Starfish vs Spider: Centralized vs Decentralized Leadership

Introduction: Two Models of Organization

The spider can represent the traditional centralized organization. It is a creature that has eight legs extending from its body and a number of eyes on its head that can see in any direction. If you cut off a spider's head, it will die — similar to an organization with a traditional structure and a centralized leader. A starfish, however, operates quite differently. The starfish represents a more decentralized organization because its body is largely decentralized itself. Instead of having a centralized head, the starfish has a neural network that operates without a centralized command. If you cut off a starfish's leg, it survives just fine — it can even grow a new one.

Both of these models work well in nature as well as in the business world, depending on the circumstances. There are also opportunities to use the strengths of each model in a hybrid form. This analysis discusses some of the advantages and disadvantages of these models, as well as the opportunities to combine various features into a new approach to leadership.

Traditional Leadership and the Spider Model

The traditional leadership model has been challenged by the increasing complexity that has arisen in globalized markets fueled by technological change. One way that companies have responded is to attempt to standardize their business processes in order to reproduce operations through a centralized command. This approach has been aided by technology and advanced ERP systems that can account for complex operations in real time.

There are many factors that can account for successful standardization. For example, one factor affecting a firm's competitiveness in such an arrangement is how well knowledge transfers across international borders within an organization (Tsai, 2001). However, barriers to knowledge transfer are common and include language and cultural differences. Another study found that the absorptive capacity for knowledge transfer is correlated with employees' abilities and willingness to learn (Minbaeva et al., 2003). Therefore, there is also a motivational dimension to standardization that can limit the effectiveness of a centralized command structure.

Much of the spider model appears to operate on exchange values in leadership, or what is known as transactional leadership. Transactional leadership is defined as an exchange relationship between managers and employees who are focused on meeting their own self-interests while fulfilling organizational expectations. It consists of monitoring, controlling, and motivating employees through economic incentives and other forms of exchange (Bass, 1985). One popular form of transactional leadership is management by exception, in which a manager monitors performance and takes corrective action only when a problem is identified. This allows a manager to oversee a large number of employees from a centralized leadership structure.

The Starfish Model and Decentralized Power

The starfish model takes an entirely different approach to leadership. The starfish has no head or single centralized organ responsible for directing the rest of its body. Rather, it consists of a neural network that distributes power equally through a decentralized system. More and more organizations are trying to overcome the challenges of standardization by reversing the trend and localizing leadership. Some have allowed customers to provide input into the leadership process, while others have essentially crowdsourced essential business functions.

Craigslist is commonly cited as a modern example of the starfish form. Founded by Craig Newmark in 1995, Craigslist now operates in 35 countries and more than 175 cities around the world, attracting three billion page views a month. According to Newmark, "The way craigslist runs is that people who use it post, and if they find something inappropriate they flag it for approval. So in a very day-to-day kind of way, the people who use the site run it" (Brafman & Beckstrom, 2007). There is no centralized power structure that monitors user content or dictates behavior. Instead, much of Craigslist's success has come from users making their own decisions and monitoring the system themselves.

Conclusion: Choosing the Right Model

Determining whether a spider or starfish is the appropriate model will be entirely dependent on the situation and the environment. In many cases the spider will be effective, and in others a starfish model could be revolutionary. The important thing to recognize is that the power of the starfish model is becoming increasingly apparent. A manager should therefore continuously scan for opportunities to empower employees — or even customers — to handle more leadership functions themselves. Generally, the person closest to the problem is best positioned to address it. Empowering employees and building starfish functions can thus be a vital critical success factor in the continued development of organizations.

References

Bass, B. (1985). Leadership and performance beyond expectations. Free Press.

Brafman, O., & Beckstrom, R. (2007, January). The starfish and the spider. Retrieved from Executive Book Summaries.

Johnson, C. (2012, July 16). Scientist's game helps map the brain. The Boston Globe.

Minbaeva, D., Pedersen, T., Bjorkman, I., Fey, C., & Park, H. (2003). MNC knowledge transfer, subsidiary absorptive capacity, and HRM. Journal of International Business Studies, 34(6), 581–599.

Tsai, W. (2001). Knowledge transfer in intraorganizational networks. The Academy of Management Journal, 996–1004.