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Contemporary issues of Management
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The Future of Organization

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Aiming to eliminate the compromises in organizational life. Covering some interesting and provocative ideas, spanning human rights, complexity science, the death of heuristics, influence flows, personal knowledge mastery, social physics, trust, the digital nervous system, Web 3.0, performance and learning, public relations, collective intelligence, sociocracy, Holacracy, podularity, wirearchy, emergent civilization, self-organization, organized self, socioveillance, middleware corporate, bread incorporated and the Mozilla manifesto.

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The Future of Organization

  1. 1. The Future of Organization Philip Sheldrake Euler Partners, 23rd May 2014, by-nc-sa Image credit: ComplexCity Rome, by Lee jang sub, by-nc-nd
  2. 2. The Future of Organization Eliminating the compromises in organizational life. An incomplete review of interesting ideas and some new ones to boot. #e20 / #socbiz / #futureofwork / #responsiveorg
  3. 3. The Future of Organization With forewords by Microsoft Yammer co- founder and CTO, Adam Pisoni, and Social Media Today founder and CEO, Robin Carey. Freely available at
  4. 4. The Future of Organization Organization. noun: a coordinated group of people with a particular purpose. This presentation is available with voiceover and transcript at
  5. 5. The Future of Organization The problem. Organizations are about mutual value* creation, but it’s too difficult to give all one can give and too difficult to derive all the value there is to derive. * Value: the importance, worth or usefulness of something.
  6. 6. The Future of Organization The problem. Employee engagement* is symptomatic. * an employee's involvement with, commitment to, and satisfaction with work (2011-12) 24 63 13% actively disengaged not engaged engaged
  7. 7. The Future of Organization The opportunity. Can we reshape and regear organization? ! new insights + perennial values modern tech + enduring aspirations academic exactitude + earnest practice
  8. 8. The Future of Organization All human beings … should act towards one another in a spirit of brotherhood.
  9. 9. The Future of Organization … an organization of the people, by the people, for the people. Paraphrasing Abraham Lincoln’s commitment to the principles of human equality. Lincoln
  10. 10. The Future of Organization If your company was a country, would you live there?
  11. 11. The Future of Organization “We have learned a great deal; we are awash with insights; we have had significant influence on the art of management. Yet we have failed to address – in the sustained and systematic ways they merit – some of the central problems of organization and governance.” Philip Selznick “Institutionalism ‘Old’ and ‘New.’” Selznick, Philip. Administrative Science Quarterly 41. 270–277. 1996.
  12. 12. The Future of Organization Organization is complex.
  13. 13. The Future of Organization ISBN: 9781851684885
  14. 14. The Future of Organization complexity noun: • a system in which there are multiple interactions between many different components • bridges the gap between the individual and the collective • may lead to emergent behavior
  15. 15. The Future of Organization order leads to chaos chaos leads to order
  16. 16. The Future of Organization “… emergence is a ubiquitous feature of the world around us” John H. Holland, Emergence: From Chaos to Order, 1999 “[T]here is a co-operation of things of unlike kinds. The emergent is unlike its components . . . and it cannot be reduced to their sum or their difference” G.H. Lewes, 1875 G.H. Lewes
  17. 17. The Future of Organization “They get their smarts from below. … In these systems, agents residing on one scale start producing behavior that lies one scale above them.” Stephen Johnson, Emergence, 2001 “All new organisational forms, no matter how radically new, are combinations and permutations of what was there before.” The Emergence of Organizations and Markets, Padgett, Powell, 2012
  18. 18. The Future of Organization “In the short run, actors create relations; in the long run, relations create actors.” ! The Emergence of Organizations and Markets, Padgett, Powell, 2012
  19. 19. The Future of Organization In all things of nature there is something of the marvellous. Aristotle If one way be better than another, that you may be sure is nature's way.
  20. 20. The Future of Organization By XKCD:
  21. 21. The Future of Organization youd-better-know-difference/ Traffic Organizations Com plication Com plexity ✓ ✓ ✓ ✓ Cars
  22. 22. The Future of Organization Saying goodbye to some familiar heuristics.
