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You weren't meant to have a boss (2008) (paulgraham.com)
202 points by alexellisuk on Oct 10, 2020 | hide | past | favorite | 165 comments



Is having a board of directors full of VC big shots to answer to that different from having a boss?

I listened to a Changelog podcast the other day featuring Sytse Sijbrandij (GitLab CEO) and he mentioned having to run stuff by his board and I was like woa, even someone as obviously self-made as @sytse has a boss.

I'm starting to think that only by bootstrapping (or taking very little investment, at least) you really do work without a boss. Not sure if the YC path that pg promotes in this article fits that.

(I'm thinking about this a lot lately because my company is currently at this crossroads. We raised a little, turned that into profitable growth, but we could raise more to grow faster.)

EDIT: meta-level comment: it's kind of weird how we managed to create a world where nearly everybody has a boss. CEOs answer to the board, who answer to shareholders, who work at investment funds that have bosses and shareholders and LPs of their own, and down the rabbit hole it goes. I wonder if there's any general way out of this, different from "bootstrap a SaaS" which is a little specific to be good general advice.


Even if you are totally self funded you still are accountable to your customers. For software companies this might not be so bad, but many small business owners will tell you they make extremely demanding bosses


> Even if you are totally self funded you still are accountable to your customers

2 main differences:

1) your customer's requirements are pure (usually) - "please add a frammel button so I can manage my widgets better". Your boss's requirements are less so - "please satisfy corporate by attending this compliance training".

2) you can fire any customers who you don't like. Not so your boss.


> 2) you can fire any customers who you don't like. Not so your boss.

I know what you mean, but I think there's an alternate way to look at this.

Every time I've moved jobs, I really look at it as firing my boss. The process is pretty much the same as firing someone:

* First, I voiced my concerns and gave my boss a chance to improve.

* When he wasn't improving, I began searching the job market to find his replacement (my future boss).

* After a few interviews, I found a replacement that was a really good fit for the role of "my boss".

* I let my old boss know that his performance had not improved enough, and I was forced to let him go, but I wished him all the best in his future endeavors.

* I gave my new boss a start date, and so far everything is going great.


Except you don’t get to keep the job. Firing your boss means changing your job, firing your customer does not.


Adding to that, unless they’re your only customer, firing one customer means you’ve only lost a % of potential future income. Firing your boss, and quitting your job altogether-unless you’re moonlighting, getting passive income elsewhere or accepted an offer before quitting-most commonly means losing 100% of future earnings until signing onto the next job.


> "please satisfy corporate by attending this compliance training".

Compliance training is about legal requirement. A little extrapolation suggests it is going to be things that your bosses are only asking you to consider because they are legally mandated. If they were going to be considerations anyway, why mandate them?

A lot of stupid things businesses do are to satisfy legal requirements that the business thinks is stupid. That one isn't the boss, it is the government.


Compliance training is about legal requirement.

That's the thing -- oftentimes your Boss thinks that X is a "legal requirement". When really it's "so-and-so is bugging me to cram this down your throats saying something about 'legal' and I'm too busy to even bother googling to find out whether it's really so. Plus even if I did some basic research I might have to actually think about it for a minute or two - and you know how much I hate that. So to save myself time, I think I'll just cram it down your throats."

My favorite X in this category: drug testing. (Contrary to popular belief, it's almost never an actual legal requirement - even if your company is getting state or federal funds.)


This is technically true, but as a solo founder, you're even less equipped than a large company with a legal and compliance team to determine what's actually a legal requirement and what's not - and what legal requirements are imposed by industry groups like PCI instead of the government but are no less binding in practice if you want to run a certain sort of business, and what sorts of things are in the grey area of "the law only speaks about this broadly, but nobody chooses a specific implementation other than X in practice, so in theory you could innovate but you're on your own," and what sorts of things aren't legal requirements on their own but do save you if you get into legal trouble for other reasons, and so forth.

Remember that solo founders are widely encouraged to incorporate in Delaware just because it's the least legal risk. One state! Out of fifty, and several non-state entities! There's no legal requirement, and you can absolutely incorporate in your home state or many other places, but the advice is that if you want to focus on what your business does best, don't spend time thinking about any states' corporate law other than Delaware's, which is well-explored. If that's the bar, basically all other forms of compliance are well above it.

I get that good hackers have an instinct to ask "Why?" or "Really?" at every step and to understand the whole system, and I have it too, but one thing I've learned with experience is you need to train yourself to put a stopping point on "Why?" if you want to get anything done at your current level of descent. You absolutely can go arbitrarily deep, nobody is goin to stop you, and there are all sorts of fences that have no reason for existing, but you have a limited amount of time to do whatever work you want to do and show results. Do you want to build the next great social network, or the next great form of corporate structure? You can absolutely do either - you can't do both.

(One caveat: there are a few things that are legal requirements or near enough thereto that only apply when you have more than a few employees. If you're a solo founder, you presumably can't create a hostile work environment for yourself, for instance. However, if you're a solo founder pursuing B2B deals and having meetings with companies, it might be worth being aware of what sorts of things your target companies consider hostile work environments and would cause them to not invite you back for the sake of their legal risk - and that's even more about the standard corporate view of the law than the law itself. So, you may not be able to get away ignoring these conventions even as a solo founder, after all.)


I have this for my small business. About 450 small "bosses" (clients). Because we don't answer to investors or board or anything we have what I call "alignment" with our clients.

Despite 400+ opinions, the pull on the team is one way: client needs.

My previous Companies has outside money, board, etc. That's three directions of pull.

We've saved a lot of time that way on investor management but our growth was limited by cash-on-hand.


Have you ever needed to fire a client? Or been in a situation where you have to juggle client needs that were non-compatible?


Fire client: less than 2%. But looks, losing only 2% to focus on the other 98. Well, you'll grow back.

Not-Compatoble request is a bit harder. But, with like 10+ prior years in consultant I'm generally able to direct thing to a multiple compatible solution.

Lots of research and customer development play for that.


And you are accountable to your employees. Take the board I have for example. It is a relief to know that if I’m not longer the right person they will replace me. If you are bootstrapped with 1000+ employees a board might be something you want even if you don’t need to do it from an ownership perspective.


I mean, at a certain point you're asking for ultimate power over everything and instead of attempting to become autonomous you find yourself attempting to become a supervillain


the zuckerberg route


now that they're a publicly traded company, there's no way Zuckerberg could ever downsize Facebook into an honest company without the shareholders throwing a fit or suing the company.


Ah! That's an angle I hadn't considered yet.

Was there a concrete point at which you and your co-founder agreed to accept a minority stake and therefore give up absolute control? Was it a hard call to make or, already then, a relief because of the employee accountability?


Having a board of directors over you doesn't always mean dropping to a minority ownership stake, or even giving up absolute control.

