Delta Dental Feb252010 Sviokla
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Delta Dental Feb252010 Sviokla

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It's time to unlock the power of self-organization. The world has changed -- with the vast internet, resources, and social media. Great leaders will tap this capability to energize and release the ...

It's time to unlock the power of self-organization. The world has changed -- with the vast internet, resources, and social media. Great leaders will tap this capability to energize and release the power of their people, their customers and their business partners.

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  • Source: http://steeljawscribe.com/2009/01/26/how-big-is-the-internet1.3 billion – The number of email users worldwide.210 billion – The number of emails sent per day in 2008.70% – The percentage of emails that are spam.53.8 trillion – The number of spam emails sent in 2008 (assuming 70% are spam).Internet users1,463,632,361 – The number of Internet users worldwide (June 2008).578,538,257 – Internet users in Asia.384,633,765 – Internet users in Europe.248,241,969 – Internet users in North America.  (”Hello, Senator — about the infrastructure part of the National Pork Recovery Act, I have a suggestion or two…”)139,009,209 – Internet users in Latin America/Caribbean.51,065,630 – Internet users in Africa.41,939,200 – Internet users in the Middle East.20,204,331 – Internet users in Oceania/Australia.Blogs133 million- The number of blogs on the Internet (as tracked by Technorati).900,000 – The number of new blog posts in a day.329 million – The number of blog posts in 2008.Images10 billion- Photos hosted by Facebook (October 2008). (ed: to put in perspective, if all those images were printed as 3×5 pics, they could be lined up end-to-end from the center of the Earth to the center of the Moon three times with enough left over to get back to the vicinity of the space station in low Earth orbit. – SJS) 

Delta Dental Feb252010 Sviokla Delta Dental Feb252010 Sviokla Presentation Transcript

  • Delta Dental: Unleashing the power of your people, ideas, customers and capital
    February, 2010
    Dr. John J. Sviokla
    john.sviokla@diamondconsultants.com
    Blog: www.sviokla.com
    Harvard Business Review blog: blogs.hbr.org/sviokla/
    twitter: jjsviokla
    cell: 617.510.3565
  • What’s Possible?
    Setting the Stage for the Self-Organization Revolution: 3-Clouds
    Internet… a connectivity utility – Capitalism by its nature connects
    Cloud 1
    Source: David Reed
  • What’s Possible?
    Can you believe this has happened in less than 20 years!
    View slide
  • What’s Possible
    The Infinite Bazaar! Everything a company could want!
    Cloud computing ... a resource utility – competition brings new resources
    Cloud 2
    Cloud 1
    Source: David Reed
    View slide
  • “The owner of the memex, let us say, is interested in the origin and properties of the bow and arrow. Specifically he is studying why the short Turkish bow was apparently superior to the English long bow in the skirmishes of the Crusades. He has dozens of possibly pertinent books and articles in his memex. First he runs through an encyclopedia, finds an interesting but sketchy article, leaves it projected. Next, in a history, he finds another pertinent item, and ties the two together. Thus he goes, building a trail of many items.”
    What’s Possible?
    “As we may think…” -- Vannevar Bush Conceived of the Memex
    Source: the Atlantic, http://www.theatlantic.com/doc/194507/bush
  • What’s Possible?
    Everyone: Customers, Employees, & Suppliers are Always On
    The 3rd cloud –mobile, social interaction utility – Human connection is the Killer App of all Killer Apps
    Cloud 2
    Cloud 1
    Cloud 3
    Source: David Reed
  • What’s Possible?
    Reed’s Law: Self-Organization Dominates ALL other Approaches…
    Self organizing networks Dominate all
    other network forms
    Value=2N
    e.g. Face book
    Value=N2
    e.g. Others
    Value of a Network
    Value=N
    e.g. xxx
    Number of Users = N
  • Competitive advantage derives from the optimal mix.
    Choices for Executives
    In order to unlock the power of self-organization you need to examine where you are open and where you are closed!
    Degree of Openness
    Closed
    Open
    Dimensions
    Talent
    Hire and train internally
    Outsource everything 
    Proprietary solutions with captive resources
    Open innovation 
    Innovation
    Dell storm with wiki’s, self-help, and other peer to peer solutions 
    Internal service staff, all contacthandled by the company
    Service
    Open capital, where people finance anything, as with Indie GoGo 
    Capital
    Internal to the company
    Infrastructure
    Rent everything from Amazon & UPS 
    Company owned technology and logistics
    We engage the audience ala Seth Godin, and American Idol. 
    Marketing
    We control it all and make the message
    Leadership
    Getting people to look in and build
    Getting people to look out and link… 
  • Productivity is the key Target
    EBITDA/Employee by No. of Employees P&C and Multiline Insurers - 2004-2008 Avgs.
    Quadrant 4
    Higher labor productivity,
    Larger
    4
    Quadrant 3
    Higher labor productivity,
    Smaller
    3
    Median $113K EBITDA per employee
    Less productive More productive
    Quadrant 2
    Lower labor productivity,
    Larger
    2
    Quadrant 1
    Lower labor productivity,
    Smaller
    1
    Median 4,100 employees
    Smaller Larger
  • Implications
    Implications for your Business
    • How efficient is your self service?
    • How well are your marketing your firm?
    • Do you rent or own your infrastructure?
    • Do you take advantage of the whole world of talent?
    • Where do your innovations come from?
    • Whose money do you use?
    • Are you and open or a closed leader?
  • Successful Self-Organized Systems Have the Following
    • Deep skills
    • Shared purposed
    • Trust
    • Shared situational awareness
    • Clear limits and boundaries
    • Dynamic decision rights
    • Shared values
  • Conclusion
    Unlock the talent of your people and the passion of your customers…
    1
    Educate the organization on what is possible
    2
    Review your organization from a open versus closed perspective.
    3
    Consider the places with the highest return and least difficulty:
    Likely first place: Customer Service
    4
    Perform an integrated plan and execute, execute, execute
  • Let’s Continue the Conversation
    • Email: John.Sviokla@DiamondConsultants.com
    • Blog: http://blogs.hbr.org/sviokla/
    • Web: www.sviokla.com
    • Twitter: jjsviokla