Bryan Fenech – Founder and Director 
Building the Organisation of Tomorrow 
www.oot.org 
Work in the organisation of 
tomo...
Contents 
Introduction 
Recap on Principles 
Leadership, Management and Gender 
Professional Services Disruption 
Consulta...
INTRODUCTION 
9/25/2014 www.oot.org 3
Introduction 
• This presentation looks at the application 
of the ideas covered in previous topics – 
the need for new or...
Introduction 
• The implications for leadership and 
management, gender diversity, and a 
range of professions (including ...
Introduction 
• This topic also looks at the rise of networks 
of support organisations, such as 
professional association...
RECAP ON PRINCIPLES 
9/25/2014 www.oot.org 7
Emergent enterprise logic 
of the knowledge era 
•Networked, 
cellular 
•Fluid federations 
Structural 
Arrangements 
Lead...
A transitional 
organisational model 
CEO 
Chief 
Projects 
Officer 
Chief 
Operations 
Officer 
Process-based 
organisati...
LEADERSHIP, MANAGEMENT 
AND GENDER 
9/25/2014 www.oot.org 10
Conflicting leadership 
paradigms 
• Tension between new and old paradigms 
– The criticality of knowledge-oriented capabi...
Leadership prerequisites 
for building social capital1 
• Empowering rather than controlling 
employees, maintaining coher...
Leadership behaviour in 
the 21st century 
• However, the first decade of the 21st 
century has seen an increase in CEO 
h...
Personality attributes of 
CEOs 
• Findings from research into CEO 
personality traits seeking to explain such 
behaviour ...
Female representation in 
top management 
• Despite significant investment in diversity 
programs female representation in...
Impact of female 
workplace participation6 
• A positive association between firm 
performance and female participation 
b...
Impact of female 
workplace participation6 
• Positive results for female participation 
entirely driven by firms pursuing...
PROFESSIONAL SERVICES 
DISRUPTION 
9/25/2014 www.oot.org 18
Disruption of professional 
services industry 
• Professional services is starting to experience 
the same pattern of disr...
Why now and not before? 
• Professional services, particularly 
consulting and law, has remained 
immune from disruption p...
Patterns of professional 
services disruption 
• Development of inhouse capabilities 
• Increasingly granular information ...
CONSULTANTS AND LAWYERS 
9/25/2014 www.oot.org 22
The traditional consulting 
business model 
• The product is expertise – therefore, 
asymmetrical knowledge between 
clien...
The traditional legal 
services business model11 
• Attraction and training of top legal talent to 
do the bulk of the wor...
Alternative business 
models and disruptors12, 13 
• Firms who assemble freelance 
consultants – e.g., Eden McCullum and 
...
Alternative business 
models and disruptors12, 13 
• Data- and analytics-enabled consulting – 
packaging ideas, processes,...
PROJECT MANAGERS AND 
INFORMATION TECHNOLOGY 
PROFESSIONALS 
9/25/2014 www.oot.org 27
At the forefront of change 
• Information technology and project 
management are not just 
contemporaries – they are intim...
Tool of choice for 
managing change 
• Disciplines and mechanisms for 
organising and coordinating business 
change 
– Pro...
Increasing projectisation 
of the workplace 
• Projectisation is set to continue and 
intensify 
– Project management (and...
Expanded application of 
project management 
• Project management is now being 
adopted to manage professional services 
c...
Where to from here – key 
IT trends, new disruptors 
• IT continues to drive change 
– Analytics driving business insights...
Challenging project 
management paradigms 
• The traditional project management 
paradigm as a “core rigidity” 
– Innovati...
Challenging IT paradigms 
• The IT service paradigm as a category 
error 
– Is IT a cost center or a source of competitive...
Challenging IT paradigms 
• The CIO role paradigm obsolete? 
– At a time when industry analysts such as Gartner, 
and publ...
MEDICAL PRACTITIONERS 
9/25/2014 www.oot.org 36
Sophisticated patients 
with sophisticated tools 
• A range of consumer oriented mobile 
applications – e.g., SleepCycle, ...
Sophisticated patients 
with sophisticated tools 
• Technology enabled networks linking 
patients, medical experts and ins...
Key disruption – the 
patient owns their data 
• With disruptive technologies like Patients 
Know Best17 the patient owns ...
Integrated care requires 
patient control 
• Disrupting the current medical industry 
using new applications 
– Invite loc...
THE “NEW GUILDS” 
9/25/2014 www.oot.org 41
Lost conditions and 
infrastructure 
• Traditional employment contracts 
offered many advantages 
– Greater job, and there...
New opportunities for a 
new kind of service 
• With the firm taking less responsibility for 
meeting these needs, indepen...
Which organisations are 
taking on this role? 
• Three types of organisation are taking on 
this role19 – 
– Occupation-ba...
The future of the new 
guilds 
• Providing a portfolio of services that 
replicate that of traditional Human 
Resources De...
Visit www.oot.org 
Bryan Fenech 
Founder and Director About www.oot.org 
• www.oot.org is the website of 
Building the Org...
References 
1. Hitt, M. A. , Haynes, K. T. & Serpa, R. (2010) Strategic leadership for 
the 21st century, Business Horizon...
References 
7. Christensen, C. M., Wang, D. & van Bever, D. (2013) Consulting on 
the Cusp of Disruption, Harvard Business...
References 
16. The CIO of the Future Research Report 
[http://emersonnetworkpower.com/en-us/Solutions/CIO-Topics/ 
Docume...
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Work in the organisation of tomorrow - gender, leadership and the professions - oot.org lecture series 4