The board of directors is legally responsible for running the company, in practice through major company decisions and scrutiny, so you can take some relief from that if you're a CxO doing what you think best "day to day" but not entirely sure you really know by yourself. Your board will get the legal blame if it goes seriously wrong and you've kept them sufficiently informed and involved in key decisions.

But you can still have a majority ownership stake while appointing a board. In doing so, you keep ultimate control (as shareholders) but you won't often exercise it.

Having ultimate control might change the social dynamics, but shareholders are not responsible for the company, the board of directors is and they should know it. Shareholders have the power to pass resolutions which effectively override directors, but most of the time they don't. Even if they do, it's up to the directors to figure out how to do what the shareholders want in a responsible and defensible way.


That is a totally different situation. Your customers can't just do whatever they want to you whenever they want. A board coalition with more than 50% of the shares can. They can say anytime they want, "we want out, your job is now to sell the company at the least possible loss". I have had this happen at a place where I worked.


It can if you only have one customer. The issue is monopsony.


I'm replying to a comment that specifically said "customers" in plural. If you are in a situation with one customer, then really, you're not even talking about a company-and-customers relationship anymore, that's more like a consulting or contracting relationship and is a whole different ball of wax.


I'm sorry customers are no boss.


yeah, this has always been the dumbest of takes. When I have an issue at Amazon, is Bezos picking up the phone? Hell no. Even at places where the "customer is always right", all that means is the customer is the boss of the hourly wage slave. The CEO doesn't give a damn. And this results in so much ugly behavior here in America, where customers think they can throw drinks at fast food workers and have an adult tantrum.

Anyone comparing a customer to a boss has had the luxury of never having a terrible boss.


customers are much easier to fire than a boss.


you can fire SaaS customers. happens all the time.


> Even if you are totally self funded you still are accountable to your customers.

Rentiers are an exception.


I think that this is a natural consequence of organizing your economy around "Capital" instead of people.

A fascinating alternative has been proposed by Yanis Varoufakis in which financial markets are eliminated, but labor and commodity markets remain: i.e. you can only own a single (variable value, single vote) share in 1 company at a time (usually a company you own are employed at); that share is tied to you as a person like a library card (you can't give it to someone else). Essentially all enterprises become cooperatively owned by the people who WORK for the enterprise. People have accounts with the Central Bank of their nation, etc... This stuff is pretty straightforward to do since banking is almost entirely automatable now.

But that's far too egalitarian to catch on with the current state of affairs. :-)


I think it is the opposite - it is a consequence of which system has better long term surviveability.

Companies survive because they don't die. That seems trite, I know. The consequences of it are important, as the equation is one where no matter how well you do, avoiding death is what matters.

SHL at Gumroad is a great example. SHL was encouraged to quit by the VCs when Gumroad was not a clear unicorn[1]. SHL chose not to let Gumroad die, and Gumroad lives.

The problem with all the ideas like the one Yanis Varoufakis proposes, is that they will almost certainly do well in good times, but companies survive because they don't die, and any system like the one you mention will lead to more dead companies.

That's a big claim I know, but imagine a situation where a company has 20 people - 4 sales and 8 support (secretaries, returns, admin) in the office and 8 people who work in fulfillment - a warehouse and lets say deliveries. Times get tough, and they are forced to have a vote on who needs to be sacked - how do they vote? 12 of the 20 work together, do you really think they will vote to have their friends in the office sacked?

And would they even get to that point? Why would anyone ever vote to lose their job? And what about pay rises? How do you negotiate pay rises when everyone votes? In a multi-division company, lets say 3 divisions, would everyone vote to take a lower pay than people in a more productive division? Would hiring be run along profitability lines, with one division growing large, or prestige/some other political goal like maintaining voting block power?

Capital has clearly aligned goals that round to "don't die". Capital will be assigned in productive areas, pay rates will be higher in more valuable divisions (AWS vs Amazon Warehouse workers) and kill off products that aren't working (See Google).

At the meta, system level, there is also alignment. Capital can be reassigned to different companies, aligning the individual players with the system overall. That is why Blackberry was valued below its cash on hand at one point - capital was reassigned as Blackberry was more likely to blow through the cash than grow. A system where shares can not be reassigned has no system level optimisation which saves the system, even as individual companies die.

The same is not self evidently obvious or clear in collectivist systems, and always needs a series of extra steps to overcome self interest to be possible, none of which are convincing over longer timeframes.

Any collectivist system would only need a very small bias towards something other than optimising profitability to have long term terrible consequences. Homo Sapiens had a tiny advantage over Neanderthals and other Hominids, and we are here and they are not. The casino advantage in most games is < 3% and think how much money they make.

Collectivist business ideas will have all the same problems of politics, combined with the ability to die completely, which Governments do not suffer outside of war, as they have a taxation monopoly.

[1] https://sahillavingia.com/reflecting - "Some of my investors wanted me to shut down the business. They tried to convince me that my time was worth more than trying to keep a small business like Gumroad afloat, and I should try to build another billion-dollar company armed with all of my learnings — and their money."


It’s funny you say our current system enables companies to “not die” in hard times. In reality, during hard times corporate socialism is used to ensure companies’ survival wherein the taxpayer bails our big companies. I see no reason why similar corporate socialism couldn’t be used in a different system.

It’s also interesting you think capitalism allocates capital effectively. I would argue the opposite, that it aims to concentrate wealth into the hands of the few. How many life saving startups die while Apple has hundreds of billions of dollars of cash? How many brilliant people are born into poverty and can’t enact their ideas, while Bezos buys his sixth house?


Is it really that surprising though? Reciprocal altruism is a part of human nature. We give other individuals stuff they want so they will give us stuff we want. At the end of the day the economy and financial system are just a big layer of indirection in the process. Now whether you call your bosses "customers" or "managers" or "the board," at the end of the day it doesn't surprise me that much that everyone answers to someone.


The one who puts up with the risk doesn't have a boss.

- Investors don't have a boss.

- A founder/CEO who owns 100% of a private company doesn't have a boss. But (s)he is putting up with very high risk, betting on self, and living with the consequences.


Great way to put this.


> it's kind of weird how we managed to create a world where nearly everybody has a boss

It’s a feature. Cycles get rid of hierarchies and individual corruption.


I don't understand why you didn't get more upvotes. This is a great angle (that aligns somewhat with Sytse's comment further up) that I hadn't considered yet. It's also a good counterpoint to the "having a boss is not natural" idea.


It's not that weird when you consider that most of us are descended from agriculturalists, where that pattern has prevailed since the dawn of civilization (proper).

Hunter-gatherers have patterns we can also describe as hierarchical as well, but it's meaningfully different.

Given the cultural, and possibly even genetic, coevolution of this strategy, bosses are going to be 'sticky'.


Ultimately the customer is at the top of the org chart, although one may be many abstract levels removed from their aggregate "management" decisions -- by intervening "middle managers" like the CEO, the board, and VCs. But certainly, in a smaller entrepreneurial venture, one feels the pressure from that ultimate boss more acutely.


