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Former Valve Hardware Designer Recounts Management Difficulties

DavidGilbert99 writes "Jeri Ellsworth has opened up about her time at games developer Valve and has hit out strongly at the so-called flatpack management structure. She says that despite Valve's claims of a democratic structure, there is a layer of powerful management in place and when she was fired she felt like she had been stabbed in the back. 'If I sound bitter, it's because I am. I am really, really bitter. They promised me the world and then stabbed me in the back.'" Develop Online has a good transcript. In the end, Gabe Newell at least let her team keep the rights to their augmented reality hardware. She also notes that she still loves Valve, but the management and bonus structure resulted in communication breakdowns at Valve's size. It does seem that a flat structure can work: Andy Wingo has been weblogging about working at Igalia and seems pretty positive about the experience.

39 of 224 comments (clear)

  1. Flat structures never, ever happen by David+Gerard · · Score: 5, Interesting

    The standard text is The Tyranny Of Structurelessness by Jo Freeman.

    tl;dr: if a visible hierarchy isn't allowed, an invisible one will form and bite you in the ass.

    --
    http://rocknerd.co.uk
    1. Re:Flat structures never, ever happen by Arrepiadd · · Score: 5, Interesting

      I haven't had the time to read the text you post, I'll try to do it later on tonight. So, this may be a bit off, I'm posting this based on your tl;dr.

      W. L. Gore and Associates (the company responsible for Gore-Tex) can be used as a counter-example to what you/Jo say. There are no bosses (everyone is an associate) and people work in small teams. No one bites others in the ass. And the company, while not the biggest in the world or whatever, works fine and people in it seem to be happy.

      One key element seems to be the size of each of its campuses. They limit them to 150 people. More than that and what you mention starts happening. A de facto hierarchy arises and bickering ensues. But below these numbers (and this seems to be corroborated by other sources) people work as in a small community/village and peer pressure keeps everyone working nicely. Above 150 people clustering of people occurs and, while peer pressure still occurs within these groups, the problems still occur in between groups.

      So, perhaps flat structures do happen, but only in small groups because "friends" take care of their friends, but employees don't necessarily take care of other employees (especially when the employee he's supposed to take care of is his nasty boss).

    2. Re:Flat structures never, ever happen by FriendlyLurker · · Score: 5, Insightful

      if a visible hierarchy isn't allowed, an invisible one will form and bite you in the ass.

      ...and it will form around the worst, most manipulative personality types... which also happen to be the worst leaders.

    3. Re:Flat structures never, ever happen by readingaccount · · Score: 4, Insightful

      by Jo Freeman

      Thought that was worth highlighting.

    4. Re:Flat structures never, ever happen by Culture20 · · Score: 3, Insightful

      Valve. Freeman. It's like someone working for ID named "Blazkowicz".

    5. Re: Flat structures never, ever happen by readingaccount · · Score: 5, Funny

      I only played the original Half Life in multiplayer.

      You disgust me.

    6. Re:Flat structures never, ever happen by Trepidity · · Score: 2

      I agree structurelessness is problematic, but there are structures that work which are less hierarchical than traditional boss-and-subordinates tree-styled management structures. A common feature of Scandinavian workplaces, for example, is a set of committees with precisely specified areas of competence. It is relatively non-hierarchical but very structured and transparent: rather than informal cliques taking on different roles, formal committees with procedures take them on. Overall it works pretty well.

    7. Re:Flat structures never, ever happen by ATMAvatar · · Score: 3, Interesting

      That doesn't sound significantly different than traditional hierarchies. Just look at most politicians and CEOs.

      --
      "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety."
    8. Re:Flat structures never, ever happen by JDG1980 · · Score: 5, Interesting

      tl;dr: if a visible hierarchy isn't allowed, an invisible one will form and bite you in the ass.

      Wikipedia is a perfect example of this. Officially, there isn't supposed to be any hierarchy of editors. Administrators are supposed to be "janitors", just doing non-controversial maintenance work, and aren't supposed to have more rights than regular editors on articles. In practice, of course, it doesn't work that way, and there is a very clear hierarchy which usually remains unspoken. What you can get away with on Wikipedia depends a *lot* on whether you're an administrator, how long you've been on the site, whether you are an old friend of Jimbo's, and whether you kiss the right butt on IRC.

