#DefragCon 2013 Notes: Industrial Entropy and the Future of Work – Chris DeVore, Founders Co-op

Industrial Entropy and the Future of Work – Chris DeVore, Founders Co-op

  • Ronald Coase – “The Nature of the Firm” paper – why companies exist
  • Firms gathered people around knowledge and tools that were often too expensive for an individual to purchase
  • Digitization moved work outside the firm
  • Now tools can be purchased to solve problems individually
  • Rule #1: Capital seeks dominance
    • VC Firms are designed for these kinds of firms – they try to dominate the majority of a market
  • Rule #2: Achieving dominance is “planful”
    • Executing through the rapidly changing technology and markets is difficult and requires persistence
  • Rule #3: Dominance has become fragile
    • Microsoft used to dominate, but is no longer feared like it was
  • Agility at scale = Dominance
    • A capability, not a state of being – mindset, values, leadership
    • A good example is Jeff Bezos moving the entire organization to an SOA/API-centered approach with small teams that can execute
  • Use the rate of technology + cultural change as a strategic weapon against the incumbency
  • The education system needs to skill people to handle the new, flat economy where there isn’t a natural promotion within a firm

Chris’ full blog post also available with more details