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Organizations Built For Change

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While many organizations today are struggling to keep up with accelerating shifts in markets, technology and culture, a select group of frontier firms are unlocking exponential opportunity. Many people think that only young startups and ‘born digital’ leaders like Google, Facebook, and Amazon have what it takes to reap the benefits of the 21st century. But, the truth is that every organization in the world - big and small, old and new - already has the potential to change the world by changing the way they work.

We call this new paradigm *responsive* because it creates organizations that are able to process change at speed – revealing new ways of working that are more fit to today’s environment.

During this talk, I discuss the core operating principles of *Responsive Organizations* – and introduce a set of new, proven strategies for helping organizations navigate this transition.

[This presentation was first shared at Creative Mornings, Toronto in March 2016.]

Published in: Leadership & Management
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Organizations Built For Change

  1. 1. ORGANIZATIONS BUILT FOR CHANGE with Mark Raheja of March 18, 2016
  2. 2. Hi. I’m Mark Raheja. @markraheja www.aug.co This is where I work.
  3. 3. 32016 | www.aug.co this is my team!
  4. 4. 42016 | www.aug.co A capable team for every meaningful mission OUR PURPOSE
  5. 5. DO YOU WORK WITH SOMEONE WHO… Haggles over the precise wordings of communications, minutes, resolutions? 52016 | www.aug.co
  6. 6. DO YOU WORK WITH SOMEONE WHO… Refers back to matters decided upon at the last meeting and attempts to re-open the question of the advisability of that decision? 62016 | www.aug.co
  7. 7. DO YOU WORK WITH SOMEONE WHO… Insists on doing everything through “channels.” Never permits short-cuts to be taken in order to expedite decisions? 72016 | www.aug.co
  8. 8. C.I.A. GUIDE FOR SIMPLE SABOTAGE 82016 | www.aug.co
  9. 9. Work doesn’t work.
  10. 10. 102016 | www.aug.co 24% 63% 13%ACTIVELY
 DISENGAGED ENGAGED NOT ENGAGED SOURCE: GALLUP “STATE OF THE GLOBAL WORKPLACE REPORT”
  11. 11. 112016 | www.aug.co IN THE G.T.A. ALONE 2.6 millionpeople are bummed at work
  12. 12. 122016 | www.aug.co -4.0 0.0 4.0 8.0 1949 1970 1991 2012 SOURCE: UNIVERSITY OF NOTRE DAME PRODUCTIVITY GROWTH 
 AS A FACTOR OF GLOBAL OUTPUT
  13. 13. 132016 | www.aug.co 0 18 35 53 70 1958 1982 2006 2030 AVERAGE COMPANY LIFESPAN 
 ON S&P 500 INDEX 61YEARS 15YEARS SOURCE: RICHARD FOSTER AT INOSIGHT
  14. 14. 142016 | www.aug.co 0.0% 16.7% 33.3% 50.0% 2001 2004 2007 DIFFERENCE IN LABOR PRODUCTIVITY FRONTIER FIRMS v. SERVICES MANUFACTURING EVERYONE ELSE MANUFACTURING SERVICES SOURCE:“THE FUTURE OF PRODUCTIVITY,” OECD 2015
  15. 15. 152016 | www.aug.co TEXTBOOK ‘FRONTIER FIRM’
  16. 16. 162016 | www.aug.co Exponential Change
  17. 17. 172016 | www.aug.co 3D PRINTER SENSORS DNA SEQUENCING $40,000 → $100 400x in 7 yrs $20,000 → $79 250x in 5 yrs $10MM → $1,000 10,000x in 7 yrs
  18. 18. 182016 | www.aug.co PHONE NETWORK FACEBOOK ANDROID 89 years to 150MM 8 years to 1B 5 years to 1B
  19. 19. 192016 | www.aug.co 2 4 6 8 10 12 14 16 18 20 TYPICAL
 FORTUNE 500 COMPANY GOOGLE FACEBOOK TESLA UBER WHATSAPP SNAPCHAT OCULUS
 RIFT 20 8 5 4 2 2 22m 14m YEARS TO REACH $1B MARKET CAP
  20. 20. 202016 | www.aug.co Everything is amazing – but nobody’s happy.
  21. 21. 212016 | www.aug.co Our way of working 
 is out of date.
  22. 22. 222016 | www.aug.co
  23. 23. 232016 | www.aug.co Closed ControlledEfficient ++ + Industrial Model Purpose
  24. 24. 242016 | www.aug.co Certain Uncertain
  25. 25. 252016 | www.aug.co Certain Uncertain WHAT COMPUTERS ARE GOOD AT WHAT HUMANS NEED 
 TO BE GOOD AT WHAT MOST COMPANIES ARE DESIGNED FOR
  26. 26. 262016 | www.aug.co ORGANIZED TO EXECUTE ORGANIZED TO LEARN HIRING Conformers, Rule followers Creative problem solvers, experimenters TRAINING Learn before you do Learn from doing MEASURING PERFORMANCE Did you do it right? Did we learn? ORG STRUCTURE Silos & separated expertise Cross-functional, integrated expertise PROCESS GOALS Drive out variance Use variance to adapt and improve Source: “Teaming: How Organizations Learn, Innovate, and Compete in the Knowledge Economy”, by Amy C. Edmondson
  27. 27. 272016 | www.aug.co THE PLIGHT OF YOUR BEST TALENT, TODAY How to execute, when the bus is biased against you? organization!
  28. 28. 282016 | www.aug.co High quality and affordable services that respond to the needs of our communities – and infrastructure to support city building. WE’RE SURROUNDED BY MISSIONS THAT MATTER!
  29. 29. 292016 | www.aug.co IN THE AGE OF UNCERTAINTY What does an organization built for change look like?
  30. 30. 302016 | www.aug.co AGILE LEAN STARTUP THE B TEAM / B CORP HOLACRACY RESPONSIVE ORG EXPONENTIAL ORG REINVENTING ORGS THE 5TH DISCIPLINE WE’RE A SMALL PART OF A VERY BIG WAVE Inventing the #futureofwork
  31. 31. 312016 | www.aug.co Open NetworkLearning ++ + Responsive Model Purpose
  32. 32. Purpose Profit
  33. 33. 332016 | www.aug.co Accelerate the advent of sustainable transportation
  34. 34. Open Closed
  35. 35. 352016 | www.aug.co 70% turnover every 2 months 17 customer visits per year
  36. 36. Learning Efficiency
  37. 37. 372016 | www.aug.co Over 2,000 experiments per year, live, with real customers
  38. 38. NETWORKS Network Control
  39. 39. 392016 | www.aug.co 80% performance improvement $20mm in savings for customers
  40. 40. 402016 | www.aug.co DEBATE! Large organizations are enormous levers on our world – making this evolution in their operating model both essential and good
  41. 41. 412016 | www.aug.co So: How to change from A to B? Closed ControlledEfficient Open NetworkLearning PurposePurpose INDUSTRIAL RESPONSIVE
  42. 42. 70%of transformation programs fail 422016 | www.aug.co
  43. 43. 432016 | www.aug.co Complexity
  44. 44. 442016 | www.aug.co New strategies for change that work Principles Iteration Opt-in Harness tension Leaders as models Process, Structure Stability Roll-out Minimize tension Leaders as guides even over even over even over even over even over
  45. 45. 452016 | www.aug.co Open NetworkLearning ++ + Change is
 possible Purpose
  46. 46. 462016 | www.aug.co Get in touch! mark@aug.co Steal it all! public.aug.co Subscribe! aug.co/newsletter

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