organizational schema can often function
           | with slightly stronger artificial constraints, sometimes
           | aided by a collaborator. People do NaNoWriMo or whatever, and
           | while many fail, the benefit of the artificial time
           | constraint motivates a lot of people, despite being self-
           | imposed. In either case, this informal method of constraint
           | is more responsive to situational changes or emergencies than
           | an optimization valve that always wants to bring costs down
           | and doesn't understand any of the functional constraints, as
           | is the case for most finance and management arms of
           | "efficiency"-driven orgs. The game theory of budget inflation
           | is really obvious when you consider it in terms of locus of
           | agency
        
           | Aeolun wrote:
           | > But I doubt that anyone could be so insane as to not trust
           | themselves with making a good use of a larger budget. One's
           | underlings - quite possibly!
           | 
           | If I need 4 people for a project, what am I going to do with
           | $20M/year in budget? I can't pay them 5M a year each. I would
           | not trust myself to do something sensible with that money,
           | no. Nor do I suddenly want to hire 100 instead of 4 people.
        
         | calihispdtrn wrote:
         | California high speed train to nowhere comes to mind. Billions
         | and billions and billions of dollars lost to graft and waste.
         | Indeed, as government budgets increase they become less
         | effective.
        
       | com2kid wrote:
       | The comments on resource utilization are one of those things that
       | is only true now that there is a 1:1 correlation between $ and
       | available CPU/Memory, and the pool of available CPU/Memory
       | resources is effectively unlimited.
       | 
       | Embedded is maybe the last refuge of where there are hard
       | resource constraints that cannot be violated. If you only have
       | 64K of RAM, you had better make it work!
       | 
       | IMHO this is why you can end up with embedded code that is easily
       | 10x to 100x more optimized than code running in other
       | environments. It is also, why IMHO, the user experience on Smart
       | Phones doesn't improve linearly with the hardware improvements -
       | see https://en.wikipedia.org/wiki/Wirth%27s_law
       | 
       | This train of thought, along with basically flatlined GPU
       | performance / $, explains also why we are seeing real algorithmic
       | improvements in the ML/AI space. If we were still operating under
       | Moore's law and GPUs and VRAM were 2xing every couple of years, I
       | doubt we'd see all the research efforts going into optimizing
       | training, fine tuning, context windows, inference, and so forth.
        
         | yosefk wrote:
         | TFA author - I have worked on low-cost embedded systems.
         | (Tens/hundreds of megs of RAM, not KBs.) The only case where
         | you don't hoard resources is if the system is so small that
         | it's programmed by a small team since the functionality is
         | severely limited by resource scarcity, so there's no reason to
         | grow the team to deploy more functionality. Above a certain
         | not-so-large size, people will hoard resources in an embedded
         | system - they can't ask for more capacity like they would if it
         | was server-side software, but they sure can avoid giving up
         | whatever resources their code is already using.
         | 
         | Researchers actually have a limited and smallish hardware
         | budget, so academia is likely to come up with cost-saving ideas
         | even when hardware performance grows very quickly. In the
         | industry you can throw more hardware at the problem even if
         | it's not improving (outside embedded/client devices)
        
           | causal wrote:
           | As someone who works in embedded systems- I agree. Teams will
           | deploy whole desktops to an embedded system if permitted to
           | expand enough. Architectures will evolve to require hardware
           | that can support the bloated stack.
           | 
           | Even on power constrained robots operating in the deep sea
           | it's a pretty safe bet that some of them are running whole
           | Windows VMs.
        
           | com2kid wrote:
           | > TFA author - I have worked on low-cost embedded systems.
           | (Tens/hundreds of megs of RAM, not KBs.)
           | 
           | I worked with kilobytes, small team, everyone sat together.
           | No one was hoarding resources, because just to ship out the
           | door we had to profile every single function for memory and
           | power usage!
           | 
           | IMHO Hundreds of MB of RAM isn't embedded, it is just
           | "somewhat constrained". :-D Regular tools run just fine, you
           | can use higher level languages and garbage collectors and
           | such, you just have to be a little bit careful about things.
           | 
           | When you drop under a MB, but are still expected to have a
           | fully modern UI, then things get interesting. (I wrote up a
           | blog post about my experiences working in embedded @
           | https://meanderingthoughts.hashnode.dev/cooperative-
           | multitas...)
           | 
           | > Researchers actually have a limited and smallish hardware
           | budget, so academia is likely to come up with cost-saving
           | ideas even when hardware performance grows very quickly.
           | 
           | Agreed, but I also think it is difficult to determine when
           | forward progress is stymied by too many resources VS too few!
        
         | dopylitty wrote:
         | > the pool of available CPU/Memory resources is effectively
         | unlimited.
         | 
         | This isn't true. Every CPU you use is sitting in a physical
         | server somewhere. Every server is sitting in a rack in a
         | building that's sitting on land that used to be nature. It's
         | using electricity that could be used instead for cooling or
         | heating a person or just not generated at all. It's cooled
         | using fresh water that is needed by every living thing and is
         | in short supply in many places.
         | 
         | The idea that compute is unlimited is a horrible myth that
         | cloud companies have sold which has effects and externalities
         | that will be seen as on par with the myth of unlimited fossil
         | fuels.
        
           | com2kid wrote:
           | > The idea that compute is unlimited is a horrible myth that
           | cloud companies have sold which has effects and externalities
           | that will be seen as on par with the myth of unlimited fossil
           | fuels.
           | 
           | Granted, all true, but my point was that for any one given
           | software team at a mid-sized company with a team of a 50
           | engineers or so, CPU resources are effectively unlimited.
           | Unless they write some N^3 algorithm, the fact is that it is
           | almost always possible to write AWS a bigger check for more
           | CPU to a pretty much inexhaustible extent from any one given
           | customer's persepctive.
           | 
           | GPUs being the very large exception here!
        
         | nneonneo wrote:
         | > If you only have 64K of RAM, you had better make it work!
         | 
         | Hah, this brings back fun memories. I worked for a spell at a
         | large company producing smartphone components. One of their
         | primary products was a do-it-all embedded chip that handled
         | many disparate functions, which eventually grew to rather
         | massive proportions; rather than optimizing the resulting
         | bloated software, the company just petitioned their chip
         | supplier for a special part with way more flash memory than a
         | standard part would have. IIRC it had something like 16x the
         | Flash memory compared to the largest public part.
         | 
         | The code quality was awful. People were churning out C++
         | monstrosities with zero concern for code size. The final
         | product was the result of linking together modules from dozens
         | of teams, none of whom really cared at all about code size; I'm
         | frankly surprised the CPU didn't fall over from all the excess
         | code it had to run (the RTOS was, at the very least, very good
         | at prioritizing...). But: I'm sure it saved a lot of
         | engineering effort that went into shipping flashy features
         | instead.
        
       | yummypaint wrote:
       | _Things work the same with any resource, not just actual money -
       | it could be team size, or processor cycles and memory bytes. If
       | you free up 200 ms of CPU cycles and 500 megs of RAM, someone
       | else can deploy their functionality using these newly available
       | resources, and then you won't be able to. In fact, a mature,
       | well-run CI system will measure everyone's resource footprint
       | after each commit, and will not let you exceed your budget, which
       | was frozen at some point based on how much you were using at the
       | time (hope it was a lot! - always spend like crazy before the
       | baseline is established!) Is it any wonder that people learn to
       | never optimize their code - unless they want to deploy something
       | new themselves, and only after asking for more resources to
       | deploy it and not getting any?_
       | 
       | This explains so much. It also sounds like broken water laws in
       | the western US that incentivise farmers to intentionally waste
       | water to preserve their future ability to waste water.
        
         | darkhorn wrote:
         | During Covid European planes were flying to keep their slots
         | https://www.theguardian.com/environment/2022/jan/26/airlines...
         | 
         | Another one is to keep communication satalite slotes. If you
         | loose a slot another country can claim your orbit.
        
         | apantel wrote:
         | Coordination between more than one developer is the root of all
         | evil.
        
           | throwup238 wrote:
           | This is what Knuth actually said:
           | 
           |  _> We should forget about our coworkers, say about 97% of
           | the time: premature coordination is the root of all evil. Yet
           | we should not pass up our opportunities in that critical 3%
           | to take credit for their work._
        
             | taneq wrote:
             | Remember that he's only proven this statement correct, he
             | hasn't actually tested it. ;)
        
         | vbezhenar wrote:
         | Why does it happen? My CI launches separate kubernetes pod for
         | every incoming task. If there are not enough servers,
         | autoscaler will spin up new and remove it after some time. So
         | there are not much expenses, we're paying for what we using. I
         | feel that fast CI iterations are very important for developers.
        
           | XorNot wrote:
           | This has been the bane of my entire career. I have never, not
           | once, encountered a CI system that could run the test suite
           | faster then my development machine.
           | 
           | Which is _absurd_. Cloud resources on servers with more CPUs
           | then I have, and yet the difference in timing is measured in
           | tens of minutes.
        
             | dilyevsky wrote:
             | In most cases i have experienced this phenomenon is caused
             | by the fact that cloud block devices are garbage compared
             | to your machine
        
               | tonyarkles wrote:
               | And often CPU as well if your machine has a reasonable
               | number of cores.
        
               | kevin_nisbet wrote:
               | That combined with the scheduling layers... on the CI
               | service the company I'm working for uses it takes like 2
               | minutes to just start the job.
        
               | Aeolun wrote:
               | Even creating whole new AWS instances each time it
               | shouldn't take more than 1m.
               | 
               | You can apparently bring it down to 5s by suspending
               | instead of creating instances.
        
               | tomohawk wrote:
               | It depends on how much policy your organization has. If
               | your organization requires AV scanners and other security
               | crapware to be on all instances, how long does that take
               | to install? And perhaps they require that you only use
               | their AMIs, which then must be loaded up with extra
               | software to be usable. And perhaps they require all auth
               | use their special auth service, which takes 5m to sync
               | with. And on and on. I've worked in places where it takes
               | 20m to spin up a usable instance, so we ended up just
               | keeping them on most of the time.
               | 
               | In an ideal world, the policy groups imposing these
               | inefficiencies would get billed for the cost of their
               | policies, but I've only ever seen situations where
               | everyone else pays the cost of their incompetence.
        
               | jomohke wrote:
               | And yet the data is ephemeral, so in many cases could be
               | done faster without the "real" block storage guarantees.
               | 
               | Github Actions is pay-per-minute-used, unfortunately, so
               | they may have a negative incentive to speed things up.
               | Unless people become frustrated enough to switch to a
               | non-bundled provider.
        
               | dilyevsky wrote:
               | Not all the data is ephemeral - stuff like node_modules
               | needs to he cached and if you're suggesting to use tmpfs
               | then it's like 50x more cost than fully tricked out cloud
               | ssd which is already ridiculously expensive
        
             | adolph wrote:
             | You should just add an admission webhook that kubeadm's
             | your dev box onto the CI cluster with a taint that only
             | your pods tolerate whenever you need to run the test suite.
             | Call it edge cloud and people will love it.
        
             | dboreham wrote:
             | This is just a symptom of bad management.
        
             | rr808 wrote:
             | DHH has talked about this the last few months. He now
             | recommends running locally on your own computer instead of
             | server. CPUs are so fast now.
             | 
             | https://world.hey.com/dhh/we-re-moving-continuous-
             | integratio...
        
