Tag Archives: change

Inside Look at Culture of WordPress

Inside Look at Culture of WordPressInterview with Scott Berkun

I had the opportunity to sit down recently with fellow author Scott Berkun to talk with him about his new book The Year Without Pants, which catalogs his experience in two years with Automattic, the company that runs WordPress.com.

Our conversation touched on many different topics including innovation, collaboration, and organizational behavior.

For those of you who haven’t read the book or who aren’t familiar with how Automattic runs as an organization, here are some of the highlights:

  • All of the staff used to report to Matt Mullenweg, the 29-year-old creator of WordPress and founder of Automattic
  • When they passed 50 or so employees, about the time Scott Berkun joined, they introduced team leads
  • Organizational changes happen organically in the company, primarily when the pain gets great enough to force change
  • Automattic now has about 200 employees
  • Email is not the company communications standard – instead they use IRC and Skype and WordPress
  • Employees can work wherever they want
  • They have a company headquarters in San Francisco, but very few people work there
  • All employees get together in person annually and teams get together maybe twice in person to recharge intangibles
  • Hiring decisions are made not with traditional in-person interviews, but instead primarily by evaluating test projects
  • All new employees spend a couple of weeks working in support before occupying their intended role

Scott during his two years at Automattic led the Social team for WordPress.com and one of the things that he focused on while he was there, and that the book focuses on, is experimentation. One of the things that was fascinating in his detailing of his experience was that there was little resistance in his team to all of the experimentation that they engaged in. His theory was that they were ‘makers’ (he led a team of developers) and so they didn’t feel that there was a need to justify their existence. We spoke a great deal about why the culture at Automattic might be so accepting of experimentation, where other organizations are not, and this led to a discussion of some of my theories about the effects of scarcity and lack of firm growth, and we arrived at some of Scott’s comments that focused on the fact that there is too much fear in most organization and most managers don’t invest much time or effort in actually managing. Most managers don’t work to impact the feelings or environment for employees in companies that aren’t growing and/or where job opportunities are scarce. We then dug more into the culture topic.

Changing Culture is Painful

When it comes to culture change, there are a lot of consultants out there that would have you believe that they can come in an change your culture in 30-90 days, and while this might be possible it wouldn’t come without a great deal more pain than most organizations would be willing to bear. The reason a great deal of pain is required to affect culture change is the fact that an organization’s culture is typically determined by:

  1. The organizations cultural history and inertia
  2. The prevalent culture comes from the things that the largest number of people reinforce

So, in most cases changing the culture will require you to stop reinforcing behaviors that are reinforcing the current culture and start reinforcing behaviors that will lead you in the direction of the culture change you desire. What will this mean for the organization? Half the organization might leave! Are you ready for that? Many people who felt comfortable in the old culture, or that derived their power source from their old behaviors will need to be asked to leave the organization, or hopefully, will leave by their own efforts. Add into this potential chaos the fact that in most organizations the culture problem is often being created by the person asking for the culture change consulting, and how many consultants will reveal and stand behind this fact if it occurs?

One of the ways to ensure a healthy culture is constant experimentation driven by experiments that are instrumented for learning and dedicated to its pursuit. If an organization commits itself to a continuous practice of testing and learning within its management practices, in the same way that it hopefully dedicates itself to testing and learning with its products and services, then it has a much greater chance of maintaining a healthy, productive cultural environment. On the flip side, the way that we promote people in most organizations undermines the existence of a healthy, functional culture and so we need to rethink promotion. We need to ensure amongst other things that people with technical proficiency have a career path towards greater compensation that doesn’t have to include management responsibilities for those that don’t embrace the challenge and willingness to experiment in their management approaches. One of the reasons that Automattic’s culture is so strong, is because it was built to be entrepreneurial, collegial, and collaborative, and people are trusted to do what they do well (in their own way).

Of course I had to ask if people had left Automattic, and yes they have. In most cases the left to join other startups, and Scott believes that Automattic will probably stay in their minds one of the best places they worked.

Pressures From Outside

Another topic we touched on in our interview was whether or not Automattic felt pressure to make money faster after taking some VC rounds, but Scott said that while Automattic took some investment from VC’s, it was already profitable at the time and didn’t need the money but took the financing to gain other benefits and wasn’t under undue outside influence. As a result, Matt was able to purposely not assign a team or an individual to focus on growing revenue every quarter. he wanted to be careful not to turn up the monetization dial too fast because in doing so you often make bad decisions by doing so (product, etc.). There was no Store team when Scott joined, but there is now. Matt and team are very careful to maintain a long-term focus and they could easily monetize the 8th most popular web site more than they are (that’s a valuable asset), but are being careful in how they go about it.

