The Starfish & the Spider Principles of Decentralization
"The Starfish and the Spider: The Unstoppable Power of Leaderless Organizations" is a leading business book about organizational theory, written by Ori Brafman and Rod Beckstrom. The book proposes eight principles of decentralization using a starfish and a spider as examples of different types of organizations.
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Decentralized Organization Under Attack
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The starfish represents a decentralized organization that lacks traditional leadership, with decision-making not confined to a few top executives but spread throughout the ranks of the organization. The spider, on the other hand, represents the hierarchical, military-like command structure found in most modern corporations. The first principle indicates that a decentralized organization will likely become even more decentralized if attacked. As an example, Spanish conquistadors attacked the Apache Indians after landing in the New World. Rather than weakening the Apaches, these attacks made them stronger. When attacked, the Apaches' organizational system became even more decentralized than before, which made conquering them even more difficult for the Spanish.
Mistaken Identity
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A starfish can be easily mistaken for a spider, in that the dormant power existing in a decentralized organization can be easy to overlook. This principle dictates the need for new tools to better understand the workings of a decentralized organization.
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Central Intelligence
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A decentralized --- or open --- system doesn't possess a central intelligence, but uses intelligence spread throughout the organization. In this way, a decentralized system can respond faster than a hierarchical organization. This doesn't necessarily mean this is a better system, only that it can respond more quickly because each member has more direct access to information.
Mutation
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A decentralized system can easily mutate and adapt as necessary. Returning to the example of the Apaches, they could adapt in response to the presence of Spanish invaders by becoming nomadic as opposed to their traditional system of living in villages. The Apaches who became nomads to avoid attack by the Spanish made this decision without gaining permission from a centralized authority.
Sneaky
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Another principle of a decentralized organization is its ability to sneak up on you. An example of this can be seen in the music industry, which a few major corporations that raked in massive profits dominated until technological changes led to an uncontrollable wave of Internet music piracy that changed the industry's business model entirely. The industry did not see this coming, and did not respond rapidly enough to prevent the loss of revenue because of peer-to-peer file sharing.
Decreasing Profits
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Decentralization in a particular industry can lead to an overall decrease of profits within that industry. Continuing the example of the music industry, the four major recording companies have seen their profits drop significantly over the past decade due to piracy. These lost revenues, however, did not go to a competitor or another industry. They simply evaporated after their former customers learned how to obtain for free the music they formerly paid for.
Willingness to Contribute
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Another principle of a decentralized system is that people operating in an open system will feel a desire to contribute. An example of this phenomenon is the Internet website Wikipedia, in which unpaid volunteers create the content --- often just because they can.
Opposite Reaction
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The eighth principle of decentralized organizations is that their response when attacked is the exact opposite of the response from a centralized organization. When a decentralized organization is under attack, it tends to become even more decentralized, as in the example of the Apaches. A centralized organization under attack, on the other hand, will tend to become more centralized, as decision-making rests solely in the organization's upper echelons. An example of this is the U.S. government's response to the 9/11 terrorist attacks, which led to further government centralization.
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References
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