               | samus wrote:
               | Unless internal IT and security teams force running
               | security spyware on personal devices.
        
             | dragonwriter wrote:
             | > Cloud resources on servers with more CPUs then I have
             | 
             | The server the resources run on may have more CPUs than
             | your dev machine, but are you allocating more CPU to the
             | specific test job than you desktop has?
        
             | Too wrote:
             | From what I've seen this is usually caused by CI pipelines
             | being overly cautious, starting from a pristine state and
             | trying to cover every possible edge case.
             | 
             | Spin up new node, congrats, now you have to clone the whole
             | repo from scratch. Oh, "npm install" was not cached, let's
             | download half of the internet again, pull ":latest" of some
             | multi-GB docker images while you are at it. For good
             | measure, "make clean", because...you never know and nobody
             | bothered to architect our build system to use a more sane
             | tool than Makefiles, btw remember to only use make -j3,
             | because rumor has it that the build fails intermittently
             | when using more cores! Finally, run every test that
             | couldn't possibly be affected by the commit in question,
             | preferably the big e2e-suite. As someone else mentioned
             | above, all of this running on some dog-slow cloud network
             | attached disk.
             | 
             | There you have it. Spinning up more compute is not the
             | solution, it's the cause. Keep one machine on and improve
             | on your build tooling. I guarantee it will be magnitudes
             | faster than any ephemeral pipeline.
        
               | MathMonkeyMan wrote:
               | But then what will you contribute to the hour long weekly
               | meeting where 13 managers present the status of their
               | poorly defined CI metrics and other "action items"?
        
               | TeMPOraL wrote:
               | Not my experience. The CI systems I dealt with most
               | recently, for example, were very much compute-bound. Way
               | too weak VMs for the runnres, and way too few of them.
               | With CI builds taking each of upward 2h, and capacity to
               | run maybe 10 of them in parallel, this pretty much
               | destroys any ability to work with small commits - you
               | have to squash them before submitting for review anyway,
               | otherwise you destroy anyone else's ability to get their
               | changeset through CI for the rest of the day.
               | 
               | This is entirely solvable by getting more resources. At
               | least 2x more runners, each at least 2x as beefy. You
               | could go 10x and I doubt it would be anywhere as
               | expensive as the amount of money company wastes on devs
               | waiting for CI. Alas, good luck convincing people
               | managing the infra of this.
        
               | Aeolun wrote:
               | Our runners autoscale, and you can choose whatever
               | instance type you want. It doesn't seem like a very hard
               | problem to solve.
        
               | Too wrote:
               | Builds taking 2h of compute? Let me guess, you are doing
               | clean builds?
               | 
               | Incremental is several orders of magnitude faster and
               | cheaper. Just need to invest in your build tooling.
        
               | TeMPOraL wrote:
               | There was caching of third-party dependencies, but at
               | least 2/3 of the time was spent on various tests, which
               | for domain-specific reasons weren't trivial. Sure,
               | everything there could be optimized further, but this is
               | a textbook case of a problem which can be solved by
               | _adding more compute_ for a fraction of the cost of dev-
               | hours spent trying to optimize compilation and test
               | times.
        
               | Aeolun wrote:
               | > I guarantee it will be magnitudes faster than any
               | ephemeral pipeline.
               | 
               | Only if you have a single job to run. In practice it
               | doesn't really matter to the dev whether CI takes one or
               | 5 minutes. When it all goes over 5 minutes is when it
               | gets annoying.
        
               | torginus wrote:
               | This is usually a result of following 'cloud best
               | practices' instead of being pragmatic.
               | 
               | For example, using Kubernetes with Docker where each pod
               | is some virtual ECS 4-core whatever instance, assuming
               | scaling the workload over a 1000 instances will be fast.
               | Which in your case will lead to said pods individually
               | spending 90% of their time running 'npm install' , and
               | each pod is way slower than your desktop PC.
               | 
               | Different tests have different needs and bottlenecks. For
               | example, if you're running unit tests, with no external
               | dependencies, you'd want to separate out the build
               | process, and distribute the artifacts to multiple test
               | machines that run tests in parallel.
               | 
               | The choice of using a few big machines or more small ones
               | is usually up to you, and is a wash cost-wise. However I
               | do need to point out AWS sells you 192 core machines,
               | which I'd wager are WAY faster than what you're sitting
               | in front of.
               | 
               | And Amdahl's law is a thing as well. If there's a 10
               | minute non-parallizable build process, doing a 10 minute
               | test run on a 192 core machine vs doing an ~0 minute test
               | run on infinite machines ends up being only a 2x speedup.
               | 
               | And there's such a thing as setup costs. Spinning up an
               | AWS machine from an image, setting up network interfaces,
               | configuring the instance from scratch has a cost
               | associated with it as well. And managing a cluster of
               | 1000 computers also has its set of unique challenges. And
               | assuming that if you ask Amazon for a 1000 machines at a
               | drop of the hat, and plan to use each for a minute or
               | two, AWS will throttle the fuck out of you.
               | 
               | All I'm trying to say with this incoherent rambling is
               | KISS - know your requirements, and build the simplest
               | infra that can satisfy it. Having a few large stopped
               | instances in a pool might be all the complexity you need,
               | and while it flies in the face of cloud best practices,
               | it's probably going to be the fastest to start up.
        
               | XorNot wrote:
               | I would argue the problem is for all the CI systems out
               | there at the moment, there all "stupid": i.e. none of
               | them try to predictively spin up an environment for a dev
               | who is committing on a branch, none of them have any
               | notion of promoting different "grades" of CI worker (i.e.
               | an incremental versus a pristine) and none have any
               | support for doing something nice like "lightweight test
               | on push".
               | 
               | All of this should be possible, but the innovation is
               | just not there.
        
             | mvc wrote:
             | There was a tech talk many years ago when one of the github
             | engineers talked about how fast the github CI tests were
             | (this was way before the microsoft aquisition). Literally
             | seconds. I wonder if they're still that fast.
        
             | samus wrote:
             | My experience is the opposite due to the insane overhead of
             | the spyware^H^H^H antivirus and security services running
             | on our personal devices. Some colleagues successfully
             | applied for MacBooks since these are reasonably fast even
             | while running the security services.
        
         | mananaysiempre wrote:
         | No reason to go that deep. Spending in large bureaucracies
         | (public or private) often works similarly: there's a lot of
         | hair on fire and throwing money frantically around at the end
         | of a reporting period, because you know if you don't spend it
         | you'll get a smaller budget next time. (It was that way at all
         | levels in late Soviet Union, it's still that way in at least
         | one F100 IT giant.)
        
           | applied_heat wrote:
           | Canadian government organizations and military also
        
           | exergy wrote:
           | A (unfortunately still valid) running joke about German
           | public administration is that November is the high season for
           | fax machine sales people
        
       | JackSlateur wrote:
       | On the other hand, money is not free: many poor souls worked
       | their ass off to pay for our toys. Putting their work in good use
       | is the least of respect.
        
       | metadat wrote:
       | I found TFA highly informative, and thoroughly enjoy how the
       | author's mind works, along with the playful presentation.
       | 
       | This reminded me of "The Gervais Principle: The Sociopaths, The
       | Clueless, and the Losers".
       | 
       | https://www.ribbonfarm.com/2009/10/07/the-gervais-principle-...
       | 
       | Discussed here 15 (!) years ago:
       | https://news.ycombinator.com/item?id=881296
       | 
       | @yosefk or anyone else- do you have suggested related reading?
        
       | matrix87 wrote:
       | > Bug fixes work a lot like efficiency improvements, the main
       | difference being that competent management makes things much
       | worse. You can't make fixing bugs into a "goal," same as you
       | can't make optimization into a goal, because people will just add
       | more bugs up front and then fix some of them.
       | 
       | If competent management makes things worse, then it isn't really
       | competent management. I'm not sure why introducing additional
       | process is considered a sign of competence
       | 
       | Instead of setting arbitrary goals, couldn't they just pay
       | attention to the things that people are actually working on and
       | give out rewards/punishments based off of their own judgement? If
       | you need to create some elaborate resource quota CI/CD system
       | because you can't trust employees to do things decently, then
       | it's a people problem
        
         | IsopropylMalbec wrote:
         | The post is saying that it is a people problem. The gist is
         | that efficient or beautiful architecture does not mirror
         | efficient or beautiful management.
        
           | matrix87 wrote:
           | > But if there's a reliable & scalable way for vigorous,
           | systematic management to reward the spontaneous human drive
           | towards efficiency instead of punishing it, I am yet to see
           | it.
           | 
           | This is the gist of the article, it has nothing to do with
           | software architecture
        
       | agumonkey wrote:
       | I'm on the first part and I struggle to not scream.
       | 
       | - the well run place seems too keen on micro managing. Estimating
       | every step to the point of cancelling improvement is not 'well
       | run'. I'm sure every book about advanced company management will
       | tell you that.
       | 
       | - the badly run is hmm.. at least partially (if not totally)
       | naive. What are the odds that people not being asked anything
       | don't just talk all day long ? The most probable equilibrium
       | point will be most employees doing a little bit of the mandatory
       | duties in the morning, a little bit in the afternoon, separated
       | by lengthy bits of smalltalk (not they kay kind). I have yet to
       | see one person trying to fix anything in their environment
       | because they had free time. 99% of them will just have a new
       | topic to vent about in the coming coffee / smalltalk pause.
       | 
       | ps: anybody knows talks or books about people operating like
       | emergency teams ? where the natural spirit is optimize everything
       | until you reach hard limits ?
        
         | thedaly wrote:
         | The entire premise is based around the idea that one still has
         | to appear busy or has a desire to demonstrate something that
         | will justify a raise.
        
           | agumonkey wrote:
           | Not to sound too naive, I think this whole paradigm creates a
           | bad soil overall. Before I joined $big-corp I was working
           | better and growing faster. Now that I'm in it, I gradually
           | morphed into this kind of employee.. it's a relativistic game
           | and if the system is stupid and rewards the bullshitter, you
           | end up like them (at the risk of your mental health quite
           | often). A good group is one where people are motivated to be
           | sharp, creative, fast, efficient, curious, sharing, open
           | minded IMO.
        
       | bwestergard wrote:
       | A very similar thesis was put forward by Galbraith in "The New
       | Industrial State".
        
       | fsndz wrote:
       | competent management should add flexibility to rigid goal
       | setting.
        
       | YZF wrote:
       | Creo (based in Vancouver, BC) used to be a company that tried to
       | address this. The concept that was used was called "unit
       | presidency". Each employee was empowered, expected, and trained,
       | to make decisions as if _they_ are the president of the company.
       | The principles behind making decisions were called  "economic
       | thinking" which the CEO used to say was everything he learnt in a
       | Harvard (EDIT: or maybe it was Stanford) MBA distilled into the
       | core principles. Basically looking at the ROI (Return on
       | Investment) of the decision. Decisions were generally made by
       | consensus though depending on the nature of the decision
       | sometimes other methods were used. This extended to decisions
       | that involved spending money, not just should you pick language X
       | or language Y for your next software project.
       | 
       | I think it worked pretty well for quite a few years. It gradually
       | stopped working when the company acquired a large company with a
       | different culture and also hired people (well, managers mostly)
       | who weren't aligned with the culture. Eventually this basically
       | disappeared when the company was acquired by Kodak.
       | 
       | I've seen flavors of this in other places. Famously Andy Grove of
       | Intel also preached that decisions need to be made by those
       | closest to the decision and empowered people to make the right
       | decisions. More generally this can be reflected in a servant-
       | leadership model where leadership sees itself as facilitating the
       | growth of the people underneath them.
       | 
       | Another requirement for this to work well is that management
       | (e.g. the CEO or other leaders) are able to lay down a broad
       | strategy for the people of the company to execute on. If the
       | leadership has no strategy then tactical decisions can not be
       | made properly. They also need to make sure there's coordination
       | and structure.
        
