Management of Change

Slide 1: Management Development Seminar Management of Change or the eMatrix By Lukas Ritzel, July 2 2007

Slide 2: Although me might sometimes be blind regarding the future. If we tap into the unprecedented, storytelling can be a help When you have encountered something that is unfamiliar to you, you can live with it once you have made up a good story about it .

Slide 3: “It is generally much easier to kill an organization than change it substantially.” Kevin Kelly, Out of Control

Slide 5: Do you know about an old idea that should have changed already long time ago?

Slide 7: Where in the corporate world would you find the people with MOST fear of change?

Slide 8: “The Bottleneck is at the Top of the Bottle” “Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma? At the top!” — Gary Hamel, “Strategy or Revolution/ Harvard Business Review

Slide 9: Want to hear a story from a TOP guy who was really totally WRONG about his idea on change?

Slide 10: \"I think there is a world market for maybe five computers.\" Thomas Watson, chairman of IBM, 1943

Slide 11: Ken Olson President from Digital Equipment Corporation was a pioneering American company in the computer industry said in 1977 “There is no reason that anybody would like to have a personal computer at home”

Slide 12: Bill Gates „640 Kbyte should be enough memory for anybody“ 1981

Slide 13: Jan Timmer Top Manager with Philips in 1982 „Who would ever need such a silver disc?“

Slide 14: Old swiss saying, back in the good old times If it ain’t broke Don’t fix it

Slide 15: Around the times of the economic crisis, 1999 If it ain’t broke Start looking

Slide 16: Startup downfalls If it ain’t broke Break it before others do

Slide 17: Lukas Ritzel, 2007 If it ain’t broke “Change the rules before somebody else does.”

Slide 18: Masters of Changing the rules

Slide 19: Working the Googleplex dream

Slide 20: “Most of our predictions are based on very linear thinking. That’s why they will most likely be wrong.” Vinod Khosla, in “GIGATRENDS”

Slide 21: Le t m e try to g ive you a s a m ple on h ow Y OU th ink: You will s e e th a t, us ing th e s imple me a ns of th e s e s lide s ,

Slide 22: I will m ig h t b e a b le to know wh a t your c h oic e s a re P LE AS E d o n t s h a re yo u r id e a s o r s u s pic io n with yo u r c olle a g u e s , wa it u n til th e e n d o f th is e xp e rim e n t!

Slide 23: Th e s e s tone s a re us e d in Ch ine s e ”Ma h J ong g ”. ONE Me nta lly s e le c t of th e m . Conc e ntra te a nd re me mb e r th e s tone you h a ve c h os e n . Do it now !

Slide 24: your ju s t th in k a b o u t S TONE

Slide 25: I th ink I know th inking your pa tte rns !

Slide 26: C h e c k it ! I h a ve ta ke n a wa y th e s tone you c h os e !!!

Slide 27: Management of Change @ DCT Some stories told by L Ritzel, hope you enjoy and disagree

Slide 28: To To where From That? no-one has This? gone before ? Overnight

Slide 29: .. And who is going? “Silent” Generation (born 1930-1945) – Born with the military technologies that were to lead to analog, digital and virtual technologies “Baby-Boom” Generation (born 1945-1960) – Born with the analog and astronautic technologies Generation “X” (born 1960-1975) – Born among analog technologies (telephone, TV), witnessed and participated in the development of digital technologies Generation “Y” (born 1975-1990) – Born with the first generation of digital technologies, witnessed and participated in the development of networked technologies … and soon, Generation “e” (born 1990-2005) – Born in the midst of new technologies

Slide 30: To dare! Change all rules Learn to forget Do it yourself Waste reImagine Be silly Be angry

Slide 31: For the next slides, choose your own way Click on one of the 9 drivers inside the Matrix to be introduced to the stories behind

Slide 32: A Whole New World The Cybernetic Revolution is characterized by 9 main phenomena that have a huge impact on our lives end

