The Seven Habits ofHighly Effective Organisations

Erwin van der KooghPrincipal Consultant

evanderkoogh

We are in a bit of a mess..

The World is Changing

Topple Rates Have Tripled

The World is Changing

Not just

We have a device in our pocket that can access the entirety of

human knowledge

"Cat March 2010-1" by Alvesgaspar - Own work. Licensed under CC BY-SA 3.0

Image by XKCD

Number of startups valued at $1B+

Jan 2014 45

Jan 2015 79

Aug 2015 115

Hilton

Founded 1919

Rooms ~680,000

Hotels 4112

Countries 91

AirBnB

Founded 2009

Rooms 1,500,000+

Cities 34,000+

Countries 190

The World is Changing

So what is different?

Massive increase in Uncertainty,

Unpredictability & Complexity

Image © Will Ockenden

Complicated

Complex

“An environment where cause and effect are only obvious in hindsight, with unpredictable, emergent outcomes.”

Complex Environment:

From Scaling Efficiency

Image © https://www.flickr.com/photos/guysie/

To Scalable Learning

Our current organisations

Anti-fragile

“The only competitive advantage left in the 21st century is adaptability.”

The World is Changing

- William Gibson

The future is already here. It is just not very evenly

distributed

7 Habits

People

1Trust People

Do you get to decide…

Where you work?

Do you get to decide…

When you work?

Do you get to decide…

How you work?

Do you get to decide…

With whom you work?

Do you get to decide…

On what you work?

Do you…

Have a Company Credit Card?

?Why not?!

Valve Software

One of the most profitable businesses/employee

Morning Star

Recommended Reading

1 Trust People

2Tolerate Embrace Failure

I have not failed. I have just found 10,000

ways that won’t work

Thomas Edison

Image © https://www.flickr.com/photos/besz/

I've missed more than 9000 shots in my career. I've lost almost 300

games. 26 times, I've been trusted to take the game winning shot and

missed. I've failed over and over and over again in my life. And that

is why I succeed.

Michael JordanBy Diegoestefano97 (Own work) [CC BY-SA 3.0]

Anyone who has never made a mistake has never tried

something new

Albert Einstein

Failure Cake @ Spotify

Recommended Reading

1 Trust People

2 Embrace Failure

The Organisation

3Be Brutally Honestwith yourself

First Digital Camera

Invented by Eastman Kodak

In 1975

VS.

VS.Mail DVDs Streaming

VS.Mail DVDs Streaming

Consumers value the simplicity Netflix has always offered and we respect that. There is a difference between moving quickly — which

Netflix has done very well for years — and moving too fast,

which is what we did in this case.

Reed Hastings

&

Recommended Reading

1 Trust People

2 Embrace Failure

3 Be Brutally Honest

4Allow Autonomy At All Levels

The tactical result of an engagement forms the base for new strategic decisions because

victory or defeat in a battle changes the situation to such a degree

that no human acumen is able to see beyond the first battle.

Helmuth Moltke the Elder

“A military doctrine where commanders give subordinate leaders a clearly defined goal instead of a detailed order.”

Auftragstaktik:

Alignment)&)Autonomy)

Alignment False dichotomy!

Do what I say!

Autonomy

Do whatever

Source: Stephan Bungay. Image © Hendrik Kniberg

X

Alignment)enables)Autonomy)

High Alignment

High Autonomy

Build a bridge!

Micromanaging organization

Indifferent culture

Entrepreneurial organization

Chaotic culture

Authoritative organization

Conformist culture

Innovative organization

Collaborative culture

We need to cross the river

Figure out how!We need to

cross the river

Low Alignment

Low Autonomy

Hope someone is working on the river problem…

Source: Stephan Bungay. Image © Hendrik Kniberg

Svenska Handelsbanken is one of the best

banks in the world

Svenska Handelsbanken is one of the most efficient

banks in the world

Svenska Handelsbanken is one of the most profitable

banks in the world

Svenska Handelsbanken has the most loyal customers of

the banks in the world

But..

Svenska Handelsbanken has no

budgets

Svenska Handelsbanken has no

sales targets

Svenska Handelsbanken has no

bonuses

Svenska Handelsbanken has no

matrix structure

Svenska Handelsbanken has

only 3 levels of management

Jan Wallander - Former CEO of Svenska Handelsbanken

The Branch is the Bank

Recommended Reading

1 Trust People

2 Embrace Failure

3 Be Brutally Honest

4 Create Autonomy at all Levels

5Think Big, Stay Small

Kodak had a market cap of $30B with 150,000 employees

When Instagram was sold for $1B it had 11 employees

When WhatsApp was sold for $19B it had 55 employees

W.L. Gore & Associates

Recommended Reading

1 Trust People

2 Embrace Failure

3 Be Brutally Honest

4 Create Autonomy at all Levels

5 Think Big, Stay small

What you do

6Simplify All the Things

Simple Rules Complex Behaviour

Expense policy at Statoil

CONSUMERS

iMac

iBook PowerBook

PowerMac

PROFESSIONALS

LAPT

OP

DES

KTO

P

8000+ Nurses800+ Teams45 Admin1 Manager (CEO)

Recommended Reading

1 Trust People

2 Embrace Failure

3 Be Brutally Honest

4 Create Autonomy at all Levels

5 Think Big, Stay small

6 Simplify all the Things

7Relentless Customer Focus

Audience Participation

Q: What are typical customers of Facebook?A: Advertisers

Q: What does that make us?A: The Product

Recommended Reading

1 Trust People

2 Embrace Failure

3 Be Brutally Honest

4 Create Autonomy at all Levels

5 Think Big, Stay small

6 Simplify all the Things

7 Relentless Customer Focus

Now what?

The World is Changing

I should estimate that in my experience most troubles and most possibilities for improvement add up to the proportions something

like this:

94% belongs to the system (responsibility of management)

W. Edward Deming

There are no recipes…

No 5 steps to Enlightenment

Not even ‘Best Practices’

Deal with ambiguity, uncertainty & complexity?

Cynefin

Create leadership at every level?

Intent Based Leadership

Continuous learning & improvement?

Lean

Theory of Constraints

Just in time investment?

Create a networked organisation?

Beyond Budgeting

Create products people love?

Human Centred Design

Collaboratively solve complex problems?

The World is Changing

Books: http://21stcenturymba.com/7habitsSlides: http://bitly.com/7OrgHabitsGen

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