The Starfish and the Spider: The Unstoppable Power of ... (ISBN 159659151X)

An interesting overview of a decentralized business model:
Ori Brafman and Rod Beckstrom are entrepreneurs. In "The Starfish and the Spider" they express their fascination of decentralized organizations, and their impact on the business world. Based on numerous examples, ranging from Alcoholics Anonymous to Skype and Wikipedia, they present to us a model of decentralized organization and the new business rules it implies. A decentralized organization, compared to Starfish, can be defined by several characteristics, such as: 1. No specific person in charge and no headquarters, which imply that it's not easy to destroy it by "thumping it on the head" 2. An amorphous division of roles, so that the organization would not be affected by losing any of its units 3. Distribution of knowledge and power 4. Flexibility 5. Self-funding of units 6. Direct communication between the working groups On top of the above characteristics, the authors define five building blocks of starfish organizations: 1. Circles: Decentralized organizations consist of autonomous and independent circles. When using Internet for communication, the circles become virtual, which are very easy to form and join. However, virtual circles also lack bonding between its members, and may be subject to free-riding or destructive behavior. Circles lack hierarchy or structure, but instead they depend on norms for realizing their objectives. These norms are self-enforced, members enforce them with one another. As a result, there is a sense of trust among the community. 2. The Catalyst: According to the authors, every open organization starts with a catalyst - a person who initiates a circle and then moves into the background, giving away control to the members. Catalysts let go of the leadership role, and transfer it to the circle. 3. Ideology: Decentralized organizations are built on a foundation of shared ideology. 4. The Preexisting Network: Very often, starfish organizations are started from the basis of a preexisting, decentralized platform. Currently, the Internet has become such platform. Because there are almost no entrance barriers for the Internet, it is very easy to launch web-based decentralized organizations in this environment. 5. The Champion: The champion represents another key role in starfish organizations, next to the catalyst. While catalysts envision the organization and inspire the members, champions actually implement the ideas and drive execution. Champions are key in gaining a critical mass of any movement, as they engage new members and "sell" the catalysts' vision. Following the description of leaderless organizations, the authors define several rules that apply to the business world affected by decentralization: 1. Decentralized organizations tend to become more open and decentralized when attacked, while centralized organizations react with greater centralization to an attack. 2. Centralized and decentralized organizations are not easy to distinguish. 3. The knowledge and intelligence are spread throughout the system of starfish organizations. 4. Open systems can easily mutate. 5. The decentralized organization advance and grow unnoticed. 6. As industries become decentralized, overall profits decrease. 7. People are eager to contribute when they are in an open system. Other topics covered in the book include a characteristic of catalysts, strategies to combat starfish organizations, and a hybrid business model (introducing decentralized elements into a centralized organization). Overall, the book is quite an easy read thanks to many stories and examples. The ideas presented in the book are novel and may stimulate a rethinking of the rigid business models. However, it's only a popular book - there is no evidence supporting the presented models and principles, and everything is based on observation and conclusion from several examples.

Very interesting:
Nutshell review - This is a very interesting and insightful book about centralized vs. decentralized organizations, from companies to terrorist cells. Well written with interesting and useful insights.

This is a true review (If in question refer to chapter 9):
A truly interesting exploration of all, ok the most likely probabilities, of centralised and decentralised communities of business environments in our modern culture. Even though this book comes highly recommended and already went on its way in the same fashion as received I urge the reader to note that there is a complete source reference at the end of the book. This peace of information would have saved me some time while reading but more important gave me the confidence that I would be able to draw on this knowledge post the consumption of the information in this book. It is truly a magnificent journey and a highly recommended read. The only reason I did not give it a five out of five rating is that I, and yes this is a personal point of view, would have appreciated the writer to let go of the script and the purpose for this fascinating book and allow their passion to flow through even if they had to apologise for it later. But it still holds a lot of water.

The Starfish and the Spider relevance to Relationship Economics:
As succinctly illustrated in Rod Beckstrom's book The Starfish and the Spider, the massively complex and dynamic ecosystems of today's highly matrixed corporations can more effectively adapt to the market dynamics by way of decentralized competency teams. Substantial organizational inertia creates difficult personality dynamics, and also has the potential to bring out highly destructive corporate politics in any effort to drive meaningful change. Our research, coupled with the digitization of social networks, highlights a strategic asset in any manager, leader, or executive's investment of time and energy in not only creating decentralized teams, but also in nurturing productive relationships in their dynamic environments. In contrast to the Industrial Age - in which much of the current command and control organizational structure was focused on capital as the most valuable resource - the current multigenerational workforce leverages a very different asset for creating shareholder value. The highly integrated business unit, operating company, or division, which mobilizes and leverages its broad-based intellectual capital, tends to waste fewer cycles in redundant market penetration, talent acquisition, and strategic supplier relationships. Instead, their intracompany, as well as external relationship development efforts, can translate into not only more rewarding, productive work for its current and future talent, but also a greater Return on Capital at a relatively low risk.

A pleasure to read 905 527 b5326:
This book is simply a great read. The best part about this book is the writing itself. It's simple, short and to the point. This book could have easily been dragged out over 400 pages, but it wasn't. It was just the right size. Moreover, the concepts in the book were very well explained. My favorite section deals with how to battle something that is decentralized. This section is fantastic. The only criticism I have is that the authors did not use a large variety of examples to support their arguments. They usually stuck to the same companies or anecdotes and just applied them to different situations. And don't get me wrong, they worked in each scenario. I just think it would've made the book that much better had they used a larger variety of real life examples.