In the “alternatives to Scrum” category, Valve is an impressive example of a company that practices distributed decision-making. Take a look at their Employee Manual to get a sense of what it's like to work there: steamcdn-a.akamaihd.net…
Here are some excerpts to wet your appetite.
That’s why Valve is flat. It’s our shorthand way of saying that we don’t have any management, and nobody “reports to” anybody else. We do have a founder/president, but even he isn’t your manager. This company is yours to steer—toward opportunities and away from risks. You have the power to green-light projects. You have the power to ship products.
A flat structure removes every organizational barrier between your work and the customer enjoying that work. Every company will tell you that “the customer is boss,” but here that statement has weight. There’s no red tape stopping you from figuring out for yourself what our customers want, and then giving it to them.
We’ve heard that other companies have people allocate a percentage of their time to self-directed projects. At Valve, that percentage is 100.
Since Valve is flat, people don’t join projects because they’re told to. Instead, you’ll decide what to work on after asking yourself the right questions (more on that later). Employees vote on projects with their feet (or desk wheels). Strong projects are ones in which people can see demonstrated value; they staff up easily. This means there are any number of internal recruiting efforts constantly under way.
So if every employee is autonomously making his or her own decisions, how is that not chaos? How does Valve make sure that the company is heading in the right direction? When everyone is sharing the steering wheel, it seems natural to fear that one of us is going to veer Valve’s car off the road.
Over time, we have learned that our collective ability to meet challenges, take advantage of opportunity, and respond to threats is far greater when the responsibility for doing so is distributed as widely as possible. Namely, to every individual at the company.
Valve has mastered the Agile concept of "self-organizing teams." The industry should take note and follow its example.