    9. Re:Flat structures never, ever happen by nine-times · · Score: 4, Interesting

      One key element seems to be the size of each of its campuses. They limit them to 150 people. More than that and what you mention starts happening. A de facto hierarchy arises and bickering ensues. But below these numbers (and this seems to be corroborated by other sources) people work as in a small community/village and peer pressure keeps everyone working nicely.

      I'm not so sure that's an accurate description of what happens. Under almost all situations, people will develop a de facto hierarchy. It may be fairly fluid and casual, but even among a group of 5 friends, there will usually be some kind of pecking order. Under 150 people, there's the possibility of that de facto hierarchy being managed well without formalized structures. Over 150 people, the social bonds become thin, and factions will form and compete with each other for power.

      I would tend to agree with the analysis, "if a visible hierarchy isn't allowed, an invisible one will form." It's not certain whether it will bite you in the ass. One of the obvious ways it's likely to bite *someone* in the ass is if that person believes that they're setting themselves up to be "in charge" of this non-hierarchical structure, but that person doesn't have the social power and charisma to maintain their position by informal means. That is to say, if you start a company and create a flat structure without formally putting yourself in the position of being "in charge", then you'd better be popular. Otherwise, someone else might decide to take the reigns, and they might get more support in the ensuing power struggle.

    10. Re:Flat structures never, ever happen by gl4ss · · Score: 2

      ...and it will form around the worst, most manipulative personality types... which also happen to be the worst leaders.

      Actually, that's what makes good leaders. Good leaders are able to get a group to do what they want.

      that doesn't define a good leader. that just says that he's good at leading other people to do what he wants, not that he is a good leader for the group.

      --
      world was created 5 seconds before this post as it is.
    11. Re:Flat structures never, ever happen by nanoflower · · Score: 2

      Limiting the size of the company is certainly going to help, but I see another problem with the way Valve was setup that might not impact W.L.Gore & Associates. According to the article Valve gives out bonuses to specific teams that work on hot projects. That sort of thing is bound to lead to infighting since everyone wants to be on the hot project and participate in the money rain when the project ships.

  2. Re: Politics ruins everything by Anonymous Coward · · Score: 5, Insightful

    When you hear breathless talk about new paradigms in management social structure it's always people grasping at straws attempting to pin the tail on the contributory factors to their synergy. Good shit comes from selfless people, and selfless people attract parasites and tempt honest people in to taking advantage of the situation when their feelings get hurt.

    Frosty Piss for everyone.

  3. Not much of a sample size. by crioca · · Score: 5, Insightful

    If all it takes is for one laid-off ex employee criticizing the management structure for it to be deemed not to have worked, then there's no such thing as a workable management structure.

    1. Re:Not much of a sample size. by Anonymous Coward · · Score: 5, Insightful

      She got paid, got to do what she wanted, didn't get enough resources because the rest didn't believe in it and she couldn't convince them, then she and team got sacked but got to keep the stuff and continue with it.

      Doesn't sound that terrible to me. What other company would have paid her and let her do that?

      Maybe the sacking bit and run-up to it was done badly. But in most other companies you wouldn't even be able to do that project in the first place, much less keep the rights after you got fired.

    2. Re:Not much of a sample size. by jones_supa · · Score: 2

      Jeri Ellsworth is quite well known in the hardware hacking scene. Check out her Wikipedia page for starters. She has quite interesting stuff up in YouTube, too.

    3. Re:Not much of a sample size. by Psychotria · · Score: 3, Insightful

      And the Wikipedia page you link to clarifies that this "cry baby", "I'm a victim!" attitude of hers is not new. Apparently she didn't fit into formal education, either, because "questioning professors' answers was frowned upon". Now it's happened again. It's "their fault! Nothing to do with me at all." Give me a break. She should just grow up and accept that she's not as special as she thinks she is.

    4. Re:Not much of a sample size. by epiphani · · Score: 5, Insightful

      I actually thought this through... my first reaction was wow, that sucks. Maybe Valve isn't the utopia that people think it is.

