In this book, the authors address the differences between starfish and spider organizations. A spider has a tiny head and eight legs coming out of a central body. If you chop off the spider's head, it dies. A centralized organization has a clear leader who's in charge. Get rid of the leader and you paralyze the organization. A decentralized organization is a starfish. The starfish doesn't have a head. The major organs are replicated throughout each and every arm.
In 2005, MGM sued Grokster because it allowed the sharing of music and movies over the Internet. Five years earlier, Napster was sued for allowing file sharing. The recording industry went after the people who were swapping the music as well. But this did not prevent the problem of music piracy. The harder they fought, the stronger the opposition grew. The best explanation for these events comes from a book by Tom Nevins about the Apaches.
Spanish explorer Cortes fought the Aztec, who had a central government, and took their gold; killed their leader; and starved the city's inhabitants. Two years later the entire Aztec empire had collapsed. The same fate befell the Incas. But they lost against the Apaches. It was all about the way the Apaches were organized as a society. The Apaches distributed political power and had very little centralization. They persevered because they were decentralized. A centralized organization has a clear leader who's in charge. In a decentralized system there's no clear leader and no hierarchy. The power is distributed among all the people and across geographic regions. Instead of a chief, the Apaches had a Nant'an--a spiritual and cultural leader who led by example. As soon as the Spaniards killed a Nant'an, a new one would emerge. No one person was essential to the overall well-being of Apache society. When attacked, a decentralized organization tends to become even more open and decentralized. Every time the labels sue a Napster, a new player comes onto the scene that's even more decentralized and more difficult to battle. The harder you fight a decentralized opponent, the stronger it gets.
Some examples of starfish organizations:
(a) The Internet is a decentralized starfish network where no one is in charge. Spider organizations have structures, hierarchies, and a president.
(b) At Alcoholics Anonymous, no one is in charge. If you were to ask how many members or chapters it has, there'd be no way to tell because it is an open system. An open system doesn't have centralized intelligence; the intelligence is spread throughout the system. Spider organizations weave their webs over long periods of time, but the starfish can take over an entire industry in the blink of an eye.
(c) Craigslist attracts three billion page views a month. The way craigslist runs is that people who use it post, and if they find something inappropriate they flag it for approval. So the people who use the site run it. It allows users to interact with each other directly without anybody telling anybody else what they can and cannot do. In an open system, what matters most isn't the CEO, but whether the leadership is trusting enough of members to leave them alone.
(d) The first popular browser for surfing the Web came from the University of Illinois. But the University did not respond when engineers sent patches to be integrated, so they decided to post the patches on their own and called the project Apache. The software was completely open-source, and Apache quickly became the industry standard, with 67 percent of websites running on it.
(e) Wikipedia allows website users to easily edit, police, and contribute the content of the site themselves. Put people into an open system and they'll automatically want to contribute! When you give people freedom you get incredible creativity and a variety of expressions.
Differences between Spider organizations and starfish organizations:
(a) Most centralized organizations are divided into departments. If a spider loses a leg, its mobility is significantly affected. Units of a decentralized organization are completely autonomous. Cut off a unit and, like a starfish, the organization does just fine.
(b) In spider companies, power is concentrated at the top. In starfish organizations, power is spread throughout.
(c) Decentralized organizations are fluid. Centralized organizations depend more on rigid structure. It is possible to count the members of any spider organization, but members of starfish organizations are impossible to count because anyone can become a member.
(d) Information in centralized organizations is processed through headquarters. In open systems, communication occurs directly between members.
(e) In decentralized organizations, the founder plays the role of a catalyst. He would lead by example, but he never forces his views on others. A catalyst gets the decentralized organization going and then cedes control to the members.
Strategies to combat a starfish invasion:
(a) Ideology, the shared philosophy among members, is the glue that holds decentralized organizations together. If the ideology can be successfully changed, the results are detrimental.
(b) The Apaches remained a significant threat until the Americans prevailed by giving the Nant'ans cattle. Once people gain a right to property they quickly seek out a centralized system to protect their interests. The moment you introduce property rights, the starfish organization turns into a spider.