Slide 33: Globalization ?????? Worldwide, the number of people living in a country different from where they were born has doubled since 1965. In Western Europe and North America, almost 10% of the population is foreign-born. Many are refugees, but many are also the best, brightest and most entrepreneurial. In “As the future catches you” Juan Enriquez

Slide 34: What is the ideal country for exporting flowers? lot of land, cheap labor, fertile soil, warmth and sun

Slide 35: 200 cities with 1,000,000 > population. Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2006

Slide 36: Cost of a Programmer, per IBM … USA: $56 per hour China: $12.50 per hour

Slide 37: And if not China India How about

Slide 38: “Forget India, Let’s Go to Bulgaria” —Headline, BW/03.04, re SAP, BMW, Siemens et al. “near-shoring”

Slide 41: Forget Outsourcing > CrowdSourcing 41

Slide 42: Globalization Impact on HR – Think and act with a Global mindset Impact on ICT – Ensure that the Infostructure can be accessed and used anywhere at anytime

Slide 44: Molecularization??? Who was the (business) ‘superstar’ in Tom Peters’ best seller “Thriving on Chaos”? NO!

Slide 45: If you think it was a Fortune 100 CEO, you are very wrong! – It was Paolo Azuela WHO?

Slide 46: Who

Slide 47: It was Mr. Paolo Azuela, a housekeeper at the Ritz Carlton Hotel in San Francisco.

Slide 48: Mr. Azuela .. And the bellboy who picks up your bags.. And the doorman who hails you a cab… are authorized, on the spot – no signature from above – to spend up to $2000 to fix any customer problem. There are many people with exalted titles who cannot spend $2000 without six signatures!

Slide 49: Molecularization Impact on HR – Empower employees, clients, partners, students Impact on ICT – Ensure that infostructure components are autonomous, compatible, customizable, and reusable

Slide 51: Digitalization??? For 200 years, Encyclopedia Britannica was paper

Slide 52: Until… 1995 1995! .. A fine day in

Slide 53: … came Microsoft and with it the edutainment side of knowledge business

Slide 54: How did EB react?

Slide 55: But who are the leaders in Edutainment TODAY?

Slide 56: And who is the leader in Knowledge TODAY?

Slide 57: Digitalization Impact in HR – Convert Data, information and transaction to digital form. Entertaining, multimedia, interactive, visual, FUN Impact on ICT – Ensure that the infostructure is the organization’s collective digital memory. Ensure that the infostructure supports as many different medias as possible

Slide 59: Hard white light from ceiling Paper domination (files, neon lighting binders, trays, books, post-it, flying sheets…) Working time is monitored Old-model stand-alone computer (if any) The employee mainly works with telephone, pen and paper. The computer is used for word processing, if at all Dress code is Old-model strict telephone (uniform, full suit) Small traditional Virtualization??? Simple revolving desk chair, no armrest Working Environment # 1: Cramped cubicles are separated by 1.80m high partitions; senior managers have larger individual offices behind closed doors. Drawing: Cécile Périnelle-Michelet

Slide 60: Natural light Dress code is supplemented business with halogen elegant (suit lamps with no vest, no uniform) Offices are equipped with printers and fax Reasonably recent machines desktop with sound, connected to LAN Paper is used but controlled Modern wireless telephone with speakerphone Personal touch (family photos…) The employee mainly works with Mobile phones telephone, paper, fax and are sometimes computer. used Spacious L-shaped Comfortable revolving desk, adapted to chair with armrest computer work Working Environment # 2: Glass-walled offices for 1 to 4 people (those for one person also have a small comfortable sitting area). Drawing: Cécile Périnelle-Michelet