      Then I stepped back and remembered what I've heard about Valve. You make your own decisions - and you're accountable for them. They said they had a million dollar lab, but couldn't hire anyone to do the machining. But who decided to build that lab? Did they spend a million dollars on equipment then not use it?

      A flat organizational structure doesn't mean there's no politics. It means politics are MORE important - it's harder for some team to simply burn cash, because everyone's eyes are on you. It's hugely increased freedom - but all of the responsibility that comes with it. Assuming that anyone in Valve could decide to go build a million dollar lab, what do you think would happen if it failed to get utilized?

      This is one side of the story from one person. I'm sure there's more to it than the lab, but the lab example shows a basic misunderstanding of the personal responsibility one has in a flat org structure.

      --
      .
    5. Re:Not much of a sample size. by Ash+Vince · · Score: 5, Insightful

      And the Wikipedia page you link to clarifies that this "cry baby", "I'm a victim!" attitude of hers is not new. Apparently she didn't fit into formal education, either, because "questioning professors' answers was frowned upon". Now it's happened again. It's "their fault! Nothing to do with me at all." Give me a break. She should just grow up and accept that she's not as special as she thinks she is.

      Actually she might be very special, but that is utterly irrelevant when you work as part of a team.

      It sounds like she was easily able to drive her own team, and manage those beneath her. But those are the easy part of management, the hard bit is called managing up (In this case it is probably more like managing across).

      What she needed to do was go round every different person in the company she could and get their buy in and input into what her project should do and most importantly why it was a good idea. This probably seemed very strange to her as the boss had given her a task and she wanted to do it. She was probably expected to recruit other people from within the company who liked her idea to spend a bit of time on it. This is why they kept her department under resourced. That means long hours learning what everyone else does, forcing yourself into the existing social scene within the company, talking to people to find people who might be able to help you even though they are not strictly part of your team.

      It sounds what she actually tried to do was hire a microcosm to work for her and just drop in a hierarchical department within a company that has no hierarchy. That was obviously never going to work and the company was never going to allow it to flourish.

      It seems like her biggest problem is that the masses at Valve simply did not get behind her idea, that is why she was allowed to keep her product as they did not hold it in high enough esteem. Maybe they were right, maybe she was, only time will tell.

      --
      I dont read /. to RTFA, I read /. to offend people in ignorance.
    6. Re:Not much of a sample size. by Xest · · Score: 2

      To be fair I'm not sure that argument works, I imagine some unis do have a culture of "untouchable" professors such that if you are the questioning type it's not worth even bothering to continue your education there.

      I never got on at school or college (that's 16 - 18 college, not university) in the UK in IT/Computing because I was already at a level well ahead of what the teachers could teach me and really it was a waste of time me even bothering with those subjects because yes the teacher in college at least would find excuses to give me low grades for seemingly no other reason than a feeling of malice that a pupil 30 years younger than him was already working at a higher level than him. My teacher in school at least recognised that what he was teaching was boring to me and said explicitly at parents evenings and so forth to my parents that I wasn't getting anything out of the national curriculum on the topic for this reason - he was much nicer.

      But fundamentally I might as well have dropped out of college at least because the teacher was a dick who just wouldn't listen. For example, he let me do my final project in C but he only knew Pascal and when I explained to him why my code was correct he wouldn't have it, not because he was right, but because he didn't know C and didn't understand why it was correct.

      I ended up doing my first degree in maths in large part because after that experience at college I knew at least I had a lot to learn in maths so would not get on the wrong side of the teachers by questioning them but it was hit and miss such that I was tempted not to go to uni at all and could just as well have ended up with the same opinion as her as a result.

      But anyway, I digress, as for her time at Valve, I don't think it's the same thing - she was fired from Valve, it's not like she quit and given that it sounds like she didn't do anything wrong, Valve just one minute decided they wanted her project and the next decided they didn't, I think she's probably quite deserving of feeling a bit bitter about that. It does sound of a bit of a case of one half of the company not knowing what the other is doing with her being a victim of nothing more than a slight tip in the balance of power within the company.

