Adding Value: the Podcast

Today we’re going to discuss two very related concepts: organizational structure and network governance. The first deals with how the firm itself is organized, the second deals with how the various stakeholders within the firm (or network) communicate. We’ll see the interaction of these as we explore different forms of decentralization.

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Like the steam-engine factories, it will take re-engineering the whole system to unlock the real gains. Or, as the USDA suggests: “Some potential strategies include the use of mobile slaughter units and the development of local and regional market aggregators.” In other words - decentralization.

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If you’re looking for a model of centralization, you need look no further than Star Wars. Emperor Palpatine runs a tight ship. There is a clear hierarchy and command structure. The goals and decisions are set by the Emperor, implementation is managed by the Mofs, enforced by Darth Vader, and carried out by the Storm Troopers. Communication goes one direction. Due to this centralized structure, they were able to build the first Death Star (a feat of architecture and design) in 20 years and it took them only 4 years to build its replacement. Vertical integration from the mines to the manufacturing sites to the final product was planned and implemented from the top down. There were no RFPs or MTAs or contract negotiations; no design committees, no mines competing for funding, no manufacturing sites competing for workforce talent. Now that is efficiency.

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What does decentralization have to do with the things you’ve tuned in to read about: farming, sheep, and consumer goods? By the end of this, I hope you’ll agree with my central theory that decentralization might be the Philosophers’ Stone of agricultural systems.

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When I think about the content I like to consume, what stands out is the focus, detail, and through-line storytelling. This often means short runs on a specific topic rather than just a constant discussion of the world. So, the near-term future of Adding Value will be that: series of posts, followed by a break, then a series of posts. It won’t be the forever-model, but it will be the model for the foreseeable future. And, I will definitely post updates about the farm along the way.

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Our priorities are based on how we categorize tasks and the importance we attribute to those categories at the time we need to prioritize them. Our task, then, is how to re-prioritize the tasks in a way that still continues to test our hypothesis. To move the needle or move towards our hypothesis in a way that doesn’t involve real sheep on a real pasture.

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Inertia - a thing in motion tends to stay in motion - is a powerful force.

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We’re back!

Thank you for reading Adding Value. This post is public so feel free to share it.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit addingvalue.substack.com

Tom Petty - The Waiting

Hey! How’s it going? Long time, no see. I was distracted there for a bit as life got in the way of writing.

The last time we talked, we were looking at new technology in meat. You’ll recall this was the second of three posts on the harms of the current meat industry. The basic gist being this: s**t needs to change. The current actions and composition of the meat industry are harming the environment, and, as we’ll see today is hurting both the economy and public health as well.

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If you like this newsletter, please share it! Through these posts, as you can tell, I’m not just talking about my own experience (which I am, of course) but trying to educate on the process of starting up complex value-added business. If you know someone that would find that kind of information useful, please share these posts and podcast. OK, on to the good stuff … Let’s talk meat!

There are a lot of footnotes and references in the original post. Please check it out for citations on the things in today’s episode.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit addingvalue.substack.com