Organizational Design in the 21st Century
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Transcript of Organizational Design in the 21st Century
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1949 1969 1989 2009
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SH A R E O F I N C O M E , T O P 1 % , U S A
G E R M A N Y S W I T Z E R L A N D P O R T U G A L J A P A N I T A L Y S P A I N F R A N C E F I N L A N D S W E D E N D E N M A R K N E T H E R L A N D S
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Every day, millions of
people wake up and play
a boring RPG called
‘Professionalism’”
“C O R Y D O C T O R O W :
Every day you see me,
that’s the worst day of
my life.”
P E T E R G I B B O N S :
“
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300,000
600,000
1946 1966 1986 2006
C O N F L I C T D E A T H S , A L L T Y P E S , 1 9 4 6 - P R E S E N T
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$1
$1,000,000
$1,000,000,000,000
1961 1981 1997 2000 2001 2003 2007 2011 2013
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CO S T P E R G I G A F L O P
0%
33%
67%
100%
1995 1999 2003 2007 2011 2015e
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NO I N T E R N E T
N O S M A R T P H O N E
G L O B A L A D U L T P O P U L A T I O N W I T H . . .
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Category Starting Cost Current Cost Timeframe Cost Performance Improvement
3D Printer $40,000 $100 7 years 400x
Industrial Robots $500,000 $22,000 5 years 23x
Drones $100,000 $700 6 years 142x
Solar $30/KwH $0.16/KwH 30 years 200x
Sensors $20,000 $79 5 years 250x
Neurotech $4,000 $90 5 years 44x
DNA Sequencing $10,000,000 $1,000 7 years 10,000x
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0
8
16
24
AverageFortune500
$GOOG $FB $TSLA Uber Snapchat Oculus Rift
Y E A R S T O $ 1 B V A L U A T I O N / C A P I T A L I Z A T I O N
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Work is simultaneously easier and harder than ever before.
B U T I N P O C K E T S , W E ’ R E F I G U R I N G O U T H O W T O D E A L "
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The legacy organizations are brokenthat we designed 100 years ago
legacythat we designed 100 years ago
We’re pursuing a normative
definition of an “organization”…
that is, what it should be in the
21st Century
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Something with “The Quality”…
1. is alive; invigorated, but not
literally living
2. is whole; free from
contradictions, but not
enclosed or cut off
3. is comfortable; tuned, fit, not
just soft or yielding
4. is free; wild, true to nature,
but not without constraint
5. is exact; particular to
specification, but not perfect
6. is egoless; unselfconscious
but not without the maker’s
“self”
7. is eternal; self-maintaining,
but not mysterious, or
religious
Christopher Alexander
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GO O D B U I L T E N V I R O N M E N T S
Five main performance criteria:
1. Vitality
2. Sense
3. Fit
4. Access
5. Control
Plus two meta-criteria:
6. Efficiency
7. Justice
Kevin Lynch
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GO O D C I T I E S
1. High-quality output, as judged by the team’s customers
2. More capable as a team than when they started working together
3. Makes significant positive contributions to the lives of the individuals on the team
Wageman, Hackman & Lehman
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GO O D T E A M S
1. Consensus Oriented
2. Participatory
3. Follows the Rule of Law
4. Effective and Efficient
5. Accountable
6. Transparent
7. Responsive
8. Equitable and Inclusive
United Nations
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GO O D G O V E R N A N C E
1. Individuals and interactions over Processes and tools
2. Working product over Comprehensive Documentation
3. Customer collaboration over Contract negotiation
4. Responding to change over Following a plan
Agile Manifesto
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“G O O D ” = A G I L E
IDEAS:
1. Interfaces
2. Dashboards
3. Experimentation
4. Autonomy
5. Social
SCALE:
6. Staff on demand
7. Community and crowd
8. Algorithms
9. Leveraged assets
10. Engagement
Exponential Organizations
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“G O O D ” = F A S T G R O W T H
M A S S I V E T R A N S F O R M A T I O N A L P U R P O S E
Reinventing Organizations
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Formal Roles Innovation Empowerment Self-management
Processes Accountability Values-Driven Wholeness
Meritocracy Stakeholders Evolutionary Purpose
E V O L U T I O N A R Y O R G A N I Z A T I O N S
