Ori Brafman
Appearances
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
Hi, Lynn. Good to be here. Thank you.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
Sure. So you think about the metaphor of a starfish and a spider. You take a spider and you cut off its head and obviously the spider dies. But what happens when you cut off the arm of a starfish? It grows one back because unlike the spider, the starfish doesn't have a central brain.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
And you think about that as a metaphor for business and society, organizations that don't necessarily have top-down leadership. Everything from Alcoholics Anonymous to Wikipedia to, unfortunately, Al-Qaeda are organizations that don't have command and control.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
They don't abide by the same rules that traditional organizations do because they're able to capture the power of networks and of decentralization.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
The internet has definitely unleashed this force because it allows people to contribute in ways without needing central coordination. And the second force that has happened is that people can also contribute very little, but in aggregate, the organization grows. So you think, for example, contributors to a Wikipedia page. You don't need to have one expert on a topic.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
You can have a bunch of people who have some knowledge about it all come together.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
You have the power of the crowd and you also have the ability to coordinate either for positive or for negative means. But it enables people to be able to work towards a shared value, a shared goal without the central coordination.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
That's where it gets super interesting. In a way, yes, it might be harder to make a very concrete decision. But in another way, because these organizations don't have central power, they're much more flexible. They're much more able to respond to changes in the environment.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
And what's also interesting about these organizations is that the harder that you fight them, the stronger they become because they become more and more decentralized.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
So you think about our war on terror for the last 20 years plus. And you ask, who's really in charge of these terror organizations? And we've fought them. We've been fighting them. And you take out leaders. And you hear about that in the news once in a while, right? This leader was taken out. This leader was taken out. But what happens to the overall organization?
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
It tends to actually keep on going. And it tends to actually maintain its power. because it doesn't have the centralized power. You think about the ability of a bunch of small investors to come together through Reddit and all of a sudden manipulate the stock price of GameStop.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
And you think about them versus the hedge funds, and how were they able to just, you know, people who are owning a couple hundred dollars worth of stock, how are they able to have such incredible power to manipulate the price versus a traditional bank, a traditional hedge fund? It's because you have a whole lot of folks, you don't know necessarily who's in charge of them,
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
but you have them working on a similar cause, similar ideology and able to enact quite a bit of change in the financial markets.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
The three things that hold them together that are most important are first and foremost, shared values. that you're going to be contributing to this organization, not because someone's telling you, not because of top-down hierarchy, but because you believe in the shared values of the organization.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
The second is instead of CEOs and instead of bosses, top-down bosses, you have what we call catalysts, people who start a network and then get out of the way. And the third element is the power of the circle, that everyone joins as equal partners, that the responsibility is shared amongst all the members, and that the formation is in that circle.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
So one of the super interesting organizations that I've learned about since the book came out, it's called the Home Church Movement. And as the name suggests, rather than meeting inside churches, physical buildings, they meet in people's homes. And once you get, I don't know, beyond, how many people fit in someone's living room? 15 people, 20 people?
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
Once you get beyond that circle, they create another circle, and they create another circle, and they create another circle. And you'd ask, who's in charge of the home church movement? Well, no one's necessarily in charge. Well, how many members do they have? And when I ask this to people, I get, I don't know, maybe they have 1,000 members, 2,000 members.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
The conservative estimate, the conservative estimate is 200 million worldwide. Wow. This is one of the huge religious movements that so many people are not aware of because they don't have the structures, because they don't have the buildings, but they're having power in terms of people.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
When it gets attacked, when a leader is taken out, a new leader would oftentimes take their place because of the structure. And that actually enables the organization to become even more decentralized and even more difficult to control. So I've been doing quite a bit of work with the U.S. military, and they talk about... That the fight on terror is oftentimes a whack-a-mole kind of scenario.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
And the reason for that is that you take down one leader and then a new leader comes, the network becomes more and more resilient as you attack it.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
They constantly mutate. And that's why they're so resilient, because they're able to constantly mutate, because they're able to constantly adapt.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
This is super interesting. So giving these organizations assets actually centralizes them and actually has the ability to actually destroy the organization. So one of the examples we looked at in the book was the Apaches and specifically the Spanish who fought so strongly against first the Aztecs and the Incas. And they had the playbook down.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
They said, hey, give us your leaders, talk to the leaders, kill the leaders, took over the societies and had effective control over the entire South continent. And it's with the winds of victory in their backs that they showed up to the Southwest and encountered the Apache. And they had the same playbook. Show us your leaders and kill them and try to take over the society.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
But the Apaches didn't have centralized power. The leaders were catalysts. They were called non-tons. The phrase you should does not exist in the Apache language. So the moment that the Spanish took out a leader, a new one would just come and replace them. And the Apache became more and more decentralized, more difficult to control.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
And their area of influence actually increased as they fought the Spanish, the Mexicans, eventually the Americans. What did change, however, is when the Americans came and gave the Nantans, the leaders, cows. And now that they had cows to give out within the tribe, all of a sudden the Nantan's power became much more centralized.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
And when it became much more centralized, they also became much easier to control.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
Yes. So a few things would happen, right? One is that the editor would start having a whole lot more power to decide who gets to edit an article, who doesn't, whose voice gets heard. But you also have the interesting contribution question. If you know that one person is earning a lot of money to write articles, would you be willing to spend your free time to write articles as well?
