1.
Bryan Fenech – Founder and Director
Building the Organisation of Tomorrow
www.oot.org
Work in the organisation of
tomorrow

2.
Contents
Introduction
Recap on Principles
Leadership, Management and Gender
Professional Services Disruption
Consultants and Lawyers
Project Managers and IT Professionals
Medical Practitioners
The New Guilds
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3.
INTRODUCTION
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4.
Introduction
• This presentation looks at the application
of the ideas covered in previous topics –
the need for new organisational forms,
what the organisation of tomorrow looks
like, and enterprise logic – to individuals
and their work
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5.
Introduction
• The implications for leadership and
management, gender diversity, and a
range of professions (including
consultants, lawyers, project managers, IT
professionals, and medical practitioners)
is explored
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6.
Introduction
• This topic also looks at the rise of networks
of support organisations, such as
professional associations and workforce
brokers, which some commentators have
described as the “new guilds”
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7.
RECAP ON PRINCIPLES
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8.
Emergent enterprise logic
of the knowledge era
•Networked,
cellular
•Fluid federations
Structural
Arrangements
Leadership and
Governance •Dynamic
•Distributed
leadership
•Internal markets
capabilities
•Social capital
•Value co-creation
Capabilities
and Resources
Strategic
Imperatives
•Differentiation and
innovation
•Flexibility
•Strategic alliances
Information
Technology
Revolution
Logic: The innovation
mindset
Organisational
Adaptation
Forces:
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9.
A transitional
organisational model
CEO
Chief
Projects
Officer
Chief
Operations
Officer
Process-based
organisation
Operations and
execution
Lean six sigma
Project-based
organisation
Change and renewal
Project portfolio
management
New Ideas
New Capabilities,
Products and Services
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10.
LEADERSHIP, MANAGEMENT
AND GENDER
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11.
Conflicting leadership
paradigms
• Tension between new and old paradigms
– The criticality of knowledge-oriented capabilities
and resources emphasises the human and social
dimensions of leadership
– However, events of the first decade of the 21st
century has highlighted the prevalence of
narcissistic CEOs and destructive leadership
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12.
Leadership prerequisites
for building social capital1
• Empowering rather than controlling
employees, maintaining coherence by
negotiating an inspiring vision rather than
directing
• Maximising the value of employees rather
than minimising their cost
• Encouraging trust, cooperation and
teamwork
• Demonstrating integrity and ethics
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13.
Leadership behaviour in
the 21st century
• However, the first decade of the 21st
century has seen an increase in CEO
hubris, greed, short-termism, unethical
and illegal behaviour2
– Excessive executive remuneration, predating
stock options to increase executive
compensation
– Increasingly short term focus – from annual to
quarter – to maximise stock price
– Risky acquisitions
– Fraud
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14.
Personality attributes of
CEOs
• Findings from research into CEO
personality traits seeking to explain such
behaviour runs counter to the leadership
prerequisites for building social capital
– Recent studies have correlated a high incidence
of narcissism in CEOs and confirmed the
relationship between CEO narcissism and
company fraud3
– A recent study concluded that the incidence of
psychopathy in CEOs is 4 times that of the
general population4
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15.
Female representation in
top management
• Despite significant investment in diversity
programs female representation in top
management remains stubbornly low
over the last decade5
– ASX Top 200 Female CEOs 1.3 – 3.4% and Board
Directors 8.1 – 12.3%
– ASX Top 500 Female CEOs 2.4% and Board
Directors 9.2%
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16.
Impact of female
workplace participation6
• A positive association between firm
performance and female participation
below the CEO level, even when
controlling for unobservable firm
heterogeneity
• No positive effects from having a female
CEO
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17.
Impact of female
workplace participation6
• Positive results for female participation
entirely driven by firms pursuing an
“innovation intensive” strategy, where
creativity and collaboration important
• Evidence for a “female management
style” that enhances firm performance by
facilitating teamwork and innovation but
which is rendered less effective by the
“leadership attributes of the CEO
position”
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18.
PROFESSIONAL SERVICES
DISRUPTION
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19.
Disruption of professional
services industry
• Professional services is starting to experience
the same pattern of disruption previously
experienced in manufacturing7, 8
– New competitors with new business models arrive
– Incumbents choose to ignore or to flee to higher-margin
activities
– A disrupter whose product was once barely
good enough achieves a level of quality
acceptable to the broad middle of the market,
undermining the position of long-term leaders
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20.
Why now and not before?
