The Pulse #162: Even fewer middle managers and more flexible teams?

After a two-week hiatus, The Pulse returns with analysis of shifting organizational structures, AI development platform policies, and key industry moves including Peter Steinberger joining OpenAI.

Organizational Evolution: Fewer Middle Managers, More Flexible Teams

The corporate landscape continues its transformation as companies streamline hierarchies and embrace more fluid team structures. This shift represents a fundamental rethinking of how work gets done in modern organizations.

The trend toward fewer middle managers isn't new, but it's accelerating. Companies are discovering that flat structures can move faster, make decisions more efficiently, and reduce overhead costs. The traditional pyramid model—with its layers of approval and communication bottlenecks—is giving way to cross-functional teams that can pivot quickly and own their outcomes.

This evolution brings both opportunities and challenges. On the positive side, employees gain more autonomy and direct impact on results. Teams can form around specific projects and dissolve when objectives are met, creating a more dynamic work environment. However, this flexibility requires strong individual contributors who can self-manage and collaborate effectively without traditional managerial oversight.

The implications extend beyond organizational charts. As companies flatten, the role of leadership itself is changing. Rather than directing from above, leaders increasingly serve as facilitators, removing obstacles and ensuring teams have the resources they need to succeed.

AI Development Platform Policies: A Tale of Two Approaches

In the AI development ecosystem, two contrasting strategies have emerged that highlight different philosophies about platform governance and developer relationships.

Anthropic has taken a restrictive stance, recently banning third-party developers from certain aspects of their platform. This move reflects a desire for tighter control over the ecosystem and potentially higher-quality integrations, but it risks alienating the very developers who help expand a platform's reach and capabilities.

Meanwhile, Codex has embraced third-party developers with open arms. By providing robust APIs, comprehensive documentation, and clear guidelines, Codex is fostering an environment where external developers can build innovative tools and services on top of their foundation. This approach recognizes that a vibrant developer ecosystem can accelerate innovation and create network effects that benefit the entire platform.

The contrast between these approaches raises important questions about the future of AI platform development. Will restrictive policies ultimately limit growth and innovation, or do they protect platform integrity? Can open ecosystems maintain quality standards while encouraging broad participation?

Industry Movement: Peter Steinberger Joins OpenAI

A significant personnel change has sent ripples through the developer tools community: Peter Steinberger, founder of PSPDFKit and respected figure in the iOS development world, has joined OpenAI.

Steinberger's move represents more than just another executive hire. His background in building sophisticated developer tools and his deep understanding of complex software systems make him a valuable addition to OpenAI's mission. PSPDFKit, the company he founded, became known for its high-performance PDF rendering engine and developer-friendly APIs—qualities that align well with OpenAI's goals.

This hire signals OpenAI's continued commitment to improving its developer offerings and potentially hints at new tools or platforms in development. Steinberger's expertise in creating robust, scalable software could influence how OpenAI approaches its API infrastructure and developer experience.

The transition also highlights the ongoing talent war in AI, where companies compete not just for researchers but for experienced engineering leaders who understand how to build products that developers love.

The AI Development Explosion

Perhaps the most significant trend is the sheer volume of software being created with AI assistance. What began as experimental tools has evolved into a fundamental shift in how software gets built.

Developers are using AI for everything from code completion and bug detection to generating entire modules and suggesting architectural patterns. This acceleration is democratizing software development, allowing smaller teams to tackle more ambitious projects and reducing the time from concept to deployment.

The quality and sophistication of AI-assisted development tools have reached a point where they're becoming indispensable for many development workflows. Rather than replacing developers, these tools are amplifying their capabilities, handling routine tasks while humans focus on higher-level design and problem-solving.

This trend has profound implications for the software industry. We're likely to see an explosion of new applications and services as the barrier to entry continues to lower. However, this also means increased competition and the need for developers to focus on uniquely human skills like creativity, complex problem-solving, and understanding user needs.

Looking Ahead

The patterns emerging from these developments point toward a software industry that's more dynamic, more accessible, and more competitive than ever before. Organizations that can adapt to flatter structures, leverage AI tools effectively, and build strong developer ecosystems will be best positioned for success.

As we move forward, the key will be balancing efficiency with innovation, control with openness, and automation with human creativity. The companies and developers who master this balance will shape the next generation of software and the organizations that create it.

The Pulse returns after a brief hiatus due to organizing The Pragmatic Summit in San Francisco. For paid subscribers, early access to summit videos is available as a token of appreciation for supporting this work.