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2016 | OriginalPaper | Chapter

9. The Silicon Valley Model

Authors : Annika Steiber, Sverker Alänge

Published in: The Silicon Valley Model

Publisher: Springer International Publishing

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Abstract

This chapter presents a complete synthesis of a new management model for today’s rapidly changing business environments. The synthesis draws on all preceding chapters of the book along with research by eminent business scholars. This new model—called the Silicon Valley Model because it has been realized most fully by leading companies in the Valley—is shown to be a highly developed form of the “Adhocracy” approach that was first identified decades ago. The chapter gives a conceptual description of the new model, with graphic illustration. It then compares this new model to a traditional bureaucratic model of big-firm management, showing how the two differ in key respects. Finally, the Silicon Valley Model is shown to be congruent with the “six basic principles” for managing change that were described earlier in the book: the model supports these principles, plus other elements as well.

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Footnotes
1
Mintzberg (1980).
 
2
Bennis and Slater (1968), pp. 53–77.
 
3
Mintzberg (1989).
 
4
Travica (1999).
 
5
Ibid.
 
6
Mintzberg (1980).
 
7
Former Intel CEO Andy Grove wrote a book called Only the Paranoid Survive (Grove 1996). This motto of his emphasizes the responsibility of a leader to be on watch constantly for technological changes and competitors’ actions—especially at strategic inflections points that may signal either new opportunities, or the beginning of the end if left unattended.
 
8
A quote from one of our interviewees at Google in 2010.
 
9
Google is forced to maniacally control costs because it has learned that “anything that scales with demand is a disaster if you are not cheap about it”…As a service grows more popular, its costs must grow in a “sub-linear” fashion…Another technique Google employs is to automate everything possible: “We’re doing too much of the machines’ work for them.” All quotes are from Jackson (2013).
 
10
Gabbard (2012).
 
11
Wadee (2013).
 
12
Mintzberg (1980).
 
13
However, the top leadership in several of our cases divides the responsibility for an internal efficiency-oriented focus and an external, more future-oriented focus between different individuals.
 
14
Mintzberg (1980).
 
15
Schmidt and Rosenberg (2014).
 
Literature
go back to reference Bennis, W., & Slater, P. (1968). The temporary society. New York: Harper & Row. Bennis, W., & Slater, P. (1968). The temporary society. New York: Harper & Row.
go back to reference Grove, A. S. (1996). Only the paranoid survive: How to exploit the crisis points that challenge every company and career. New York: Currency Doubleday. Grove, A. S. (1996). Only the paranoid survive: How to exploit the crisis points that challenge every company and career. New York: Currency Doubleday.
go back to reference Mintzberg, H. (1980). Structure in 5’s: A synthesis of the research on organization design. Management Science, 26(3), 322–341.CrossRef Mintzberg, H. (1980). Structure in 5’s: A synthesis of the research on organization design. Management Science, 26(3), 322–341.CrossRef
go back to reference Mintzberg, H. (1989). Mintzberg on management: Inside our strange world of organizations. New York: Free Press. Mintzberg, H. (1989). Mintzberg on management: Inside our strange world of organizations. New York: Free Press.
go back to reference Schmidt, E., & Rosenberg, J. (2014). How google works. New York: Grand Central Publishing. Schmidt, E., & Rosenberg, J. (2014). How google works. New York: Grand Central Publishing.
go back to reference Toffler, A. (1970). Future shock. New York: Bantam. Toffler, A. (1970). Future shock. New York: Bantam.
go back to reference Travica, B. (1999). New organizational designs: Information aspects. Stamford: Ablex Publishing Corp. Travica, B. (1999). New organizational designs: Information aspects. Stamford: Ablex Publishing Corp.
Metadata
Title
The Silicon Valley Model
Authors
Annika Steiber
Sverker Alänge
Copyright Year
2016
DOI
https://doi.org/10.1007/978-3-319-24921-6_9