(c) If you can't beat them, join them. The best opponent for a starfish organization is another starfish.
This is by far the best business management book I have read this year!
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Fantastic illustration of the power of individuals who have a cause
Reviewed in the United States on October 29, 2018
This is a brilliant book that explains the circumstances in which victory goes to “leaderless organisations” – that is, organisations based on individuals pursuing voluntary preferences, rather than those that use coercion and hierarchical authority to enforce desired action. The authors explain that top-down organisations (symbolised by the spider, a centrally-controlled creature) flourish under economies of scale, when innovation is less important than efficiency and productivity. In contrast, leaderless organisations (symbolised by the starfish, a decentralised creature) flourish when innovation (in hi-tech) or surprise (in military strategy) is more important than focused power.To explain further, a spider has a centralised nervous system, so that, if it loses a leg, the handicap will remain, whereas the starfish has a decentralised nervous system, so that walking requires a peer-to-peer communication between the legs, and if one limb is cut off, the body will grow another, and the leg will grow a complete body.The starfish thus symbolises peer-to-peer human networks through which flows an inspirational ideal in accordance with which individuals tend to act voluntarily. The book described the Apache Native American tribe, which had no central organisation, but defeated the Spanish colonists because the Apaches had no central figures or infrastructure to capture, and their will to fight was shared culturally without coercion. Thus, individuals sprang up in response to Spanish outrages, and inspired others to fight locally, thus always maintaining the element of surprise.The principle of voluntary organisation within a human network is now becoming more familiar in fields such as politics, and in modern technology. The large, rigid, hierarchies that dominated early capitalism are now fading away, and being replaced by groups of individuals in peer-to-peer networking.The book describes many, many examples of “starfish” organisations that defeated government regulations, or large industrial organisations, but rather than quoting examples, I will list some of the “rules of the game” that typify leaderless organisations.Rule 1. Dis-economies of scale (Skype v. ATT).Rule 2. The network effect. It used to cost millions to create a significant network effect, for many starfish organisations, the cost has gone down to zero. eBay is an example.Rule 3. The power of chaos. Starfish organisations are wonderful incubators for creative, destructive, innovations, or crazy ideas. Where creativity is valuable, learning to accept chaos is a must.Rule 4, Knowledge at the edge. In starfish organisations, knowledge is spread throughout the staff. People on the front line know what’s going on. Open source software and Wikipedia are examples.Rule 5. Everyone wants to contribute. People contribute to Wikipedia, and to Intuit’s TaxAlmanac.org. Users contribute reviews to Amazon, and engineers stay up at night writing code free for Apache server software.Rule 6. Beware the hydra response from Greek mythology, in which beheading the hydra caused it to immediately grow two new heads. The starfish has similar power, because there is no head to cut off, and each cut limb regrows. The Spanish learned the hard way, fighting the Apaches. When the record companies destroyed Napster, it was replaced by Kazaa and eMule that were more decentralised and difficult to defeat.Rule 7. Catalysts rule. Starfish have no CEO. Instead, people known as ‘catalysts’ initiate and persuade only. When the Spanish fought the Apaches, they looked for a leader such as Montezuma to kill, but found only independent individuals called ‘Nant’ans’, who inspired local attacks then disappeared. Mary Poppins similarly disappeared after serving each family in the Hollywood movie.Rule 8. The values are the organisation. Ideology is the fuel that drives the decentralised organisation. The Animals Liberation Front, (ALF), is so decentralised that it is hard to fight legally. Granville Sharp helped abolish slavery through inspiration alone, although we forget his name, because he was not a public leader. The peer-to-peer organisation called ‘Alcoholics Anonymous’ has achieved worldwide success, without any central organisation at all.Rule 9. Measure, monitor and manage. When measuring a starfish organisation, it’s better to be vaguely right than precisely wrong. When we monitor a starfish organisation, we ask about its health, whether it’s growing or spreading, becoming more or less centralised. Catalysts connect people and maintain the drumbeat of the ideology.Rule 10. Flatten or be flattened. We can fight a starfish by changing an ideology or centralising its organisation. But it may be easier to join them if you cannot beat them. Some modern organisations are hybrids, making a profit in the centralised part, and operating more effectively in the decentralised part.