P L U R A L I S T I C O R G A N I Z A T I O N S
A C H I E V E M E N T O R G A N I Z A T I O N S
C O N F O R M I S T O R G A N I Z A T I O N S
“ G O O D ” = H E A L T H E W O U N D S O F M O D E R N I T Y
1. Individual benefit as
important as the overall
corporate benefit
2. Strategy before technology
3. Listen to the voice of the
employee
4. Learn to get out of the way
5. Lead by example
6. Integrate into the flow of
work
7. Create a supportive
environment
8. Measure what matters
9. Persistence
10. Adapt and evolve
11. Employee collaboration also
benefits the customer
12. Collaboration can make the
world a better place
Future of Work
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“G O O D ” = C O L L A B O R A T I V E
1. Lead for the long run
2. Value diversity
3. Reinvent market incentives
4. Foster collaboration
5. Drive full transparency
6. Create thriving communities
7. Scale true accounting
8. Restore nature
9. Redefine reward systems
10. Ensure dignity and fairness
The B Team
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“G O O D ” = S A V E T H E W O R L D
1. Purpose over Profit
2. Empowering over Controlling
3. Emergence over Planning
4. Networks over Hierarchy
5. Adaptivity over Efficiency
6. Transparency over Privacy
Responsive Organizations
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“G O O D ” = A D A P T A B L E
1. Improve understanding of what coworkers do
2. Reinforce the people who are integrators
3. Expand the amount of power available
4. Increase the need for reciprocity
5. Make employees feel the shadow of the future
6. Put the blame on the uncooperative
Yves Morieux’s Six Simple Rules
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“G O O D ” = A D V A N T A G E A M I D C O M P L E X I T Y
1. Never add a process or a layer unless you absolutely have to
2. Never blame a problem on someone’s mentality or mind-set
3. Don’t let decisions be escalated to you
4. Don’t rely on financial incentives
5. Don’t try to measure specific behaviors
Yves’ Five (Actually) Simple Rules
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“G O O D ” = A D V A N T A G E A M I D C O M P L E X I T Y
Eight performance criteria:
1. Purposeful and important
2. Quality, achievement and context fit
3. Alive and interesting
4. Fairness and equality
5. More, and more forms of power for all
6. Connected beyond our walls
7. Supportive, safe and comfortable
8. Transparency, signaling and internal connectivity
Ever-Better Organizations
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2. Dean Baker, Center for Economic
and Policy Research, “The
Productivity to Paycheck Gap: What
the Data Show” 2007
3. World Top Incomes Database and
Max Roser
4. University of Notre Dame Mendoza
School of Business
5. John Hagel III, John Seely Brown,
Tamara Samoylova & Michael Lui,
“Success or struggle: ROA as a true
measure of business performance”
Deloitte University Press 2013
6. Richard N. Foster and Sarah Kaplan,
Creative Destruction 2001
7. Carl Benedikt Frey and Michael A.
Osborne, “The future of
employment: how susceptible are
jobs to computerization?” 2013
8. Gallup US Daily Survey, 2014. N =
80,837
9. Perhaps apocryphal, but cited to
Cory Doctorow. Also, Office Space
11. Human Security Report Project,
Battle Deaths from State-Based
Armed Conflicts by Region,
1946-2007
12. Max Roser visualization of data
from van Zanden, J.L., et al., “How
Was Life?: Global Well-being since
1820” 2014
13. Top 500 & Wikipedia
14. Benedict Evans, Mobile is Eating the
World
15. Michael S. Malone, Exponential Organizations 2014
16. Ibid
23. Horace Dediu, Seeing What’s Next
2013
24. Yaneer Bar-Yam, “Complexity rising:
From human beings to human
civilization, a complexity profile,”
2002
25. Ray Morris, Operating Organization
of the Union Pacific and Southern
Pacific System, Railroad Administration, 1920
Sources by page
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31. Christopher Alexander, The Timeless Way of Building 1979
32. Kevin Lynch, Good City Form 1981
33. Ruth Wageman, Richard Hackman
and Erin Lehman, “Team Diagnostic
Survey: Development of an
Instrument”
34. Yap Kioe Sheng, “What is Good
Governance?” United Nations
Economic and Social Commission
for Asia and the Pacific
35. agilemanifesto.org 2001
36. Michael S. Malone, Exponential Organizations 2014
37. Frederic Laloux, Reinventing Organizations 2015
38. The Future of Work Community
39. The B Team
40. responsive.org
41. Yves Morieux, “Smart Rules: Six
Ways to Get People to Solve
Problems Without You” 2011
42. Ibid
Sources by page, continued
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