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Copyright Julian Birkinshaw 2016
New Ways of Working for
the 21st Century
HR Innovation & Strategy Meeting, October 2016
Professor Julian Birkinshaw
London Business School
Copyright Julian Birkinshaw 2016
A Changing World
New Ways of Working
Implications for Leadership
and Management
Copyright Julian Birkinshaw 2016
How do you rate the honesty of the
following professions?
Medical doctors
Police officers
Clergy
Journalists
Bankers
Lawyers
Business executives
Car salespeople
67%
56%
45%
27%
25%
21%
17%
8%
2015 Gallup Survey
Copyright Julian Birkinshaw 2016
The failure of leadership
Copyright Julian Birkinshaw 2016
Who are you happiest with?
Friends
Parents/relatives
Spouse
My children
Co-workers
Clients/customers
Alone
Boss
3.3
3.0
2.8
2.7
2.6
2.4
2.2
2.0
(Rating is on a 1-5 scale)
Copyright Julian Birkinshaw 2016
In search of better role models
Copyright Julian Birkinshaw 2016
Types of innovation
Product innovation
Technology innovation
Process innovation
Business model innovation
Management innovation
Service innovation
Copyright Julian Birkinshaw 2016
Changes in how we work are vital to
productivity improvement
0
2
4
6
8
High
investment in
Information
Technology
Low
investment in
Information
Technology
Traditional workplace
practices
Innovative workplace
practices
Annual productivity
growth in 1990s for
US manufacturers
Source: Arnal, Ok, Torres 2001
Copyright Julian Birkinshaw 2016
Shifting basis of competitive advantage
INDUSTRIAL AGE: 1860s-1960s
INFORMATION AGE: 1970s–2020s
Copyright Julian Birkinshaw 2016
Ray Kurzweil: Accelerating Returns
“Information-based technologies will encompass all human
knowledge and proficiency, ultimately including pattern-
recognition powers, problem-solving skills, and emotional
and moral intelligence of the human brain itself.”
Copyright Julian Birkinshaw 2016
The dark side of big data
Analysis Paralysis
Blind Faith in Data
Answers in search of
Questions
Loss of Contextual
Understanding
Loss of Differentiation
Copyright Julian Birkinshaw 2016
INFORMATION
+
KNOWLEDGE
ACTION
+
CONVICTION
LABOUR + CAPITAL
Towards an “agile age”?
Copyright Julian Birkinshaw 2016
A Changing World
New Ways of Working
Implications for Leadership
and Management
Copyright Julian Birkinshaw 2016
How should we respond to a more
complex operating environment?
• Fight complexity with complexity?
Copyright Julian Birkinshaw 2016
The downsides of complexity
Turf wars
Unclear roles
Steering committees
Layers of rules & procedures
Alienation and disengagement
Risk aversion and lack of creativity
Copyright Julian Birkinshaw 2016
How should we respond to a more
complex operating environment?
• Fight complexity with complexity
• Fight complexity with simplicity
Copyright Julian Birkinshaw 2016
Alternatives to bureaucracy
Under what conditions does this work?
Copyright Julian Birkinshaw 2016
Emergent order: Less is more
Hans Monderman – the “Shared Space” model
Copyright Julian Birkinshaw 2016
So, what do you do for a living?
Copyright Julian Birkinshaw 2016
Three ways of describing yourself in the
workplace
Your position on the org chart
Your knowledge and experience
What you do on a day to day basis
Copyright Julian Birkinshaw 2016
Three distinct models of organising
Your position on the org chart
Your knowledge and experience
What you do on a day to day basis
Bureaucracy
Meritocracy
Adhocracy
Copyright Julian Birkinshaw 2016
Adhocracy – a classic example
Copyright Julian Birkinshaw 2016
Adhocracy – a current example
Copyright Julian Birkinshaw 2016
Zappos – the holacracy experiment
Copyright Julian Birkinshaw 2016
Adhocracy-based methodologies
Copyright Julian Birkinshaw 2016
Three distinct models
People motivated by…
Decisions made through…
By Rules
Hierarchy
Extrinsic Rewards
Coordination achieved…
People motivated by…
Decisions made through…
Around Opportunity
Experimentation
Achievement
Coordination achieved…
Bureaucracy
Position is privileged
Adhocracy
Action is privileged
People motivated by…
Decisions made through…
Mutual Adjustment
Logical Argument
Personal Mastery
Coordination achieved…
Meritocracy
Knowledge is privileged
Which models does your organisation use? And
which ones should you be using?