  23. 23. The Future of Organization Actually, it’s all in the complex mix our people are our greatest asset it’s all about shareholder value the customer! is king
  24. 24. The Future of Organization Organizations are relationships. They entail the constant adaption of the way we think and behave in order to influence others to think and behave differently in support of our goals. Relationships at scale
  25. 25. The Future of Organization “Customer-centricity is an organizational point of view, not a customer point of view. It’s actually the organization-centric-view-of-the- customer.” “Don’t you want CRM to help you and the customer mutually, allowing you both to manage the relationship? … Or would you rather propagate the status quo – CRM as a construct to manage the customer?” CRM
  26. 26. The Future of Organization Influence. ! You have been influenced when you think something you wouldn’t otherwise have thought, or do something you wouldn’t otherwise have done.
  27. 27. The Future of Organization Six Influence Flows 1 3 2 5 6 4 THE! ORGANIZATION STAKEHOLDERS THE! COMPETITION The Business of Influence, Sheldrake, Wiley, April 2011 The numbers are just labels, not a ranking of importance
  28. 28. The Future of Organization “There’s influence in everything an organization does, and sometimes in what it does not do.” “What is the intended outcome of your marketing and PR campaigns, and the design of your organization overall, if it’s not to get stakeholders to think and behave as you’d like, and to be sensitive to how they’d like you to think and behave?” Influence
  29. 29. The Future of Organization “Whereas traditional business relies on some bureaucracy to determine what constitutes organizational knowledge, this function is delegated to the individual who now determines whether something is worth sharing / passing on or not, explicitly or tacitly.” Knowledge
  30. 30. The Future of Organization Personal Knowledge Mastery A set of processes, individually constructed, to help each of us make sense of our world and work more effectively. Harold Jarche
  31. 31. The Future of Organization Influence Flows
  32. 32. The Future of Organization Alex Pentland Social physics “patterns of idea flow … are directly related to productivity growth and creative output” “high levels of engagement predict high group productivity … [but] increasing engagement is not a magic bullet.” can-transform-society-for-the-better
  33. 33. The Future of Organization Alex Pentland Social physics “Exploration [a mathematical measure of the extent to which the members of a group bring in new ideas from outside] is a good predictor of both innovation and creative output.” can-transform-society-for-the-better
  34. 34. The Future of Organization You can fool some of the people some of the time, but not so many for so long now that everyone packs a smartphone. Trust
  35. 35. The Future of Organization “If perception is reality characterized twentieth- century marketing and PR, reality is perception is the twenty-first century axiom.” Trust
  36. 36. The Future of Organization It’s not all about the tech, but it helps.
  37. 37. The Future of Organization Serendipity The occurrence and development of events by chance in a happy or beneficial way. … All you have to rely on if you can’t identify and interpret patterns systematically.
  38. 38. The Future of Organization Digital nervous system “The winners will be the ones who develop a world-class digital nervous system so that information can easily flow through their companies for maximum and constant learning. … To think, act, react, and adapt.” Bill Gates Business @ the Speed of Thought, 1999, ISBN: 0446525685
  39. 39. The Future of Organization 1999 → 2014 Now, our nervous system extends out into the world. Gates advised building an ideal picture of the information you need from technology. Now, we also want technology to help us build that picture.
  40. 40. The Future of Organization IT now interweaves with the reality that provided the metaphors. The Internetome: the manifestations (facets and implications) of the Internet of Things. Internetome conference, 2010,
  41. 41. The Future of Organization Business performance management A discipline encompassing metric selection, measurement and organizational learning. We’re moving such capability towards real-time sensory feedback in an organization-as- organism / business-as-biology metaphor.
  42. 42. The Future of Organization Web 3.0 The web as a universal medium for the exchange of data, information and knowledge.
  43. 43. The Future of Organization “Hegel didn’t rate public opinion. He didn’t think it could appreciate the shades of grey in serious matters, but has a tendency instead to polarize argument …” He said we don’t learn from history. Might we now learn from our digital history? Can we now prove Hegel wrong?
  44. 44. The Future of Organization Mutuality. Empowerment. Learning.
  45. 45. The Future of Organization Public Relations The planned and sustained effort to influence opinion and behaviour, and to be influenced similarly, in order to build mutual understanding and goodwill.