On the contrary: the customer is a resource to be sought, managed and exploited.

The boss ultimately dictates how this is to be done. Businesses fire customers, pivot the business to seek better ones, abuse/shortchange/swindle their customers all the time.

There are Bureaus of Consumer Protection, but no Bureaus of Boss Protection.


Perhaps you understood me too literally. I mean the customer as boss in the abstract sense — not as if they are making literal management decisions. Customer as metonym.

When you seek product-market fit, or decide which features to prioritize for development, you are in effect seeking to satisfy this boss. When you make pricing decisions, you’re likewise being guided by the constraints of your target customer base. The customer can ultimately shut you down, firing everyone, to stretch the metaphor. Can you fire the customer? Sure. But you always need a customer of some kind, and as a going concern you ultimately serve at the pleasure of that (aggregate) customer, and not the reverse.


Having a panel of bosses is emphatically worse than having a boss.


Everyone has a boss - whether it’s their customers or someone else.


Physics is the final boss.


> EDIT: meta-level comment: it's kind of weird how we managed to create a world where nearly everybody has a boss. CEOs answer to the board, who answer to shareholders, who work at investment funds that have bosses and shareholders and LPs of their own, and down the rabbit hole it goes. I wonder if there's any general way out of this, different from "bootstrap a SaaS" which is a little specific to be good general advice.

This is one of the many points Kaczynski makes in his argument that “the Industrial Revolution and its consequences have been a disaster for the human race.” The complete lack of true autonomy seems inherent to the system.


Do you really think most individuals in hunter-gatherer societies had true autonomy? Or serfs in feudal Europe? In fact, if you have accumulated some degree of financial independence I'd argue you can have much more autonomy today than just about anyone pre-industrial revolution.


Of course, if you’re capable of retiring and not working for the rest of your life, you can be very autonomous. You can also be autonomous if you are a lord in feudal Europe, because in these situations you’ve ascended to a position where other people work to satisfy your material needs. Which is really no autonomy at all because you are reliant on the rest of society to continue to literally work for you.

Money abstracts this away, but if you achieve “financial independence”, that just means you have accumulated enough wealth tokens that you can indefinitely have enough to exchange for things that someone actually had to go make. You’re “autonomous” in the sense that you’re utterly dependent on an entire society that agrees with the practice of doing work in exchange for fiat currency. But the Pharoahs were also utterly dependent on a society that agreed with the practice of doing work because if you didn’t, the pharoah’s bureaucrats wouldn’t keep your land irrigated and you would starve to death.

But autonomy as a person who actually does work is another thing entirely. Industrialization introduced time clocks, shift work, Taylorism, and all kinds of stuff that eroded that autonomy.


> Do you really think most individuals in hunter-gatherer societies had true autonomy?

Actually, yes I do. It depends on which hunter gatherer society, but there is some indication from Sumerian scripts that before statecraft came a laisser-faire world, where people did not need to respond to a higher power, because one could always choose to bugger off to somewhere else.

It only works of course when there is excess food compared to the amount of humans, which is not a stationary situation as humans multiply to fill that gap.


Everyone works for someone else, but at a certain level both of organizational standing and (for lack of a better way to put it) moral fluidity, you become invincible.

CEOs only answer to shareholders insofar as they're expected to deliver a profit, which is actually very easy to do because most business "profit" is actually rent-seeking derived from resources (including intangibles) the business already owns. You have to be incredibly hubristic to fail as a corporate CEO. It's an easy job.

That's not true for small companies. Startups are harder, and startup CEOs are basically middle management within the "hive company" of venture capital. The true executives are the VCs who float from project to project, careers and fates diversified, and can peel their names off anything that looks like it's going to fail.

In big companies, though, most CEOs would do better not to show up, except once a quarter to give a speech or something. All they do is fire people, producing churn, and get in the way of the people who do the actual work. They can only fail if their egos get the better of them and they get so hubristic that they break something that used to be working. The same is mostly true of executives in general, although they have a little more vulnerability insofar as (a) if their bosses screw up, they may end up eating blame, and (b) if the CEO screws up so bad he himself gets fired, they'll probably also be replaced during the regime change.


Do you actually have any experience or even a remotely internal view of how much CEO actually matters in multi billion dollar companies? Or are you just making incorrect assumptions based on no actual knowledge and experience?


In 2000s, there was an ownership dispute between stakeholders of a major Polish telecom (PTC at the time, now part of T-Mobile). It resulted in the company having two sets of CEOs and board members for a couple of years, with all the chaos at the highest levels of the company that could result from it. And yet, the firm plowed on successfully, didn't lose market share and is to this day very healthy.

It makes you wonder how important those big wigs really are. In my current company (a big bank), from what I'm seeing the execs are so far removed from reality by layers and layers of middle-managers who distort and manipulate facts to their favor when reporting upwards, that what the execs think they're managing is really some kind of alternative-universe avatar of the bank. Essentially they're operating in a Matrix created for them by their army of underlings.


There was a nice story that made me realize that in John Brooks' "Business Adventures"

The one about electric companies colluding, where the execs kept telling their subordinates not to collude with competitors, while said subordinates thought it was some sort of inside joke and just kept doing it.

Funniest part is, the execs apparently did not know, while their subordinates thought they were "clearly" communicating they were.

The morale, to me, was that management, at any scale or level, really only has as much power as their subordinates let them have.

And that implicit meanings, in communication, are absolutely and deeply unreliable.


In nearly all mature, publicly traded firms, if the death of the CEO would cause a big disruption for the firm's future prospects, then it is not a well run business. The decisions required at 99% of these mature companies do not require Steve Jobs-esque foresight nor risk taking.


Precisely. These businesses exist to minimize risk, which includes personnel risk. Everyone should be replaceable, even upper management. (Which is to avoid the psychological costs of replaceability or of investing oneself into work one knows that plenty of other people could do-- that is not something companies concern themselves with.)


Not to jump in on this question exactly, but Rakesh Khurana wrote a very well-researched book about the market for corporate CEOs, finding that expectations are hugely inflated with meager correlation between CEO compensation and anticipated results.

https://www.hbs.edu/faculty/Pages/item.aspx?num=11408


At that level, you don't get the salary your work "is worth", because we all know that's a fictional concept. Dollar value is only well defined for finished products. For labor, it comes down to relative leverage, and as a CEO, you get whatever you can get, and your buddies are on your board and you're probably on their boards, so usually that number is quite high.

CEOs may not be smart in the IQ sense we nerds tend to worship, but they understand leverage and positioning, and they understand how to hack complex human systems for personal benefit, because it's what they did to get their careers in the first place.


If you had to do an analysis. What would you say is the difference between Balmer's and Nadela's Microsoft.