Copyright Julian Birkinshaw 2016
INDUSTRIAL
AGE
Emphasis on
productivity and
efficiency
BUREAUCRACY
INFORMATION
AGE
Emphasis on
rational analysis
and expertise
MERITOCRACY
‘AGILE’
AGE
Emphasis on
agility, intuition,
and decisiveness
ADHOCRACY
Shifting emphasis over time
Copyright Julian Birkinshaw 2016
A Changing World
New Ways of Working
Implications for Leadership
and Management
Copyright Julian Birkinshaw 2016
Adhocracy at a personal level
Copyright Julian Birkinshaw 2016
Men’s world high-jump record
2.55m
2.45m
2.35m
2.25m
2.15m
2.05m
1.95m
1900 1920 1940 1960 1980 2000
Copyright Julian Birkinshaw 2016
John Thomas vs.Valeriy Brumel
2.55m
2.45m
2.35m
2.25m
2.15m
2.05m
1.95m
1900 1920 1940 1960 1980 2000
Copyright Julian Birkinshaw 2016
Dick Fosbury: Mexico Olympics Gold
2.55m
2.45m
2.35m
2.25m
2.15m
2.05m
1.95m
1900 1920 1940 1960 1980 2000
Olympics
Copyright Julian Birkinshaw 2016
Three waves of innovation in the high
jumping industry
2.55m
2.45m
2.35m
2.25m
2.15m
2.05m
1.95m
1900 1920 1940 1960 1980 2000
The Fosbury Flop
The Straddle Jump
The Western Roll
Copyright Julian Birkinshaw 2016
in praise of “unreasonable” people
The “Hyperloop”
Copyright Julian Birkinshaw 2016
How to be Unreasonable
(in a reasonable way)
• Think different
• Experiment early
• Locate the safety mat
• Seize the moment
Copyright Julian Birkinshaw 2016
So how do you get the
most out of these
people?