• Professional services, particularly
consulting and law, has remained
immune from disruption previously due to
2 factors9
– Opacity
– Agility
• Technological change is rapidly eroding
both factors
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21.
Patterns of professional
services disruption
• Development of inhouse capabilities
• Increasingly granular information about
providers – rankings, financials, clients
• Democratization of knowledge leading
to increasing client sophistication –
alumni diaspora, internet
• New business models providing
alternatives for sophisticated clients
• Disaggregation and modularisation
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22.
CONSULTANTS AND LAWYERS
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23.
The traditional consulting
business model
• The product is expertise – therefore,
asymmetrical knowledge between
client and provider
• Clients rely on brand, reputation, and
"social proof“ (the professionals'
educational pedigree, eloquence and
demeanour)10
• Price is a proxy for quality
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24.
The traditional legal
services business model11
• Attraction and training of top legal talent to
do the bulk of the work serving clients
• Creation of a tournament to motivate the
lawyers to strive to become equity partners
while maintaining tight restriction on the
number of equity owners
• Charging high hourly rates
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25.
Alternative business
models and disruptors12, 13
• Firms who assemble freelance
consultants – e.g., Eden McCullum and
Business Talent Group (BTG), Axiom
(www.axiomlaw.com), Lawyers on
Demand (www.lod.co.uk)
• Facilitated networks that link users with
industry experts – e.g., Gerson Lehrman
Group (www.glgresearch.com) and
Expert360 (www.expert360.com)
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26.
Alternative business
models and disruptors12, 13
• Data- and analytics-enabled consulting –
packaging ideas, processes, frameworks,
analytics, and other intellectual property
through software or other technology – e.g.,
McKinsey Solutions
• Big data analytics enabled consulting –
e.g., Narrative sense
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27.
PROJECT MANAGERS AND
INFORMATION TECHNOLOGY
PROFESSIONALS
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28.
At the forefront of change
• Information technology and project
management are not just
contemporaries – they are intimately
linked catalysts to the discontinuity that
unleashed the socio-economic forces of
the knowledge era
• As organizations found it necessary to
change more frequently, they turned to
project management
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29.
Tool of choice for
managing change
• Disciplines and mechanisms for
organising and coordinating business
change
– Project management techniques have been
adopted to cope with “uncertainty, multiple
goals and speed of change”14
– Project management provides the necessary
flexibility and responsiveness to survive in an
extremely turbulent context where the ability
to change and be innovative is imperative15
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30.
Increasing projectisation
of the workplace
• Projectisation is set to continue and
intensify
– Project management (and the associated
discipline of portfolio management) provides the
deployment and coordination mechanisms
needed to facilitate “dynamic capabilities”
– Organisations need to become increasingly
project-oriented if they are to increase their
“absorptive capacity”
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31.
Expanded application of
project management
• Project management is now being
adopted to manage professional services
contracts in fields where it has not
previously had application – e.g., legal
services
• Portfolio management techniques are
being adopted to manage marketing
campaigns and sales functions
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32.
Where to from here – key
IT trends, new disruptors
• IT continues to drive change
– Analytics driving business insights and
competitive advantage
– Social platforms as a source of business
intelligence
– Cloud computing enabling integration between
organisations decoupled from infrastructure
– User experience, deeply engaging the user by
integrating processes and devices
– Necessity for more sophisticated security and
privacy
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33.
Challenging project
management paradigms
• The traditional project management
paradigm as a “core rigidity”
– Innovation requires risks exploratory activity to
generate new solutions, whereas project
management is primarily concerned with time,
cost and requirements
– The classical project paradigm organizes the
mobilization of professionals to answer explicit
demands but innovations are not designed as an
answer to an explicit question or existing
customers
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34.
Challenging IT paradigms
• The IT service paradigm as a category
error
– Is IT a cost center or a source of competitive
advantage?
– Peers and colleagues versus customers?
– How relevant is ITIL in a project-based world?
– How does the shared services model support
agility?
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35.
Challenging IT paradigms
• The CIO role paradigm obsolete?
– At a time when industry analysts such as Gartner,
and publications such as CIO Magazine are
directing CIOs to be more strategic, forty-two
percent of CIOs still characterize themselves as
“IT service providers” and “cost centers” to the
business leaders in their organizations, rather than
“IT partners,” “business peers”16
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36.
MEDICAL PRACTITIONERS
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37.
Sophisticated patients
with sophisticated tools
• A range of consumer oriented mobile
applications – e.g., SleepCycle, Lumosity,
Better Health, iTriage, HealthTap, Fitness
Buddy, Health Mate
• Providing advice, body telemetry,
diagnosis, improved body and brain
function programs, connection to health
service provider
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38.