         | sroussey wrote:
         | > This extended to decisions that involved spending money, not
         | just should you pick language X or language Y for your next
         | software project.
         | 
         | Just want to point out, the choice to pick language X or
         | language Y is very much about money. Training, triage, getting
         | into production, scaling, testing, etc. Most bigger picture
         | technical decisions are in fact, economic ones.
        
           | YZF wrote:
           | For sure. I was just pointing this out because I've worked in
           | organizations where there was no problem with delegating
           | language choice to engineers but the minute any actual money
           | had to be spent it was treated very differently.
           | 
           | You are absolutely right that technical decisions are
           | economic ones.
        
         | LeFantome wrote:
         | [Edit: apologies for the wall of text. A lot of pent up emotion
         | around Creo.]
         | 
         | Best place I ever worked.
         | 
         | This was "the Creo Philosophy":
         | 
         | Our priority is to provide unique and sustainable value to our
         | customers.
         | 
         | 1. All decisions must be based on sound economics.
         | 
         | 2. Key decisions are made in consensus, with full team
         | agreement to accept and implement the decision.
         | 
         | 3. We believe that people are most effective when self-managed.
         | 
         | 4. Compensation is based on contribution, gauged largely by an
         | annual peer review.
         | 
         | 5. All employees share the wealth created by their hard work
         | and innovation.
         | 
         | Creo was extremely proud of how "flat" the organization was but
         | my primary take-away from there as an ex-employee is actually
         | how important management is.
         | 
         | First and foremost, management created a shared vision of the
         | future. Not silly posters to laugh at but a real shared
         | mission. It was exciting and motivating. Every Creoite knew how
         | the world would be changed when we were successful. Decisions
         | could be distributed because it was obvious which outcomes were
         | aligned with the companies goals. Trying to push outcomes not
         | aligned with the goals was hard ( as it should be ).
         | 
         | Second, there was a strong framework for how decisions were
         | made and how to identify good decisions from bad ones. Economic
         | thinking and consensus were two important principles that you
         | were expected to follow unless you could demonstrate very good
         | reasons not to.
         | 
         | Third, management provided a great deal of mentorship, both
         | through direct education and through calling re-enforcing the
         | primacy of the principles. One of the reason Creo could be so
         | "flat" is because everybody knew how the executives would
         | behave if they were in the room and they could insist that
         | others act accordingly. It was easy to assume executive
         | sponsorship without having to resort to politics. "We do not
         | tolerate politics" was an important mantra through the best
         | parts of the company history.
         | 
         | Most importantly, I got to experience the everyday
         | effectiveness of the organization under three different CEO's:
         | Ken Spencer, Amos Michelson, and Mark Dance. The "culture" was
         | only as good as the man at the helm.
         | 
         | At Creo, we made the claim all the time that we basically did
         | not have hierarchal management. It was true we did not always
         | have "supervisors" but we had the best management I have ever
         | worked for.
         | 
         | As said above, Creo stopped working when it acquired a rival
         | that had more employees than it had. The politics exploded. The
         | effectiveness disappeared. Financial performance followed. The
         | company was sold to avoid a shareholder revolt. A sad end for a
         | spectacular organization.
         | 
         | The original Creo employees stuck to the principles. Well,
         | except management. Hierarchical authority was suddenly more
         | important. Decisions did not have to make economic sense. What
         | mattered was who was doing the deciding. Consensus stopped
         | being a requirement. Speaking truth to power stopped being a
         | path to better decisions and started becoming a career mistake.
         | Executive sponsorship became real and aligning with people in
         | position became the most important criteria for individual
         | success. Empire building replaced shared vision. The lack of
         | alignment between making the company successful and being
         | successful as an employee completely broke. The company failed.
         | 
         | Managers and employees looked at Creo folks and their
         | "philosophy" like naive children. Sure "the philosophy" worked
         | well enough for Creo to beat them to begin with but, once
         | merged, the acquired were right. Creo was idealistic and naive.
         | But this was not inevitable.
         | 
         | Why did Creo fail? Did "the philosophy" not scale as the final
         | CEO I think believed? I do not think so. I see it purely as a
         | failure of management.
         | 
         | The final CEO provided little vision. Other than a focus on the
         | bottom line, there was no insistence on economic decision
         | making ( eg. instead of breaking up meetings because they had
         | too many people in them - too expensive - he held meetings with
         | dozens of people in them ). Instead of coming down on politics
         | and insisting on consensus, executive authority became sacred.
         | In fact, the term "consensus" became most often used when an
         | executive used it as an excuse for their own lack of leadership
         | by claiming the team should have to solve its own problems.
         | 
         | If strong management had provided the leadership, the
         | mentorship, the vision, and support for the culture ( most
         | importantly the principles of good vs bad decision making ),
         | Creo would still be with us. If I was lucky, I would still be
         | working there.
         | 
         | Creo ruined me in a way. I have never been able to accept why
         | things cannot be as good anywhere else. Such simple ideas. So
         | dramatically effective. Unfortunately, good management (
         | executive level ) is an absolute requirement. Even hundreds or
         | thousands of well trained employees was not enough to make
         | these principles work without strong management behind them.
         | Management matters.
         | 
         | I got to experience some amazing leadership for a while. All I
         | can do is try to emulate those role models as best I can. And
         | everywhere I go, I try to make economic thinking an important
         | part of how decisions get made.
         | 
         | RIP Creo. You left us too soon.
        
           | kennyloginz wrote:
           | I think business decisions should be up to the support
           | divisions. Has anyone tried that?
        
           | kevin_nisbet wrote:
           | Thanks for sharing, you're post really resonated with me and
           | I want to learn more about Creo now.
           | 
           | While I don't have the shared experience, I think I've also
           | landed on economic thinking as part of my primary model of
           | how I think an eng team should function and been trying to
           | push the concept with limited successes (although I've termed
           | it differently). And I've never observed a team that I think
           | has executed on it really well.
        
           | ang_cire wrote:
           | Unnecessary hierarchy is a cancer. CEO's aren't geniuses or
           | rockstars, and if executives can't convince their employees-
           | the actual technical people who will implement whatever plan
           | is- that a given plan is the right one, 99% of the time that
           | means it's not.
           | 
           | Good management is about _leading_ people (i.e. who follow
           | voluntarily), not dragging people along.
        
             | LeFantome wrote:
             | A good summary of what I was trying to say is that most
             | companies could do with more leadership and less
             | management.
             | 
             | It sounds like we agree.
        
               | throwaway7ahgb wrote:
               | A very important distinction, in my "Creo" example above,
               | our company specifically used the word "leadership" for
               | the founders and other "leads" of the company.
               | 
               | Nobody used the word manager or boss annd anyone could be
               | in a leadership role, it was based on meritocracy.
        
           | toomuchtodo wrote:
           | Spooky parallels to the Boeing and McDonnell Douglas merger.
           | Thanks so much for sharing the history, great ideas and
           | suggestions, and a lasting question to answer around how to
           | defend the model from the barbarians.
        
             | nine_k wrote:
             | It almost looks like the culture is _the_ competitive
             | advantage, and everything else follows. No market and
             | technology synergies are important enough to risk the
             | destruction of that culture in a merger. (Alternatively,
             | all the upper and middle management of the acquired company
             | has to be honorably discharged, and the remaining employees
             | are to spend several months training in the new culture. A
             | pretty hard sell for most mergers.)
        
               | toomuchtodo wrote:
               | I would strongly agree with this thesis.
        
           | oidar wrote:
           | Could you give us an example how this worked practically on a
           | project basis?
        
           | yosefk wrote:
           | Author here - I'm simultaneously quite pessimistic about, and
           | very interested in heterodox organizational structures and
           | especially real-world stories about them. I feel that failure
           | or regression to the mean are quite likely and scaling or
           | replicating success stories is very hard, but I am almost
           | certain things will evolve beyond the current status quo
           | eventually, just really not sure when and how.
           | 
           | So thank you very much for sharing and recommendations for
           | further reading will be much appreciated!
        
             | chii wrote:
             | > I feel that failure or regression to the mean are quite
             | likely
             | 
             | i suspect that these failures are a failure for humans to
             | adapt to a larger herd than the traditional tribal size -
             | anything beyond a couple hundred people max.
        
               | LarsDu88 wrote:
               | Have you ever read the book "Loonshots" There's an entire
               | chapter about how primitive human societies probably
               | maxed out at about 150 individuals. Companies that exceed
               | this headcount basically need to change themselves into
               | highly hierarchical organizations, and many companies die
               | in this transition.
        
               | YZF wrote:
               | I went through this stage with a smaller company and
               | there's definitely this point where you no longer know
               | everyone and things change. Creo however did manage to
               | scale this well beyond 150 people. You don't necessarily
               | need a lot of hierarchy but you do need to figure out a
               | structure. Creo always had a hierarchy, it wasn't like
               | Valve or something. It's just how things worked within
               | that hierarchy.
        
               | sokoloff wrote:
               | I experienced this as two phases of growth in the path
               | from ~100 people to ~15000 people: the first phase where
               | you don't know everyone and the second one where you
               | don't even know every department/major project.
        
               | ramchip wrote:
               | Note that Dunbar's number (150) is quite controversial:
               | 
               | https://www.nytimes.com/2021/05/11/science/dunbars-
               | number-de...
        
               | immibis wrote:
               | 150 is Dunbar's number, made by extrapolating a monkey
               | species tribe size / brain size correlation to human
               | brain size. Something interesting to think about, but not
               | exactly hard science.
        
             | tadkar wrote:
             | I have a theory that organizations that grow fast and scale
             | well all have this "cellular model" at their core.
             | 
             | Investment bank trading desks in the pre-2008 era,
             | partnership at the big strategy consulting firms and even
             | "multi-strategy hedge funds" now are actually all
             | collections of very incentive aligned businesses. They
             | share the Creo quality of making lots of millionaires and
             | people looking back on their time there as one of great
             | freedom and achievement.
             | 
             | In all these places, employees are paid according to the
             | revenue they generate, with seemingly no ceiling to what
             | you can take home. It is true that the size of any one cell
             | doesn't scale beyond a small number of people. But all the
             | organisations I mentioned above scale by having units
             | tackling small pieces of vast markets.
             | 
             | The main lesson I took away from reading "Barbarians at the
             | Gate" is that big companies hugely suffer from the
             | principal agent problem, where management is mostly out to
             | enrich themselves at the expense of shareholders and
             | employees (sometimes). This looting is however only
             | possible at a company that was established by a founder
             | with a deep vision and passion for the product and has set
             | up systems and culture that generates sufficient cash for
             | the professional management to leech off.
             | 
             | What I have not read yet is a systematic study of these
             | "cellular organizations" and what the common features are
             | that make them successful. My guess is that the key is that
             | each "unit" or "cell" has measurable economics that makes
             | it possible to share the economic value over a sustained
             | period of time. A bit like why sales people get paid a lot.
        
