Introducing Loose
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Introducing Loose

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Summary of thinking behind my latest book, Loose

Summary of thinking behind my latest book, Loose

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Introducing Loose Introducing Loose Presentation Transcript

  • Loose: The Future of Business is Letting Go Martin Thomas @crowdsurfing
  • The Future is Loose
    • Loose thinking
    • Loose organisations
  • Loose Drivers
    • Chaos, complexity & need for speed
    • New forms of collective behaviour  Emergence of new, informal organisational models
    • New generations emerging at top and bottom of corporate hierarchy
    • New technology
    • Failure of tight
  • 1.Chaos, Complexity & Need for Speed
    • Macro-economic meltdown
    • Socio political upheaval
    • New patterns of consumer behaviour
    • New expectations
    • New technology
  • 1.Chaos, Complexity & Need for Speed
    • Defies rational analysis & neat, simple solutions
      • “ The Simple Lie or the Complicated truth?”
    “ The 21 st Century is not a place for tidy minds” Sir Martin Sorrell
  • 2. New forms of collective behaviour
    • Capable of delivering political, social or commercial change … without structure or formal leadership
    • Underlines deficiencies of tight, bureaucratic structures that have to deal with them
     Emergence of new, informal organisational models Arab Spring Tea Party Movement Wikileaks Shared Grief in Wootton Bassett
  • 3. New Generations
    • Emerging at top and bottom of corporate hierarchy
      • Gen X in the Boardroom with a post-Boomer mindset
      • Gen Y entering the workplace with new expectations
    • Demanding new ways of working
  • 4. New Technology
    • Social media is driving new behaviours & expectations
    • Dramatizing institutions’ structural, operational & cultural weaknesses
    meets Connected Consumer Disconnected Corporation
  • Why Many Institutions Struggle
    • Not configured to work in real time, in terms of speed or resources
    * Critical response time for responding to negative comments
  • 5. Failure of Tight
    • Illusion of control
    • Growth of auditing, risk assessment, compliance, consulting, reporting, planning & forecasting
      • Delusion of control
      • Distortion of priorities
      • Huge bureaucratic & cost burden
      • Inability to respond to real world
  • Emergence of Looser Ways of Thinking
    • Economists discover Behavioural Economics
    • Business Schools embrace critical & creative thinking
    • Politicians talk of “a post bureaucratic age” & introduce Big Society
    • Conventional political parties challenged by informal movements e.g. The Tea Party
  • Thriving by Loosening Up
    • Five simple operational & cultural traits of successful organisations
      • Trusting
      • Open
      • Agile
      • Informal
      • Collaborative
  • Tight Thinkers Need Not Apply
    • Organisations & people that struggle with this new world
      • Hierarchical
      • Bureaucratic
      • Process oriented
      • Distrustful
  • Trusting
    • Bedrock of strong internal culture
    • Allows shared responsibility & real time decision making
    • The best company rulebook ever written?
  • Nordstrom Revisited “ Prescriptive rules have the effect of infantilising staff & make it harder for them to adapt to different situations. This goes as much for digital communications as for selling socks … Like the Nordstrom handbook we’re trusting staff to follow the spirit, not just the letter, of our guidelines” Meg Pickard, writing about The Guardian’s new social media guidelines, November 2010
  • Trust & Zappos
    • Call centre operational that successfully breaks all rules
      • No scripts
      • No time limits
      • Devolved decision-making
    • … because it trusts people on the ground to make the right decisions
    • … because it places huge emphasis on recruitment, training & building the right culture
  • Open
    • Transparency & honesty non negotiable
    • Capable of transforming reputations e.g. Asda & ‘Democratic consumerism’ = commitment to transparency & involving customers in decision-making
  • Agile
    • Ability to improvise & operate in close to real time
    • Limitations of excessive faith in longer-term planning
    • Speed more important than absolute accuracy
  • Organisational Agility
    • Reinvigorated innovation process:
      • Devolved decision making power from small group of senior execs to network of cross-functional councils & boards = “a distributed idea engine where leadership emerges organically, unfettered by a central command” Fast Company
      • Focus on agility & speed “all the windows of opportunities I’ve missed – areas that got ahead of us that we couldn’t get back into without doing big acquisitions or something – have been when I’ve moved too slow” Cisco Systems, CEO John Chambers
     Business plans that used to take six months to develop and approve, can now be put together in a week
  • Informal
    • NPD: Living life in Beta
    • Design: Messy vitality
    • Creativity: Authenticity more important than production values
  • Informality in the Workplace
    • Emphasis on freedom & trust
    • Encouragement of creativity & individual responsibility
    “ We’re giving people the latitude to go off & do their own thing. We trust them to do their regular jobs & to experiment, innovate & have fun” Microsoft Snr Mgr, quoted in Business Strategy Review
  • Informality Drives Innovation
    • Granted 2,000+ worldwide patents
    • “ The most innovative company in America” Fast Company
    • Consistently ranked as one of the best places to work
    • No job titles, formal hierarchy or organisational charts
    • Teams self organise around specific projects
  • Collaborative
    • Tapping into spirit of collective self expression
  • Numbers are Compelling
    • 70% of companies regularly create value through use of web-based communities
    • Using customer communities to solve customer problems costs 10% of traditional call centres
    * McKinsey 2010
  • Lessons from Software Industry
    • Cathedral = traditional, tightly controlled innovation model
    • Bazaar = loose, open source approach, harnessing the skills of the wider developer community
      • N ot particularly effective at originating concepts, which still rely on the spark of individual genius to make them happen
      • Very effective at testing & improving them
  • Collaborative
    • Opening up new business models
  • Community Commerce
    • Self-sustaining creative community
      • Members submit designs => 80,000+ submissions
      • Opportunity to pre test beta versions
      • Community votes => 800+ designs
      • Designers receive $2,500 + marketing advice + retain IP
    • No professional designers, no salesforce, no distribution, no market research, no advertising => $30m revenues … high margins
  • Community Commerce
    • People-powered mobile network (from O2)
      • Members receive points for recruiting new people, making suggestions & solving problems => converted into cash
        • 20% actively involved
        • Aim that 25% of members will get half of cost of calls returned to them for contribution to community
      • Plans to involve community in pricing & marketing decisions
    • Not reliant on call centres, expensive marketing & product support
  • Formula for Collaborative Success
    • Ensuring strategic focus
      • Publicity as bi-product not sole objective
    • Planning – who, what & how?
      • Obama’s 100
    • Devolving control to community
      • Continuous feedback loops
    • Anticipating subversion
      • Bieber in North Korea
    • Managing IP rights
  • Thriving by Loosening Up
      • Trusting
      • Open
      • Agile
      • Informal
      • Collaborative
    @crowdsurfing