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Revolutionizing          organizational cultures for           the knowledge economy                                 ■ ■ ■...
Radical Transformation               -causes or requires revolutions?
Interaction and connection New and more Knowledge ….      Transformation
The last Knowledge Revolution …
Awesome Library         Bede:          History from Julius           Caesar to 730 A.D.          Made “A.D.” popular    ...
And then came “Herr Gutenberg”…… and society never was the same …
200 years of chaosFeudal                     Nation3 casts                    classes
Radical transformation, again
Isn’t this cool?
The power in your hand in 10 years                   looks like this today
Chaos and high complexity…for at least 20 years to come
Growth markets and global trends
The knowledge economy
More knowledge has been     created in the last 5 years     than in the 5,000 years of       human history before.        ...
Competing requires dramatic increases in...PRODUCTIVITY                     CREATIVITY                    AND
The Playstation generation...          ...is the biggest top talent pool
Future power will be web based                                   Young people in one country are                          ...
CHANGE   Tomorrow will be very different…              The world has               changed and                            ...
Radical Transformation New forms of organization!
Fundamental changes happen     in weeks, days or even hours    Situation impacts many & people want information    Socia...
Facebook users in Thailand  168,720 users in January 2009  2 million users in January 2010  13.25 million users in Dece...
Leadership lessons     from global leadersAgile success in a complex world
Building killer products and        organizations                -Continuous improvement and       customer dialog
The “right” way or the “practical” way
From design phase to constant innovation
The $10 Billion Lesson from “Angry Birds”                 Experienced and motivated team                  (52nd game)    ...
ROVIO’s Approach   Total Customer focus—Fans are everything   Franchise and expansion: VERY CAREFULLY!       Angry Bird...
Boomzap   Completely virtual         Total transparency    from the start             Consistently top supplier   Best...
Digital philosophy is anew way of doing business    across all functions(from recruiting to selling)
….. Including marketing ….
Traditional advertising… YOUR AD   HERE                YOUR AD                         HERE…is like “Homeless Marketing.” ...
The evolution of media                                             Always on                                          Alwa...
And even companies like Nestle or Dell              get it
Still going to the office…?                  M&Msare biggest productivity and creativity killers
Technologies and strategies for  unleashing the workforce’s           potential
Trends    Mobile work          Remote access          Data and capabilities in cloud          Internet access everywhere
What if you could… Save 50+% of facility costs Have employees never  want to leave you. Increase innovation by 10XHow d...
Mobile work: I love my iPadIn a car73%                                      On vacation                            In the ...
Where do you begin?         Start with People, Place & Technology    7 “levers” and how ICT can “move the needle”        O...
Lower costs & higher productivity                               Attract /retain right people                              ...
Loving 520 and I-90?          - during rush hour?
Commuting sucks“Home is where the job is”  Home-based workers in the USA: from 7.8% to 9.5%  Median Income: $74K (remote o...
Reorganisation. Restructuring.        Consultants                      Customers    Rethinking. NetworkingSupport         ...
Revolutions can be painful…
   Transformation is worth it but not easy   Know & understand the               cultural , historical, hierarchical,   ...
The Knowledge Economy  REQUIRES  creative approaches
It’s not about manufacturing “things” It’s about the creation of ideas at all levelsInnovate the product   Innovate the ma...
The job of a leader isgetting maximum output from limited resources
Easy…People as machines-> Pay people more    and they will      do more
Or…. The more radical….The “MBT” approach…
“Management By Terror”
SHORT-TERM   Getting Maximum Performance             Management by terror…”gun at head”             Existential threat cre...
But what about       Innovation….?  Do people innovate moreif we pay (or threaten) them           more?
Creative problem solving: The Individual   Different job types:    a) perform specific tasks    b) find creative solution...
Want prove?
Experiment: does money make people    find creative solutions faster?    GROUP A                  GROUP B  “Experiment to ...
Duncker’s Candle problemsRewards and motivation can serve as blinders for our vision.