I'd probably argue that's an extreme example but, yes, many CEOs absolutely do make a difference in terms of establishing culture and setting direction and strategy. Certainly bad CEOs can do a lot of damage. And I expect a lot of people saying CEOs don't make a difference would be utterly lost if they were dropped into the position at a large company.


It is my observation that most people who object to having a boss in reality only object to having a bad or incompetent boss, and would happily follow someone who is head and shoulder above them. The youthful rebellion is a part of the process of finding a worthy boss, or becoming one in the process if all else fails.

When an industry expands quickly more people have to rise to the challenge of becoming new good bosses because the demand for good bosses outstrips existing supply. In addition, old good bosses retire rich mid-career, depleting the stock. In this situation you may find yourself thinking there are no good bosses at all, and you're the next King Arthur. Which you might be - someone has to be.

When an industry grows slowly the stream of retiring good bosses is matched by the ascenders, maintaining an environment saturated in good bosses.

When an industry stagnates the good bosses retire and their places are taken by the peace-time bosses, people who learned to follow in footsteps of the elders but never learned why. They will mostly be bad bosses due to lack of experience in making errors and for lack of selection pressure that would push them against their own errors to select the best.


I’ll push back on that.

I currently work as an SDE at a FAANG company known for being pretty demanding. My boss is phenomenal, pretty much everything you could ask for. Shielding us from other teams requesting stuff in an unreasonable time frame, not putting too much pressure to get things done in an unreasonable way, setting us up with mentors in different areas, building out explicit plans to grow to the next level, helping people plan breaks in the day to mentally recoup, the whole nine yards.

Despite all that, I still am looking to leave and start my own thing. And it’s mainly because that “I want to be my own boss mentality”. I don’t think that I’m alone in that.


I can't pick your brain remotely, alas, but there might be something to reconcile our differences.

It is of course not just the boss, it's also the entire business structure. Do you believe in the cause you are serving? Do you feel like you contribute well to that cause?


I think that’s the crux of it. It’s hard to give a shit about making someone else’s product. I like what I’m working on, think it’ll help people at scale, but it’s not my product, so I’m long term ambivalent


Outside of one-man projects, it's never going to be your product. If you start a company, you're going to want to scale. Now you have sales, product, and marketing to deal with. Not to mention more engineers, many of which you will not agree with. If your software turns into a slow buggy mess, you only have high level buttons to mash (or you turn into the micromanaging jerk). These buttons are laggy. Tell upper management that your website is slow dogshit and you might see improvements 6 months from now. Maybe. Assuming the product weenies don't ruin it all with a dozen A/B darts they throw at the wall in the meantime.


Doesn't matter. If I got a large chunk of the long-term payoff, I'd care about tackling those problems. The issue is incentive, not the difficulty of the work.


Would you feel different working at SpaceX?


That’s an interesting question. I think I would. But at the same time, I think that I would be more interested in building the next spacex than working at the current one.


I vote up the push back because having even a good boss is about working and filling in demand for what corporation/company wants.

When you are your own boss you can say "I have enough" and stop making new features, stop getting new customers. One probably still needs to have profitable customer base before saying so but I am working for profitable company as SDE and they look how to grow more all the time.


> When you are your own boss you can say "I have enough" and stop making new features, stop getting new customers

In that sense, I guess you have the feeling of being your own boss as an employee too, as long as you believe you can say "I have enough" and stop working there whenever you feel like it.


Yea, I think the same. Further, I feel bad for ICs and bosses alike because the bosses likely had poor management training (MBA doesn't count - I mean modern methods and mentoring/coaching) and are managed by other managers who also never had good training.

I find that most people actually really want clearly defined work / goals from their manager and for the manager to be pretty hands off unless they need help, more resources, etc.

There's also another class of problem which is that, as a corollary to the above: "You weren't meant to have a job" - ie it's not always easy to execute / enjoy work even when the work is interesting and your boss is great. Anything worth doing is probably going to be challenging and that's going involve some measure of stress.


I think the sentiment of "better boss" only works for middle management. My boss can be as good as he wants at management, but irregardless of his past, he is never going to get up to date practice in the details of what I do. So in what sense would he be better?

For him to be up to date, I am being micromanaged or I am not actually working.


For many, it is not about a boss or not but instead having control of how you spend your time.


This was written back when YC was a few companies per batch and all of the biggest successes were yet to materialize.

Today?

Stripe: 2,500+, AirBnB: 6,300+, Dropbox: 2,300+

I wonder if this stance changed a dozen years later now that there are several multi-thousand person organizations in the YC network. Does PG think differently today after seeing several examples of large companies run by people he knows personally, or would he tell a talented hacker not to work at Stripe because it is too big?


Sales. Mature companies need sales departments.


patio11's recent article addresses this and is probably more informative on the subject: https://kalzumeus.com/2020/10/09/four-years-at-stripe/

> In a way, every scaling startup is an experiment in empirical microeconomics research on “What parts of the typical corporate form are necessary and which are pageantry which we only keep around due to anchoring, the sunk cost fallacy, and tradition?” Every time a startup bites the bullet and hires a VP of Sales, a lifecycle email copywriter, a retirements benefits administrator, or a cook, count that as a published result saying “Yep, we found this to be necessary.”


They also need large departments for everything else: Accounting, engineering, HR, legal, facilities management, marketing, IT, customer service, etc. You simply can't run a huge business without a large number of employees, and you need a deep management hierarchy for that to remotely work.


Customer service tends to scale linear to sales, while engineering may or may not, so it gets pretty impossible to run a massive company with few employees without being massively hands off.


Engineering definitely scales sub-linearly to revenue (unless you're a body shop), but it's definitely always still above a constant. Large tech companies would be crazy to keep their engineering teams artificially low, because when you're making billions in revenue the added headcount ends up paying for itself even if it's only capturing that last 1% of possible product efficiency gains. Like, Google Search could be nearly as good as it is now with 1/20th the engineers -- but that last bit of improvement is still absolutely worth having the much bigger team.


Management guru Tom Peters has claimed all you need to do is outsource; and the minimal corporation is a CEO with a computer & phone. This was in the 90s, tho.


This clearly doesn't actually work though; how many Fortune 500 companies can you point to that use a mostly outsourced employee base, even for their core functions? The closest you can get is likely an Uber or similar, but all they've outsourced is drivers and janitors; they still employ many thousands of engineers, salespeople, etc.

Also, the management chain still exists, it's just at a different company. But from the worker's perspective that's irrelevant; just as many people still have bosses.


Well that is a bit of a showing up to a luxury/sports car/truck discussion and saying 'my daily driver is a bicycle' philosophical difference/smartassery. It is clearly objectively worse in several ways (cargo capacity, max speed, environmental conditions) but better in ways that the others don't even try for (no emissions, gives exercise to the operator, negligible road wear). They fundamentally aren't even trying for a monolith but to become 'independent' as possible. Less charitably it could be called sophistry to self-justify their flaws and failings.