Copyright Julian Birkinshaw 2016
A big part of the leader’s job is
enabling initiative and experimentation
Copyright Julian Birkinshaw 2016
Google’s Project Oxygen
Copyright Julian Birkinshaw 2016
Google’s Project Oxygen
1. Be a good coach
2. Empower your team and don't micromanage
3. Express interest in team members' success and well-being
4. Be productive and results-oriented
5. Be a good communicator and listen to your team
6. Help your employees with career development
7. Have a clear vision and strategy for the team
8. Have key technical skills so you can help advise the team.
Adam Bryant, NewYork Times, March 12th 2011
Copyright Julian Birkinshaw 2016
Need for control
Recognition-seeking
Overconfident
Give space to others
Give them recognition
Make careful judgments
Enabling others doesn’t come naturally to
most senior executives
Copyright Julian Birkinshaw 2016
There is also a tricky linking role when
you are encouraging experimentation
Copyright Julian Birkinshaw 2016
And occasionally you need to step in
decisively, to make things happen
Copyright Julian Birkinshaw 2016
Knowing when to take charge: the
“strategic inflection points”
SENSE
RESPOND
SCALE
Copyright Julian Birkinshaw 2016
BUREAUCRACY
Emphasis on
productivity
and efficiency
Leadership is
about
monitoring and
controlling
MERITOCRACY
Emphasis on
data and
analysis
Leadership is
about
expertise and
information
flow
ADHOCRACY
Emphasis on
flexibility and
decisiveness
Leadership is
setting a
direction,
enabling others,
experimentation
Copyright Julian Birkinshaw 2016
Book to be
published
March 2017
Stanford
University Press

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New Ways of Working For the 21st century

  • 1. Copyright Julian Birkinshaw 2016 New Ways of Working for the 21st Century HR Innovation & Strategy Meeting, October 2016 Professor Julian Birkinshaw London Business School
  • 2. Copyright Julian Birkinshaw 2016 A Changing World New Ways of Working Implications for Leadership and Management
  • 3. Copyright Julian Birkinshaw 2016 How do you rate the honesty of the following professions? Medical doctors Police officers Clergy Journalists Bankers Lawyers Business executives Car salespeople 67% 56% 45% 27% 25% 21% 17% 8% 2015 Gallup Survey
  • 4. Copyright Julian Birkinshaw 2016 The failure of leadership
  • 5. Copyright Julian Birkinshaw 2016 Who are you happiest with? Friends Parents/relatives Spouse My children Co-workers Clients/customers Alone Boss 3.3 3.0 2.8 2.7 2.6 2.4 2.2 2.0 (Rating is on a 1-5 scale)
  • 6. Copyright Julian Birkinshaw 2016 In search of better role models
  • 7. Copyright Julian Birkinshaw 2016 Types of innovation Product innovation Technology innovation Process innovation Business model innovation Management innovation Service innovation
  • 8. Copyright Julian Birkinshaw 2016 Changes in how we work are vital to productivity improvement 0 2 4 6 8 High investment in Information Technology Low investment in Information Technology Traditional workplace practices Innovative workplace practices Annual productivity growth in 1990s for US manufacturers Source: Arnal, Ok, Torres 2001
  • 9. Copyright Julian Birkinshaw 2016 Shifting basis of competitive advantage INDUSTRIAL AGE: 1860s-1960s INFORMATION AGE: 1970s–2020s
  • 10. Copyright Julian Birkinshaw 2016 Ray Kurzweil: Accelerating Returns “Information-based technologies will encompass all human knowledge and proficiency, ultimately including pattern- recognition powers, problem-solving skills, and emotional and moral intelligence of the human brain itself.”
  • 11. Copyright Julian Birkinshaw 2016 The dark side of big data Analysis Paralysis Blind Faith in Data Answers in search of Questions Loss of Contextual Understanding Loss of Differentiation
  • 12. Copyright Julian Birkinshaw 2016 INFORMATION + KNOWLEDGE ACTION + CONVICTION LABOUR + CAPITAL Towards an “agile age”?
  • 13. Copyright Julian Birkinshaw 2016 A Changing World New Ways of Working Implications for Leadership and Management
  • 14. Copyright Julian Birkinshaw 2016 How should we respond to a more complex operating environment? • Fight complexity with complexity?
  • 15. Copyright Julian Birkinshaw 2016 The downsides of complexity Turf wars Unclear roles Steering committees Layers of rules & procedures Alienation and disengagement Risk aversion and lack of creativity
  • 16. Copyright Julian Birkinshaw 2016 How should we respond to a more complex operating environment? • Fight complexity with complexity • Fight complexity with simplicity
  • 17. Copyright Julian Birkinshaw 2016 Alternatives to bureaucracy Under what conditions does this work?
  • 18. Copyright Julian Birkinshaw 2016 Emergent order: Less is more Hans Monderman – the “Shared Space” model
  • 19. Copyright Julian Birkinshaw 2016 So, what do you do for a living?
  • 20. Copyright Julian Birkinshaw 2016 Three ways of describing yourself in the workplace Your position on the org chart Your knowledge and experience What you do on a day to day basis
  • 21. Copyright Julian Birkinshaw 2016 Three distinct models of organising Your position on the org chart Your knowledge and experience What you do on a day to day basis Bureaucracy Meritocracy Adhocracy
  • 22. Copyright Julian Birkinshaw 2016 Adhocracy – a classic example
  • 23. Copyright Julian Birkinshaw 2016 Adhocracy – a current example
  • 24. Copyright Julian Birkinshaw 2016 Zappos – the holacracy experiment
  • 25. Copyright Julian Birkinshaw 2016 Adhocracy-based methodologies
  • 26. Copyright Julian Birkinshaw 2016 Three distinct models People motivated by… Decisions made through… By Rules Hierarchy Extrinsic Rewards Coordination achieved… People motivated by… Decisions made through… Around Opportunity Experimentation Achievement Coordination achieved… Bureaucracy Position is privileged Adhocracy Action is privileged People motivated by… Decisions made through… Mutual Adjustment Logical Argument Personal Mastery Coordination achieved… Meritocracy Knowledge is privileged Which models does your organisation use? And which ones should you be using?