Sophisticated patients
with sophisticated tools
• Technology enabled networks linking
patients, medical experts and institutions:
patient portals – e.g., Patients Know Best
– Enter symptoms by smartphone, tablet or PC
– Diary for appointments
– Discussion with a clinical team
– Obtain treatment plans
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39.
Key disruption – the
patient owns their data
• With disruptive technologies like Patients
Know Best17 the patient owns their
medical records – c.f., the institutional
control model that exemplifies
patient/clinician relationships today
• The patient can revoke access to a
record by an institution that created it
without losing the right to give access to it
to other institutions
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40.
Integrated care requires
patient control
• Disrupting the current medical industry
using new applications
– Invite local GPs
– Share data with any other hospital
– Connect and work with innovative providers
– Connect and work with charitable trusts
– Patient advocacy
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41.
THE “NEW GUILDS”
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42.
Lost conditions and
infrastructure
• Traditional employment contracts
offered many advantages
– Greater job, and therefore, economic security
– Training and education
– Health insurance and other benefits
– Social interaction
– Sense of identity
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43.
New opportunities for a
new kind of service
• With the firm taking less responsibility for
meeting these needs, independent
organisations are stepping in and
providing support to employees
• Some authors have termed these support
organisations “the new guilds”18
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44.
Which organisations are
taking on this role?
• Three types of organisation are taking on
this role19 –
– Occupation-based worker associations – e.g.,
professional associations and unions
– Workforce brokers that match employers and
workers
– Regionally-based organisations – e.g., joint
ventures between local business, government
and educational organisations
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45.
The future of the new
guilds
• Providing a portfolio of services that
replicate that of traditional Human
Resources Departments
• Sourcing best deals on health insurance
(mobile insurance policies), investment
advice, career counselling and planning,
job search
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46.
Visit www.oot.org
Bryan Fenech
Founder and Director About www.oot.org
• www.oot.org is the website of
Building the Organisation of
Tomorrow, a networked community
and set of resources to assist
leaders to meet the imperative for
organisational renewal
• All institutions are under increasing
pressure to adapt to 21st century
technological and socio-economic
forces. Successful leaders need
appropriate frames of reference to
manage these processes of
transformation; however, such
frames of reference are rare
• Find articles, presentations, book
reviews, and other resources
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47.
References
1. Hitt, M. A. , Haynes, K. T. & Serpa, R. (2010) Strategic leadership for
the 21st century, Business Horizons, 53(5), pp 437-444
2. Hitt et al (2010) op cit
3. Rijsenbilt, A. Rijsenbilt & Commandeur, H. (2013) Narcissus Enters the
Courtroom: CEO Narcissism and Fraud, Journal of Business Ethics,
117, pp 413–429
4. Bercovici, J. (2011) Why (Some) Psychopaths Make Great CEOs,
Forbes [http://www.forbes.com/sites/jeffbercovici/2011/06/14/why-some-
psychopaths-make-great-ceos/]
5. Australian Bureau of Statistics 4125.0 - Gender Indicators, Australia,
Feb 2014
6. Dezső, C. E. and Ross, D. G. (2008) ‘Girl Power: Female Participation
in Top Management and Firm Performance’, University of Maryland
Robert H Smith School of Business, Working Paper No. RHS-06-104.
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48.
References
7. Christensen, C. M., Wang, D. & van Bever, D. (2013) Consulting on
the Cusp of Disruption, Harvard Business Review, October
8. Schumpeter, J. (2013) The Future of the Firm, The Economist,
September
9. Christensen et al (2013) op cit.
10. Christensen et al (2013) op cit.
11. Beaton, G. (2013) The Rise and Rise of the NewLaw Business Model
[www.beatoncapital.com]
12. Christensen et al (2013) op cit.
13. Beaton, G. (2013) op cit.
14. Pellegrinelli, S. (1997) Programme management: organising project-based
change, International Journal of Project Management, 15(3)
15. Eskerod, E. (1996) Meaning and action in a multi-project
environment, International Journal of Project Management, 14(2)
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49.
References
16. The CIO of the Future Research Report
[http://emersonnetworkpower.com/en-us/Solutions/CIO-Topics/
Documents/CIO-of-the-Future-Research-Report.pdf]
17. www.patientsknowbest.com
18. Malone, T. W., Laubacher, R. and Morton, M. S. S. (2003) Inventing
the Organisations of the 21st Century, Cambridge MA: The MIT Press
19. Malone et al (2003) op cit.
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