Another thing I asked about was the impact on WordPress.com of things like Tumblr and Instagram and others, and Scott said that despite a lot of other companies and supposed competitors that have come along that have been hypothesized to supplant WordPress, they’ve never been super concerned. The reason?

WordPress itself is very flexible and so people are able to easily create themes that replicate the look and feel of a lot of the supposed competitors. The large WordPress community will build Tumblr like themes, etc. And the company itself is very resilient, and so when something new comes out, people will have a look at it and will either incorporate some of what they learn from it or ignore it if there doesn’t seem to be anything there. And, another point on the Automattic culture, if someone were to say “someone should…” in relation to something they see outside, then typically that person becomes the person to take it on.

There is a lot more I think we can learn from the Automattic experiment, and I may talk to Scott again to explore some of the learnings in the second half of the book, but wanted to rush these thoughts and nuggets from the conversation out to you. I hope they have been good for thought and you’ll think more if you’re a manager about what experiments you might run to see if you can make your group function even better.

Final Thoughts

Team size and how the organization grows up around its founder make a huge difference in how the culture evolves and reacts to its environment, and in Automattic Scott’s team was four when he started and nine when he left. The Theme team had 15 people on it, and the Happiness team (aka customer support) was the largest team at 25 people. One thing that happened along the way was when Scott’s Social team reached eight people it sort of naturally started to evolve into two separate sub-teams, which they called squads. Squad leadership was informal. There were no raises or title changes, and the squad leaders had naturally earned the most authority. They actually tried rotating leadership, but the results were mixed at best.

Another thing I asked Scott Berkun about team size was whether he thought the loose oversight and team structure would scale well as Automattic grows. He feels that it if they were to grow from say 200 to 1,000 employees they would probably insert another layer of management and break into groups of 100-150 people centered around product unit owners with teams underneath. This reinforces the thinking that they have at WL Gore, where they consciously spawn a new organization when it passes 60-70 people if my memory serves me correctly.


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Innovation Quotes of the Day – June 5, 2012


“Creativity, as has been said, consists largely of rearranging what we know in order to find out what we do not know. Hence, to think creatively, we must be able to look afresh at what we normally take for granted.”

– George Kneller


“However, the large changes generated by disruptive innovation, often come from the imagination, and so these leaps forward for the business often disrupt not only the market but the internal workings of the organization as well – they also require a lot of explanation.”

– Braden Kelley


“Creativity can solve almost any problem. The creative act, the defeat of habit by originality, overcomes everything.”

– George Lois


What are some of your favorite innovation quotes?

Add one or more to the comments, listing the quote and who said it, and I’ll share the best of the submissions as future innovation quotes of the day!

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Managing Innovation is about Managing Change

Managing Innovation is about Managing ChangeInnovation is about change. Companies that successfully innovate in a repeatable fashion have one thing in common – they are good at managing change. Now, change comes from many sources, but when it comes to innovation, the main sources are incremental innovation and disruptive innovation.

The small changes from incremental innovation often come from the realm of implementation, so the organization, customers, and other stakeholders can generally adapt. However, the large changes generated by disruptive innovation, often come from the imagination, and so these leaps forward for the business often disrupt not only the market but the internal workings of the organization as well – they also require a lot of explanation.

The change injected into organizations by innovation ebbs and flows across the whole organization’s ecosystem:

Innovation is Change

Let’s explore the change categories visualized in this framework using the Apple iPod as an example:

Changes for customers – Any disruptive innovation requires a company to imagine for the customer something they can then imagine for themselves. Go too far past your customers’ ability to imagine how the new product or service solves a real problem in their lives, and your adoption will languish.

  • Customers had to try and imagine Apple as more than a computer hardware manufacturer, and begin to see them as a company to trust for reliable consumer electronics. They also had to imagine what it might mean to download music digitally (without any physical media).

Changes for employees – Disruptive innovations often require employees do things in a new way, and that can be uncomfortable, even if it is only your employees imagining what you are going to ask them to help your customers imagine.