Candle Problem “Easy”
Team motivation & success                                 Toddlers versus chimpsSource: Hare et al, Science Sept 2007
Teamwork beats individual excellence   Great individual minds (mostly a myth…)   Human knowledge and inventions are buil...
Building an organizational culture              People like to be:                Part of groups                Get recogn...
Revolutionary Management?                   -Willing to consider scientific evidence         and change yourself?
No evidence this increases performance
Statistical distribution of performance              is a bell curve                      -     who performs poorly now is...
Building a motivational structure  Performance discussions don’t really   improve performance  Internal competition kill...
Do we measure theright things inour businesses  and in our    lives?
The world we all want?8.5 87.5 76.5 6      Happiness   Wealth   Love   Health       Importance Ratings Worldwide          ...
Money matters… Huge “Happiness difference” between  $5,000 and $50,000 per yearBut….. Hardly any difference between   $5...
How are people motivated?“What constituted positive mental health?”: Abraham Maslow 1908 - 1970
Human Motivation          Self-actualization       Personal growth, fulfillment            Esteem Needs     Achievement, s...
MOTIVATION             Motivators in             the Knowledge Economy                Independence                Self-f...
Is a “internal              – non -   competitive” culture       the “right” culturefor organizational success in the  Kno...
The Playstation generation...          ...is the biggest top talent pool
Digital Cowboysthe super stars of the PlayStation Generation                       Born after 1985 (1990 in China)       ...
NO FEAR: The PlayStation Generation                  Early                adapters &   Networked   Innovative             ...
How Digital Cowboys Make Decisions    Cowboys are      Commanders are     Digital cowboys are   independent,        centra...
Someone goes outside the process            Process-oriented              environment                                     ...
Gamification and the cowboy
Human Motivation          Self-actualization       Personal growth, fulfillment            Esteem Needs     Achievement, s...
Why “gamification” works?        Perfection                  Effortlessness        Completion                  Playful...
Agility:Developing and driving an agile organization Embracing business flexibility and speed
Or applying old school industrialmanagement to new challenges and         opportunities?
IndustrialManagement Excellence
Applicable   to aninnovative industry?
Old School Industrial Managementor Agile Leadership?                                     Dec ‘02   May ‘05   Oct ‘12      ...
CHANGE   Tomorrow will be very different…              The world has               changed and                            ...
A language for culture
Culture transformation?
The 5 stages of creating major change                  or        managing a revolution
Change is difficult….                and sometimes scary…
The Pace of ChangeNatural change point                                                  Decline                 Acceptance...
Theory of Transition             Endings                             Exploration                  New Beginnings          ...
Organizations are people, too
Five Stages of Creating Major Change1. Establish change is needed & why    2. Develop & communicate vision & strategy for ...
The Rythm of Change             Dramatic change                  ZONE OF                 REVOLUTIONSystematic             ...
CommunicationSimplify key messages                         Amplify
What about Leadership           and Management?
Are you shoutingcommands from a  safe distance?                    …or leading in the                       front line?
The heart of helicopter ability The ability to see things from high enough The ability to land quickly at any time The ...
New requirements forLEADERS   today’s leaders             Frontline management             Transparency             Eff...
The “digital” organization   Takes advantage of innovation & technology   Continuously optimizes & re-invents   Is auth...
What does success look like?   People want to work for and with you   Employees feel like entrepreneurs   Low level of ...
THANK YOU!        Mark Mueller-EbersteinThe Knowledge Economy Research Institute                 and       CEO of Adgetec ...
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“Organizational Culture Revolution for the Next Generation, Innovation and the Digital World” - 2012 SIC

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Seattle Interactive Conference SIC 2012
Organizational transformation

Innovation in technologies are truly revolutionary, but for many organizations the management philosophy hasn’t shifted. We are at the beginning of the "next revolution". And many think, that corporations and nation states are so "yesterday". But institutions are generally the last to innovate themselves and "hold outs" against positive transformation.

