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Note: The views I express here are mine and do not represent my employer, Rackspace.

The classics never go out of style, even in technology.

I just read The Art of High Technology Management (unfortunately its not free), a little excerpt from a technology management text book, circa 1984. Authors Maidique and Hayes highlight what successful tech companies are doing right, and aptly dub it “an art”. Their analysis was sound, a definite piece of the alphabet in the language of technology management. That however is not what evokes my entry. The haunting part of this read, was the sense that I was peering over the shoulder of a youthful Rackspace senior executive. Before me lay part of the blueprints of the near billion dollar company I work for today.

Authors Maidique and Hayes followed a number of companies in biotech, pharmaceuticals, computers, semiconductors and aerospace of various sizes ($10 million to $30 billion). They wanted to answer one question: “What strategies, policies, practices and decisions result in successful management of high-technology enterprises?” The answer to their question uncovered a challenging paradox: continuity and chaos. These two words aptly describe the dichotomous workplace I live every day. The article expands on the polarity of continuity and chaos through six themes. These themes hauntingly mirror Rackspace’s CORE values.

Continuity

1. Business focus - The drive behind continuity is discipline.  Discipline in technology specialization, focus on core competencies, consistent organizational objectives and real business results - the traditional work values that our grandparent’s generation embodied through companies like Ford and it’s Model T. At Rackspace we call this Results first, substance over flash.

2. Organizational cohesion - At the heart of continuity is people and their relationships. A strong tech company emphasized collaboration, communication, job rotation, multidisciplinary projects, and long-term employment. Executive open door policies at companies like IBM, generated a sense of hierarchical flatness and equality–permitting a free flow of ideas. Cross-pollination of knowledge and relationships occur as employees move throughout the organization into different roles and projects. My fellow Rackers refer to this as Treat fellow Rackers like friends and family.

3. Sense of Integrity - Hi-tech companies exhibited a values system that held ethics and trust above profit. Humility and self understanding are also characteristics that were encouraged throughout. Today I had an encounter with our Chairman Graham Weston. I asked him for some assistance and information on an issue.  Within 20 minutes I had everything I needed. Graham pioneered the strengths based culture at Rackspace. Every employee receives an analysis of their natural talents and is coached on how to develop them in both their professional and personal lives. During tough times, we exercise full disclosure to our customers and each other - Keep our promises. Bad news first, full disclosure.

Chaos

4. Adaptability - Change is the name of the game. Great tech companies knew when to change strategy and had the organizational flexibility to make the tough changes. In my four years at Rackspace, I have worked in three different roles, for 3 different VPs in 3 different buildings — all these changes occurred at different moments in time. Adopt change for excellence.

5. Entrepreneurial culture - Small scrappy teams, decentralized R&D, and FAILure tolerance are pillars of success. Everyone in the company has to feel ownership, a sensation that their work will “save the company”.  HP and Texas Instruments regularly split divisions into small groups. On the topic of decentralization, “IBM has found that rebellion can be good business.”, commented an executive about a secret endeavor to develop a new line of hard drives. At Rackspace, nearly 1/3 employees is a tech or an engineer. Everyone of these rackers are creating solutions to solve customer problems. This is the most important Rackspace value - Fanatical Support in all we do and Passion for our work.

6. Hands-on top management - This is about a highly engaged leadership team. Executives of this caliber are technically competent and prefer receiving direct updates from project members. They are comfortable asking lots of questions (even dumb ones) and are extremely involved in the high value aspects of the company. At Rackspace we do not have a CORE value to describe this, but I see it regularly.  Recently, Lanham Napier, our CEO, called one of my team members to ask some questions about a particular project. I can’t imagine this happening at a traditional company.

Balancing Continuity and Chaos at Rackspace

I have found that change and stability come in cycles at Rackspace. We will often see a 2 to 3 month period of significant chaos followed by an 8 to 12 month period of stabilization. Again, Rackspace leadership is on par with the researcher’s findings:

The successful high-technology company firm alternates periods of consolidation and continuity with sharp reorientations that can lead to dramatic changes in the firm’s strategies, structure, controls and distribution of power, followed by a period of consolidation.

The everyday Racker deals with this continuum in very different ways.  Some folks get frustrated with the chaos, others thrive within it. As a manager for a software team, I understand both perspectives. I am in the unique position of having to garner agreement on business processes and priorities among different teams. Describing my work as “Herding cats” is a true understatement. Rackers are also highly empowered to give feedback - and express frustration. This empowerment combined with technical and business expertise requires an open, servant style leadership that is probably uncommon in other firms.

My next task is to ask some of our VPs (they sit in cubes all over here) where our CORE values came from, and whether, as Picasso once said, “Bad artists copy. Great artists steal.”

“A little revolution now and then is a good thing.” - Thomas Jefferson