Drucker and the future of free agency…

So, Anne and I continued the dialogue from the other day regarding Peter Drucker and paradigm shifts. While we’re not 100% aligned, one of the key points where we agree is that what defines an organization now is changing. Companies are (very, very slowly) shifting away from the last-century, hierarchical model of Drucker’s day, moving towards more transient and transparent arrangements among employers and employees. The future model that makes the most sense to me – and which definitely would represent a paradigm shift for most businesses – actually isn’t new, at least in one industry. Davidow and Malone talk about it in "The Virtual Corporation" from 1992(!), as does Tom Peters in the excellent "The Circle of Innovation". It’s the film industry. Many film “companies” leverage the talents of free agents who come together only for the time it takes to complete their production, after which most move on to their next project. The “group-based, collaborative, wisdom-of-crowds” approach Anne points out definitely seems to require these fluid connections, where each member belongs to the “organization” only as long as necessary. This “free agent nation” definitely doesn’t mirror where most folks work today, but it certainly seems to signal where we’re going.

As an alternative approach, Eric Raymond in “Hacking the Noosphere” and "The Cathedral and the Bazaar" (also freely available here) discusses how some free agents truly are free. Enhanced reputation represents their only compensation. Now this “free-conomics” approach may have real, long-term economic benefits for its participants (i.e., better work based on that reputation), but, at its core, it provides a true alternative to the more common arrangements. The success of many open-source initiatives certainly demonstrates both the value of this approach and a true paradigm shift. That said, I still tend to prefer the paradigm where I get paid.