Invisible Ladder

Valve says they have no managers.

Also, Gabe Newell runs Valve.

They have "cabals" instead—groups that form around projects. No titles. No hierarchy. Total freedom.

Until Gabe walks in.

(Funny how everyone suddenly knows who's in charge.)

Every flat company has invisible power.

The founder's first hire.

The person everyone respects.

The one who controls the money.

No title needed.

Zappos tried something called Holacracy.

No managers at all.

They lost 30% of their people in one year.

Turns out humans create hierarchies like water flows downhill.

It just happens.

Even in your startup where "everyone has a voice," someone breaks ties.

Someone decides.

Someone matters more.

The 1% rule doesn't go away in flat companies.

It just hides better.

Tomorrow: How to actually work with this (not against it).