      Anyway, I don't think two very loosely related incidents many years apart and with very different circumstances are particularly evidence of someone being a "cry baby" else frankly that description can similarly be attached to just about every single poster on Slashdot and likely every employee Valve has ever had to boot. I think very few people have never quit anything and never been bitter about something.

    7. Re:Not much of a sample size. by UnknownSoldier · · Score: 3, Interesting

      > It's not like Valve doesn't have a release cycle that's about 5 times as long as that of other studios and whilst their games are good they're not any better than those of many others to justify the absurdly long development times.

      Valve, Blizzard, etc have already explained their thought process ...

      * If a good game is shipped late no one will remember it was late.
      * If a bad game ships on time no one will remember it was on time.

      You gotta love these self proclaimed armchair "experts" complaining about Company X to make Product Y because obviously these "experts" have mastered the process of game development and how hard it is to a) ship something b) good.

      --
      In ~ 10 years Humans will finally be allowed to know first hand that they are not alone

  4. Re:Anonymous Coward by fastest+fascist · · Score: 5, Funny

    "Stopped thinking at birth", you mean.

  5. C64 DTV designer by Neo-Rio-101 · · Score: 4, Informative

    I assume this is the same Jeri Ellisworth that designed the Commodore 64 Direct to TV unit?

    --
    READY.
    PRINT ""+-0
    1. Re:C64 DTV designer by hamster_nz · · Score: 5, Interesting

      I assume this is the same Jeri Ellisworth that designed the Commodore 64 Direct to TV unit?

      Yes, uber-hacker-maker. Has a collection of self-restored electron microscopes.

      Much smarter & more creative than your average person.

    2. Re:C64 DTV designer by wbr1 · · Score: 2
      --
      Silence is a state of mime.
    3. Re:C64 DTV designer by Anonymous Coward · · Score: 2, Interesting

      No, it's the same Jeri that made a half-working prototype typical of a college project, completed and manufactured by a German dude, who passed things back to her as salesperson. She's spent the next 9 years selling herself as more capable than she is, then whining when people get fed up with her.

      Sophie Wilson she ain't.

  6. Re:Yes by mellyra · · Score: 5, Insightful

    Maybe this is not news to you but as far as I can recall the overwhelming reaction after the Valve Handbook became public was unreflected admiration for the structure-less utopia described therein, not "Wait, maybe the lack of official structure means that the actual structure does not cease to exist but only becomes less visible to newcomers and maybe that is not a good thing." If you read the interview transcript you will see that she is in retrospect quite harsh with herself for having drunk the cool-aid and being sorely disappointed as a result. Of course she could have known better from the beginning but she didn't, just as the vast majority of slashdot commenters apparently didn't after they read the Valve handbook for the first time.

    The actually existing elites may have a strong interest in perpetuating the "structureless" myth as their current informal influence may be much larger than what they could reasonably expect as part of any officially acknowledged social structure. So they take recruits that are already attracted by the company's utopian visions, indoctrinate them further to protect their own influence and when at some point the brighter amongst the employees realize the cognitive dissonance between what everyone says and what actually happens and start to lash out in disappointment they get fired to protect the company cult(ure).

  7. Re:Yes by Anonymous Coward · · Score: 2, Informative

    Ironically your last sentence describes Microsoft over the last decade (ex-emp here). Bureaucratic management nightmare, less-than-zero vision at the top, subpar product execution/innovation, etc. yet constant promises of pink ponies to the grunts, i.e. the way it used it be in the mid-90's. Ironic because they are the exact opposite of the "structureless" environment yet the concept is right on the mark as they continue to slide into the tech heap of oblivion.

  8. Re:Sadly by jones_supa · · Score: 5, Informative

    Everytime i read "Valve" my thoughts pavlovianly go to HL3. Still not a single word about it?

    Lately someone got snooping into Valve's Jira and some conclusions made were that HL3 was either inactive or in developmental infancy. L4D3 was advancing nicely and the Source 2 engine had huge development resources behind it.

    But who knows.

  9. Hippy communes. by ocamsrazor · · Score: 2

    I remember an Adam Curtis documentary that basically described those old 60s communes the same way. Communes were set up as completely power free institutions, places were no one would have power over anyone else and all important decisions could be made communally.

