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Silicon Valley’s Open Culture Era Comes To An EndThe tech giants exported their open work cultures to the world. But now, after the Facebook leaks, the concept is headed to its grave.
Welcome to the 250+ new subscribers who’ve joined Big Technology since last week. It’s great to have you on board. And hello to Professor Sherman’s class at Columbia Business School, it was nice speaking with you this week! As Facebook’s employees watched their conversations and research flood the internet via Frances Haugen’s leak in recent weeks, they commiserated in an internal group called “Let’s Fix Facebook.” The company’s radically transparent internal culture, some said, had exposed Facebook to scandal. They asked whether “Be Open” should remain one of its foundational principles. Someone proposed an alternative: “Don’t Leak.” Though Silicon Valley companies have been slowly backing away from their prized open cultures that made documents, calendars, and conversations available to all employees, Haugen’s leak has effectively brought the era to an end. Google had already given up on its culture of radical openness. Amazon and Netflix recently fired employees whose voices they’d asked to hear. Apple, already a closed culture, just quashed an uprising of its own. Facebook was the lone holdout. But after Haugen canvassed its internal forums and leaked thousands of documents, the company appears headed toward restricting access as well. “It feels like Silicon Valley is growing up,” Katie Harbath, an ex-Facebook public policy director who spent ten years at the company, told me. “They're like, ‘Oh, wait, this isn't as ideal as I thought it would be.’” Tech companies introduced transparent workplace cultures to demonstrate that they were different than the stodgy industries they challenged. Influenced by Stanford and popularized by Google, these cultures helped build a sense of collective investment and trust among employees and executives. Once you got hired by a tech company with this philosophy, you could read any document and share any opinion with leadership. This wasn’t employment. It was ownership. At least in theory. Facebook bought into the open work culture wholesale. It built an internal version of its own product, called Workplace, for employees to share thoughts and collaborate. And its employees used it ferociously, slamming executives when they disagreed with their decisions (as is evident from Haguen’s leaks) and sharing ideas for new products and improvements to existing ones. “It enables rapid communication,” Rosa Birch, a Facebook program manager, told me of Workplace as I wrote Always Day One, “and it really helps teams bond together.” As Facebook and its fellow tech giants ballooned in size though, they began to consider these cultures’ liabilities. It’s hard for an employee to feel ownership in a workplace with tens of thousands, or hundreds of thousands, of people. So the cultures became impersonal, and the notion that employees had ownership faded. Internal transparency was still helpful for collaboration, but it also fermented rebellions, and company leadership grew tired of it. Facebook had already started to clamp down on internal transparency before Haugen’s leaks, but it remained more open than counterparts like Google. Now, after the leaks, those close to the company expect it to close further. “This turbocharges the locking down of docs and less sharing broadly,” Harbath said. “It will give people less context about what's happening and likely make employees feel more out of the loop.” A comment from Meta (aka Facebook) spokesperson Joe Osborne indicated the company is indeed reconsidering how transparent it wants to be. “Since earlier this year, we have been talking about the right model of information sharing for the company, balancing openness with sharing relevant information and maintaining focus,” he said. “This is a work in progress, and we are committed to an open culture for the company.” For companies like Facebook and Google, rolling back some of this transparency doesn’t come without risk. It will inevitably slow them down, creating opportunities for smaller competitors. If they can’t keep up, it may be the market, not regulation, that unseats them from power. Silicon Valley has spent years exporting its vision for workplace culture to companies around the globe. Its executives write management books, and its engineers build products that enable other companies to implement their practices. Facebook itself now licenses Workplace to scores of companies, including Nestle, Spotify, and Virgin Atlantic. Slack, embraced and evangelized by Silicon Valley companies, is a standard workplace tool as well. As tech companies scale back their transparency, it will be tricky to sell the workplace products and vision they’ve struggled to contain themselves. “Maybe this will ebb and flow,” said Harbath. “But I do think that it’s a bit more of a turn away from the very open and flat culture that Silicon Valley had been touting for quite some time.” Meet Big Technology’s Headline Sponsor: M1 FinanceOver the past few years, socially responsible investing has become a popular strategy for investors who want to grow their wealth but don’t want their money supporting businesses that don’t reflect their values. How do you build wealth while supporting businesses that are responsible around security, privacy, environmental sustainability and beyond which aren't always rewarded short term in the public markets? If you want to use your investments to support companies that create the future you want to manifest, meet M1 Finance - the all-in-one Finance Super App. M1 is built to construct long-term portfolios to meet your wealth goals, and our pre-built portfolios include socially responsible options for investors who want a better future. Sign up today for M1 Finance and learn how they can help you invest responsibly. Investing in securities involves risks, including the risk of loss. M1 Finance LLC, Member FINRA/SIPC. News BriefsInside Amazon’s Worst Human Resources Problem (New York Times) Amazon hired 350,000 workers in three months(!) last year at the height of the pandemic. This employee surge is unprecedented, and it hasn’t been smooth. Amazon’s HR systems broke as the company expanded. It shortchanged employees on pay, and mistakenly terminated others. The machines might take over human work, and Amazon is the best in class in this regard, but it’s they still struggle to do it at scale. Mark Zuckerberg on Why Facebook Is Rebranding To Meta (The Verge) You can see why Facebook changed its name: People distrust its executives. The Facebook app is in decline. And the company frequently discusses a 'brand tax' ahead of introducing new products (I learned this from Haugen’s leak). It’s risky to bet your name on unproven technology like Virtual Reality and Augmented Reality. Imagine if VR never takes off... then what? But hey, if it succeeds, ‘Meta’ will be leading in a crucial product category, free of Apple’s oversight, and it’ll have a fitting name to go along with it. Not bad? The Future of Food Service Together With Miso Robotics (Sponsored)If you haven’t been inside a White Castle kitchen lately, you’ve probably also missed out on learning about Miso Robotics. Miso has built an AI-driven platform that powers autonomous robotic assistants to perform tasks like frying and grilling alongside human chefs in quick-service restaurants. Miso has three product innovations 1) The first AI-driven frier “Flippy” that has already fried 175,000 lbs of food 2) The Flippy Grill, which has flipped 10,000 burgers, and 3) Miso’s Automatic Beverage Dispenser. They’re working with 10 of the 25 biggest brands – including Buffalo Wild Wings parent company Inspire Brands – and are in place to disrupt the $70B industry. Until November 18th, as a Big Technology reader, they are allowing you to invest into their Series D. Advertise with Big Technology? Advertising on Big Technology makes everything you do easier. You’ll get in front of the tech world’s key decision-makers, helping you build brand awareness as you look to grow and tell your story. This newsletter has placements available this year and next including some new ad formats. Email me at alex.kantrowitz@gmail.com to learn more. Are We Having a Moral Panic About Instagram? — With NYT's Farhad ManjooFarhad Manjoo is an opinion columnist for the New York Times. He joins Big Technology Podcast to discuss whether the criticism of Instagram's impact on kids is overblown, the subject of a recent column. Stay tuned for the third segment, where we discuss Farhad's views of virtual reality, his Thanksgiving column, and his cats. You can listen on Apple, Spotify, or wherever you get your podcasts. Thanks again for reading and see you next Thursday! If you liked this post from Big Technology, why not share it? © 2021 Alex Kantrowitz Unsubscribe |
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