A hypothetical 'outsource everything' company would be perfectly agile because everything else is fungible replaced with whoever is doing the outsourcing regardless of what is going on everywhere else. The downsides are not only that they are the reverse ofvertically intergrated in that they give up margins to everyone else in the chain and that they have no differentiator other than what they can provide as 'middleware' and outsourcing everything to stay that agile means that it is shrank by design. They would have to provide real value margin as a middleman in order to exist long term vs the clients 'just putting all of the pieces themselves'.


The point is that large corporations have fundamentally moved society forward in many ways that small single-person companies simply cannot do. You don't get smartphones and automobiles and electricity without large corporations.

People can talk all day about how people shouldn't have bosses, but they don't stop and consider what civilization would actually look like if that were true. It would look radically different from today.


That’s not a firm, it’s just a person participating in the economy. There is a whole field of economics that asks: “having regard to the fact that if production is regulated by price movements, production could be carried on without any organisation at all … why is there any organisation?” https://en.wikipedia.org/wiki/Theory_of_the_firm


True. But services you need all the time are or at least should be much cheaper in house. I mean your inhouse lawyer probably costs 100/h, outsourced 400/h.


Where do you find such cheap in-house counsel? just 100/hr? Never seen them this cheap, maybe out of school, but experienced counsel for 100/hr?


According to BLS, median hourly earnings of a lawyer in the US is merely $59.11.

https://www.bls.gov/ooh/legal/lawyers.htm


Total compensation for most attorneys even in high CoL cities at Big Tech firms doesn't eclipse $150/hr. That's hourizing an annual wage of $300k.


Germany? So lets say 25/h is overhead (office space etc), 1680 workhours per year, so about 125k. Taking 80% to calculate the employees gross salary gives 100k annual. As far as I understand this is a very decent salary.

How much do you pay inhouse councils in your country?


varies a lot. 100k would be a newbie. probably from 150 to 250++?


It’s the same with the article “Great Hackers” and Graham’s previous impassioned advocacy of private offices for every knowledge worker, even in dense urban centers.

It’s frankly hypocritical of Graham not to ensure YC and its companies embody values like this.

Instead he and other “thought leaders” around VC want to be viewed as progressive, forward-thinking people with an advocacy to avoid commodity thinking towards workers & their lives and workspaces.

But it’s all lip service - bluster so Graham can sound like he’s the good guy but actually just function as the same exploitative commodity thinking old boys club kind of investor privately.

All the PR credit without actually putting his money where his mouth is.


> It’s frankly hypocritical of Graham not to ensure YC and its companies embody values like this.

That is a strange sentiment, sorry. PG is not some omnipotent being that can "ensure" anything for the companies he originally helped launch. His "enforcement" options are probably minimal, based on his (by now many times diluted) ownership. The best he can do is advocate, leveraging a lot of respect he still commands in the startup community. And this is what he is doing there. My 2c.


Nah sorry, the leaders of organizations set the values and expectations, and if they make it a cultural priority, others will follow.

He is just profiting from pushing worse working conditions onto the end employee - conditions he has himself criticized but nonetheless does not actually put his money where his mouth is to engage in much more direct advocacy or culture building within YC & its companies - most likely because his views actually are hypocritical.

When it was himself and a few people dealing with a small family of startups, then he cared. He did not want those people treated in a commodity way. When his stake is in a nameless batch of companies each trying to grow huge staffs while offering very poor total comp (even accounting for equity) on false promises that YC startup workplaces would let you avoid the bureaucratic blockers of established companies that pay better, his view has shifted to see those workers as commodities, not to be invested in to do good work, but to be given the most threadbare open office working environments with the least investment and high built in expectations of turnover due to employees gradually realizing how poor the total comp is (even accounting for equity). YC is a sort of nicely branded start-up mill. Not an incubator, but a mill.

This is obviously much lower status than what Graham wants to be known for, so he talks a big game like it’s a very productivity-centric incubator environment, while tacitly endorsing practices that make it more like a mill, with poor commodity treatment of workers in terms of total comp and workplace conditions.

“Diluted ownership” is a poor attempt at an excuse for that.


pg has never actually run a large workforce, so I take all of his advice on this subject with a (huge) grain of salt.


It’s interesting to see it in contrast to Joel Spolsky, who actually did put his money where his mouth is and give employees private offices, even in Manhattan, and has continued doubling down on private offices as the right strategy year after year.


Wow. I’ve known pg to sometimes make empty statements, but this one takes the cake.

Read: guy with immense privilege tells others not to work for others.

This doesn’t even begin to account for the risk that comes with startups that some people cannot take. When you make $7/hr and do a Bootcamp, and now can be employed by Google, you’re not going to abandon that for a tiiiiiiny possibility to build a successful startup just because “you weren’t meant to have a boss”.


Curious, is it possible to work at Google for a few years, save some money, build a bigger network, get inspired, and do your own thing? Perhaps one started off making $7/hr, but that's just where one was at that point in time. At a later time both skills and safety net will increase. At that point quitting Google is still a risk, but circumstances are much different now. Transitioning into software is already a leap, but if one has already done that and has the skills/safety-net/desire to be their own boss -- why not take the next leap?


I mean, sure, but then not everyone ends up at Google.


> I sometimes wonder if people on HN even know what privilege is or how they sound to the entire rest of the world. You think it's typical that people making $7/hr just happen to land a job at Google?

The initial comment mentioned that the person making 7 dollars an hour finished a bootcamp and _could_ work at google. Nezaj went from that

—-

In general, discounting what’s beneficial to people, by labeling it as “privilege” is only a disadvantage to the non-elites. The elites will continue to do just fine.

If not having a boss, living a certain kind of life is advantageous, we should do what we can do go for that. If our means don’t allow for it, let’s work towards it.

(This comes from an immigrant without a degree, who got one of those great jobs, and now works without a boss. For now at least.)


You're asking whether a person making $400k+ a year, even in a place like SV, with a network of other engineers also making $400k+ a year could branch out and start their own software business that requires almost $0 overhead because, you know, it's software.

Gee, I don't know.

I sometimes wonder if people on HN even know what privilege is or how they sound to the entire rest of the world. You think it's typical that people making $7/hr just happen to land a job at Google?


FWIW I was replying to the GP's comment "When you make $7/hr and do a Bootcamp, and now can be employed by Google"


Capitalism does a poor job making capitalists. I think of socialism as capitalism for everyone, not just the top 1%. If everyone was secure enough, with food and shelter and healthcare, then everyone can pursue their passions, build companies, etc.


I'm pretty sure that is what Marxists mean by "owning the means of production" vs alienation.

I also suspect that the USSR was "Communist" in practice in the same way that many companies are "Agile".


I believe Lenin called the USSR "state capitalism".


I like most of PGs writing but being a smart and successful founder/investor doesn't automatically make you a proficient anthropologist. Arguing that you shouldn't work for large FAANG style companies because our early hominid ancestors hunted only in small groups is just comical.