Published in: Business

“Organizational Culture Revolution for the Next Generation, Innovation and the Digital World” - 2012 SIC

  1. 1. Revolutionizing organizational cultures for the knowledge economy ■ ■ ■ Lessons in innovation and collaborationProfessor Mark Mueller-EbersteinThe Knowledge Economy Research InstituteCEO of Adgetec CorporationBestselling AuthorTwitter: @MarkMEberstein
  2. 2. Radical Transformation -causes or requires revolutions?
  3. 3. Interaction and connection New and more Knowledge ….   Transformation
  4. 4. The last Knowledge Revolution …
  5. 5. Awesome Library Bede:  History from Julius Caesar to 730 A.D.  Made “A.D.” popular  Access to “massive” 250 books
  6. 6. And then came “Herr Gutenberg”…… and society never was the same …
  7. 7. 200 years of chaosFeudal Nation3 casts classes
  8. 8. Radical transformation, again
  9. 9. Isn’t this cool?
  10. 10. The power in your hand in 10 years looks like this today
  11. 11. Chaos and high complexity…for at least 20 years to come
  12. 12. Growth markets and global trends
  13. 13. The knowledge economy
  14. 14. More knowledge has been created in the last 5 years than in the 5,000 years of human history before.  And its doubling every 5 years.(in some fields even much faster)
  15. 15. Competing requires dramatic increases in...PRODUCTIVITY CREATIVITY AND
  16. 16. The Playstation generation... ...is the biggest top talent pool
  17. 17. Future power will be web based Young people in one country are more like young people in another than older people in their own Country A Cybercommunity X As networks become more mature non-geographic politics will start to Country B Cybercommunity Y dominate People will belong to a number ofCountry C Cybercommunity Z network tribes and will identify other members via theirReal World Cyberspace augmented reality
  18. 18. CHANGE Tomorrow will be very different… The world has changed and Information, collaboration and will change knowledge sharing even faster are essential Organizations Flexibility is a secure success factor in opportunities the transforming for their future world
  19. 19. Radical Transformation New forms of organization!
  20. 20. Fundamental changes happen in weeks, days or even hours Situation impacts many & people want information Social networks and friends trusted more than traditional media and government
  21. 21. Facebook users in Thailand  168,720 users in January 2009  2 million users in January 2010  13.25 million users in December 2011 … And today (10/2012) the highest % of people on Facebook
  22. 22. Leadership lessons from global leadersAgile success in a complex world
  23. 23. Building killer products and organizations -Continuous improvement and customer dialog
  24. 24. The “right” way or the “practical” way
  25. 25. From design phase to constant innovation
  26. 26. The $10 Billion Lesson from “Angry Birds”  Experienced and motivated team (52nd game)  Simplicity in execution and communication  Opportunity Aware  “Goodbye distribution channel”…  “Welcome global reach & social networking”
  27. 27. ROVIO’s Approach Total Customer focus—Fans are everything Franchise and expansion: VERY CAREFULLY!  Angry Birds: Rio, Seasons, Space  Amazing Alex  Bad Piggies
  28. 28. Boomzap Completely virtual  Total transparency from the start  Consistently top supplier Best talent of casual games for 7 years
  29. 29. Digital philosophy is anew way of doing business across all functions(from recruiting to selling)
  30. 30. ….. Including marketing ….
  31. 31. Traditional advertising… YOUR AD HERE YOUR AD HERE…is like “Homeless Marketing.” At best, you get a glance.
  32. 32. The evolution of media Always on Always connected Banner ads Search adsOne-way media Two-way media Many-way media
  33. 33. And even companies like Nestle or Dell get it
  34. 34. Still going to the office…? M&Msare biggest productivity and creativity killers
  35. 35. Technologies and strategies for unleashing the workforce’s potential
  36. 36. Trends  Mobile work  Remote access  Data and capabilities in cloud  Internet access everywhere
  37. 37. What if you could… Save 50+% of facility costs Have employees never want to leave you. Increase innovation by 10XHow do you do this???
