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From Hierarchy to Intelligence
At Sequoia, we see that speed is the best predictor of start-up success. Most companies are focused on AI as a productivity enhancer. Few are focused on the potential of AI to change how we work together. Block is showing what it looks like to fundamentally rethink organization design, ultimately harnessing AI to increase speed as a compounding competitive advantage.
Two thousand years before the first corporate org chart, the Roman Army solved a problem that every large organization still faces: how do you coordinate thousands of people across vast distances with limited communication?
Their answer was a nested hierarchy with a consistent span of control at every level. The smallest unit was the contubernium, eight soldiers who shared a tent, equipment, and a mule, led by a decanus. Ten contubernia formed a century of eighty men under a centurion. Six centuries made a cohort. Ten cohorts made a legion of roughly 5,000. At each layer, a named commander held defined authority, aggregated information from below, and relayed decisions from above. The structure (8 → 80 → 480 → 5,000) was an information routing protocol built around a simple human limitation: a leader can effectively manage somewhere between three and eight people. The Romans discovered this through centuries of warfare. Even today, the US Army's hierarchical chain follows a similar pattern. We now call it "span of control," and it remains the governing constraint of every large organization on earth.
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From Hierarchy to Intelligence
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