If you're really interested in reading about human evolution I recommend reading Robin Dunbars' work, who's an actual anthropologist.


If you look at hunter gather societies, I don't see how PG's arguments are comical. They are by and large egalitarian and up until about 8k years ago almost all humans were part of small, egalitarian groups (i.e. hunter gatherer tribes), so our brains are evolved for that environment instead of being part of a multi-thousand people highly hierarchical organization https://en.wikipedia.org/wiki/Hunter-gatherer#Social_and_eco... .


I don’t know that it’s comical, nor was the article really about human evolution. And there are other studies and evidence not based on early hominids showing that there is an upper limit on effectiveness dependent on group size.


What does Dunbar say about optimal work arrangements?


The article sounds pretty good but usually startup people who think they don’t need a boss will soon have to be the boss of many in order to achieve their hyper growth goals. It’s not like ycombinator supports companies that are small and stay small. They want companies to turn into sizable corporations with a lot of people working for the big bosses and investors.

I wish there was a trend towards very small companies where every employee can own a significant part and be part of decisions. Ycombinator doesn’t support that model.


> I wish there was a trend towards very small companies where every employee can own a significant part and be part of decisions.

There is. Look at the growing trend of indie hacking and the growing number of indie vc funds that specifically look for small companies planning to stay small-ish.


Do you have any links for more info?


For investors, look at the fund Sahil of gumroad just started. Rob Walling of Drip famr has a fund now, TinySeed, and there’s indie.vc



Read the books put out by Basecamp and follow the chain of stuff connected to Earnest Capital.


Is it a good model though to move the world forward?

If I just look at Tesla's battery day, the amount of effort that's needed to stop air pollution & CO2 emissions is huge, and it looks like vertical integration is winning, as car companies that depend on other companies to make those risks while depending on eachother are failing to scale.


That effort is huge because the “other side” accelerating these effects is also huge and and lead by big centralized companies.

I tend to think that if these companies didn’t have as much power they couldn’t have bent the rules in their favor that much.

So, shall we accept there will always be unstoppable big companies, and counter them with other big companies, kaiju movie style ? Or try to break them out and/or counter their effect through more decentralized efforts ?

In the long run the second option seems more viable to me.


I read that article 3 times and I'm still not sure exactly what the point was. It was a just a rambling jumble of disconnected thoughts.

So a lion in a cage is equivalent to a human working for a boss? Yeah, OK.

I've been at 5 startups and 3 very large companies. I've had more freedom at the large companies, granted I was running sub-divisions at the big companies, but I still had more freedom.

I'm currently at a startup and between the CEO, the Chairman, and the other BOD members I feel like I'm in a cage wearing a tracking device, even though I'm in a cage. It's Saturday and I'm taking a break from working to browse through HN, full day today, full day tomorrow, wash, rinse, repeat, same as it's been for the last 2 years.

I'm so glad I'm at a startup so that I can work like I'm meant to work.


The most autonomy I've experienced at a big company, and the best work I've done, is when a small cross-functional team is told "go build this" and then left alone. The small team is allowed to come up with their own processes and management is only used for consultation on how to remove external obstacles. Many companies know this is highly effective because they'll set up such teams when a very important initiative comes up.


"Many companies know this is highly effective because they'll set up such teams when a very important initiative comes up."

I have been on a few such teams. The funny thing is that after the project has finished management will usually pad themselves on the shoulders, talk about the value of focused teams and immediately disband the team and go back to micromanagement mode.


Are these "very important initiatives" just a codeword for "Management doesn't know enough about what or how to interfere"?


I know his comments on food are a metaphor, but when it's blatantly incorrect, I couldn't make it to his main point.

On a separate point, I highly encourage everyone to understand the scientific method. There are too many Engineers and programmers that can do labor, but don't ask about data, evidence, or methodology. Rather accepting Authority as fact.


> I know his comments on food are a metaphor, but when it's blatantly incorrect, I couldn't make it to his main point.

This comment would have a lot more "punch" if you explained how it was "blatantly incorrect".

I'm not arguing for or against, I would simply like to hear the discussion.


"If you were dropped at a random point in America today, nearly all the food around you would be bad for you. Humans were not designed to eat white flour, refined sugar, high fructose corn syrup, and hydrogenated vegetable oil. And yet if you analyzed the contents of the average grocery store you'd probably find these four ingredients accounted for most of the calories. "Normal" food is terribly bad for you. The only people who eat what humans were actually designed to eat are a few Birkenstock-wearing weirdos in Berkeley.

If "normal" food is so bad for us, why is it so common? There are two main reasons. One is that it has more immediate appeal. You may feel lousy an hour after eating that pizza, but eating the first couple bites feels great. The other is economies of scale. Producing junk food scales; producing fresh vegetables doesn't. Which means (a) junk food can be very cheap, and (b) it's worth spending a lot to market it."

All of this is false.

Junk food isn't cheap calorie per dollar or various nutrients per dollar (source- efficiency is everything) further, fresh vegetables are the cheapest sources of nutrition.

And humans are able to eat the foods mentioned and turn into energy through various metabolic processes.

The author seems to parrot "common" knowledge, but it's not factual by any stretch. (Ok maybe trans fats, but those are borderline illegal)


Startups have to, generally, become pretty large in size.

So the message seems to be: better to be on top of the pyramid in the early days than in the middle of some large pyramid.

Well duh, but that’s not scalable by design. Only so few people can be on top.


> that’s not scalable by design. Only so few people can be on top [of the pyramid]

Unless we redesign the nature of work and organisation.

It's true only a few people can be top of the pyramid for most of their career.

But in principle, everyone could be on top of a large pyramid for some of their career.

It might be a good learning experience.


Humans, and their ancestors, have had one-level bosses for hundreds of thousands of years. Humans have had multilevel bosses for at least tens of thousands of years. In what universe are bosses "unnatural?"


From the essay:

> A group of 10 people within a large organization is a kind of fake tribe. The number of people you interact with is about right. But something is missing: individual initiative. Tribes of hunter-gatherers have much more freedom. The leaders have a little more power than other members of the tribe, but they don't generally tell them what to do and when the way a boss can.


How does he know how those prehistoric groups worked?

The boss report relationship is more child parent like in a hunter gatherer context I guess.

Obvously it just all guessing how stone age groups worked, but the biggest difference has to be that there were no formal enforced hierarchies. Maybe there was one elder and a shaman?


it seems to make sense. if you're the leader of a ten person group and you push enough of them to their limit, it's not that hard for them to replace you. if you're the leader of a ten person group, but also have the support of a thousand person hierarchy, your followers can't easily get away with replacing you.


Aren’t humans naturally hierarchical? If alien biologists were studying humans, I think that’s what they would conclude.

Hermits exist, of course, but most humans look down on them and consider them strange.