  • Employees had to acquire lots of new knowledge and skills. Apple support employees had to learn to support a different, less-technical customer. Other employees had to learn how to effectively build partnerships in the music industry.

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Changes for suppliers – Innovations that disrupt the status quo may require suppliers to work with you in new ways. Some disruptive innovations may require suppliers to make drastic changes akin to those they had to make to support just-in-time manufacturing.

  • Apple had to work with suppliers to source components at the higher volumes and shorter lead times required for success in consumer electronics. This meant finding some new suppliers who could handle the new volumes and market requirements.

Changes in distribution – Often big innovations disrupt whole distribution channels and this can cause challenges for incumbent organizations (think Compaq and big box retailers versus Dell Direct).

  • Going into consumer electronics meant that Apple had to build relationships with the big box stores including people like Target, Wal-mart, and Costco. They also had to build a completely new distribution system – iTunes – for distributing digital music.

Changes in marketing – New products and services (especially disruptive ones), can require marketing to find and build relationships with completely different types of customers and/or require marketing to speak to customers in a different way or to reach them through different channels.

  • Marketing had to begin moving the brand from computing to lifestyle, including changing the company name from ‘Apple Computer’ to ‘Apple’ in 2007.
  • Marketing also had to learn how to connect with mass market consumers, and help them imagine how this new hardware/software combination would enhance their life – no small task.

Changes in operations – In addition to changes in the supply chain, the organization may have to adapt to disruptive innovations by hiring different types of employees, re-training existing employees, accounting for revenue in a different way, or going about production in a new way.

  • The Apple iPod was an experience sell, which highlighted the fact that Apple didn’t really have a place where they could help customers experience their products. This led to the opening of Apple retail stores. Apple’s finance and operations had to adapt to the change from low volume, high price items to high volume, low price items. Apple also had to build out a resource-intensive online operation that didn’t exist before (lots of IT investment).

Push Pull RelationshipNote that the chart has arrows going in both directions, but not simultaneously. There is a push-pull relationship. At the beginning of the innovation process the satellites influence what the innovation will look like (new production capabilities, new suppliers, ideas from partners/suppliers, component innovations, new marketing methods, etc.). But as the innovation goes into final commercialization, the direction of the change becomes outwardly focused.

You can see that as an organization is imagining how to take their creative idea and transform it into a valuable innovation in the marketplace, they also should be imagining all of the changes that are going to be required and how they will implement them. This is no small feat, but with proper planning, organizational learning, and adaptation over time, any organization can improve its ability to cope with and even anticipate the change necessary to implement its next disruptive innovation.

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Innovation Quotes of the Day – May 21, 2012


“Companies do not fall primarily because of what the world does to them or because of how the world changes around them. They fall first and foremost because of what they do to themselves.”

– Jim Collins


“To innovate continuously, you need to be open to receiving great ideas from anywhere in the company, and must have systems and processes to manage idea gathering, evaluation, and development. Often this requires a financial and personnel investment.”

– Braden Kelley


“Somehow I can’t believe there aren’t many heights that can’t be scaled by one who knows the secret of making dreams come true. This special secret can be summarized in four C’s. They are Curiosity, Confidence, Courage, and Constancy, and the greatest of these is Confidence.”

– Walt Disney


What are some of your favorite innovation quotes?

Add one or more to the comments, listing the quote and who said it, and I’ll share the best of the submissions as future innovation quotes of the day!

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Innovation Quotes of the Day – May 20, 2012


“Change is the law of life and those who only look to the past or the present are certain to miss the future.”

– Irving Janus


“Organizations seeking to create a culture of continuous innovation must realize that the transformation will not happen overnight. People can only absorb so much change at once. The transformation will likely have to be broken up into separate phases with discreet goals (don’t try to do it all at once).”

– Braden Kelley


“Industry revolutionaries take the entire business concept, rather than a product or service, as the starting point for innovation. Revolutionaries recognize that competition is no longer between products or services, it’s between business concepts – when its most effective business concept innovation leaves competitors in a gut-wrenching quandry.”

– Gary Hamel


What are some of your favorite innovation quotes?

Add one or more to the comments, listing the quote and who said it, and I’ll share the best of the submissions as future innovation quotes of the day!