    But of course power did exist, it was just being hidden. Someone owned the land, someone had some important income maybe someone was just too damn charismatic. And so because the power was hidden, it was never confronted or addressed. There were no checks or balances or mechanisms of redress. What was supposed to be a democratic paradise became worse than the institutions it was supposed to replace. And the people who really were in charge just ran roughshod over everyone.

  10. Valve's Management System is NOT successful by Anonymous Coward · · Score: 4, Insightful

    If you look at "income", Valve is successful. Very, indeed. But money is not the only metric. It all tells us Valve got lucky developing two games aaages ago and the being the first to set up a working Digital Distribution System. That they combined it with their second (and last!) successful game was a masterstroke, but only pure luck.
    Had Half-Life 2 not been such a success (say a title in the 80s/100), Steam would not have been taken off like it did.

    If you use the metric "releases successful products" for success, Valve is working mediocre at best.

    They shovelled in a lot of cash with Half-Life and Half-Life 2 until Steam was running with full steam ahead... and that digital distribution platform is carrying them since then. After the initial phase it was a self-sustaining thing that you just need to maintain without screwing up too much. That is basically what Vale has been doing since Half-Life 2 and I ask you: What other successful projects do they have to show that we can use as proof for their successful system? You say "not much" and I agree.

    Valve seems to me very similar to 3DRealms. Both had a major success which gave them money and on that they kept running. Load words once in a while, punching their own chests how successful they are, both claim(ed) to offer a "free and creative" environment without "administrative overhead!!!1" - but both totally lack in coming up with more or better products than companies with "classical" structures. In fact, those classical structures are much more successful at chewing out successful and often high quality products.
    The difference is that Valve has Steam, a product that keeps generating revenue with Other People's Successful Games if you manage to maintain it (which is no problem with the money Valve has, it is not really requireing a lot of insight or creativity), so they can afford to be totally incompetent at creating own games (which they are).

    All Valve achieved lies in the past. And with "past" we need are quickly approaching "a decade and since then the existing stuff just has been maintained".

    They have as truly notable things
    Half Life (1998) + AddOns (1999, 2001)
    Half Life 2 (2004) + Nice AddOns that basically are TechDemos for the Engine
    Portal 2 (see below)

    That is it.
    Portal and Left4Dead they bought in (good call, but more a Publisher-Decision than actual a Develeopment-Success). Buying the right stuff requires money and one or three managers who make the right call, it's no sign your Development Hierarchy works.

    1. Re:Valve's Management System is NOT successful by hibiki_r · · Score: 2

      There's this game called Team Fortress 2, that has sold more than the Half Life series.
      Also, I'd not say that they bought portal and left 4 dead. They mostly bought the talent. Yes, that's how valve works: A whole lot of senior hires, very few entry level hires. Experienced hires tend to bring their game ideas with them. Just look at the hiring of IceFrog: Here, see a tech demo of your warcraft mod, made by our own developers. How about you make the game stand alone, and stop having to muck around with the limitations of WC3, which was never built around your game in the first place?

    2. Re:Valve's Management System is NOT successful by crashcy · · Score: 2

      I feel like you are measuring success by very strict terms of achieving what you want them to achieve. Yes, we'd all like to see HL3, but you're being rather flippant about the success of Portal 1 and 2, Left4Dead and L4D2, as well as Team Fortress, DOTA2, and Steam as more than just a digital distribution service. I've been on Steam since HL2, so I've watched it develop from something I hated and merely endured in order to play HL2 to something that I have on all the time. Aside from my games library, it is my main form of social media and where I get 90% of my gaming news. Greenlight, Early Access, and Big Picture are all new developments that have great potential.
      If you're defining Valve strictly as a Half-Life sequel developer, I agree, they have failed in recent years. But that's a pretty narrow view of what goes on there.

  11. Re:She's done this before by Nyder · · Score: 2

    I don't mean to divert attention away from Valve's management structure and handbook, but... well...

    [...] assembling and selling computers. When she and her partner later had a disagreement, Ellsworth opened a separate business in competition.

    [...] she moved to Walla Walla, Washington and attended Walla Walla College, studying circuit design for about a year. She dropped out due to a "cultural mismatch"; Ellsworth said that questioning professors' answers was frowned upon.

