The document emphasizes the need for organizations to evolve from outdated operational models to more responsive and innovative structures. It discusses the challenges faced due to rigid work practices and highlights the importance of having a clear, customer-centric purpose to drive successful change. Additionally, it advocates for the adoption of collaborative tools and agile practices to enhance productivity and foster a culture of continuous improvement.

1. What’s stopping your
organization from
changing the world?

2. Hi. I’m Mike Arauz.
@mikearauz www.aug.co
This is where I work.

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President knows best…

4. DO YOU WORK WITH SOMEONE WHO…
Haggles over the precise wordings of
communications, minutes, resolutions.
42016 | www.aug.co

5. 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.
52016 | www.aug.co

6. DO YOU WORK WITH SOMEONE WHO…
Insists on doing everything through
“channels.” Never permits short-cuts to
be taken in order to expedite decisions.
62016 | www.aug.co

7. CIA GUIDE
FOR SIMPLE SABOTAGE
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8. Work doesn’t work.

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24%
63%
13%ACTIVELY
DISENGAGED
ENGAGED
NOT ENGAGED
SOURCE: GALLUP “STATE OF THE GLOBAL WORKPLACE REPORT”

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-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

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0.0%
1.7%
3.3%
5.0%
1965 1980 1995 2010
RETURN ON ASSETS
SOURCE: DELOITTE SHIFT INDEX

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0
18
35
53
70
1958 1982 2006 2030
AVERAGE COMPANY LIFESPAN
ON S&P 500 INDEX
61YEARS
15YEARS
SOURCE: RICHARD FOSTER AT INOSIGHT

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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

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Exponential Change

15. Exponential
Innovation →
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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

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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

17. Exponential
Growth →
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PHONE
NETWORK FACEBOOK ANDROID
89 years →
150 million users
8 years →
1 billion users
5 years →
1 billion users

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Our way of working
is out of date.

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Closed
ControlledEfficient
++
+
Industrial
Model
Purpose

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Certain Uncertain

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Certain Uncertain
What Most Companies
Are Designed For

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Certain Uncertain
What Most Companies
Are Designed For
What Computers
Are Good At

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Certain Uncertain
What Computers
Are Good At
What Humans Need
To Be Good At
What Most Companies
Are Designed For

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Open
NetworkLearning
++
+
Responsive
Model
Purpose

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It goes by many labels:
RESPONSIVE ORG
EXPONENTIAL ORG
REINVENTING ORGS
THE 5TH DISCIPLINE
AGILE
LEAN STARTUP
THE B TEAM / B CORP
HOLACRACY
Leading to a revolutionary shift

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Closed
ControlledEfficient
+
+
+
Open
NetworkLearning
+
+
+
How do you change
from one paradigm to another?
PurposePurpose

28. Purpose

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A capable team for every
meaningful mission

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Accelerate the advent of
sustainable transportation

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Build the best product, cause no unnecessary harm,
use business to inspire and implement solutions to
the environmental crisis.

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(1975)
A computer on every desk.

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(2015)
Empower every person and
every organization on the planet
to achieve more.

34. Get Started: A good Purpose is…
‣ User/Customer-centric: express the impact you aim
to make for those you serve
‣ Brief: ~140 characters or less
‣ Clear: jargon-free and easily understood
‣ Ambitious: inspire the team to be their best
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35. Open

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public.aug.co

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A knowledge exchange platform
that intelligently matches
questions to answers

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70% turnover every 2 months
17 customer visits per year

39. Get Started: Working in public
Tools to try
‣ Cloud-based documents: MS OneDrive, Box, GoogleDocs
‣ Collaborative project management: Trello, Asana, Basecamp
‣ Chat applications: Slack, Hipchat
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40. Learning

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Running consulting services as
an agile software product

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Over 2,000 experiments per year,
live, with real customers

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Shut down every store
for a full day

44. Get Started: What/Where/What Review Process
3 simple questions
‣ What worked?
‣ Where did we get stuck?
‣ What might we do differently?
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45. Network

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Open compensation model

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80% performance improvement
$20mm in savings for customers

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Serving 1,800 customers per
employee, and over $40,000
in deposits per employee

49. Get Started: Rules for your next project team
‣ Lean: 7 ±2 people
‣ Multi-disciplinary: Mix of necessary skills
‣ Clear timelines: specific goal, testable within <3m
‣ Self-organizing: decides for themselves who does what
‣ Independent: able to ship without external approvals
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Open
NetworkLearning
++
+
Change is
possible
Purpose

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Thank you.
Get in touch: mike@aug.co
Subscribe: aug.co/newsletter

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Attribution 4.0 International License
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522016 | www.aug.co