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Re:Companies with a flat structure are weird by detaro on Sunday March 15, 2015 @12:18AM (#9205345)
Jeri Ellsworth, who worked for Valve building hardware, described a lot of shadow-management going on when it comes to larger scale:

http://www.wired.com/2013/07/wireduk-valve-jeri-ellsworth/ (best text version I found, podcast with the actual interview is linked at the end)

“But the one thing I found out the hard way is that there is actually a hidden layer of powerful management structure in the company and it felt a lot like high school. There are popular kids that have acquired power in the company, then there’s the trouble makers, and everyone in between.”

The problem as she sees it is one of scalability. What works for five or 20 people doesn’t necessarily support 300.

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