Your SlideShare is downloading. ×
How Can IT Fix the Problems of Stupid Organizations?
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

How Can IT Fix the Problems of Stupid Organizations?

2,710

Published on

Published in: Business, Technology
1 Comment
12 Likes
Statistics
Notes
No Downloads
Views
Total Views
2,710
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
0
Comments
1
Likes
12
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • The collective intelligence of an organization can be improved by appropriate technologies used in appropriate ways to tackle the inherent complexity of modern business in a dynamic environment.  These technologies include business intelligence, event processing, knowledge management, process improvement and social networking.  Most large organizations use these technologies, but fail to join them together or use them effectively, so there is a huge missed opportunity here for IT.  Ultimately, the value that IT can bring to business is not just from automating clerical tasks and enabling large-scale global operational processes, but from enabling and supporting management processes such as coordination and innovation.  Organizational intelligence is a critical measure of the management capacity of an organization in a demanding competitive environment, and IT has a key role in improving organizational intelligence.  This talk will provide a roadmap for IT to make a strong contribution to business viability and survival.
  • The collective intelligence of an organization can be improved by appropriate technologies used in appropriate ways to tackle the inherent complexity of modern business in a dynamic environment.  These technologies include business intelligence, event processing, knowledge management, process improvement and social networking.  Most large organizations use these technologies, but fail to join them together or use them effectively, so there is a huge missed opportunity here for IT.  Ultimately, the value that IT can bring to business is not just from automating clerical tasks and enabling large-scale global operational processes, but from enabling and supporting management processes such as coordination and innovation.  Organizational intelligence is a critical measure of the management capacity of an organization in a demanding competitive environment, and IT has a key role in improving organizational intelligence.  This talk will provide a roadmap for IT to make a strong contribution to business viability and survival.
  • http://demandingchange.blogspot.com/2010/05/symptoms-of-organizational-stupidity.html
  • We may differentiate customers (and their behaviour and intentions) according to a number of factors, with greater or lesser granularity. Each degree of differentiation increases the complexity of the process. Under the right conditions, increased differentiation may produce better outcomes for the organization and its customers. Under the wrong conditions, differentiation merely adds complication, increases cost and risk, and may produce worse outcomes.There are arbitrarily many degrees of differentiation – these are just typical points on the curve.
  • The introduction of the loyalty card represented a radical strategic shift for the large retail chains. Stores now had a formal basis for recognizing a customer as the same again. They can identify customers, and collect and analyze data about the behavior of specific customers. And they can use this analysis to differentiate the response to different customers. For example, different customers may receive different special offers. Amazon is of course well-known for its pioneering work in providing targeted information and deals based on a customer’s browsing and buying history, and creating new forms of associative information which may be reflected back to the customer.Obviously if the retailer can identify the customer as she enters the store, then this differentiation can be done as the customer browses, rather than only when the customer comes to pay. This is relatively easy to implement with online shopping (for example through the use of cookies); and there are various mechanisms that might achieve the same result in a physical store – perhaps face-recognition software in the store camera, or loyalty cards with RFID chips – if the obvious privacy concerns can be allayed.And if there are RFID chips on the goods and RFID scanners on the shelves, then the customer can be presented with information based on the stuff that is already in the shopping basket. Again this capability is very easy to implement for online shopping, and this stimulates retailers to build an equivalent capability for physical shopping. (This is an instance of an increasingly common generalization pattern: take a simple innovation from one channel and look for ways of implementing it in other channels. We then need to define a general structure for the data from different but equivalent sources, and render the data through a common service interface, to enable aggregation and comparison of data across channels.)
  • Effective differentiation is a function of the intelligence embedded within the customer management capability. The greater the “quantity” of intelligence, the greater the capacity to differentiate effectively.For the sake of analysis , we may regard “Intelligence” and “Operation” as separate sub-capabilities of Customer Management.We can then identify the signals that pass between “Intelligence” and “Operation” , and the attenuation and amplification mechanisms that govern these signals.