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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.

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.

This presentation 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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Work in the organisation of tomorrow - gender, leadership and the professions - oot.org lecture series 4

  1. 1. Bryan Fenech – Founder and Director Building the Organisation of Tomorrow www.oot.org Work in the organisation of tomorrow
  2. 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 9/25/2014 www.oot.org 2
  3. 3. INTRODUCTION 9/25/2014 www.oot.org 3
  4. 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 9/25/2014 www.oot.org 4
  5. 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 9/25/2014 www.oot.org 5
  6. 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” 9/25/2014 www.oot.org 6
  7. 7. RECAP ON PRINCIPLES 9/25/2014 www.oot.org 7
  8. 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: 9/25/2014 www.oot.org 8
  9. 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 9/25/2014 www.oot.org 9
  10. 10. LEADERSHIP, MANAGEMENT AND GENDER 9/25/2014 www.oot.org 10
  11. 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 9/25/2014 www.oot.org 11
  12. 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 9/25/2014 www.oot.org 12
  13. 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 9/25/2014 www.oot.org 13
  14. 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 9/25/2014 www.oot.org 14
  15. 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% 9/25/2014 www.oot.org 15
  16. 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 9/25/2014 www.oot.org 16
  17. 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” 9/25/2014 www.oot.org 17
  18. 18. PROFESSIONAL SERVICES DISRUPTION 9/25/2014 www.oot.org 18
  19. 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 9/25/2014 www.oot.org 19
  20. 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 9/25/2014 www.oot.org 20
  21. 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 9/25/2014 www.oot.org 21
  22. 22. CONSULTANTS AND LAWYERS 9/25/2014 www.oot.org 22
  23. 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 9/25/2014 www.oot.org 23
  24. 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 9/25/2014 www.oot.org 24
  25. 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) 9/25/2014 www.oot.org 25
  26. 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 9/25/2014 www.oot.org 26
  27. 27. PROJECT MANAGERS AND INFORMATION TECHNOLOGY PROFESSIONALS 9/25/2014 www.oot.org 27
  28. 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 9/25/2014 www.oot.org 28
  29. 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 9/25/2014 www.oot.org 29
  30. 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” 9/25/2014 www.oot.org 30
  31. 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 9/25/2014 www.oot.org 31
  32. 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 9/25/2014 www.oot.org 32
  33. 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 9/25/2014 www.oot.org 33
  34. 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? 9/25/2014 www.oot.org 34
  35. 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 9/25/2014 www.oot.org 35
  36. 36. MEDICAL PRACTITIONERS 9/25/2014 www.oot.org 36
  37. 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 9/25/2014 www.oot.org 37
  38. 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 9/25/2014 www.oot.org 38
  39. 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 9/25/2014 www.oot.org 39
  40. 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 9/25/2014 www.oot.org 40
  41. 41. THE “NEW GUILDS” 9/25/2014 www.oot.org 41
  42. 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 9/25/2014 www.oot.org 42
  43. 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 9/25/2014 www.oot.org 43
  44. 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 9/25/2014 www.oot.org 44
  45. 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 9/25/2014 www.oot.org 45
  46. 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 9/25/2014 www.oot.org 46
  47. 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. 9/25/2014 www.oot.org 47
  48. 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) 9/25/2014 www.oot.org 48
  49. 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. 9/25/2014 www.oot.org 49

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