               | freetanga wrote:
               | Agreed on cellular, but life is not a picture, rather a
               | movie... what works at a stage starts attracting people,
               | and eventually you let the wrong people in. A bit like
               | the hype curve. These wrong people start poisoning
               | internal processes and culture, seeking to cash out. And
               | then the model blows up.
               | 
               | The migration of shitheads from Wall Street 80s 90s to
               | Silicon Valley - technobros is for me a solid example of
               | this.
        
               | nine_k wrote:
               | Indeed, an organism can only survive long enough if it
               | can resist infection. For this, an organization should be
               | openly hostile to certain forms of conduct, and should
               | have a way to expel people who bring in wrong values,
               | especially in management.
               | 
               | This is a really hard problem, due to its influence on
               | the morale, and the danger of weaponization of these
               | mechanisms by bad actors.
        
               | rgbrgb wrote:
               | And don't forget, people change too, sometimes becoming
               | misaligned over time. Maybe that's a little like cancer.
               | Org resilience is hard to model.
        
             | throwaway7ahgb wrote:
             | I also worked at a company that was similar to the Creo
             | story above.
             | 
             | This was a High Frequency Market making company, total
             | employees ~ 250. "Flat" management, nobody had titles, just
             | responsibilities. Everyone understood the mission and
             | goals. Everyone was highly compensated and empowered to
             | make important decisions without explicit approval.
             | 
             | The whole thing fell apart when the company grew and
             | finally failed when merged with another larger competitor.
             | 
             | These great orgs only last when they are kept small.
        
               | freeopinion wrote:
               | Perhaps total size isn't as important as ratio of
               | onboarding.
        
               | dartos wrote:
               | It's definitely size.
               | 
               | It's much harder to maintain a shared vision among 20
               | people than it is for 10.
               | 
               | It get exponentially harder as you add more people.
               | 
               | Since a shared vision becomes hard to maintain, only
               | those with the vision (read: managers and leadership) can
               | make decisions.
        
             | pdfernhout wrote:
             | I put together a "High Performance Organizations Reading
             | List" which includes a reference to "Reinventing
             | Organizations: A Guide to Creating Organizations Inspired
             | by the Next Stage of Human Consciousness" by Frederic
             | Laloux. You and "LeFantome" who wrote about Creo might find
             | that book and other resources there of interest. Laloux's
             | book provides examples of various companies with better
             | management. https://github.com/pdfernhout/High-Performance-
             | Organizations...
             | 
             | Better and healthier organizations are possible, as Laloux
             | writes about. They are rare though -- and difficult to
             | sustain in our current Western society. As with Creo, you
             | definitely need enlightened management or enlightened major
             | shareholders to "hold the space" as Laloux writes.
        
           | polynomial wrote:
           | What did Creo do when team could not reach "full team
           | agreement"? (And isn't that the other side of "Disagree &
           | Commit"?)
        
             | YZF wrote:
             | It's important to note is agreement being everyone can live
             | with the decision. I.e. it's not really a bike shedding
             | thing. Just that nobody has strong objections (the reason
             | being is that if there are strong objections there are
             | probably good reasons for that and ideally those are
             | understood before taking the decision).
             | 
             | At the end of the day, if there was a time critical
             | decision and there was no consensus someone like a project
             | manager would make the call. I haven't actually seen that
             | happen, a well functioning team/project generally is able
             | to make decisions.
        
           | YZF wrote:
           | Yeah. Creo was a great place to be and had some very good
           | people. The focus on culture really permeated the company.
           | 
           | I would say though that it wasn't simply the dilution of the
           | culture, there were also some real business challenges that
           | led to external pressures and eventually the sale of the
           | company. A takeaway from that is that business is an
           | important part of, ya know, being a business. A financially
           | successful business has more room to be a great place. Creo
           | did well and grew well but operated in an area where making
           | money isn't easy (the printing industry).
        
           | djmips wrote:
           | Reminds me a bit of Boeing aquiring McDonnell Douglas.
        
           | Xelbair wrote:
           | It honestly reads as both CEO fault, but more importantly -
           | override of culture by sudden big influx people.
           | 
           | It seems that Creo bought out their competitor, but in fact
           | they got absorbed by them and paid for the privilege.
        
           | rwmj wrote:
           | I think what's interesting here is that you must have had
           | access to the raw financials (eg. sales numbers, P&L by
           | department). These are very tightly controlled at all
           | companies I've worked at, making it hard to know if a
           | particular product is important to the bottom line or not.
        
             | throwaway7ahgb wrote:
             | This is also a great point. Teams should have detailed
             | knowledge of the performance of the company or groups. It
             | helps with the shared ownership, pride and
             | responsibilities.
        
           | smokel wrote:
           | Very interesting. After reading this, I looked up the
           | Wikipedia page for Creo [1], but could not find anything
           | about this unique type of management.
           | 
           | Would you mind adding something there for posteriority?
           | 
           | https://en.wikipedia.org/wiki/Creo_(company)
        
             | YZF wrote:
             | Yeah, the Wikipedia page is a bit disappointing. Maybe I'll
             | have a go at updating it. Some references:
             | 
             | https://whattheythink.com/articles/101480-amazing-balance-
             | wa...
             | 
             | https://www.encyclopedia.com/books/politics-and-business-
             | mag...
             | 
             | (https://www.youtube.com/watch?v=mXTWMlRK0LE linked from
             | the above - I remember this video but couldn't find it
             | directly on YouTube :( )
        
         | electrodank wrote:
         | > Each employee was empowered, expected, and trained, to make
         | decisions as if they are the president of the company.
         | 
         | And compensated at a president's salary for the new
         | insurmountable levels of responsibilities right?
        
           | marcinzm wrote:
           | Not everyone is afraid of responsibility simply because it's
           | responsibility.
        
             | chii wrote:
             | It's not about being afraid, but about being compensated
             | for.
        
               | Aeolun wrote:
               | If so, great, if not, I'll still take it because
               | otherwise someone else will have it, and they very rarely
               | live up to my standards.
        
               | marcinzm wrote:
               | Why does responsibility require or deserve more
               | compensation? You're stating something as if it was a law
               | of the universe but provide no reasoning.
        
           | LeFantome wrote:
           | You would be surprised. I know of Creo people that worked in
           | the call center that bought million dollar homes with their
           | compensation from Creo.
        
             | lupire wrote:
             | What is Creo?
        
               | pseudalopex wrote:
               | https://en.wikipedia.org/wiki/Creo_(company)
        
           | YZF wrote:
           | They made decisions relevant to their work. i.e. it's not
           | that a random employee would go our and acquire a competitor
           | or buy a business jet for themselves (though in theory they
           | could but that theory never got put to a test). So the CEO
           | still made CEO-level decisions and employees made decisions
           | in their area while needing to ask themselves what's best for
           | the company, economically, just like the president should.
           | Trust people to do their job kind of thing really, trust
           | teams to work together etc.
        
           | taneq wrote:
           | Is 'responsibility' really something that deserves outsized
           | compensation compared with, say, actually creating the
           | product being sold? In this context, it doesn't seem to come
           | worth outsized personal consequences for failure, indeed
           | quite the opposite. I agree there should be some
           | consideration for the additional stress, but not multiple
           | extra figures on the salary.
        
           | pyrale wrote:
           | > for the new insurmountable levels of responsibilities
           | right?
           | 
           | As it turns out, companies that don't concentrate all of the
           | power and decision-making in one person tend to avoid ending
           | up with "insurmountable levels of responsibilities".
        
         | marcinzm wrote:
         | > Another requirement for this to work well is that management
         | (e.g. the CEO or other leaders) are able to lay down a broad
         | strategy for the people of the company to execute on. If the
         | leadership has no strategy then tactical decisions can not be
         | made properly. They also need to make sure there's coordination
         | and structure.
         | 
         | In my experience this isn't a core requirement so much as the
         | ability to discern if a proposed strategy is good or not based
         | on first hand experience. In other words, the ability to spot
         | very well written bullshit yourself without relying on anyone
         | else's perception of it being bullshit or not. If you need to
         | rely on other people's opinions or the way a proposal is
         | written or something else then it will not work. It's very rare
         | for this to be the case at a larger or public company. Even if
         | the CEO has this ability if the board doesn't then it will be
         | the same.
        
         | th324j234llkdf wrote:
         | Trouble is most middle/upper-management is so technically
         | incompetent, that not only can they not do technical work that
         | their moronic decisions entail, but they can't even distinguish
         | b/w arguments for how something is to be accomplished.
         | 
         | As a metaphor: for problems in NP, verifiability is in P. So
         | you have some super-duper savant alg. that outputs some answer,
         | but even a dumb-system should be able to quickly verify. Our
         | managers are typically dumber than this.
        
           | btbuildem wrote:
           | I'd argue the opposite: it's the technically-savvy people who
           | got promoted to management/leadership positions, while
           | lacking the people skills, the strategy chops, and the basic
           | understanding of business realities - these are the truly
           | incompetent managers.
        
             | makapuf wrote:
             | But you need to be able to promote good technical people or
             | they will finally leave and you ll be left with gif
             | managers an no one good technically to manage.
        
               | Tabular-Iceberg wrote:
               | Gif managers?
        
           | mavelikara wrote:
           | Where do these clueless managers come from?
        
             | Aeolun wrote:
             | Somewhere amongst the 90% of emloyees that do not have a
             | strong opinion one way or the other?
        
           | dgb23 wrote:
           | A boss doesn't need to be technically competent to a degree
           | that they make important technical decisions. They just need
           | to understand things to a degree so they can trust and
           | delegate.
           | 
           | And tust is a two way street. It requires effort from both
           | sides.
        
         | joe_the_user wrote:
         | I'm not sure what "empowered" means relative to the parent
         | article.
         | 
         | Aligning each employee's incentives with ROI seems extremely
         | difficult.
         | 
         | The former Yugoslavia had a system of self-managed enterprises
         | where large firms shared profits equally among employees and
         | employees ran the enterprise democratically (usually electing a
         | manager). The problem is that profitable enterprises would
         | democratically decide not to hire any more people since doing
         | so would dilute their profits.
        
           | yosefk wrote:
           | I did not attempt to cover heterodox organizations such as
           | what Creo appears to have been in the article. I think these
           | are extremely interesting, though quite likely to fail,
           | regress to the mean, and be hard or impossible to scale or
           | replicate.
           | 
           | But, I'm sure the first multicellular organisms were no
           | picnic, either. Eventually humans will learn to work together
           | way better than today and anyone trying already now has my
           | attention and sympathy, especially if there are positive
           | testimonials by employees (there's no shortage of managers
           | who claim to run a different kind of org / culture when it's
           | either false or true in a bad sense, meaning, their org is
           | much worse than the standard system; in fact I like managers
           | who apply zero lipstick to the pig that is their org and do
           | the standard ugly thing in an openly ugly way - teaches you
           | how to operate in this environment more quickly vs trying to
           | get people to remain naive to their detriment)
        
             | joe_the_user wrote:
             | Your analysis could be applied to Creo without much change
             | because you're looking at implicit incentives in any place
             | managers (or resource-controllers) are expected to
             | accomplish goals.
             | 
             | That said, I think your analysis is a bit weakened by a
             | moral elements (good managers vs bad managers). And even
             | more, it's not necessarily bad for an organization to have
             | locally controlled resources. One can posit an omniscient
             | central controller that would manage resources better than
             | local managers but it's likely that there are limits to
             | both central controllers and local managers. What's "best"
             | depends on the task, the organization and who's judging the
             | result.
        