Reviewed in the United States on October 29, 2018
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Reviewed in the United States on January 22, 2008
Reviewed in the United States on October 29, 2018
To explain further, a spider has a centralised nervous system, so that, if it loses a leg, the handicap will remain, whereas the starfish has a decentralised nervous system, so that walking requires a peer-to-peer communication between the legs, and if one limb is cut off, the body will grow another, and the leg will grow a complete body.
The starfish thus symbolises peer-to-peer human networks through which flows an inspirational ideal in accordance with which individuals tend to act voluntarily. The book described the Apache Native American tribe, which had no central organisation, but defeated the Spanish colonists because the Apaches had no central figures or infrastructure to capture, and their will to fight was shared culturally without coercion. Thus, individuals sprang up in response to Spanish outrages, and inspired others to fight locally, thus always maintaining the element of surprise.
The principle of voluntary organisation within a human network is now becoming more familiar in fields such as politics, and in modern technology. The large, rigid, hierarchies that dominated early capitalism are now fading away, and being replaced by groups of individuals in peer-to-peer networking.
The book describes many, many examples of “starfish” organisations that defeated government regulations, or large industrial organisations, but rather than quoting examples, I will list some of the “rules of the game” that typify leaderless organisations.
Rule 1. Dis-economies of scale (Skype v. ATT).
Rule 2. The network effect. It used to cost millions to create a significant network effect, for many starfish organisations, the cost has gone down to zero. eBay is an example.
Rule 3. The power of chaos. Starfish organisations are wonderful incubators for creative, destructive, innovations, or crazy ideas. Where creativity is valuable, learning to accept chaos is a must.
Rule 4, Knowledge at the edge. In starfish organisations, knowledge is spread throughout the staff. People on the front line know what’s going on. Open source software and Wikipedia are examples.
Rule 5. Everyone wants to contribute. People contribute to Wikipedia, and to Intuit’s TaxAlmanac.org. Users contribute reviews to Amazon, and engineers stay up at night writing code free for Apache server software.
Rule 6. Beware the hydra response from Greek mythology, in which beheading the hydra caused it to immediately grow two new heads. The starfish has similar power, because there is no head to cut off, and each cut limb regrows. The Spanish learned the hard way, fighting the Apaches. When the record companies destroyed Napster, it was replaced by Kazaa and eMule that were more decentralised and difficult to defeat.
Rule 7. Catalysts rule. Starfish have no CEO. Instead, people known as ‘catalysts’ initiate and persuade only. When the Spanish fought the Apaches, they looked for a leader such as Montezuma to kill, but found only independent individuals called ‘Nant’ans’, who inspired local attacks then disappeared. Mary Poppins similarly disappeared after serving each family in the Hollywood movie.
Rule 8. The values are the organisation. Ideology is the fuel that drives the decentralised organisation. The Animals Liberation Front, (ALF), is so decentralised that it is hard to fight legally. Granville Sharp helped abolish slavery through inspiration alone, although we forget his name, because he was not a public leader. The peer-to-peer organisation called ‘Alcoholics Anonymous’ has achieved worldwide success, without any central organisation at all.
Rule 9. Measure, monitor and manage. When measuring a starfish organisation, it’s better to be vaguely right than precisely wrong. When we monitor a starfish organisation, we ask about its health, whether it’s growing or spreading, becoming more or less centralised. Catalysts connect people and maintain the drumbeat of the ideology.
Rule 10. Flatten or be flattened. We can fight a starfish by changing an ideology or centralising its organisation. But it may be easier to join them if you cannot beat them. Some modern organisations are hybrids, making a profit in the centralised part, and operating more effectively in the decentralised part.
