Trust Works #5: How 10Pines Built a Self-Managed Company Where Happiness is a Priority

In the bustling tech hub of Buenos Aires, a small team of four engineers set out in 2009 to build something different – not just innovative software, but an entirely new kind of workplace. Today, 10Pines stands as a testament to what happens when you prioritise happiness, transparency, and trust in business.

Rebelling Against the Status Quo

Founded on the principles of Agile development, 10Pines' founders were determined to tackle a fundamental challenge: How can a mindset prevailing in software development be applied to an organisational design that involves management, profit-sharing, and decision-making?

From day one, they rebelled against traditional business models characterised by low quality and high turnover. Instead, they established three core values that would guide everything they do:

• Respect
• Trust
• Commitment to Quality

As the company scaled to its current size of approximately 100 team members, they've remained steadfastly committed to three fundamental principles:

• Technical excellence
• Long-term client relationships
• People first

A Truly Horizontal Structure

Unlike most companies that claim to be "flat" while maintaining traditional hierarchies, 10Pines operates with genuine horizontality – there is no one over anyone. Their organizational structure is divided into three distinct circles:

• Roots: Most team members are "roots," meaning they have a say in company management issues
• Aspiring Roots: Newcomers who are still soaking up the culture and focusing on their projects while demonstrating interest in participating in management
• Partners: Roots who assume legal responsibility for the company

This structure ensures that power is distributed, and everyone has the opportunity to contribute meaningfully to the company's direction.

Cultivating Software Craftsmanship

10Pines doesn't just hire developers – they cultivate software craftspeople through:

• Apprenticeship: A three-month intensive program preparing developers for the challenges they'll face in real projects
• Mentoring: Each "pine" has a dedicated mentor who provides feedback and helps build a unique career path
• Continuous Learning: 10% of the team's time is dedicated to non-billable projects such as open-source software development and conference attendance/speaking

Decision-Making by Consent

Perhaps the most radical aspect of 10Pines' model is how decisions are made. Every decision is taken by consent through three primary channels:

• Roots Meetings: Monthly gatherings for fixed issues such as company financials, potential new projects, and team rotations
• Stable Groups: Formed on a voluntary basis to address ongoing issues like recruiting or equipment purchases
• Ad Hoc Groups: Created to resolve specific concerns as they arise

Radical Financial Transparency

In most companies, finances – especially salaries – are shrouded in secrecy. At 10Pines:

• All Roots have access to company financials, including everyone's salaries
• Salary increases come in two forms:
  • Inflation adjustments (at least twice yearly and the same for everyone)
  • Growth increases (reviewed three times per year by a stakeholder group that evaluates the salary scale)

Aligned Interests Through Profit Sharing

Perhaps most remarkably, at the end of each fiscal year, 50% of the company's profit is divided among all team members. The team continuously iterates on the formula for this distribution, taking into account factors such as:

• Individual dedication
• Seniority
• Experience of each Root

The Result: A Thriving Business Built on Trust

What began as an experiment has become a case study in how businesses can operate when built on a foundation of trust. By applying Agile principles to organisational design, 10Pines has created a workplace where happiness isn't just a perk – it's a priority.

Their approach demonstrates that technical excellence and business success don't have to come at the expense of human wellbeing. By putting people first, practicing radical transparency, and distributing both decision-making power and profits, 10Pines has created a sustainable model that benefits everyone involved.

As businesses worldwide grapple with employee retention, engagement, and satisfaction, 10Pines offers a powerful alternative to traditional hierarchies – proving that trust works.