           | chii wrote:
           | > The problem is that profitable enterprises would
           | democratically decide not to hire any more people since doing
           | so would dilute their profits.
           | 
           | which is fine, because if hiring someone would dilute their
           | profits, it means the new hire is decreasing the efficiency
           | of the organization. Normally, you would hire if you find
           | that the existing employees cannot complete all of the work
           | required, as there's too much - aka, leaving business/profits
           | on the table due to lack of room.
        
             | slim wrote:
             | If gov incentivised creating new companies that would not
             | be a problem, I guess ?
        
             | immibis wrote:
             | This is bad for the economy, however, because it limits
             | overall production.
        
         | highfrequency wrote:
         | Interesting! A few questions:
         | 
         | 1. Could you expand more on the practical details of how
         | decision making by consensus worked? Eg if I want to buy a $1m
         | machine, how many people and which people do I convince that
         | this makes economic sense? Who can actually sign off on the
         | purchase?
         | 
         | 2. How did incentive based compensation work for employees
         | whose work could not directly be tied to the bottom line? For
         | example, legal and compliance staff sometimes _prevent_ profit
         | making activity that is deemed as risky - making these
         | functions prime candidates for internal monopolies that drag
         | down the performance of other groups. Or recruiters whose
         | natural incentives revolve around number of people hired rather
         | than efficiency.
         | 
         | 3. How is economic decision making enforced? What stops a
         | middle manager from acting out of self-interest and expanding
         | his own headcount or project scope to increase his own
         | importance at the expense of company economics? Even if there
         | is some consensus required, it's probably not hard to convince
         | a few friends with fanciful projections. Is this mostly a
         | camaraderie / honor system thing?
         | 
         | If you feel like these are _the wrong questions_ and are
         | somehow missing the point - let me know! Sounds like Creo
         | pulled off something special and I'm sure there is lots to
         | learn.
        
           | YZF wrote:
           | 1. You were supposed to identify who the stakeholders were.
           | Let's say you're a mechanical engineer and you need some $1m
           | lathe. The economic decision making basically says you need
           | to consider options like contracting the work to someone that
           | has that machine and show some reasonable ROI period on
           | actually buying that lathe vs. contracting it out or renting
           | it or whatever other reasonable alternatives. People involved
           | in this decision could be your team lead, if you're a
           | mechanical engineer, and the project manager. If the amount
           | is so large that it impacts the entire company maybe the CEO
           | is also involved. You get everyone in the same room and talk
           | about it. Anyone can sign off on the purchase. The project I
           | was on built some large very expensive machines (multi-
           | million dollar per machine) and we've done things like build
           | clean rooms and buy pretty expensive equipment without a lot
           | of friction. I worked on software so I wasn't personally in
           | the loop for those purchases.
           | 
           | 2. I guess it's no different than RSUs, stock options or a
           | bonus plan or any other form of profit sharing. At the end of
           | the day people are trusted to do their job. At least during
           | my time with Creo it didn't seem to create a barrier to
           | experimenting, if anything there were some projects that were
           | maybe were too experimental.
           | 
           | 3. Not enforced in any formal way. Peer review and just
           | culture/peer pressure would do the job. I am aware of one
           | case where someone abused the system and someone found out
           | and they were fired. In terms of your example, the power was
           | fundamentally less with the middle manager and more with the
           | engineers in the first place, so there wasn't a lot to gain
           | personally from empire building as in traditional companies.
           | For the most part managers did not manage people, they
           | managed projects. For example, as a software team lead I was
           | under a project manager but I didn't report to him in the
           | traditional sense of the word and they did not control my
           | compensation (which would be mostly the outcome of the peer
           | review process). The project manager's success was also
           | measured by peer review.
           | 
           | I think the interesting thing about Creo, and what made it
           | tick, was that the founders were in it not just to make
           | money. They wanted to create a place they would want to work
           | in, were passionate about this, and tried to hire people that
           | fit into this vision. They have seen the things they didn't
           | like and thought they can do better. It sort of happened in
           | the right time and place where it managed to gain momentum.
           | 
           | EDIT: I managed to re-find this old video of Amos Michelson
           | explaining how this works better than me:
           | https://www.youtube.com/watch?v=mXTWMlRK0LE
        
         | wslh wrote:
         | The problem is finding people that have those traits, it is far
         | from common even when you try to empower people to take
         | decisions. It is also good to take into account the different
         | cultures regarding this.
         | 
         | A way to not be extreme is to do that with x% of people (beyond
         | their hierarchical level in the organization).
        
         | refurb wrote:
         | I had a similar experience thought not quite as outstanding.
         | 
         | The best manager I had was:
         | 
         | - focused on organizational efficiency. She'd tell you "you
         | three, make a decision" instead of groups of 10+, which seemed
         | to be the default
         | 
         | - wouldn't sugar coat things, but was never mean (many leaders
         | miss this). If she disagreed you knew it but it was done in a
         | respectful way.
         | 
         | - the best part of her management was goal setting. I was 3
         | goals, and even 10 years later I still rattle them off. Short,
         | actionable. Her attitude was "if your work doesn't move towards
         | these goals, stop doing it"
         | 
         | Like you, it's hard to work in jobs later when management isn't
         | up to snuff.
         | 
         | It is possible to have efficient, well managed large
         | organizations.
         | 
         | It's just that the vast majority of managers don't have the
         | skills and as you said, without someone at the top setting the
         | rules it never works.
        
         | polishdude20 wrote:
         | How did the consensus bit work? Like, how much consensus would
         | you need from people before making a decision? How much time
         | did everyone spend voting on consensus?
        
           | darby_nine wrote:
           | Presumably you'd have moments of contact and separation where
           | strategy and policy are communicated. I don't see any
           | impression this is a replacement for executives.
        
       | Spooky23 wrote:
       | I think the author missed the point.
       | 
       | Incompetent management is where the leadership sees management as
       | a line of business vs a role. Places that operate that way tend
       | to latch on to micromanage finance and accounting. When
       | organizations operations or development teams are run by the CFO,
       | only bad things can happen because the CFO's incentives are not
       | aligned.
       | 
       | I ran a large line of business for a big government agency during
       | the pandemic and faced a similar issue. Government bureaucracy is
       | not typically associated with visionary leadership. However,
       | faced with this conundrum, I called the CEO equivalent and said
       | "We need this." (In so many words), and later that afternoon we
       | were moving along with critical procurements.
       | 
       | Competent management has tight process controls to prevent waste.
       | But the leadership is the head and the process the tail. If a VP
       | (or whatever) is slave to some bean counter in accounting, that
       | VP cannot achieve her mission. Leadership means we follow the
       | process, but have the ability to act.
       | 
       | In smaller orgs, much less formality and lighter process makes
       | more sense. You don't want to be running romper room, but the
       | processes required to run a global company like Exxon or JPMC is
       | inappropriate for a startup.
        
       | mr_toad wrote:
       | > Mostly incompetent management which is very bad at setting and
       | achieving goals is perfectly capable and all too likely to cargo-
       | cult effective management by setting up an elaborate bureaucracy
       | for assigning work and tracking its status, thus preventing work
       | from happening spontaneously.
       | 
       | This is basically every management fad.
        
         | electrodank wrote:
         | Can we track this with KPIs for our annual OKRs?
        
       | jiggawatts wrote:
       | The problem stated by the article is that consistent incentives
       | inevitably results in employees "gaming" of the system.
       | 
       | I suspect but cannot prove that _inconsistent_ metrics and
       | incentives do actually work.
       | 
       | In other words, measure and reward different things each month!
       | Latency this month, resource efficiency the next month, customer
       | satisfaction the next, and so on...
       | 
       | Anyone attempting to cynically game the incentives will lose out
       | on average, but people that naively do a good job overall will
       | tend to be rewarded. Maybe not _every_ month, but _most_ months.
        
         | __loam wrote:
         | This is brilliant and psychotic.
        
           | pictureofabear wrote:
           | Psychotic indeed. It would feel like working for the mad
           | hatter.
        
             | jiggawatts wrote:
             | "I expect you to do your job."
             | 
             | "Madness! You're _crazy!_ I can't be expected to work under
             | these conditions!"
        
         | sublinear wrote:
         | If you have management failing to communicate business needs
         | they'll make everyone beneath them look just as bad if not
         | worse.
         | 
         | At the end of the day there's nothing naive about doing a good
         | job. If you have any employees focusing too much on metrics,
         | but especially your management, they're incompetent dead
         | weight.
         | 
         | Doing a good job is simply less work for everyone, but it
         | starts from the top down.
        
           | jiggawatts wrote:
           | To clarify: each month measure a real business need. The
           | trick here is that there are many needs, and the selection
           | must be random each month.
           | 
           | Take a service like Google search as an example: if the
           | number of searches per month is the consistent KPI for the
           | tech team, then they're incentivised to sacrifice customer
           | satisfaction by returning junk results so that users are
           | forced to do multiple searches to find what they want.
           | 
           | But if they're only rewarded for the increased search volume
           | the one time, the next month the metric might be customer
           | satisfaction instead and they'll be penalised for cheating in
           | this manner.
           | 
           | The key aspect is not repeating metrics -- but the metrics
           | should be valid.
        
         | esafak wrote:
         | The problem with this is that it incentives short-term
         | thinking, allowing you to juice the numbers temporarily, and at
         | cost to the metrics that are not currently prioritized. But
         | there's something to the idea.
        
           | jiggawatts wrote:
           | You're not told ahead of time what the metrics will be, so
           | you can't cheat and/or plan ahead other than by being
           | _generally_ good at your job across all likely metrics.
        
             | avidiax wrote:
             | You mean to say that the metrics are applied post-hoc. I.e.
             | you reward last month's efficiency this month.
             | 
             | Otherwise, you incentivize poor performance all the time,
             | so that I can show massive improvement on this month's
             | "efficiency push", next months "productivity (lines of
             | code, completed stories) push", the "bug bash", etc.
        
               | jiggawatts wrote:
               | Yes, precisely.
        
         | bigstrat2003 wrote:
         | I've actually worked at a place that did something like this,
         | although I suspect it wasn't for positive reasons. It was a
         | call center, and they had status tiers for wages - e.g. if you
         | were an "A player" you would get $.50/hr more, or if you were a
         | "star player" you would get $1/hr more (or whatever the amounts
         | were). These statuses were tied to various metrics that the
         | business cared about - average call time, quality scores from
         | customer surveys, repeat calls, and so on. So ostensibly, if
         | you got the current metric down to whatever the goal was, you
         | would get a raise for a month or whatever.
         | 
         | The problem was that the business changed these metrics on the
         | phone reps all the time, so it was common for some poor bastard
         | to really strive to get his call times down, only to be told
         | "oh sorry we're focusing on quality scores this month" when
         | reviewing his work with the boss. My impression was that the
         | company was doing this to avoid having to actually pay people
         | more, not to keep people from gaming metrics - but I think the
         | results would be pretty similar regardless of motive.
         | 
         | What happened wasn't that people focused on trying to be great
         | generalists. Instead they got demoralized by the games the
         | company was playing, and they would either quit trying to
         | improve at all or they would exclusively focus on one metric
         | (so that they could get the big raise when that metric was
         | being rewarded next).
         | 
         | Based on that experience, I'm somewhat doubtful that what you
         | propose would work. But it might - unfortunately the workers at
         | that call center were very often real fuckups all around, so
         | the idea might work at a business which has better quality
         | employees.
        