  • What are the events and information flows that help to join up the retail operation as a whole?Where is the strategic knowledge of the enterprise located, and how is it continuously development and effectively used? What are the mechanisms to support innovation and organizational learning?
  • There are many different pathways for joining-up the business.How does a jar of organic baby food get managed alongside other jars (pasta sauce)?alongside other baby goods?alongside other organic produce?Wrong answer #1 – pick one of the above. Adopt hierarchical managementWrong answer #2 – pick two of the above. Adopt matrix management. Wrong answer #3 – swing erratically between different alternatives (oscillation)Correct answer – manage and coordinate all the relevant pathways. Adopt complexity management.Note – each of these pathways may be associated with a different capability area, and mobilizes a different kind of intelligence.
  • Lawrence, P., and Lorsch, J., "Differentiation and Integration in Complex Organizations" Administrative Science Quarterly 12, (1967), 1-30.In this paper Lawrence and Lorsch develop an open systems theory of how organizations and organizational sub-units adapt to best meet the demands of their immediate environment. Organizations must balance differentiation and integration to be successful. Those companies who manage to achieve high sub-unit differentiation and yet still maintain high integration between sub-units seem to be best equipped to adapt to environmental changes.Groups that are organized to perform simpler, more certain tasks (e.g., production groups) usually have more formal structure than groups focusing on more uncertain tasks (e.g., research and development).The time orientation of sub-groups is primarily dependent on the immediacy of feedback from their actions. Thus sales and production groups have shorter time orientations than R&D.The goal orientation of sub-units is based relative to the part of the environment that affects them the most.http://faculty.babson.edu/krollag/org_site/org_theory/Scott_articles/lawren_lorsch_cont.html
  • http://www.robertelliott.com.au/gallery.php?id=people
  • Transcript

    • 1. Organizational Intelligence
      Richard Veryard January 2011
      How Can IT Fix the Problems of Stupid Organizations?
    • 2. Abstract
      Twitter tag #orgintelligence
      Organizational intelligence is a critical measure of the management capacity of an organization in a demanding competitive environment.
      IT has a critical role in maintaining and improving organizational intelligence.
    • 3. Structure
      Twitter tag #orgintelligence
      Situation: Characteristics of intelligent organizations
      Problem: How intelligent organizational succeed (and stupid ones fail)
      Implication: How IT contributes (possibly) to organizational intelligence and stupidity
      Need: Leadership role for IT in improving organizational intelligence
    • 4. What is organizational intelligence?
      Ignore important signals from the environment
      Cannot discriminate between the important and the trivial
      Respond incoherently to crisis
      Oscillate wildly between extremes
      Fail to learn from mistakes
      Innovate slowly and painfully
      Detect and interpret weak signals of possible significance
      Mobilize coherent response to complex opportunity
      Rational approach to risk and uncertainty
      High-quality decision-making throughout the organization
      Collective learning and innovation
      4
      Stupid Organizations …
      Intelligent Organizations …
    • 5. Org intelligence as whole-system property
      Very clever people, who don’t talk to each other
      Very sophisticated technology, poorly wired together
      Patterns of interference
      (2+2=3)
      Good people, who work well together
      Good technology, used well
      Patterns of collaboration
      (2+2=5)
      5
      Stupid organizations may contain
      Intelligent orgs may contain
    • 6. Org intelligence as sociotechnical property
      How do we know what is going on?
      How do we understand what is going on?
      How do we act upon what is going on?
      How do we remember things?
      How do we communicate things?
      How do we learn from experience?
      All of these capabilities are both technical (dependent upon an array of devices) and social (dependent on other people).
    • 7. Symptoms of stupidity
      7
      Choke
      Inability to access existing capability.
      Denial (Kettle Logic)
      “Problem, what problem ?”
      Guesswork
      Acting in the dark.
      Meddle
      Tinkering and management interference without understanding.
      Muddle
      Confused by overlapping and conflicting narratives.
      Panic
      Overtaken by events.
      Policy-based evidence
      Finding data to support or justify
      Ignoring any contrary data.
      Repetition / Oscillation
      Repeating same mistakes without learning.
      Going backwards and forwards between two problems without permanently solving either of them.
