The headwind of coordination: how large organizations are becoming like moldy slime

Successful organizations that used to solve problems become slower over time. The reason for this is due to an invisible force known as the “coordinating headwind.” It is a systemic problem that makes it harder for organizations to operate, increases uncertainty and the need for coordination.

Slimeballs and armies: bottom-up and top-down organizations

There are two conventional structures of organizations:

Military organizations (from top to bottom)

• Hierarchy: Strict and formal, where subordinates must strictly follow the orders of their superiors.
  
• Advantages: Predictability, manageability, efficiency.
  
• Disadvantages: Vulnerability, lack of autonomy, structured, limited innovation.

Slime mold type organizations (from bottom to top)

• Structure: A number of independent agents who make individual decisions that lead to complex behavior throughout the system.
  
• Advantages: Flexibility, autonomy, resilience, capacity for research and innovation.
  
• Disadvantages: Unpredictability, uncontrollability, chaos, unstructured.

Most organizations are somewhere in the middle of this spectrum. Successful technology companies often lean toward a “slime mold” approach that values autonomy and the ability to adapt quickly to change. Understanding and taking advantage of each approach can help organizations succeed in today's dynamic environment.

The invisible wind of coordination

The growth of organizations leads to increased complexity of coordination and decreased efficiency.

1. Coordination problems:

   • Even if all team members are working well, efficiency drops due to systemic problems.
   • The more people in a team, the harder it is to succeed because of the increasing complexity of coordination.

2. Uncertainty:

   • Uncertainty in projects increases the time and effort required to complete them successfully.
   • Projects become more complex due to unpredictable factors.

3. Conflict and trust:

   • Conflicts between team members can lead to project failure.
   • It is important to have mediators to resolve conflicts quickly and maintain trust.

4. The impact of team size:

   • A larger team results in a significantly lower probability of project success.
   • Optimizing team size can help reduce coordination difficulties.

Let's look at a number of issues

1. Coordination problems in large teams:

   • As the team grows, the likelihood of successful project completion decreases. Even if all team members are highly skilled, coordination becomes more difficult due to increased interaction.

2. Uncertainty in projects:

   • Uncertainty about the scope of work and deliverables makes it difficult to plan and execute projects. This can lead to resource and time overruns.

3. Conflicts and mistrust:

   • Conflicts between team members can arise due to different points of view or misunderstandings. Without timely resolution, these conflicts can escalate into bigger problems.

4. Problems with strategic alignment:

   • Lack of a clear strategy or a lack of understanding between different teams can lead to disorientation and inefficiency in performance.

5. Fundamental attribution error:

   • People tend to attribute failures to the inner qualities of others and their own failures to external circumstances. This undermines trust and contributes to conflict.

6. Escalation of problems:

   • Small problems that are not addressed early on can escalate into larger crises. Escalation of such problems takes more time and resources and often leads to irreversible consequences.

As an organization grows, so do coordination problems. Even if all team members are doing their jobs well, systemic problems can make it difficult for them to do their jobs.

What not to do

1. Ignoring the problem:

   • Ignoring coordination difficulties is like ignoring gravity when constructing buildings. It will only exacerbate the dysfunction, which will then be more difficult to resolve.

2. Refusal to attempt to resolve disputes:

   • Surrender due to the complexity of change. Individuals' actions are important and passivity will only make things worse.

3. Transition to a strict hierarchy:

   • Going to a rigid hierarchy in a complex environment will make the system fragile. Poorly executed hierarchical management can be much worse than an agile approach.

4. Heroic Leadership Interventions:

   • Senior management should not “heroically” get involved in the details without understanding the system as a whole. This creates chaos and uncertainty.

5. Betting on heroism:

   • Constant reliance on heroic employee efforts is short-lived and discourages investment in sustainable solutions. It also increases uncertainty.

6. The pursuit of excellence:

   • Striving to achieve perfection in every action makes processes extremely costly and virtually impossible to execute. It stops work at the slightest uncertainty.

7. The search for “thieves”:

   • Instead of blaming individuals, realize that problems are more often related to the system than to people.

Practical tips for overcoming coordination problems in large organizations.

1. Acceptance of reality:

   • Recognize that many organizations are like a slime mold. This allows you to better understand their strengths and challenges.

2. Flexibility and adaptability:

   • Discard unnecessary detail and coordination. Sufficient quality and timely execution are more valuable than perfection.

3. Disengagement Processes:

   • Try to divide up the tasks so that they don't need to be fully harmonized today, but gradually converge towards a common outcome.

4. Given the coordination windfall:

   • Evaluate ideas based on coordination costs. Some ideas that seem obvious may not be effective because of high coordination costs.

5. Small teams and quick wins:

   • Start with small teams and quick, achievable goals. This will help you get quick wins and reduce your risks.

6. Avoid taking big risks:

   • Avoid big “moon shots” that require a lot of resources and time. Instead, take small steps toward a big goal.

7. Strategic Vision:

   • Have a clear, realistic strategic vision for 3-5 years. This will allow teams to work cohesively and gradually achieve big goals.

8. Supporting Innovation:

   • Support people who are doing strategic work, even if they look unusual. Their efforts can be the key to an organization's success.

Conclusion

Organizations similar to slime mold face unique challenges but can also achieve great success. Embracing the realities of coordinating headwinds and adaptive management allows them to overcome challenges and succeed in the face of uncertainty.