       | sirspacey wrote:
       | This is a radical reframe that seems to split the atom for
       | organizational theory.
       | 
       | A century of "we just need to care about this enough" not solving
       | the problem explained in a blog post. Well done.
        
       | f7ebc20c97 wrote:
       | The only solution is a market for resources. How would you
       | implement a market for resources within a firm, though?
        
       | pictureofabear wrote:
       | The author is describing two cases of poor management. The first
       | are self-interested managers. The second are laissez-faire (in a
       | bad way) leaders who have all but abdicated their position. Both
       | are bad.
       | 
       | There is no "healthy laziness." This is a cynical term that does
       | a disservice to leaders who skillfully practice with a light
       | touch.
        
         | fhd2 wrote:
         | I always thought laziness was a good thing, at least in our
         | field. I'm pretty sure I'm lazy. When push comes to shove, I
         | will do boring work very diligently, but if there's a better
         | way, I'll look for it.
         | 
         | Contrast this with someone just happily diligently working away
         | no matter what, for the sake of keeping on moving. It's very
         | easy to get stuck on a local maximum if you don't stop and
         | think (i.e. do nothing) on a regular basis.
         | 
         | I think the author's point is that the latter can be quite
         | harmful, which is evidently unintuitive for many people.
         | 
         | Granted, calling an effective servant leader "lazy" is possibly
         | not great, and the word does have a negative connotation
         | whether I like it or not.
        
           | Aeolun wrote:
           | > I will do boring work very diligently
           | 
           | That's amazing. I can't bring myself to. If the work is
           | boring or pointless it just wont happen, or at a glacial
           | pace.
        
             | nottorp wrote:
             | Somebody has to do the boring work for the whole to be
             | functional, and pointless work may be only pointless to
             | some (ok, not always).
             | 
             | Let's just say you're not interested in the thing you work
             | on overall. Because you aren't or because you're
             | disincentivized to think of the whole picture by the system
             | you're in.
        
       | neilk wrote:
       | All of this is true but... at what cost?
       | 
       | I have worked for a company where the ethos among the workers was
       | very high, but management was exceptionally incompetent at
       | managing. Zero people skills, and deeply skeptical that people
       | skills were even necessary. (Many companies founded by hackers
       | are like this.) So the CEO and CTO asked people to do things, but
       | did no process management at all and just waited for them to be
       | done.
       | 
       | This worked a lot better than you would think. We had hired
       | people who believed in our mission, and mostly people do want to
       | do what's asked of them. Our codebase was pretty lean, even
       | boring, because there was no incentive to do any promo packet
       | type spectacular development.
       | 
       | Projects sometimes took a long time, but they did get done.
       | 
       | But this stops working when you have projects that require
       | coordination between people with differing incentives. Teams grow
       | tired of waiting for the other team to do their half, so mistrust
       | begins to become endemic. In the vacuum, all your hacker ICs grow
       | fatigued and start doing more "interesting" things just to amuse
       | themselves, because, who's really watching them?
       | 
       | TLDR benign neglect, even under ideal conditions, will eventually
       | be a problem. The company's progress becomes slower and slower,
       | and may even start sliding backwards according to some metrics.
        
         | benreesman wrote:
         | This is a great comment! I only hope to add color, not to
         | dispute any of it.
         | 
         | In my experience software shops that find product/market fit
         | exceptionally early can not only tolerate benign neglect, but
         | are best served by it while that market is still contended.
         | 
         | Capitalism works amazingly well when the referees just Godzilla
         | stomp on cronyism and nepotism and monopoly and other market
         | failures: the sharpest people want to work places that are in
         | the fight and give everyone a stake in the outcome: such people
         | in such settings are largely self-organizing on the basis of
         | mutual respect and esprit des corps. A clear and serious
         | competitor or competitors rapidly weed out ceremony and
         | careerism while strengthening ruthless meritocracy (which is
         | incidentally good for inclusiveness: no shortage of ethnic
         | minorities in pro ball).
         | 
         | The tricky thing is keeping the incentives aligned as markets
         | mature and the rot of capture sets in. All of today's high-
         | profile behemoths lobby extensively and employ former McKinsey
         | people in policy level roles (Google is run by one).
         | 
         | Unfortunately it's not as simple as throwing out the careerist
         | middle managers or domain-soft executives when the scale
         | exceeds "hacker culture", you need executives that use their
         | organization-fu to hold the rent seekers in check, and that is
         | a rare breed.
        
           | neilk wrote:
           | Sure. Thanks for the color, but let me add some shape.
           | 
           | Perhaps you saw some confirmation of "ruthless meritocracy"
           | in my post. You could not be more wrong. Most people in the
           | organization I am describing would have been rejected as
           | undistinguished weirdo losers from flyover towns. Our
           | strength was that we supported each other.
           | 
           | I personally do not think that market discipline or financial
           | incentives have much to do with producing excellence. At
           | best, those systems can notice, after the fact, that
           | something wonderful has occurred, and that it might be worth
           | bringing to a larger group of people.
        
             | benreesman wrote:
             | I still think we might be in violent agreement. The current
             | sad state of our industry is IMHO mostly a result of the
             | rejection of undistinguished weirdo losers from nowhere.
             | I'm an undistinguished weirdo loser from nowhere, and I
             | vividly remember the days when no one ran a background
             | check on your politics or friends or habits at the weekend
             | or aspy ticks or anything but "can this person code".
             | 
             | I used the terms mutual respect and esprit des corps and
             | you use the term supported one another: I think we're
             | talking about the same thing.
             | 
             | The prevailing wisdom, then as (ostensibly) now, was to
             | judge people by their demonstrated achievements, your
             | assessment of their ability, and what other hackers think
             | in that order.
             | 
             | Today that's a weird loyalty test (Carmack and Luckey will
             | tell you all about it).
             | 
             | I agree with what I think you're saying: good hackers are
             | generally highly motivated by money until the point they
             | get to work on cool things they believe in, and pretty
             | bored/unmoved by it beyond that point: excellence is about
             | pride in the craftsmanship and quality of our work.
        
       | nargella wrote:
       | Let's not forget the 10% layoff rule just to hire another 10% in
       | the next 6-12 months. Good for everyone, am I right /s?
        
       | jjmarr wrote:
       | If you look at the world's must successful military initiatives,
       | many of them practiced "maneuver warfare" in which individuals
       | were given broad goals and the ability to use their initiative to
       | attain them.
       | 
       | https://en.wikipedia.org/wiki/Maneuver_warfare
       | 
       | Decisions should be made by those with the best information.
       | Sometimes that person is _not_ the leader, and opportunities
       | should just be seized by someone at a low-level. When this
       | happens, leadership should back these initiatives. My favourite
       | example of this is the Battle of Arsuf during the Third Crusade.
       | 
       | https://en.wikipedia.org/wiki/Battle_of_Arsuf
       | 
       | Richard the Lionheart of England spent weeks slowly marching down
       | the coast with his heavily armoured cavalry/infantry, getting
       | harassed by Saladin's faster cavalry. His army of 10k men could
       | not attack and break formation, since Saladin's cavalry was
       | faster and could pick off Richard's men.
       | 
       | Richard's goal was to wait until Saladin's horses got tired, and
       | when that opportunity arose, charge and catch him while he was
       | slow.
       | 
       | After a few weeks of nothing, suddenly one of his units (the
       | Knights Hospitallier), led by Baldwin le Carron, started to
       | charge on Saladin. Richard the Lionheart had no way of knowing if
       | this was a good idea (to this day we don't know why Baldwin made
       | his decision) but he immediately backed the charge with all 10k
       | of his men and defeated Saladin's army.
       | 
       | This wasn't being lazy or poor management. Richard understood
       | that he did not have the information needed to execute his
       | strategy, so he delegated it to his officers.
       | 
       | When Baldwin le Carron made a decision Richard didn't understand,
       | Richard didn't ask for a Jira ticket or a design doc, so he would
       | have more information to make his decision (as a "good" manager
       | should). He trusted his subordinates and won.
       | 
       | I believe software engineers are getting the wrong idea about a
       | company being in "war mode".
       | 
       | If one reads military strategy, a proven tactic for leaders is
       | outlining strategy and trusting your subordinates to execute it,
       | because feeding information upwards takes too long.
        
         | chii wrote:
         | > When this happens, leadership should back these initiatives.
         | 
         | this requires trust in the "low-level" people. It also implies
         | that the "low-level" people have sufficient power at their call
         | to execute those initiatives, without directly involving the
         | leadership.
         | 
         | This works if leadership is not under threat from the low-level
         | people (e.g., in a democracy, where your survival is not
         | contingent on kinship with the military's cooperation).
         | 
         | > He trusted his subordinates and won.
         | 
         | So this is why i suspect this does not work in most modern
         | organizations : the leadership does not (or cannot) trust their
         | subordinates to make the correct choices. In other words, the
         | leadership doesn't want to cop the cost of a wrong decision in
         | the hands of the "low-level" people, and insist on seeing
         | evidence/plan/etc (which basically means they're not really
         | deligating the decision down, but pushing the decisions up!).
        
           | swagasaurus-rex wrote:
           | This supports my hypothesis that poor management is driven by
           | very human anxieties.
        
           | samus wrote:
           | The Roman Army also left a lot of decision power to their
           | lower levels, at least on a tactical level. They most
           | definitely were not a democracy in the modern sense.
        
         | LarsDu88 wrote:
         | This might be a bit of an isolated example. Numerous battles
         | against the Mongols and Turks in the middle ages start with a
         | haphazard charge, followed by the cavalry getting out of
         | position and completely crushed.
         | 
         | Seems like the success in this specific instance relied on
         | trust between Richard and Baldwin that the latter wasn't
         | leading the Crusaders into a classic Turkic trap.
        
           | jjmarr wrote:
           | A few kilometers into the charge, Richard called for a halt
           | to the advance, relying on his own knowledge of Turkic/Mongol
           | strategy. Some of his leaders kept going anyways and died,
           | though most of his army quickly obeyed. That maintained the
           | victory since he didn't get pulled into the trap you
           | mentioned.
           | 
           | Trust cuts both ways. Senior leadership needs to be
           | trustworthy, so when the time comes to make a decision based
           | on information you can't easily reveal to employees, they
           | follow you.
           | 
           | You need to tell people to take the initiative to charge, and
           | cut them off before they die.
           | 
           | That's a difficult balance to strike. But it's how you pull
           | off a victory against an army twice your size thousands of
           | miles from home.
        
         | akira2501 wrote:
         | That's because in military operations your failures tend to be
         | existential.
         | 
         | Companies with monopoly positions have no such outlook on their
         | operations.
        
         | tomohawk wrote:
         | The US Marines tend to greatly value delegation. In one
         | instance, a Colonel boarded a helicopter to direct a rescue
         | operation. It ended his career as it was clear he either did
         | not have the ability to delegate or had not sufficiently
         | prepared his troops.
         | 
         | However, the US military actually trains leaders - extensively.
         | And it also trains people to work in coordinated units. The
         | more well trained a unit is, the more broadly a commander can
         | give orders and expected a good result. There's a lot of
         | context embedded in the training and the doctrine that informs
         | the training.
        