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
And once you lose that economic benefit of the distributed network, you're not able to quite effectively be as agile and gain from the mass amounts of people who want to contribute. So people want to contribute. They want to be engaged. The question is, how did they feel that their contribution was worthwhile?
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
Sure. You have everything from Wikipedia that we talked about, but you also have in finance Bitcoin. And one could argue that Bitcoin is essentially a decentralized ledger. And I remember when Bitcoin came out and I started using it as an example of, hey, look at this thing that is maybe about to have some impact on the world. And people are like, no, this is just a... This is just a trend.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
What would anyone ever use for blockchain? There's no use cases. And it's symbolic of us not seeing the power of these networks until it's too late. We keep on dismissing them because they don't have central power, because they don't have the institutions, the hierarchies. And by the time we recognize their power, they're huge.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
The future is definitely decentralized. And the potential is that it's a more economically efficient way of organizing people around a shared cause. And I like to say that if you're in any industry and you don't know who your decentralized opponent is, you're like the poker player who doesn't know who the weakest player is in the table.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
You need to know, regardless of the industry, even if it's a traditional industry, even if you've had historical dominance in that industry, you need to know that decentralization is coming and that it is going to be affecting the industry.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
Leaderless organizations are becoming incredibly powerful and they're out to eat our lunch, regardless of whether you're in finance, whether you're in construction, whether you're in technology. Decentralization is the future and we're marching to it in an incredibly fast space.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
Our natural reaction is to ask, who's in charge? What happens when there's no one in charge, when there's no hierarchy? You'd think there would be disorder, even chaos. But in many arenas, a lack of traditional leadership is giving rise to powerful groups that are turning industry and society upside down. In short, this is a revolution ranging all around us.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
So I'm in education and I've started looking about how decentralization is going to be affecting education. And I think this is where it gets really interesting is I think that the future is not only going to be decentralized, we're going to be learning much more from each other.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
But we are starting to look at how the future is going to be in a virtual space, in either the metaverse or in virtual reality. And training is going to look much more decentralized into the future. So you think about industries where lives are on the matter, whether it's defense, medicine, aviation, the trainings are incredibly lifelike and you learn from each other.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
You think about a pilot coming on the cockpit and saying, hey, ladies and gentlemen, good news. I've never been inside a cockpit, but I've read every book there is to read about aviation. Would you stay on that plane? But when it comes to business education, what do we do? We give people case studies. We... give them some books, but we don't actually put them inside situations.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
And I think that that is where the future is heading in terms of gamified multiplayer environments that replicate leadership challenges.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
The first takeaway is to look at organizations through a network model. And you look at the specific nodes of the network and how they contribute. The second takeaway is as you think about each node and as you think about your own performance within that network, how do you focus on internal locus of control? That is, what can you do to affect
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
the actions of your life, as opposed to what is happening to you and how do you feel most empowered. And the question is also, how do you get people around you in your network to feel most empowered? And the third element is that the future of organizations and of interacting with each other in a training environment is going to be in a virtual environment that is gamified, that is multiplayer.
3 Takeaways
The Power of Leaderless Organizations: How Decentralized Groups are Changing the World (#238)
Thank you, Lynn. It's been a pleasure.