Delta Dental Feb252010 Sviokla


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It's time to unlock the power of self-organization. The world has changed -- with the vast internet, resources, and social media. Great leaders will tap this capability to energize and release the power of their people, their customers and their business partners.

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  • Source: billion – The number of email users worldwide.210 billion – The number of emails sent per day in 2008.70% – The percentage of emails that are spam.53.8 trillion – The number of spam emails sent in 2008 (assuming 70% are spam).Internet users1,463,632,361 – The number of Internet users worldwide (June 2008).578,538,257 – Internet users in Asia.384,633,765 – Internet users in Europe.248,241,969 – Internet users in North America.  (”Hello, Senator — about the infrastructure part of the National Pork Recovery Act, I have a suggestion or two…”)139,009,209 – Internet users in Latin America/Caribbean.51,065,630 – Internet users in Africa.41,939,200 – Internet users in the Middle East.20,204,331 – Internet users in Oceania/Australia.Blogs133 million- The number of blogs on the Internet (as tracked by Technorati).900,000 – The number of new blog posts in a day.329 million – The number of blog posts in 2008.Images10 billion- Photos hosted by Facebook (October 2008). (ed: to put in perspective, if all those images were printed as 3×5 pics, they could be lined up end-to-end from the center of the Earth to the center of the Moon three times with enough left over to get back to the vicinity of the space station in low Earth orbit. – SJS) 
  • Delta Dental Feb252010 Sviokla

    1. 1. Delta Dental: Unleashing the power of your people, ideas, customers and capital<br />February, 2010<br />Dr. John J. Sviokla<br /><br />Blog:<br />Harvard Business Review blog:<br />twitter: jjsviokla<br />cell: 617.510.3565<br />
    2. 2. What’s Possible?<br />Setting the Stage for the Self-Organization Revolution: 3-Clouds<br />Internet… a connectivity utility – Capitalism by its nature connects<br />Cloud 1<br />Source: David Reed<br />
    3. 3. What’s Possible?<br />Can you believe this has happened in less than 20 years!<br />
    4. 4. What’s Possible <br />The Infinite Bazaar! Everything a company could want!<br />Cloud computing ... a resource utility – competition brings new resources<br />Cloud 2<br />Cloud 1<br />Source: David Reed<br />
    5. 5. “The owner of the memex, let us say, is interested in the origin and properties of the bow and arrow. Specifically he is studying why the short Turkish bow was apparently superior to the English long bow in the skirmishes of the Crusades. He has dozens of possibly pertinent books and articles in his memex. First he runs through an encyclopedia, finds an interesting but sketchy article, leaves it projected. Next, in a history, he finds another pertinent item, and ties the two together. Thus he goes, building a trail of many items.”<br />What’s Possible?<br />“As we may think…” -- Vannevar Bush Conceived of the Memex<br />Source: the Atlantic,<br />
    6. 6. What’s Possible? <br />Everyone: Customers, Employees, & Suppliers are Always On<br />The 3rd cloud –mobile, social interaction utility – Human connection is the Killer App of all Killer Apps<br />Cloud 2<br />Cloud 1<br />Cloud 3<br />Source: David Reed<br />
    7. 7. What’s Possible? <br />Reed’s Law: Self-Organization Dominates ALL other Approaches…<br />Self organizing networks Dominate all <br />other network forms<br />Value=2N<br />e.g. Face book<br />Value=N2<br />e.g. Others<br />Value of a Network<br />Value=N<br />e.g. xxx<br />Number of Users = N<br />
    8. 8. Competitive advantage derives from the optimal mix.<br />Choices for Executives <br />In order to unlock the power of self-organization you need to examine where you are open and where you are closed!<br />Degree of Openness<br />Closed<br />Open<br />Dimensions<br />Talent<br />Hire and train internally <br />Outsource everything <br />Proprietary solutions with captive resources <br />Open innovation <br />Innovation<br />Dell storm with wiki’s, self-help, and other peer to peer solutions <br />Internal service staff, all contacthandled by the company<br />Service<br />Open capital, where people finance anything, as with Indie GoGo <br />Capital<br />Internal to the company<br />Infrastructure<br />Rent everything from Amazon & UPS <br />Company owned technology and logistics<br />We engage the audience ala Seth Godin, and American Idol. <br />Marketing<br />We control it all and make the message<br />Leadership<br />Getting people to look in and build<br />Getting people to look out and link… <br />
    9. 9. Productivity is the key Target<br />EBITDA/Employee by No. of Employees P&C and Multiline Insurers - 2004-2008 Avgs.<br />Quadrant 4<br />Higher labor productivity, <br />Larger<br />4<br />Quadrant 3<br />Higher labor productivity, <br />Smaller<br />3<br />Median $113K EBITDA per employee<br />Less productive More productive<br />Quadrant 2<br />Lower labor productivity, <br />Larger<br />2<br />Quadrant 1<br />Lower labor productivity, <br />Smaller<br />1<br />Median 4,100 employees<br />Smaller Larger<br />
    10. 10. Implications <br />Implications for your Business<br /><ul><li>How efficient is your self service?
    11. 11. How well are your marketing your firm?
    12. 12. Do you rent or own your infrastructure?
    13. 13. Do you take advantage of the whole world of talent?
    14. 14. Where do your innovations come from?
    15. 15. Whose money do you use?
    16. 16. Are you and open or a closed leader?</li></li></ul><li>Successful Self-Organized Systems Have the Following<br /><ul><li>Deep skills
    17. 17. Shared purposed
    18. 18. Trust
    19. 19. Shared situational awareness
    20. 20. Clear limits and boundaries
    21. 21. Dynamic decision rights
    22. 22. Shared values</li></li></ul><li>Conclusion<br />Unlock the talent of your people and the passion of your customers…<br />1<br />Educate the organization on what is possible <br />2<br />Review your organization from a open versus closed perspective.<br />3<br />Consider the places with the highest return and least difficulty: <br />Likely first place: Customer Service<br />4<br />Perform an integrated plan and execute, execute, execute<br />
    23. 23. Let’s Continue the Conversation<br /><ul><li>Email:
    24. 24. Blog:
    25. 25. Web:
    26. 26. Twitter: jjsviokla</li>