They rely on the power of the collective from "summary" of The Starfish and the Spider by Ori Brafman,Rod A. Beckstrom
The strength of a decentralized organization lies in its reliance on the power of the collective. In a traditional, centralized organization, power and decision-making authority are concentrated at the top, with orders flowing downward through a hierarchy. This centralized structure can be effective in certain situations, but it also has its limitations. Decentralized organizations, on the other hand, distribute power and decision-making authority throughout the system, allowing for greater flexibility, adaptability, and innovation. Decentralized organizations operate more like a network than a hierarchy, with individuals and smaller groups having a significant degree of autonomy and self-organization. This decentralization allows for faster decision-making, as there is no need to wait for approval from higher-ups. It also fosters a sense of ownership and accountability among members, as they are empowered to take initiative and responsibility for their actions. One of the key advantages of decentralized organizations is their ability to leverage the collective intelligence and creativity of their members. By tapping into the diverse perspectives and skills of individuals throughout the system, these organizations are better equipped to solve complex problems and adapt to changing circumstances. This collective intelligence allows decentralized organizations to be more innovative and responsive than their centralized counterparts. Decentralized organizations also tend to be more resilient in the face of challenges. Because power and decision-making authority are distributed throughout the system, these organizations are less vulnerable to disruption if a single node is compromised. This resilience comes from the redundancy and adaptability built into the decentralized structure, as well as the shared sense of purpose and commitment among members. In summary, decentralized organizations rely on the power of the collective to drive innovation, adaptability, and resilience. By distributing power and decision-making authority throughout the system, these organizations are able to tap into the diverse talents and perspectives of their members, empowering them to take initiative and work together towards a common goal. This decentralized approach allows for greater flexibility, creativity, and responsiveness, making it an effective model for organizations operating in a rapidly changing and complex world.
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