Fantastic illustration of the power of individuals who have a cause
Reviewed in the United States on October 29, 2018
This is a brilliant book that explains the circumstances in which victory goes to “leaderless organisations” – that is, organisations based on individuals pursuing voluntary preferences, rather than those that use coercion and hierarchical authority to enforce desired action. The authors explain that top-down organisations (symbolised by the spider, a centrally-controlled creature) flourish under economies of scale, when innovation is less important than efficiency and productivity. In contrast, leaderless organisations (symbolised by the starfish, a decentralised creature) flourish when innovation (in hi-tech) or surprise (in military strategy) is more important than focused power.Reviewed in the United States on October 29, 2018
To explain further, a spider has a centralised nervous system, so that, if it loses a leg, the handicap will remain, whereas the starfish has a decentralised nervous system, so that walking requires a peer-to-peer communication between the legs, and if one limb is cut off, the body will grow another, and the leg will grow a complete body.
The starfish thus symbolises peer-to-peer human networks through which flows an inspirational ideal in accordance with which individuals tend to act voluntarily. The book described the Apache Native American tribe, which had no central organisation, but defeated the Spanish colonists because the Apaches had no central figures or infrastructure to capture, and their will to fight was shared culturally without coercion. Thus, individuals sprang up in response to Spanish outrages, and inspired others to fight locally, thus always maintaining the element of surprise.
The principle of voluntary organisation within a human network is now becoming more familiar in fields such as politics, and in modern technology. The large, rigid, hierarchies that dominated early capitalism are now fading away, and being replaced by groups of individuals in peer-to-peer networking.
The book describes many, many examples of “starfish” organisations that defeated government regulations, or large industrial organisations, but rather than quoting examples, I will list some of the “rules of the game” that typify leaderless organisations.
Rule 1. Dis-economies of scale (Skype v. ATT).
Rule 2. The network effect. It used to cost millions to create a significant network effect, for many starfish organisations, the cost has gone down to zero. eBay is an example.
Rule 3. The power of chaos. Starfish organisations are wonderful incubators for creative, destructive, innovations, or crazy ideas. Where creativity is valuable, learning to accept chaos is a must.
Rule 4, Knowledge at the edge. In starfish organisations, knowledge is spread throughout the staff. People on the front line know what’s going on. Open source software and Wikipedia are examples.
Rule 5. Everyone wants to contribute. People contribute to Wikipedia, and to Intuit’s TaxAlmanac.org. Users contribute reviews to Amazon, and engineers stay up at night writing code free for Apache server software.
Rule 6. Beware the hydra response from Greek mythology, in which beheading the hydra caused it to immediately grow two new heads. The starfish has similar power, because there is no head to cut off, and each cut limb regrows. The Spanish learned the hard way, fighting the Apaches. When the record companies destroyed Napster, it was replaced by Kazaa and eMule that were more decentralised and difficult to defeat.
Rule 7. Catalysts rule. Starfish have no CEO. Instead, people known as ‘catalysts’ initiate and persuade only. When the Spanish fought the Apaches, they looked for a leader such as Montezuma to kill, but found only independent individuals called ‘Nant’ans’, who inspired local attacks then disappeared. Mary Poppins similarly disappeared after serving each family in the Hollywood movie.
Rule 8. The values are the organisation. Ideology is the fuel that drives the decentralised organisation. The Animals Liberation Front, (ALF), is so decentralised that it is hard to fight legally. Granville Sharp helped abolish slavery through inspiration alone, although we forget his name, because he was not a public leader. The peer-to-peer organisation called ‘Alcoholics Anonymous’ has achieved worldwide success, without any central organisation at all.
Rule 9. Measure, monitor and manage. When measuring a starfish organisation, it’s better to be vaguely right than precisely wrong. When we monitor a starfish organisation, we ask about its health, whether it’s growing or spreading, becoming more or less centralised. Catalysts connect people and maintain the drumbeat of the ideology.
Rule 10. Flatten or be flattened. We can fight a starfish by changing an ideology or centralising its organisation. But it may be easier to join them if you cannot beat them. Some modern organisations are hybrids, making a profit in the centralised part, and operating more effectively in the decentralised part.
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