    Seems like it's always someone else's fault and never hers. The world is persecuting her!

    tbh, Walla Walla really sucks as a town. I couldn't imagine the college being any better. I figured all they did was trained people for the Walla Walla State Prison.

    --
    Be seeing you...
  12. Re:Attempted communism, obviously failed. by Sponge+Bath · · Score: 4, Funny

    Are you and APK /.'s only regular kooks?

    /. has a rich and varied collection of kooks, grown organically from the fertile ground of the internet. Your attention is fertilizer.

  13. Re: Politics ruins everything by nine-times · · Score: 2

    When you hear breathless talk about new paradigms in management social structure it's always people grasping at straws attempting to pin the tail on the contributory factors to their synergy. Good shit comes from selfless people...

    I kind of agree. I think part of the problem is that people are searching for a magical formula. Bad managers like to think in terms of, "If I just do [x], then every one will work hard, there will be no conflicts, and I will get rich." They just want to know what "x" is. The problem is, "x" actually includes all of the following (plus more):

    • make good decisions
    • adapt to the situation as it changes
    • surround yourself with good people
    • be good at reading people and motivating people
    • do a good job
    • be lucky

    Sorry. There's no magic.

  14. Re:She's done this before by Rockoon · · Score: 4, Insightful

    [...] assembling and selling computers. When she and her partner later had a disagreement, Ellsworth opened a separate business in competition.

    I have notice how you have failed to quote the part about how that separate competing business that she started turned out to be quite successful. So it was her partners fault, after all.

    [...] she moved to Walla Walla, Washington and attended Walla Walla College, studying circuit design for about a year. She dropped out due to a "cultural mismatch"; Ellsworth said that questioning professors' answers was frowned upon.

    I have noticed how you have failed to quote the part about her being a success prior to attending this college, or how much bigger of a success she became after leaving college.

    This is a girl that forges ahead to success, not a failure like you claim. Starting to think that you are that original business partner. A person that completely missed the boat, and it was your own fault.

    --
    "His name was James Damore."
  15. Re:Spent $x million on what? by csumpi · · Score: 2

    25 person team. $100k per person salary, just to keep it on the cheap side. Salary, per year is $2.5million, plus 25-40% benefits.

    Add to that material and equipment cost.

    Add to that rent, electricity, toilet paper.

    This project, per year, $5 million sinkhole, easily.

  16. Very, very true by Sycraft-fu · · Score: 2

    These days, Valve,s money comes from Steam. Their profits on that are stupid, like tens of millions per employee. Basically they just get to sit back and sell other people's stuff, and take a nice cut (30ish percent). As anyone who's ever had trouble with something will tell you, they have a minimal support staff, there's no phone number to call or anything, and responses take forever. Also when you really look at Steam it isn't that great. It isn't bad, but it is not some masterpiece of software engineering. Rather it was the first DD service to do a reasonable job, and thus it is what everyone started using and is in a nice positive feedback loop. Gamers buy on it because it has all the game and publishers sell on it because it has all the gamers.

    Those massive profits let them do whatever the fuck they want in the rest of the company. They can goof off as much as they like, spend as much time as they like, release every game for free if they like, Steam makes WAY more money than they need.

    That is also why Valve is so worried about the MS store in Windows. Supposing MS does a competent job of it (which at this point seems very unlikely), it could take away their golden goose. If people decided to start buying from the Windows store instead, because it came with the system and was integrated (like the Play Store on Android or the like) they could see their sales market evaporate and that would leave them in a rather uncomfortable situation. Hence the look at expanding Steam to other platforms, and the Steambox. They didn't just suddenly decide this was a good idea, they decided it when it looked like there might be a threat to Steam. Now given the utter hash MS is making of things, I don't think they need to worry, but that is the reason.

    Also going back to the start of Steam, again you are correct. People seem to forget that Steam was hated, maligned, when it came out. The reason people used it was because they wanted to play Halflife 2, and that required Steam. They weren't pleased with it, but they wanted HL2. In that way, Valve got Steam to a large market. From there they worked on improving it, offering more games, etc, etc until eventually it is the juggernaut we see today.