      Short-Sighted / Tunnel Vision
      Narrow focus on a single short-term goal
      Inability to consider broader or longer-term vision.
    • 8. 8
      Information
      Gathering
      Decision
      & Policy
      WIGO
      (what is going on)
      Learning& Development
      Knowledge& Memory
      Simple intelligence loop
    • 9. Information
      Gathering
      Decision
      & Policy
      WIGO
      (what is going on)
      Learning& Development
      Knowledge& Memory
      Complex intelligence loop
      9
      Sense-Making
      Communication & Collaboration
    • 10. Organizational intelligence requires six sociotechnical capabilities
      Information Gathering
      How well does the organization collect and process information about itself and its environment?
      Sense-Making
      How well does the organization interpret and understand itself and its environment?
      Decision-Making & Policy
      How effective are the (collective) processes of thinking, decisions, policy and action?
      Knowledge & Memory
      How does the organization retain experience in a useful and accessible form?
      Learning & Development
      How does the organization develop and improve its knowledge, capabilities and processes?
      Communication & Collaboration
      How do people and groups exchange information and knowledge? How do they share ideas and meanings?
      10
    • 11. 11
      “Perhaps you have already seen memos from me or others here about the importance of the Internet. I have gone through several stages of increasing my view of its importance.”
      “Exponential improvements in communications networks … the Internet is at the forefront of this”
      “Now I assign the Internet the highest level of importance.”
      Microsoft Example
      Bill Gates “Tidal Wave” May 1995
    • 12. Microsoft Example
      Review of history
      Weak signals becoming stronger
      Gradual shift of opinion
      Pivotal shift in direction
      Evolving strategies
      Collective responsibility
      Any large organization faces a huge number of challenges, both large and small.
      Success of organization depends on achieving a good enough response to a good number of these.
      Key Points
      General Implications
    • 13. Some organizations don’t need much intelligence
      Too much intelligence may be “overkill” or “overhead”
      Organizations can survive by following simple predictable patterns
      Simple predictable patterns create vulnerability
      Intelligence is vital to survival
      13
      In simple stable environment …
      In complex dynamic environment …
    • 14. How much intelligence do we need?
      Multi-Sided Markets
      Demand Volatility
      Globalization
      Falling rate of profit (?)
      “Fly-By-Wire” Business
      “Requisite Variety”
      Business Complexity
      Management Capability
    • 15. Operational Differentiation
      Degrees of Differentiation
      Retail Example
      15
      Zero variation.
      No differentiation between customers. One size fits all.
      Fixed segmentation.
      The retailer identifies a number of (fixed ) market segments, and assigns each customer to the appropriate segment.
      Dynamic deconstruction .
      Differentiation based on the detailed actions and inferred intentions and context of customers.
      Customer Management
      Customer
      Purchase
      Segment
      Context
    • 16. Progressive Differentiation
      Anonymous Customer
      Customer Identified at Checkout (Loyalty Card)
      Customer Behaviour Tracked Inside Store (RFID)
      ?
      Retail Example
      Your Industry
      16
    • 17. Capability Intelligence
      Focus on the most relevant differentiators.
      Sufficient range of responses to differentiators.
      Coordination between variety of perceived differentiation and variety of response.
      Feedback loops to improve relevance and accuracy of differentiation.
      Feedback loops to refine responses.
      Progressive elimination of unnecessary or irrelevant complication, along with exploration of new opportunities
      Success Factors of Effective Differentiation
      Customer Management
      17
      customer
      intelligence
      attenuation
      amplification
      customer operation
    • 18. CapabilityCoordination
      intelligence coordination
      18
      customer
      intelligence
      product
      intelligence
      store
      intelligence
      staffing
      intelligence
      amplification
      amplification
      amplification
      amplification
      attenuation
      attenuation
      attenuation
      attenuation
      customer operation
      product operation
      store operation
      staffing operation
      operation coordination
    • 19. Supplier Segment
      19
      Customer Segment
      Buying?
      Promotions?
      Customer Segment
      Store Layout?
