SHIFT Happens! BIG CHANGE AND WHAT TO DO ABOUT IT

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The story of HUGE change affecting us all and few BIG SHIFT things you can do to make today's changes work for your business and your life.

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SHIFT Happens! BIG CHANGE AND WHAT TO DO ABOUT IT

  1. 1. SHIFT Happens Barbara Shannon GreatChangeBox.com Including)insights)from)John%Hurley;%John%Seeley%Brown;%Lang%Davison;%Deloi7e%Center%for%the%Edge;%Robert%J.%Gordon;%Tomas%Sedlacek;%Daniel%Pink;%Richard%Florida%
  2. 2. You$can’t$run$this$business$by$the$le2,$intellectual,$ analy4cal$side$of$the$brain.$We$are$in$the$arts$and$ entertainment$business,$and$we’re$pu<ng$a$huge$ emphasis$on$crea4vity$and$world?class$design.$ GM$Vice$Chairman$Bob$Lutz$$
  3. 3. At$Nike$we$go$beyond$process$efficiencies.$Clear$goals,$ great$people,$empowerment$and$trust$move$faster$and$ beKer$than$too$much$process.$$ Nike$CIO$–$Roland$Paanakker$
  4. 4. &Global&Business&Transforma:on&Summit& TOMAS&SEDLACEK&
  5. 5. &Global&Business&Transforma:on&Summit&
  6. 6. GROWTH)IS)KILLING)BUSINESS!)
  7. 7. &&BUT&THAT’S&UNAMERICAN!&
  8. 8. YES!)
  9. 9. Autonomy!) Learning!) Making)a)Difference!)
  10. 10. CONNECTION COMPUTING&POWER& Digital&Storage& Bandwidth& The%ShiG%Index%2011%
  11. 11. CONNECTION INFRASTRUCTURE& Internet&Users& Wireless&Subscrip:ons& & The%ShiG%Index%2011%
  12. 12. 5X& 2X&
  13. 13. CONNECTION ECONOMIC&FREEDOM& $ The%ShiG%Index%2011%
  14. 14. FLOW PHYSICAL&FLOW& Migra4on$to$crea4ve$ci4es$ Travel$volume$ Movement$of$capital$ The%ShiG%Index%2011%
  15. 15. VIRTUAL&FLOW& Inter?firm$knowledge$ Wireless$ac4vity$ Internet$ac4vity$ $ FLOW The%ShiG%Index%2011%
  16. 16. FLOW The%ShiG%Index%2011% AMPLIFIERS& Worker$passion$ Social$Media$
  17. 17. IMPACT COMPANIES& Asset$Profitability$ ROA$Performance$Gap$ Firm$Topple$Rate$ Labor$Produc4vity$ The%ShiG%Index%2011% The%ShiG%Index%2011%
  18. 18. ROA$for$US$Companies(1965$–$2010)$
  19. 19. FIRM$ROA$TOPPLE$RATES$(1965$–$2010)$ Topple$rate$for$companies$>$100M$increased$40%$over$firms$<$100M$ >$100M$Sales$
  20. 20. Labor&Produc:vity*& Sta4c$ Decrease$ ROA$ Increase$ Low&Increase& Moderate& Increase& High&Increase& *%Output%of% goods%and% services%per%% labor%hours% required%to% produce% that%output%
  21. 21. ROA$of$US$companies$=$¼$of$what$it$was$in$1965 $ $ Topple$rate$of$big$companies$accelera4ng$at$3X$rate$of$smaller$firms $ $$ $ $ Average$tenure$in$S&P$2011$=$10$–$20$years$VS$50$–$100$YRS$in$1965 $ $ Employees$want$meaning$over$money! $ $ $
  22. 22. But$what$drives$ FLOW?$
  23. 23. PASSION When$people$engage$ passionately$with$their$ work,$they$seek$ways$to$ connect$with$others$who$ share$their$passion$and$ who$can$help$them$ improve$faster.$ DeloiTe&ShiU&Index& Deloi7e%Passionate%Workforce%Study%2011%%
  24. 24. MORE SMALL MORE PASSION Passionate$ Engaged$ Passive$ Disengaged$ 1$–$99$ 100$–$999$ $ 1000$–$4000$ $ !  5000$
  25. 25. What To Do?
  26. 26. BE SMALL!
  27. 27. CONNECT!
  28. 28. SHIFT to the Right
  29. 29. MIND THE GAP
  30. 30. NOW!& THEN& SMALL&IS&BIG& BIG&IS&BIG & Too&big&and&too&fast&fails& Seek&Sustainability& Organic&Growth&+&Thoughul&Acquisi:on& Bigger&is&beTer& Seeking&Growth& Acquire&to&Grow& & ACCELERATE&THROUGH&RELATIONSHIPS$ ACCELERATE&THROUGH&EFFICIANCY Structure&to&Scale&Talent& Customer&Driven&Customiza:on& Pull& Partnerships&and&Trust& Sharing&for&Value&& Innova:ng&from&the&Core&& Meritocracies& Purpose/Mastery/Control& Structure&to&Scale&Efficiency& Product&Driven&Standardiza:on Push & & Transac:ons && Protec:ng&IP & && Innova:ng&on&the&Edge & Hierarchies& Performance&Targets& & && & HIGH&VALUE&SKILLS& HIGH&VALUE&SKILLS & & Tacit&Knowledge& Explicit&Knowledge Pursuit&of&Excellence & & && && Performance&Reviews & && & && && & Passionate&quests& Real&Time&Feedback& $

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