Last week I came across 2 seemingly unrelated essays (one blog post – Understanding the Nature of Self-Organizing Teams by Jim Highsmith and one article – Don’t Underestimate India’s Consumers by John Lee)
The blog post provides a snapshot of the book – The Starfish and Spider: The Unstoppable Power of Leaderless Organizations, by Ori Brafman and Rod Beckstrom. This is how the post starts:
“A spider is an eight-legged arachnid that has a head attached to a central body. Pull a leg off a spider and most can still walk, even if a little lopsided. Cut off the head and the spider dies. Not so the starfish. While many people know that if you cut off a starfish’s leg, it will grow back, most don’t know that a starfish’s major organs are replicated throughout its body. One species, Linckia, can regenerate an entire starfish from each of its severed parts. A starfish is a decentralized network.”
Here is a summary of the book – The Starfish and the Spider: The Unstoppable Power of Leaderless Organizations. It outlines 10 rules for the new world:
- Diseconomies of Scale
- The Network Effect
- The Power of Chaos
- Knowledge at the Edge
- Everyone wants to contribute
- Beware of the Hydra response
- Catalysts Rule
- The Values are the Organization
- Measure, Monitor, Manage
- Flatten or be Flattened
The article compares the centralized, state managed China with decentralized, chaotic India quoting the following interesting statistics:
- Wage and income growth, even for China’s urban residents, hovers at about half the level of GDP growth over the past 15 years
- India can now boast of an overwhelmingly independent middle class about 300 million strong, vs. China’s 100 million to 200 million, depending on the parameters
- The rural half of China is falling behind. Back in the mid-1980s, the mainland’s urban-rural income ratio was 1.8. It now stands at about 3.5
- In India, … urban-rural income gap has steadily declined since the early ’90s
- Rural India now accounts for half the country’s GDP, up from 41% in 1982. World Bank studies show that rural China accounts for only a third of GDP
- Rural China … generates just 15% of China’s growth. Meanwhile, rural India is chipping in about two-thirds of overall growth
Is there any doubt that India is more like a Starfish and China is more like a Spider? In terms of infrastructure and other related development India is about 15 years behind China – but in the new world will the Starfish upstage the Spider?
Here are some more links explaining the Starfish and the Spider (Eswaran: thanks for the references):