  46. 46. The Future of Organization understanding points of view and reasons for those points of view mutual revision / adaption of opinions and behaviours recognising the value contributed and the value derived focusing on this whole stack to drive value for all stakeholders MUTUALVALUE MUTUALINFLUENCE MUTUAL UNDERSTANDING
  47. 47. The Future of Organization When one stakeholder group in an organization takes permanent priority over another, that’s not organization. When one always loses a little when another wins a little, all lose a little.
  48. 48. The Future of Organization Empowerment “Any increase in worker power that enables them to achieve organizational objectives.” Manifest in four cognitions: meaning, competence, self- determination, and impact. Seibert, Silver, & Randolph, 2004 / Spreitzer, 1995 / Thomas & Velthouse, 1990
  49. 49. The Future of Organization Performance through learning Single loop Double loop Triple loop Are we doing things right? Are we doing the right things? What’s right? Learn new behaviour Learn new thinking
 Learn new beliefs / unlearn old Acting Reframing Transforming Management Leadership ?
  50. 50. The Future of Organization To successfully respond to the myriad of changes that shake the world, transformation into a new style of management is required. The route to take is what I call profound knowledge – knowledge for leadership of transformation. W. Edwards Deming Photo courtesy of The W. Edwards Deming Institute®
  51. 51. The Future of Organization MIT Center for Collective Intelligence How can people and computers be connected so that — collectively — they act more intelligently than any individuals, groups, or computers have ever done before?
  52. 52. The Future of Organization Ideas for organizing.
  53. 53. The Future of Organization “Work has profoundly changed in recent years … a new normal … based on principles and practices we don’t totally understand … Something new must be found, perhaps distilled from the latent energy in social connection and frictionless communication, and it must be tapped even if the workforce is harder to lead than ever before.” Stowe Boyd
  54. 54. The Future of Organization Stowe Boyd dissent consensus cooperative collaborative creativity tradition autonomy heteronomy democracy oligarchy fast-and-loose slow-and-tight laissez-faire entrepreneurial hyperlean waterfall small and simple large and complex open and public closed and private emergent strategy deliberate strategy
  55. 55. The Future of Organization Responsive Org From To Efficiency Responsiveness Hierarchies Networks Controlling Empowering Extrinsic rewards Intrinsic motivation Office & office hours Anywhere & anytime Customers & partners Community
  56. 56. The Future of Organization Sociocracy Sociocracy Democracy Rule by the ‘socios’ – people who have a social relationship Rule by the ‘demos’ – the general mass of people Consent-based (rather than consensus)
 One man, one vote Alignment Tension Building and built on trust and understanding
  57. 57. The Future of Organization “It radically changes how an organization is structured, how decisions are made, and how power is distributed.” Explicitly hierarchical, but a hierarchy of roles rather than people per se, with a distributed control system. Holacracy™ Brian Robertson, December 2012
  58. 58. The Future of Organization Podularity A pod is a small, autonomous team enabled and empowered to deliver the things that customers value. Dave Gray
  59. 59. The Future of Organization Dave Gray Reproduced with permission.
  60. 60. The Future of Organization Wirearchy “a dynamic two-way flow of power and authority, based on knowledge, trust, credibility and a focus on results, enabled by interconnected people and technology.” Jon Husband
  61. 61. The Future of Organization “There is probably no single management methodology or organisational structure that can meet all the needs of a growing firm, let alone be replicable across industries, and so part of the challenge lies in enabling methodologies and working practices to evolve over time to meet new challenges.” Lee Bryant
  62. 62. The Future of Organization (E2.0 on G+) %23e20 (#e20) %23socbiz (#socbiz)
  63. 63. The Future of Organization Provocations.