Define naturally I would argue the opposite. How long do you want to establish human history? Let's say 300k years, for more than 90% of that time the small hunter-gatherer groups were in the opposite extreme from the giant pyramidal institutions of modern day.


That is increasingly suggested to be incorrect by anthropologists and evolutionary biologists focused on human development. It’s now understood that prestige and hierarchy played a fundamental role in shaping the mechanics of human culture, starting at the beginning of the distinguishing of Homo sapiens.

A mind-blowing book on the subject I recommend: “The Secret of our Success: How culture is driving human evolution, domesticating our species, and making us smarter” by Joseph Henrich.


> It’s now understood that prestige and hierarchy played a fundamental role in shaping the mechanics of human culture, starting at the beginning of the distinguishing of Homo sapiens.

This is too vague and general too have any value. Specially considering that anything older than the iron age is subjected to pure speculation.


Humans are quite adaptable. We do build both hierarchical and flat cultures. And some situations call for hierarchical structure while others put flat one at advantage.

But, generally, people who are not accountable to anyone often end up not performing well.


Yeah, a reason founders could be seen as happier in this regard could be that they are climbing the hierarchy while employed ones are set in place but that doesn't mean hierarchical structure is unnatural, I find authority almost instinctual.


Currently working as a developer for a company that organizes itself in small groups without bosses and I must say I could not think about going to work for a company where I would have a boss.


Out of curiosity, how do you manage under performance in that setting?


Team always shares the responsibility. We do a ton of work to establish trust inside a team so you would share things that are affecting your work instead of trying to hide them so you don't get sacked in performance review.

We also make it very easy to change teams so everyone would find the best environment for themselves.


Adam Smith understood this. In Wealth of Nations.He said division of labour makes people as stupid as creatures can be. In the beginning of the industrial revolution, people called jobs Wage Slavery.Somehow we stopped talking about how bad jobs are for us.


> Or rather, a large organization could only avoid slowing down if they avoided tree structure. ... the only way I can imagine for larger groups to avoid tree structure would be to have no structure: to have each group actually be independent, and to work together the way components of a market economy do.

No need to imagine it — Ricardo Semler was already talking about and doing this in the 1990s. See https://en.wikipedia.org/wiki/Ricardo_Semler


I love this essay so much I translated it to spanish some years ago (https://jcaramuel.es/jefe.html)

I like to go beyond the superficial "be your own boss". After all, a world full of "own-bosses" is not possible.

IMHO, the big lecture here is that big, fat hierarchies are poisonous and it's better for your happiness to search some small sized group to be on.


Drawing a parallel to Nassim Taleb's "don't hide the risk" (or atleast what I understood from his talks), working for a big corp hides risk (and reward). If you or the team do a shitty job, the feedback and the results are often not immediate, and absorbed by the bigness of the corp. I have seen fair share of disinterest and mediocrity in my place of work and I think it's a leadership problem partly, where they've pretty much failed to motivate or incentivize people to improve/move around the company and you have people working for years in the same role and project doing the same work, creating very little new value.

Also great point that it might be a characteristic of somebody choosing to work for a big corp vs something else. In today's climate that seems a very safe decision for a new grad. Ultimately it's a job that you do to earn money, it's naive to think everybody wants the same thing from their job.


PG's main point is a good one, though perhaps obscured by a few cherry picked observations. Autonomy allows for faster learning. Learning brings happiness. Autonomy is easier to find in small group settings.

The push-back that this is a privileged position is interesting. Initially I thought so but maybe that's too harsh. Controlling your expenses and keeping it to a bare minimum would allow a lot more people to pursue such autonomy than they might realize. I don't think it's the majority of people given wealth inequality but more than people might guess.

The comparison to wild animals is incomplete and cherry picked. There are animal populations that seem to happily exist in larger communities than what PG mentions. But, as I learned from one of his better essays [1], let's focus on the main point.

[1] http://www.paulgraham.com/disagree.html


”... a large organization could only avoid slowing down if they avoided tree structure. And since human nature limits the size of group that can work together, the only way I can imagine for larger groups to avoid tree structure would be to have no structure: to have each group actually be independent, and to work together the way components of a market economy do.”

Ok, but perhaps not “no” structure. A market has structure...

”That might be worth exploring. I suspect there are already some highly partitionable businesses that lean this way. But I don't know any technology companies that have done it.”

We are exploring this for the Americas region of a global bank, which has us seeking engineers who have worked in autonomous teams but would be interested in helping with this shift within an enterprise — to help ship but also help socialize what it means to have initiative and be an owner.


The team has only one person worth of freedom bit could only be written by someone who doesn't understand big companies. When I was at Oracle, the majority of the constraints on me and my team came from a differing risk profile of the company. In a stand alone company with basically no customers, e.g. a small startup, a critical security issue isn't something to worry much about; you have no customers, reputation or revenue to lose. At a company that tries to brand on security with millions upon millions of existing revenues, a PHI leak could cause millions in damages. Similarly, I had to deal with arms control paperwork every release since we shipped internationally with encryption turned on by default. Again, not a number of employees problem but a high company profile problem.


Says the guy that profits from people starting their own company.


PG is a big boy and can defend himself from deserved criticism, but this is just a silly characterization. He profits from his contribution in helping people start their own companies.


So, as OP said: he profits from people starting their own companies. The pedantic semantic distinction is irrelevant.


No it's really not irrelevant. The implication of the post to which I was responding was that it was somehow undeserved or indicative of hypocrisy. PG earns his profit from investment and action, not exploitation or being anyone's "boss".


No one said anything about exploitation, but he absolutely earns a profit from people who choose to not be in a traditional boss-employee relationship. That's a statement of fact, and that colors the argument he's making.

I don't know what you mean by putting "boss" in quotation marks, but at the big company (1000+ engineers) I work for, my direct manager does not "boss me around" (if that's the sense you meant it), and the four more levels of management above him certainly don't. I have the freedom to propose and pursue new ideas, I'm regularly learning new things, and I set my own goals - with active feedback and input from my manager as to whether they make sense and what I should prioritize. I'd expect no more and no less from the relationship between a startup-accelerator participant and a seed investor. And in both cases, the boss/investor profits from the employee/founder doing good work.

What's different is the risk model. If my ideas don't pan out, my management (well, my employer as a whole, but my management is accountable for how they choose to use headcount and salary budget) is still on the hook for paying me big-tech wages, until they decide my ideas are so bad that it's not worth keeping me employed. If the founder's ideas don't pan out, pg is only out a couple thousand dollars. (At the time, YC was paying $17K.)

So, yes, pg earns his profit from investment and action, and that's precisely what's being pointed out here as a potential conflict of interest.

(If pg's actual point, reading the article more closely, is "Google's organizational structure does not give you that freedom and will not help you grow as an engineer," well, that's one of the many reasons I declined a Google offer. But Google is not every big engineering firm.)