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Creating a Culture of Continuous Innovation

Creating a Culture of Continuous InnovationIn this economic downturn there is more pressure than ever on executives to find new sources of growth, and as a result leaders are increasingly talking about innovation. In some organizations the leader may say “we need to be more innovative” or “we need to think out of the box” and stop there. While for other organizations it may become part of the year’s goals or even the organization’s mission statement. Only in a small number of cases will there be any kind of sustained effort to enhance, or create, a culture of continuous innovation.

By now everyone has probably heard of six sigma and continuous improvement, and maybe your organization has even managed to embed its principles into its culture, but very few organizations have managed to transform their cultures to support innovation in a sustainable way. For most organizations, innovation tends to be something that is left to the R&D department or that is thought of on a project basis. Some organizations create new innovation teams, but it is rare for an organization to invest in transforming their entire culture. There are many reasons for this:

  1. Support from top leadership is required
    • Challenge: Most executive teams are focused on short-term results and transforming organizational culture is a long-term investment of financial and leadership resources.

  2. Clear goals and guidance are needed
    • Challenge: This is a bigger barrier than you might think. Most organizations struggle to understand how to set innovation goals and to provide a vision for employees on how they might get there. Goals to ‘be innovative’ or ‘think outside the box’ are not specific enough to be successful.

  3. Every organization is different
    • Challenge: The starting place, needs and barriers to creating a culture of continuous innovation are different for every organization – making easy implementation of best practices impossible

  4. Most companies lack a shared vocabulary for innovation
    • Challenge: People in different parts of the organization use different terminology, methodologies, frameworks, and have different understandings of what innovation is. The lack of a shared vocabulary prevents organizations from achieving shared success.

  5. Change is painful
    • Challenge: Creating a culture of continuous innovation threatens the power base of a critical few, and disrupts the way people think about their jobs and the organization. Even if change is for the better, people tend to want to avoid change.

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  6. Change needs to be managed
    • Challenge: This means pulling employees off of their day jobs or hiring consultants to commit to the leadership and communications surrounding the change effort. This investment may prove challenging in the current economic climate.

  7. Change takes time
    • Challenge: Organizations seeking to create a culture of continuous innovation must realize that the transformation will not happen overnight. People can only absorb so much change at once. The transformation will likely have to be broken up into separate phases with discreet goals (don’t try to do it all at once).
      • Make sure to stop and share the successes of each phase, and also to identify what you’ve learned that can be implemented in the next phase.

  8. Visualize the outcomes of participation
    • Challenge: Often people withdraw and choose not to participate in organizational transformations because they don’t believe that their participation will positively impact their daily lives. If those who choose to participate don’t see an impact from their early efforts, might choose to disengage as the process continues.
      • You must celebrate participation and highlight the impact of individual contributors throughout the process.

  9. New systems and processes may be required
    • Challenge: To innovate continuously, you need to be open to receiving great ideas from anywhere in the company, and must have systems and processes to manage idea gathering, evaluation, and development. Often this requires a financial and personnel investment.

  10. Change efforts require lots of communication and storytelling
    • Challenge: You have to bring the change to life for employees. This requires involvement of employees early and often in the communications surrounding the goals and outcomes of the cultural transformation
      • Create a story that is easy and fun to tell – this will make it easier to cascade the change downwards through the organization

This should give you a better idea of why very few organizations embark upon the difficult work to enhance or create a culture of continuous innovation. It may not be an easy or a short journey, but creating a culture of continuous innovation is the only way to increase your chances of avoiding organizational mortality.

Successfully creating a strong culture of continuous innovation also represents a huge opportunity for an organization to attract the best talent, to lower costs, to continuously add new revenue streams, and to better achieve competitive separation.

Is your organization ready to invest the hard work towards achieving the rewards of a culture of continuous innovation?

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Innovation Quotes of the Day – April 9, 2012


“Even if you’re on the right track, you’ll get run over if you just sit there.”

– Will Rogers


“Invention is driven by ideas while innovation is driven by insights.”

– Braden Kelley


What are some of your favorite innovation quotes?

Add one or more to the comments, listing the quote and who said it, and I’ll share the best of the submissions as future innovation quotes of the day!

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Innovation Quotes of the Day – April 5, 2012


“If you don’t like change you will like irrelevance even less.”

– Former Chief of Staff of the U.S. Army Eric Shinseki


“Innovation is about risk and customers, two things that many organizations try and avoid.”

– Braden Kelley


What are some of your favorite innovation quotes?

Add one or more to the comments, listing the quote and who said it, and I’ll share the best of the submissions as future innovation quotes of the day!

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.