Slide 61: Conference room Banners stressing for large meetings corporate values and private Dress code is conversations business casual (suit with no vest and tie, no Natural light Comfort features uniform). Hairdo supplemented (coffee machine, code is liberal with halogen food, plants) lamps Recent multimedia notebook, R&R area with TV, connected to video and CD/DVD intranet facilities Mobile phone with headset PDAs are Office is equipped with sometimes printer/fax/scanner/copy used machine The employee mainly works with portable computer and telephone. Hardly any paper except mail and reference books Ergonomic revolving chair Children and pets are allowed in the office Working Environment # 3: Open landscaped working area for all, modern ergonomic working stations (not always permanently assigned to employees) Drawing: Cécile Périnelle-Michelet

Slide 62: Natural light or whatever Latest notebook, preferred light connected to Internet Total freedom in Virtual conference dress code, hairdo room with text and Friendly family or code, furniture, voice chats, video other environment working position, and visuals working hours Mobile phone serving as modem, PDA No paper Virtual work tools The employee works virtually (webcam, speaker, (teleworker) headphones) Working Environment # 4: Home or anywhere else, as the employee chooses. Drawing: Cécile Périnelle-Michelet

Slide 63: Teleworkers More than ¼ of US workers are now part-time, independents, or temps. This is particularly true in high-tech Only one out of every three Californians holds a traditional 9-to-5 job, working on site. 80% of Sun Microsystems employees work at home part-time Average annual salaries for home-only teleworkers are over US$ 50,000 – double the US median.

Slide 64: “Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!” — Charles Handy

Slide 65: The 3D WWW

Slide 66: The Otto 3D experience Soon each website will become a 3 dimensional room that can be experienced alone or with friends

Slide 70: Virtualization Impact on HR – Conduct work without physical presence Impact on ICT – Ensure that the infostructure is the virtual version of the entire organization, and supports virtual work. Embed the 3D and virtual technologies into your Webpresence

Slide 72: Internetworking??? - The power of Connecting

Slide 74: But so much more stronger.. All PC‘s of the whole world

Slide 75: The new Powers of the Web 2 1. Peer Peer

Slide 76: 2.

Slide 78: Internetworking Impact on HR – Be part of interlinked business networks and e- communications Impact on ICT – Ensure that the Infostructure is intergrated within itself and with external networks

Slide 80: Re-intermediation??? What do these 3 items have in common?

Slide 81: All can be bought @ eBay

Slide 84: Re-intermediation Impact on HR – Enable direct working relations at all level Impact on ICT – Ensure that the infostructure is web-enabled and allows direct and immediate relations between users, partner and clients

Slide 91: Master of immediacy (and the only way a company should be..) Changed the world overnight in 1994 100% market leader for many years Lost everything over night Bought over by AOL

Slide 92: Immediacy Impact on real time basis, and be ready for change at all times Impact on ICT – Ensure that the infostructure enables real-time work, and provides efficient support at all times even through technology migrations

Slide 94: Have you changed civilization today? Source: HP banner ad

Slide 95: What is this?

Slide 96: The Dyson phenomena

Slide 97: Successful Innovation Needs Daring Tries “You miss 100% of the shots you don’t take” Wayne Gretzky, hockey great

Slide 98: Successful Innovation Needs Silliness Sounds like a strange advice? Remember… –Post-it Notes were silly. FedEx was silly World Wide Web was silly.. Way back in 1995 .. And so was …

Slide 99: Innovation Impact on HR – Use creativity to innovate and change ways of working, marketing, educating Impact on ICT – Ensure that the infostructure is innovative in nature and stimulates creative work

Slide 101: Key economic assets over time

Slide 102: Knowledge –What kind of knowledge?

Slide 103: Knowledge Impact on HR – Stimulate and integrate information sharing and knowledge development at all levels Impact on ICT – Ensure that the infostructure captures and supports the development of human capital

Slide 105: Do you think it will be a fantastic paradise-like future? NO For Sure NOT, But do you think anybody will stop it?

Slide 106: “There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.” Steve Case

Slide 107: Enjoy your CHANGE!