       | klooney wrote:
       | > The problem is that it's hard for a well-run place to get
       | people to fix non-showstopper bugs.
       | 
       | This is why mature products work so much better as open source-
       | at some point you just want someone to care about the sharp edges
       | instead of upselling new SKUs.
        
         | ghiculescu wrote:
         | What is an example of this?
        
           | askafriend wrote:
           | Obviously there is no legitimate example. It's all just
           | fantasy.
        
             | mhh__ wrote:
             | Is Linux not a valid example? Look at all the shite
             | Microsoft bolt onto windows.
        
           | MathMonkeyMan wrote:
           | maybe GNU Screen
        
       | TheJoeMan wrote:
       | > If you're used to such sprawl, you'd be surprised how effective
       | sleepy HR practices are at preventing it. Suppose you always get
       | a standard, shitty raise at the end of the year by default,
       | unless you bargain loudly, which works rarely and only if you've
       | really made an impression throughout the year. There is no
       | defined budget for raises; every significant raise is hard to
       | get, and you never get it proactively without bargaining, but
       | there's no formal system to avoid spending too much on raises
       | except for the reluctant, reactive approach to giving them.
       | There's also no system for firing low performers, and it's only
       | very rarely that you see anyone fired - like that crazy fuck who
       | went on and on about how your source control sucked and should be
       | completely different, and then used a single dot character, ".",
       | as the commit message when he finally committed something.
       | 
       | I am interested in the rest of this thought... "suppose you only
       | get a standard raise unless you speak loudly". Then do what?
        
         | ghiculescu wrote:
         | I took his point to be: some people will always get incredible
         | work done no matter what. Enable them to still get paid well.
         | For everyone else just keep them around for when there is stuff
         | that has to be done, and when there isn't (most of the time?),
         | let them spin around on their chairs/compensate accordingly.
        
       | dboreham wrote:
       | Reminds me I registered the domain incompetent.mangement a few
       | years back during a tedious meeting when I discovered the joys of
       | word games with gTLDs.
        
         | xdavidliu wrote:
         | sic?
        
       | scrubs wrote:
       | I liked this article. It's original in thought, and gave some
       | attention to why things work stupidly, and are even upheld.
       | 
       | Let's now turn to what one does about. I want to pick one issue
       | to discuss here. Consider, this excerpt:
       | 
       | "Great idea - now I can commit some CPU or memory hog, then you
       | can fix it, and we'll split the reward."
       | 
       | Here and in other places the author implicitly refers to an
       | underlying tolerance, existence, or undertone of lying, BS, and
       | effete manipulation. In my time in corporate America I've not
       | seen code like that, but I have heard, seen, and been at the
       | brunt of similar actions:
       | 
       | - I manage up and down (a boss I once had said this) ... meaning
       | ... I'm selling up and down the chain of command to put the spin
       | on it I want. And if you're not doing this you're a naive moron.
       | 
       | - The same guy orchestrated work in our team that was sub-optimal
       | (details unimportant here) precisely so his team would be
       | involved, and have work in a larger project.
       | 
       | - The same guy, prior to me joining his team and unknown to me,
       | went around the corp getting internal customers to use a
       | particular service. What internal customers did not know, what
       | that his intent was to make it a one way join: once the
       | customer's code was integrated there was no practical way out.
       | Besides job security, the ultimate aim was in his words "take
       | over the floor by taking over the data."
       | 
       | - Internal service groups whose visions for what to do are what
       | they want to do, and not what their ``customers" need. I've beat
       | that into the ground in other posts. I will just say here:
       | internal service groups MUST be customer driven just like they
       | are on the outside. A roofer can tell me his vision, his price,
       | what he wants to do etc.. I can agree or not. But ultimately I
       | tell the roofer if he's value add or not, if his prices are too
       | high or not, if his work is any good or not. And I will pay or
       | not based on what I see. He doesn't tell me any of this. However,
       | in corp america internal customer's don't have that agency
       | because asshole internal supplies know management implicitly or
       | explicitly will make customers use them.
       | 
       | - My better half works in cloud migrations. JFK the BS, games,
       | lying that goes on to protect internal data centers is beyond
       | even what I've been through. But I can say this: a leading reason
       | companies move to the cloud? They are sick and tired of crappy
       | internal servicing from those who run the private data centers.
       | With-holding costs of labor, data floor space, or lying about it
       | was common in her telling.
       | 
       | Where am I going? A good way to improve the climate at a company,
       | which MUST BE DONE STARTING C-suite, then top management, the
       | middle management, then TLs: BS, lying is fireable. As soon as
       | people learn a company does not pay people to be cynical, that's
       | already way better. I say starting at C-suit, because I learned
       | the hard way substantive change will not happen unless it comes
       | from on-high. See Ishikawa's tunnel analogy in "What Is Total
       | Quality Control?: The Japanese Way." which is a focus on
       | management's roles and responsibilities in quality.
       | 
       | Some examples you right read about where that's worked well:
       | Berkshire Hathaway; Renaissance Tech. An old boss (a Chem-E) in
       | Silicon Valley was a guy like this. These people don't like
       | problems or mistakes ... making one is not a crime but not
       | consequence free either ... but lying/BS always makes them worse,
       | harder to find, and harder to correct.
       | 
       | I got the guy I mentioned earlier kicked our of our division. So
       | I mean what I say.
       | 
       | Openness/truthfulness is a an critical intangible to good
       | companies.
        
         | brazzy wrote:
         | > My better half works in cloud migrations. JFK the BS, games,
         | lying that goes on to protect internal data centers is beyond
         | even what I've been through. But I can say this: a leading
         | reason companies move to the cloud? They are sick and tired of
         | crappy internal servicing from those who run the private data
         | centers. With-holding costs of labor, data floor space, or
         | lying about it was common in her telling.
         | 
         | This sounds backwards. If someone doing "cloud migration" is
         | around to observe, that means the internal data center people
         | _know_ their heads are on the chopping board, and desperately
         | trying to preserve their jobs. You cannot expect honesty from
         | someone fighting for survival, and it 's disingenuous to assume
         | they deserve it because they act that way.
        
       | vegetablepotpie wrote:
       | This article shows, in many examples, Goodheart's law and
       | Pournelle's iron law of bureaucracy. You can't make a
       | hierarchical organization achieve outcomes people outside of the
       | organization see as valuable through incentives because they
       | cause side effects that will be counter-productive as soon as
       | they move your organization out of its current state.
       | 
       | The article says it's impossible to solve this problem. But I
       | think the real problem is hierarchical organizations. They act as
       | extractive institutions, removing value from people until those
       | people realize what has become of them and then become parasites
       | on the organizations.
       | 
       | The way out was provided by the framers of agile. I'm not talking
       | about modern, consultant driven agile that uses the language of
       | scrum to give organizations renewed extractive power. I'm talking
       | the agile that provides value through close customer
       | collaboration. That provides people inside the organization and
       | outside the ability to influence each other. Closing the feedback
       | loop eliminates disconnects and maps problems to solutions.
        
         | yosefk wrote:
         | Most (all?) organizations are hierarchical above a certain
         | size. I don't think agile ever addressed the resulting
         | problems; some of it was designed for smaller teams. For an
         | "agile" take on organizations of a medium double digit size and
         | up, see SAFe - there's nothing quite like it
        
       | sheepscreek wrote:
       | To the author - this is the best/most realistic (and funny)
       | depiction of how things actually work in medium to large
       | organizations. Also nailed the part around how small companies
       | with "lax" technical hiring standards but strong cultural
       | components triumph over their bigger counterparts. Because people
       | working there actually care and they can see the impact of their
       | work. It is real to them vs. some made up KPI metric to sound
       | progressive.
       | 
       | As an aside, I've been lucky enough to have sufficient influence
       | at all my employers for removing unnecessary layers of
       | interviews. Anecdotally, most average engineers would be at least
       | half as productive at most jobs out there. A couple of interviews
       | at most would increase the odds significantly in the employers
       | favour. Google scale could be an exception, but for 90% startup
       | and mid sized corporations, the 3-4 technical interview rounds
       | and algorithm problems are an absolute overkill.
        
         | yosefk wrote:
         | Thanks for your kind words! In terms of what I think & meant to
         | say - I'm pretty sure that incompetent management (or
         | incompetent at least in some key areas) can scale to fairly
         | large org sizes, and that eventually competent management will
         | evolve for the org to survive. I used "competent" and
         | "incompetent" unironically, not as proxies for big & kafkaesque
         | vs small & nicer places, but as in can/can't set and achieve
         | goals, which is something you will need to be able to do to
         | survive eventually.
        
         | fhd2 wrote:
         | From my experience, those extra rounds and puzzles don't
         | improve the quality of hires. But they:
         | 
         | 1. Create objective consensus. In a small company, you can hire
         | based on intuition - talking to a candidate once (and ideally
         | seeing any kind of work sample) are mostly sufficient for me
         | right now. In larger organisations, I had to _defend_ hiring
         | decisions, so you need to create evidence of objectivity.
         | 
         | 2. Filter a prohibitively long list of candidates. Gotta have
         | _some_ way to do it, even though I'd argue selecting for those
         | most likely to hang in there for a long hiring process isn't
         | the best way.
         | 
         | 3. Create a (usually faux) narrative that you rigourously
         | assess candidates and therefore only the best work with you.
         | 
         | Now, I won't say there aren't some benefits to more exposure to
         | a candidate and their work, whatever it is. But in my
         | experience, extensive hiring processes are really more about
         | the stuff I listed above, even if nobody involved would think
         | of it that way.
        
           | nine_zeros wrote:
           | It is also a basis for committee-driven hiring which
           | inevitably leads to monoculture hiring and constant
           | nitpicking. Centralized Soviet-style.
        
         | steveBK123 wrote:
         | Sadly a lot of the KPI driven madness has trickled down into
         | smaller and smaller orgs. I've seen it even in ~200 person
         | engineering orgs these days.
         | 
         | Always because management is some guy that's never been in the
         | hot seat himself and doesn't know how to talk to
         | users/customers. So he needs a pretty dashboard with green
         | lights and KPIs he can shout about.
        
           | yahayahya wrote:
           | I worked at a 6 person startup with 2 hour weekly all hands
           | where we went over dashboards, metrics, and KPIs. We had over
           | a million in funding and less than 30 users. It was
           | hilarious. I put in my 2 week notice 6 weeks in.
        
       | aranchelk wrote:
       | > "how much CPU time do I have for running this code?"
       | 
       | When someone asks me something like that, more likely phased
       | like, "how quickly does this need to run", "how fast does this
       | page need to render", etc., that's the engineer I want to work
       | with. Pair that with "how much of a benefit would there be if I
       | get it to run faster" and you've got the makings of a superstar.
       | 
       | My experience:
       | 
       | Good engineering is about achieving organizational objectives,
       | while understanding and managing tradeoffs.
       | 
       | People who aren't asking questions of the above style, either
       | fail to see the real-world purpose of their work, or they fail to
       | accept that when doing even semi-competent work, the decisions
       | they make tend to have both positive and negative consequences.
       | 
       | Without understanding those two things, it's tough to be
       | effective over the long term.
        
         | yosefk wrote:
         | You say that good engineering is about achieving organizational
         | objectives. I say that competent management is about setting
         | organizational objectives. Therefore, you're saying that good
         | engineering is about satisfying competent management. From this
         | POV you see increasing efficiency beyond the level required by
         | management as the opposite of being effective. This is correct
         | from the angle of the game played in the org. This is not
         | necessarily correct from shareholders/other stakeholders' POV -
         | sometimes it is, sometimes it isn't.
         | 
         | But I agree that going against the grain of managerial
         | objectives will make you ineffective in the long term -
         | management will see to it. You need to do less of this or find
         | less competent management if you want to do more of this.
        