      Integration Pathways
    • 20. Differentiation and Integration
      20
      Integration
      Which route to improved intelligence?
      Which route to improved intelligence?
      Differentiation
    • 21. IT = information AND technology
      Advanced technologies, tools and platforms for information processing and communication
      Effective use of information and communication across enterprise systems
      Not Only
      But Also
    • 22. How does your organization discover what is (really) going on?
      Enterprise applications and corporate databases
      Dashboards and reports
      Management accounts
      Management by walking around (MBWA)
      Water cooler
      The Internet
      Formal systems
      Informal systems
    • 23. From Water Cooler to Internet
      23
      Blogger
      Delicious
      Facebook
      Flickr
      Google
      Linked-In
      Twitter
      Yahoo
      How do such devices change the way we exchange information and ideas? Better, worse, or just different?
    • 24. Tools for organizational intelligence
      The collective intelligence of an organization can be improved by appropriate technologies used in appropriate ways.
      Most large organizations use these technologies, but fail to join them together or use them effectively.  
      Business intelligence, data mining and analytics
      Event processing
      Knowledge management / content management
      Process improvement & performance management
      Social networking
    • 25. Some attempts to join the pieces …
      Business Intelligence
      Command and Control
      Knowledge Management
      Business Process Mgt
      Enterprise 2.0
      shown in following slides
      There is a little industry associated with each loop, each offering some useful tools and practices.
      But none of these loops provide the complete picture.
      Loops
      Assessment
    • 26. 26
      Sense-Making
      Information
      Gathering
      Decision
      & Policy
      WIGO
      (what is going on)
      Knowledge& Memory
      Business Intelligence Loop
    • 27. 27
      Sense-Making
      Information
      Gathering
      Decision
      & Policy
      WIGO
      (what is going on)
      Communication & Collaboration
      Command and Control Loop
    • 28. 28
      Sense-Making
      Information
      Gathering
      Knowledge& Memory
      Learning& Development
      Communication & Collaboration
      Knowledge Management Loop
    • 29. 29
      Information
      Gathering
      Decision
      & Policy
      WIGO
      (what is going on)
      Learning& Development
      Knowledge& Memory
      Business Process Management
    • 30. 30
      Sense-Making
      Learning& Development
      Knowledge& Memory
      Communication & Collaboration
      Enterprise 2.0 Loop
    • 31. Who is responsible for intelligence?
      Information Technology?
      Enterprise Architecture?
      Knowledge Management?
      Operations Research?
      Human Resources?
      Innovation?
      Strategy?
      31
    • 32. IT has a key role in improving organizational intelligence
      The value that IT can bring to business is not just from automating clerical tasks and enabling large-scale global operational processes…
      … but also from enabling and supporting management processes such as coordination and innovation.
      Not Only
      But Also
    • 33. New Challenges for IT
      “These are the standard things we pay attention to in our business.”
      “Here are the systems and dashboards that focus management attention on these standard things.”
      Alert and aware. Always open to weak signals.
      Building flexible tools and platforms to support exploration and experimentation.
      FROM
      TO
    • 34. New Challenges for IT
      We collect and control information as an asset.
      We give management the information they ask for. How they use this information is up to them.
      We understand how effective use of information contributes to business outcomes.
      We support the whole information  decision cycle.
      From abdication
      To engagement
    • 35. New Challenges for IT - Example
      We provide people with the facility to send and receive email.
      Ambiguous and misdirected emails waste time and attention, and reduce management effectiveness.
      Better social protocols for email would benefit the organization.
      And for some purposes, there are better tools than email.
      Situation
      Opportunity
    • 36. New Challenges for IT
      Providing systems and reports and dashboards and tools and platforms
      Helping the organization
      With all these tools
      To use information
      Intelligently
      To the benefit of the organization.
      Not only
      But also
    • 37. New Role for IT?
      Chief Information Officer
      Chief Intelligence Officer
      from
      to
    • 38. … and more
      One-Day Workshop February 9th (Unicom)20% discount for members of BISSG
      OrgIntelligence.BlogSpot.com
      Future Events
      Other Material and Links

    ×