BELLEVUE, Wa. July 8 - Valve's often praised "flat-management" structure may not be as ideal as most suppose, according to recently dismissed hardware division head, Jeri Ellsworth, who explained in a podcast interview with TheGreyArea that "there is actually a hidden layer of powerful management structure in the company." A structure that creates a "high school" like environment.
"There are popular kids that have acquired power, then there's the trouble makers, and then everyone in between. Everyone in between is ok, but the trouble makers are the ones trying to make a difference."
The hardware constructor and deconstructor fell into the "trouble maker" category and was ironically targeted for dismissal because of her gripes towards Valve's hiring and firing process, which is based off of peer review and colleague ratings. Ellsworth wanted to hire new talent, but was denied because "old timers would reject [prospective hires] for not fitting into the culture".
"We had a machine shop with millions of dollars of equipment in it and couldn't hire a machinist for $40,000 a year to manufacture machine parts for it. Because they were worried that bringing in a machinist would hurt their precious culture,” she said.
"I shouldn't say the numbers, but there were very few of us in the hardware department. We were understaffed by about a factor of 100," she added.
Her understaffed team of five were all "canned on the same day", according to Ellsworth.
Although she believes Valve's flat management structure is not functional for a company of Valve's scale, she will be bringing its ideologies to her new company.
"Their structure probably works really well with about 20 people, but breaks down terribly when you get to a company of 300 people. Communication was a problem. That's where management… Well if I had anything to do differently, would be to make sure a layer of management could do communication correctly."
According to Ellsworth, her departure was driven by "just a couple of people", a product of flat management structure.
"If I sound bitter, it's because I am. I am really, really bitter. Because they promised me the world and then stabbed me in the back.
"What I learned from Valve is that I don't think it works. Give people complete latitude with no checks and balances it is human nature that they will minimise the work that they do and increase the control that they have."
Despite some lingering animosity, her views towards Valve still remains affectionate.
"I'm still really friendly with the folks there and the ones I wasn't friends with before we became friends since. My heart goes out to them - it's probably completely different, and they may have got their machinist."
SOURCE: The Grey Area
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