> No it's really not irrelevant.

It is, you can repeat 1000 times to no avail, but if you want, be my guest.

> The implication of the post to which I was responding was that it was somehow undeserved or indicative of hypocrisy.

In no part of OP post is implied that PG is "undeserved" of his earnings from those companies. If you invest in oil companies or mining companies you absolutely deserve all the money that is legally yours, you are ALSO helping to destroy the environment. There is no contradiction at all.


> It is, you can repeat 1000 times to no avail, but if you want, be my guest.

Actually, no, it's not. You can repeat 1000 times to no avail, but if you want, be my guest.


Why work for a boss 8 hours a day, when you can work for yourself for 16 hours a day?


I've thought about this recently, and I think one that we have blurred is the difference between a leader and a boss.

As a human, you were meant to have a leader. Your first leader (hopefully) are your parents since you don't emerge with a complete understanding of things, and then you pick up a series of teachers/mentors through-out life.

The thing that fucks everyone up is power. Power will corrupt a teacher. Power corrupts managers. Power corrupts owners.

The question is how to mitigate the corruption of power. A boss is a corrupt leader in my opinion, and I agree that we shouldn't have one.


I'm pretty sure that what power really does is either:

1. Reveal the already-corrupt

2. Impose stress and poorly-assigned responsibilities that lead people to unhealthy actions.


It's not the first time I get an almost left-libertarian vibe from Paul Graham's writing.

As before, I feel he almost nails it, but not quite. I do think that a world of small companies populated by intrinsically motivated people who are mostly equals would be much better than what we currently have.

However, we have to acknowledge that the way the economic game is set up, this kind of endeavour is disincentivized. Neo-liberal capitalism favours concentration of power, mega-corporations with kill-zones around them and with huge lobbying power. Outside finding highly specialised niches, I think tech companies can find it hard to stay both successful and small.

The VC funding model also seems to go against this idea. As far as I understand it (I don't work in SV, so my understanding is all second-hand), the approach is to fund lots of companies hoping that a few will make it big and accepting that most would fail. This is in complete contradiction with the idea of small, non-hierarchical enterprises.


> The VC funding model also seems to go against this idea. As far as I understand it (I don't work in SV, so my understanding is all second-hand), the approach is to fund lots of companies hoping that a few will make it big and accepting that most would fail. This is in complete contradiction with the idea of small, non-hierarchical enterprises.

The VC funding model uses the expectation that a few will make it big and the others will fail or be let go.

However, they do spread out funding among many initially smaller companies, and to some extent grant a lot of autonomy to each company to decide for itself what to do with the money, including spend it poorly.

Because VCs already expect many to fail, they are not panicked about it. I think that's relatively non-hierarchical, compared with the alternative where a big investor takes over a company and dictates how to run it.

So it's not clear to me whether VCs are a cause of hierarchy overall when considering all companies in the world, or if they are merely incentivising growth in some, while providing more flexibility to others to do their own thing than if modern VC did not exist.


"The root of the problem is that humans weren't meant to work in such large groups."

Unfortunately it's a foundational artifact in how we create and maintain civil culture.


It may be how governments are organized. But there is absolutely no need to organize companies this way. Check out anarcho-syndicalism.


'Anarcho-Syndicats' essentially do not exist in any material practicality. Perhaps in niches.

You're not going to make an Airbus or 747 in such a formation.

You want to know the real difference between 'poor' and 'rich' Europe? 'Rich Europe' aka UK, Germany, Netherlands etc. have significantly greater population working in companies of large size.

Spain in particular, more people work in 'mom and pop' shops where they don't have the scale to tackle bigger problems.

There's a lot of variation, but 'having a boss' is inevitable when it comes to coordinating large groups.


This belongs on twitter.com/LeftAccidental


I feel like Amazon has most successfully fought this consequence of scale.


"Having a job is not an ideal. In fact, having a job is a severe attack on human rights and human dignity.... Having a job means placing yourself under the control of an autocratic ruler for most of your waking life. An autocratic ruler has the kind of control over you that Stalin never dreamt of...." - Chomsky (recent) https://www.youtube.com/watch?v=3lcDT_-3v2k (31:40)


Great read. Loved it.


>In the first couple weeks of working on their own startup they seem to come to life, because finally they're working the way people are meant to.

People aren't designed to be programming either. People aren't designed to be working for startups.

People are designed for a hunter and gather lifestyle.


Our bodies weren't designed to eat the foods that people in rich countries eat, or to get so little exercise. There may be a similar problem with the way we work: a normal job may be as bad for us intellectually as white flour or sugar is for us physically.

This is the part I agree with most. In your 30s, you start to see a bifurcation whereby the people who take the corporate grind seriously go into cognitive atrophy, while those who have a fuck-it attitude keep getting smarter but become less employable (due to age and their shitty job histories). You do turn into a moron if you buy into whatever role the corporates are willing to give you. The more you believe in it, the faster you lose intelligence. It's probably optimal to be able to pretend you buy into corporate, while not actually investing yourself in it at all, but most nerds aren't very good at this code-switching.

It was remarkable how different they seemed. Particularly lions. Lions in the wild seem about ten times more alive. They're like different animals. I suspect that working for oneself feels better to humans in much the same way that living in the wild must feel better to a wide-ranging predator like a lion. Life in a zoo is easier, but it isn't the life they were designed for.

I thought it was lobsters the libertarians were all on about.

Anyone who's worked for a large organization has felt this. You can feel the difference between working for a company with 100 employees and one with 10,000, even if your group has only 10 people.

Corporate is corporate. It's all trash. It shouldn't exist. Capitalism is a dinosaur. That said, it's usually better to work for a large company than a small one. In a big company, you can move around. There's more diversity of work, and there's more organizational experience with outlier talent. (That doesn't mean you'll be recognized as outlier talent. If you work at Google and have a 160 IQ but mediocre paperwork, you'll probably just get a regular assignment.) At a 20-person venture-funded company, there isn't much choice of work to do, and there isn't much room to move or grow except by becoming a manager. Which means it's not really any different from the old corporate grind-- it just has worse benefits and more ways to fall between the cracks (and that's by design).


> At a 20-person venture-funded company, there isn't much choice of work to do, and there isn't much room to move or grow

This is kind of the opposite of what I've seen reported around here.

Small startups, they say, are exactly where you should work for a while in order to grow and develop a lot of new skills, which are then valuable elsewhere.

Meanwhile a number of people at large companies report being bored at work.


A lot of people at large companies are bored at work because a lot of work is boring, and because corporate life sucks. If you control for age-- notice that startups tend to prey on the young-- then I don't think small company work, at the bottom, is any less boring.


> I thought it was lobsters the libertarians were all on about

No, that's Jordan Peterson and his crowd. There's a lot of overlap, but Peterson is more socially conservative than most libertarians.


damn, thanks for this, amazing piece!




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