       | Manheim wrote:
       | Ricardo Semler experimented with this at Semco Partners and wrote
       | a book about it which I read in the 90ies. It was called "The
       | other way" in it's Norwegian edition. In English I think it is
       | this one "Maverick! The Success Story Behind the World's Most
       | Unusual Workplace". It was a about self run teams in and
       | corporation democracy.
       | 
       | All though the article has an 100 percent correct description on
       | how things can be in an organization, I do believe that what he
       | describes is a badly run corporation, not a well run. I also
       | believe that the way Semler reorganized his organization is an
       | anomaly. It seldom works this way.
       | 
       | People, us all included, does not work well in cooperation when
       | we are in large groups, without some sort of guidance. In
       | corporations the most effecient guidance are incentives. That
       | said, setting the right incentives and be able to adjust as you
       | go is a very hard task. There is no "one solution" to how this is
       | done, but if you succeed you usually reach your targets.
        
         | yosefk wrote:
         | I don't trust someone claiming to have run a heterodox org as
         | much as someone claiming to have worked in one, like Creo
         | sister comment threads.
         | 
         | Any incentive turns perverse, and incentives are not how our
         | zillion cells are prompted to make our bodies work. Incentives
         | work to an extent, but have inevitable adverse effects.
        
       | bjornsing wrote:
       | The author seems confused about what constitutes competence vs
       | incompetence. In my opinion the budgeting problem can most easily
       | be understood through the lens of bounded rationality: senior
       | management often has no idea what kind of budget is required to
       | meet certain objectives, so can't really separate the case where
       | a frugal manager truly needs more budget and the one where a
       | self-interested manager just wants a bigger budget to show off.
       | In my book this is due to senior management's incompetence, not
       | competence.
        
         | yosefk wrote:
         | An ability to operate reasonably effectively under the
         | constraints of bounded rationality is an ingredient of
         | competence.
         | 
         | You seem to define managerial competence as making the right
         | decisions, and thus file bad decisions under incompetence. I
         | believe this definition to be intuitive but useless for
         | practical purposes. Instead, I define managerial competence as
         | an ability to set and achieve goals, and claim that a few
         | undesirable conditions commonly observed in the workplace are a
         | natural consequence of managerial competence according to this
         | fairly uncontroversial definition.
        
           | Aeolun wrote:
           | While I sort of agree with the premise, isn't that a fairly
           | low bar?
           | 
           | From the organisations perspective it doesn't matter if the
           | goal is achieved with 5 or 300 people, as long as it is
           | achieved, but it feels wasteful to me.
           | 
           | I'd also kind of require the goals that are achieved to be
           | the 'right' goals to qualify it as competence.
           | 
           | It's hard to call a general that leads his army orderly into
           | a trap competent.
        
           | bjornsing wrote:
           | > An ability to operate reasonably effectively under the
           | constraints of bounded rationality is an ingredient of
           | competence.
           | 
           | Sure, and that's a reasonable argument for the claim that the
           | less senior manager with the budget is competent if she
           | refuses to reduce it, because she understands that it will
           | not be increased again after the crisis is over.
           | 
           | But it's not a good reason to call the senior manager who
           | doesn't understand the situation "competent". The root cause
           | of problem is that her rationality is too bounded, which I
           | would prefer to call "incompetence".
        
       | wolfbyte wrote:
       | ``` let's stick to the definition of managerial competence as the
       | ability to set and achieve objectives ``` Loved this statement
       | from the article
        
       | lexicality wrote:
       | > that crazy fuck who went on and on about how your source
       | control sucked and should be completely different, and then used
       | a single dot character, ".", as the commit message when he
       | finally committed something.
       | 
       | I've actually worked with this guy and the description is so
       | perfect I wonder if it's literally the same guy.
       | 
       | Only in our case, the company was too incompetent to fire him and
       | he ended up leaving claiming we were "bullying" him by reviewing
       | his code and pointing out his mistakes!
        
       | mvc wrote:
       | > the hedgehog is too proud a bird to fly without a kick
       | 
       | Say what you will about Russia but I do love their proverbs.
        
         | lexicality wrote:
         | There's a lot of fantastic Russianisms in this post, for
         | example
         | 
         | > "What is to be done?" is a pamphlet by Lenin, who proposed
         | some things to be done, and went on to do them and then some,
         | with results most charitably described as mixed.
         | 
         | made me snort my drink out of my nose
        
         | mvc wrote:
         | Apparently not a "real proverb" for those as gullible as me who
         | assumed it was :-)
        
       | GlenTheMachine wrote:
       | I work for a government research lab. Our business model is that
       | we don't receive government-budgeted money, we actually sell our
       | services to other parts of the government. So in effect we have a
       | bunch of researchers and engineers who theoretically report to
       | "management", but actually report to a local program manager, who
       | reports to an external sponsor.
       | 
       | We had an official manager, a "branch head", who was worse than
       | incompetent. He couldn't find his butt with both hands, but he
       | also thought he was God's gift to management, and would
       | forcefully and emphatically make bad decision after bad decision.
       | 
       | Eventually, he had screwed up the group's major program so
       | thoroughly it looked like a sure fire failure, and he found
       | another job, and didn't bother to tell anyone; he just stopped
       | showing up for work one day.
       | 
       | The level of management above him had bigger problems to deal
       | with than replacing him, so they made sure we had a competent
       | secretary and left us alone for two and a half years. It turned
       | out to be arguably the most productive period of my professional
       | life. My buddy and I took over business development. THe team
       | turned the big project around and made it a rousing success, and
       | grew the funding from it by two orders of magnitude.
       | 
       | The point being: there's bad management, that acts randomly or
       | not at all; and then there's really bad management, which takes
       | up your days with constantly changing orders, fixing
       | relationships with customers or sponsors that they've screwed up,
       | and levying time-taxes in the form of training, reports, and
       | morale boosting exercises.
       | 
       | If given a choice between bad management and really bad
       | management, pick bad management.
       | 
       | Fifteen years later, my buddy runs the place and I'm the senior
       | scientist.
        
         | iknowSFR wrote:
         | NREL?
        
           | pythonguython wrote:
           | Nope, I checked his post history. As someone who works in a
           | similar lab, what he's describing certainly isn't uncommon.
        
         | lelandbatey wrote:
         | I've really found this to be true; I've had just a small
         | handful of great managers and most of them worked more like
         | "team secretaries", with just two who would also deploy
         | political capital in an expert way to keep things running well.
         | Those were the best. Most of the good managers topped out at
         | acting as personal assistants to the team, helping (not
         | dictating) to keep things organized.
         | 
         | The just ok managers barely did anything, which was still not
         | bad. They didn't make things worse but didn't make them much
         | better either.
         | 
         | The worst would dictate, randomize and foist cleanup of their
         | own making onto you. Those folks I often wished would just stop
         | showing up to work even if they kept collecting a paycheck;
         | things would have run smoother if they did.
        
         | samus wrote:
         | TA described this as "Incompetent management cargo-culting
         | effective management"
        
       | steveBK123 wrote:
       | My team once walked ourselves right into this trap with
       | management. We had hit the refresh cycle with our existing
       | servers. We also noted that some new vastly improved CPU
       | generation was going to come out mid-cycle and that we could
       | survive til them with just a partial refresh.
       | 
       | So we "negotiated" with management - let's do a half order now,
       | and another half order in 6 months. The head of the department
       | gleefully agreed and said that makes sense. This was spelled out
       | in a deck that we went thru together, we had his buy in.
       | 
       | 6 months later .. same guy - "why do you need servers again / you
       | guys need to be more cost conscious / why can't you write more
       | efficient code / you must be using the wrong architecture / etc".
       | 
       | And so we limped along on a partially refreshed estate.
        
         | akira2501 wrote:
         | They should have put the second order on the books immediately.
         | All companies have a ledger. Failure to understand the use and
         | management of this ledger causes these types of problems.
         | 
         | In the articled example, you could put something like a "buy
         | back" on the books, so while your budget is temporarily reduced
         | to benefit the company, the end of year shows the same amount
         | you _would have_ spent, so next year you don't have to fight
         | uphill for "more money."
        
       | spacecadet wrote:
       | "Panglossian optimism", indeed Candide.
        
       | DonsDiscountGas wrote:
       | This post is mostly half-truths, I'll just stick to the core
       | errors:
       | 
       | > Of course you could say that this is a badly run company, and
       | to avoid arguing what that means, let's stick to the definition
       | of managerial competence as the ability to set and achieve
       | objectives. Whatever objective you are expected to achieve, a
       | bigger budget makes it easier.
       | 
       | Yes I would say this is a badly run company, and for some reason
       | they just glossed over that. Probably he glosses over the "set"
       | part of objectives and focuses only on achievement, when setting
       | the right objectives is part of good management. Also bigger
       | budgets don't make every objective easier to hit; it's certainly
       | easier to make $1M of revenue with a $2M budget than a $500k
       | budget but it's not necessarily easier to make a 20% profit.
       | 
       | Let's distinguish between two kinds of management and managers.
       | There's high-level strategic stuff (ie should we deploy this
       | proposed product line) and more operational stuff (which vendor
       | should I pick). Likewise there are different kinds of objectives.
       | A bigger budget will make some objectives easier, like a revenue
       | target or a shipping date. But it won't make it easier to hit a
       | certain profit margin or return on capital target [0]. For-profit
       | companies should always be focusing on returns on investment. For
       | government/non-profits the overall principle is to use money
       | effectively; measuring that is harder but it's definitely not
       | making Tom Everyworker feel good about his clean code. It's
       | delivering value to somebody who doesn't work at the org.
       | 
       | If the senior management has set terrible objectives, and middle
       | management achieves them effectively, then yes, bad things will
       | happen. I would call this bad management; even if most of the
       | managers are good the management overall is still bad. Bad middle
       | managers might be better for the org overall in this case, if we
       | assume workers are all angels who dream of nothing more than
       | doing the "right thing", all agree on what that is somehow, and
       | agree with the authors definition.
       | 
       | On the other hand, if senior management knows what they're doing,
       | they'll set good objectives. It will involve profit not just
       | revenue. It will involve delivering products/features customers
       | want, not delivering things they don't care about, and doing so
       | at a low price. If a division doesn't bring in profit directly
       | (eg IT) they'll figure something else out which rewards good
       | behavior and doesn't punish it. And then competent middle
       | management will achive those goals effectively, and achieve the
       | goals of the org. Note that making Tom happy and letting him ship
       | as much code as he wants is at best only a small piece of those
       | goals, so Tom might actually be unhappier in this scenario.
       | 
       | [0] Assuming there are no accounting shenanigans involved, which
       | again, is part of good management.
        
       | tomohawk wrote:
       | This is all true if there is a single hierarchy that everything
       | is directed through.
       | 
       | What works better is introducing forms of competition, so that
       | you might have different shops with overlapping, even duplicative
       | responsibilities within the organization. This always appears
       | wasteful to managers, but is the only way I've seen for change to
       | occur in larger orgs.
       | 
       | As Adams noted, people really don't like competition as it forces
       | them to work and innovate. They will go to great lengths to
       | create a situation where they don't have to and can just coast.
        
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