Evolution after Evolution


In the beginning, you are a mercenary. You work fulltime (somewhere more, somewhere less), once a period you receive income. Everything is simple. Then you gradually realize that you can work as much, but get at least twice as much - you make an IP (who is smarter - just LLC). Then there’s another round - if you don’t do the work yourself, but focus on finding clients and managing money, you can get even more money, while increasing your sleep rate. And so on, so far, only one department remains in charge. Further, management evolves, departments, departments, directions, etc. appear.

If you focus on the formula for calculating the price for each stage - with the same type and quality of work, the project cost rate will always increase (in general, this is the exit price for the Customer, it is from this amount that it goes to plus infinity) with respect to the money received by the final contractor.


This fact means that small organizations will always have a place in the market, as large organizations cannot compete with them on equal terms because of price. Can this be changed?

The reason for the increase in rate

Many blame the increase in the rate for increasing the reliability / probability of achieving a positive result for the project. So it is sold internally. Outside, customers are sung a song about the best specialists, a full development cycle, multi-stage testing, guarantees, brand, etc.

The reason is different - a multi-stage control system.


The opacity of the control system increases. When you work alone, there is no such problem. Several assistants appear - permanent discomfort appears, expressed in the fact that the "obvious" solutions to you need to be explained to others for a long time and in detail. When information is transferred from one head to another, this information inevitably deforms. Further more. It comes to the fact that you have not been involved in hiring for a long time and you see only board members in front of you. As a result, until your decision reaches an ordinary employee, it will be surrounded by all kinds of documents and explanations, which can sometimes change the purpose and essence of the initial decision.

The management system becomes so complex that all conditions are created for the mismatch of the goals of the Contractors of all levels and a critical reduction in their motivation to solve the declared tasks. The most “talented” in this system sophisticatedly pull the blanket over themselves (inflate staff, budget), skillfully using KPI (friends, strangers, companies) and regulatory documentation.

The matter is compounded by the fact that the competencies of the organization are distributed among its units for the most part without intersections, which creates the basis for the parasitic monopoly of some units over others. Monopolist divisions begin to become the narrow throat of the entire production process of the organization and are extremely motivated not to change the current order.

The standard path leads to a dead end

They try to treat any mismatch or low motivation by increasing control. But to control a non-transparent system that looks more like a black box is futile. All new regulations are being created, changes in regulations (sometimes, several times a day), new units (the same project office, corporate architecture department, etc.) ... The management structure is becoming more complex, more and more “muddy”. The time taken to agree on something begins to roll over. Ass Reith is growing. We put out the fire with gas.


In this situation, it is very difficult to calculate the real cost of work of specific departments. Accountants, of course, count everything without problems, introducing billions of coefficients (light, water, heat, lawyers, bukhs themselves, couriers, etc.), but in fact the business owner still does not understand how much they cost, for example, the same system administrators and testers in the current quantity, how much benefit they bring, why they are in the current quantity - the process of termination of optimization is constantly going on , which often depends not on the real need, but on the level of the head of the optimized department for presentation and oratory.

What to do ?

I believe that in about 30 years I will write a similar article, praising the rigid tree-like vertical of power on the basis of a new round of technology to control people's thinking. For example, by implanting electrodes into the brain, which will help to defeat local corruption and increase motivation (although this concept may no longer be applicable).


We are currently very limited in invasive control methods. What we have:

• Administrative measures - something like KPI.
• Technical solutions are a bit of a lie detector.

Both tools are highly likely to be broken about the possibility of the mind of a “smart” person. But the higher the position, the more “smart” a person I would like to see there. But the smarter he is, the easier it is to circumvent the restrictions that we put for him so that he focuses more on the benefits for the company than on the benefits for himself. There is no way out ...

There is a way out. As always, he is not in patches and fixes on top of the current implementation. It is necessary to change the architecture - to remove multi-step from the vertical of power, removing the possibility and motivation on the ground to make it opaque and, as a result, expensive in cost of ownership.
Whom we leave:

  • Board \ Shareholders - someone else needs to make a profit. This will be the parent legal entity, which will participate in the capital of all other companies.
  • Departments with direct executors. From each department it is necessary to form a legal entity (it is possible on DOS so that VAT can be cast), whose General Director will appoint the head of the department and give him a share of the profit (it is possible without a share in the capital). Be sure to limit the number of daughters (for example, 50 people) to exclude the formation of a daughter monster.

Then we kindle competition - we allow daughters to order services or provide them with companies not included in the holding. For the final completion of the internal monopoly, it is necessary to allow the formation of overlapping competencies of legal entities. To prevent collusion, clones should be distributed geographically.

Objectives achieved:

  • The motivation to inflate the staff of the unit head immediately goes to zero.
    Previously, he tried by hook or by crook to increase the staff, since the wage fund and the number of units directly influenced the importance of the company, the bonus fund (usually it is a percentage of the payroll fund), the likelihood of being promoted to head of department (the increase is often formal sign - you can manage the largest department - manage all departments), etc. Now, PHOT is your personal expense item that lowers your direct income.
  • The motivation to tighten the blanket over yourself is losing weight.
    There is no common blanket, but what is is already yours.
  • The motivation to flag work in “2 counters” disappears.
    In the absence of collusion, a high price will leave your legal entity without orders.
    This applies not only to price, but also to terms.
  • Loyalty is no longer the only \ main parameter of a unit employee.
    Now you need to build a team as efficient as possible in terms of production.
  • Everyone's contribution to the company's profit is now not spread among thousands of other employees.
    How much worked - so much received.
  • In the event of a drawdown in resources / terms, you can always ask the “clone” unit to help with the task, thereby multiplying the production capacity.

From this moment on, it is possible for the Board to kill inefficient units based on statistics, distributing the released resources to new organizations. Nothing prevents you from doing this automatically.

Visually present the proposed model of the device business can be: let's say people are soap, and organizations are soap bubbles. All these bubbles are controlled by "dad."


Or "mom."


By the way, our universe may have a similar structure ...

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