  • 27. Copyright Julian Birkinshaw 2016 INDUSTRIAL AGE Emphasis on productivity and efficiency BUREAUCRACY INFORMATION AGE Emphasis on rational analysis and expertise MERITOCRACY ‘AGILE’ AGE Emphasis on agility, intuition, and decisiveness ADHOCRACY Shifting emphasis over time
  • 28. Copyright Julian Birkinshaw 2016 A Changing World New Ways of Working Implications for Leadership and Management
  • 29. Copyright Julian Birkinshaw 2016 Adhocracy at a personal level
  • 30. Copyright Julian Birkinshaw 2016 Men’s world high-jump record 2.55m 2.45m 2.35m 2.25m 2.15m 2.05m 1.95m 1900 1920 1940 1960 1980 2000
  • 31. Copyright Julian Birkinshaw 2016 John Thomas vs.Valeriy Brumel 2.55m 2.45m 2.35m 2.25m 2.15m 2.05m 1.95m 1900 1920 1940 1960 1980 2000
  • 32. Copyright Julian Birkinshaw 2016 Dick Fosbury: Mexico Olympics Gold 2.55m 2.45m 2.35m 2.25m 2.15m 2.05m 1.95m 1900 1920 1940 1960 1980 2000 Olympics
  • 33. Copyright Julian Birkinshaw 2016 Three waves of innovation in the high jumping industry 2.55m 2.45m 2.35m 2.25m 2.15m 2.05m 1.95m 1900 1920 1940 1960 1980 2000 The Fosbury Flop The Straddle Jump The Western Roll
  • 34. Copyright Julian Birkinshaw 2016 in praise of “unreasonable” people The “Hyperloop”
  • 35. Copyright Julian Birkinshaw 2016 How to be Unreasonable (in a reasonable way) • Think different • Experiment early • Locate the safety mat • Seize the moment
  • 36. Copyright Julian Birkinshaw 2016 So how do you get the most out of these people?
  • 37. Copyright Julian Birkinshaw 2016 A big part of the leader’s job is enabling initiative and experimentation
  • 38. Copyright Julian Birkinshaw 2016 Google’s Project Oxygen
  • 39. Copyright Julian Birkinshaw 2016 Google’s Project Oxygen 1. Be a good coach 2. Empower your team and don't micromanage 3. Express interest in team members' success and well-being 4. Be productive and results-oriented 5. Be a good communicator and listen to your team 6. Help your employees with career development 7. Have a clear vision and strategy for the team 8. Have key technical skills so you can help advise the team. Adam Bryant, NewYork Times, March 12th 2011
  • 40. Copyright Julian Birkinshaw 2016 Need for control Recognition-seeking Overconfident Give space to others Give them recognition Make careful judgments Enabling others doesn’t come naturally to most senior executives
  • 41. Copyright Julian Birkinshaw 2016 There is also a tricky linking role when you are encouraging experimentation
  • 42. Copyright Julian Birkinshaw 2016 And occasionally you need to step in decisively, to make things happen
  • 43. Copyright Julian Birkinshaw 2016 Knowing when to take charge: the “strategic inflection points” SENSE RESPOND SCALE
  • 44. Copyright Julian Birkinshaw 2016 BUREAUCRACY Emphasis on productivity and efficiency Leadership is about monitoring and controlling MERITOCRACY Emphasis on data and analysis Leadership is about expertise and information flow ADHOCRACY Emphasis on flexibility and decisiveness Leadership is setting a direction, enabling others, experimentation
  • 45. Copyright Julian Birkinshaw 2016 Book to be published March 2017 Stanford University Press