  64. 64. The Future of Organization “This is a connected world … but the shadows of the industrial age are long and run deep.” “The healing mesh of social business … creates the opportunity for a new kind of social fabric, woven together out of connected intention. That kind of co-operation can be the fabric for an emergent civilization.” Anne McCrossan
  65. 65. The Future of Organization Do you help all the individuals associated with your organization build worthwhile relationships with each other and others, coalescing by need and desire, knowledge and capability and shared values, to create shared value? Defining social business
  66. 66. The Future of Organization Managing Oneself Cultivate a deep understanding of yourself by identifying your most valuable strengths and most dangerous weaknesses. Articulate how you learn and work with others and what your most deeply held values are. Describe the type of work environment where you can make the greatest contribution. Peter F. Drucker Harvard Business Review Onpoint 4444, 1999
  67. 67. The Future of Organization Self-organization A process where some form of global order or coordination arises out of the local interactions between the components of an initially disordered system. The Organized Self Equipped with an ‘organization agent’ – software representing us in finding opportunities to create mutual value with others, and helping to realise that value. os
  68. 68. The Future of Organization Socioveillance A component of Organized Self. A personal and private service monitoring our interactions with our socios. Negotiates data exchange with others’ service according to our respective privacy policies to enrich our mutual understanding within comfortable boundaries. SUR SOUS SOCIO
  69. 69. The Future of Organization CREATIVE COMMONS COPYRIGHT LAWcc
  71. 71. The Future of Organization Bread incorporated domestic jurisdiction codified selection of most appropriate jurisdiction A CB Bread A Bread CBread B the middleware company foreign jurisdictions (countries and states) subsidiary incorporated entities companions companion groups companion API
  72. 72. The Future of Organization Distributed autonomous corporates / organizations A DAC / DAO is autonomous, distributed, transparent, confidential, trustworthy, fiduciary, self-regulating, incorruptible and sovereign. It’s software based on the same mathematics as the cryptocurrency bitcoin. principles-distributed-autonomy/
  73. 73. The Future of Organization Bread Traditional Code interpreted automatically in milliseconds
 Code interpreted laboriously over days and months Open, transparent relationships and interoperability
 Closed, opaque relationships and islands of automation Reputation currency
 Who you know The P&L is the cashflow
 Cash is king Global consolidation
 Individual consolidation Frictionless, fluid, fast
 Abrasive, leaden, slow Incorruptible
  74. 74. The Future of Organization shareholder transpersonal stakeholder ?
  75. 75. The Future of Organization
  76. 76. The Future of Organization Organization is a global public resource that must remain open and accessible. Organization must enrich the lives of individual human beings. Individuals’ security and privacy in organizations are fundamental and must not be treated as optional. Mozilla manifesto amplified! from “Internet” to “organization”
  77. 77. The Future of Organization Individuals must have the ability to shape the organization and their own experiences in the organization. The effectiveness of the organization as a public resource depends upon interoperability (protocols, data formats, content), innovation and decentralized participation worldwide. Free and open source software promotes the development of organizations as a public resource. Mozilla manifesto amplified! from “Internet” to “organization”
  78. 78. The Future of Organization Transparent community-based processes promote participation, accountability and trust. A balance between commercial profit and public benefit is critical. Magnifying the public benefit aspects of organizations is an important goal, worthy of time, attention and commitment. Mozilla manifesto amplified! from “Internet” to “organization”
  79. 79. Seoul Paris Rome Moscow Tokyo ComplexCity, THANK YOU
  80. 80. The Future of Organization The difference between what we do and what we are capable of doing would suffice to solve most of the world’s problems. Mahatma Gandhi
  81. 81. The Future of Organization vlogbrothers don’t forget to be awesome
  82. 82. Image credits Abraham Lincoln – Cellular automata – G.H. Lewes – Aristotle – Engine – Social organization – Six Influence Flows – Harold Jarche – Alex Pentland –,_MIT_%283238517166%29.jpg Bill Gates – Hegel – W. Edwards Deming – Photo courtesy of The W. Edwards Deming Institute® Stowe Boyd – Dave Gray – Jon Husband – by kris krüg Lee Bryant – Anne McCrossan – Peter Drucker – Mahatma Gandhi –
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Aiming to eliminate the compromises in organizational life. Covering some interesting and provocative ideas, spanning human rights, complexity science, the death of heuristics, influence flows, personal knowledge mastery, social physics, trust, the digital nervous system, Web 3.0, performance and learning, public relations, collective intelligence, sociocracy, Holacracy, podularity, wirearchy, emergent civilization, self-organization, organized self, socioveillance, middleware corporate, bread incorporated and the Mozilla manifesto.


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