  38. 38. Mobile work: I love my iPadIn a car73% On vacation In the tub 92% 21% Have you ever used On a date Naked your iPad… 17% 34%
  39. 39. Where do you begin? Start with People, Place & Technology 7 “levers” and how ICT can “move the needle” Office space Productivity Place People Travel Sick LeaveCost of communication Technology Attract and retain and collaboration the right people Total cost of workplace
  40. 40. Lower costs & higher productivity Attract /retain right people -5% -15% Office space Productivity -15% -50% +10% +40% Travel Place People Sick Leave-5% -30% -2% -20% TCO workplace Technology Cost of communication +15% -25% and collaboration +10% -30% *Rotterdam University & Microsoft
  41. 41. Loving 520 and I-90? - during rush hour?
  42. 42. Commuting sucks“Home is where the job is” Home-based workers in the USA: from 7.8% to 9.5% Median Income: $74K (remote only) vs. $65K (on-site) vs. $96K (combination)People work more effectively from homeEcology: Energy (commute and office space)Society: family and friends; social fabric
  43. 43. Reorganisation. Restructuring. Consultants Customers Rethinking. NetworkingSupport Your Business HeadquartersSuppliers Old School Industrial Organization Advisors
  44. 44. Revolutions can be painful…
  45. 45.  Transformation is worth it but not easy Know & understand the cultural , historical, hierarchical, obstacles: medical, technology Be clear on goals Manage transformation process end to end
  46. 46. The Knowledge Economy REQUIRES creative approaches
  47. 47. It’s not about manufacturing “things” It’s about the creation of ideas at all levelsInnovate the product Innovate the marketing Innovate the business
  48. 48. The job of a leader isgetting maximum output from limited resources
  49. 49. Easy…People as machines-> Pay people more and they will do more
  50. 50. Or…. The more radical….The “MBT” approach…
  51. 51. “Management By Terror”
  52. 52. SHORT-TERM Getting Maximum Performance Management by terror…”gun at head” Existential threat creates total focus and commitment AND extremely high stress levels that lower mid-term creativity, motivation, promoting a high likelihood of “escape attempts”
  53. 53. But what about Innovation….? Do people innovate moreif we pay (or threaten) them more?
  54. 54. Creative problem solving: The Individual Different job types: a) perform specific tasks b) find creative solutions People are coin operated if just “tasks” are required Left and right brain are required to find creative solutions
  55. 55. Want prove?
  56. 56. Experiment: does money make people find creative solutions faster? GROUP A GROUP B “Experiment to “Top 25% get measure average reward; Top 5% get time to solution” larger reward” Which group had better average?
  57. 57. Duncker’s Candle problemsRewards and motivation can serve as blinders for our vision.
  58. 58. Candle Problem “Easy”
  59. 59. Team motivation & success Toddlers versus chimpsSource: Hare et al, Science Sept 2007
  60. 60. Teamwork beats individual excellence Great individual minds (mostly a myth…) Human knowledge and inventions are build on previously created knowledge Access to more knowledge, creative capabilities and the ability to communicate drive innovation and creative thinking
  61. 61. Building an organizational culture People like to be: Part of groups Get recognized Compete (with other groups)
  62. 62. Revolutionary Management? -Willing to consider scientific evidence and change yourself?
  63. 63. No evidence this increases performance
  64. 64. Statistical distribution of performance is a bell curve - who performs poorly now is (statistically) likely to be at least mediocre next time
  65. 65. Building a motivational structure  Performance discussions don’t really improve performance  Internal competition kills willingness to take risks and collaboration BAD PERFORMER  GOOD PERFORMER
  66. 66. Do we measure theright things inour businesses and in our lives?
  67. 67. The world we all want?8.5 87.5 76.5 6 Happiness Wealth Love Health Importance Ratings Worldwide Source: Diener & Scollon
  68. 68. Money matters… Huge “Happiness difference” between $5,000 and $50,000 per yearBut….. Hardly any difference between $50,000 and $5 Million
  69. 69. How are people motivated?“What constituted positive mental health?”: Abraham Maslow 1908 - 1970
  70. 70. Human Motivation Self-actualization Personal growth, fulfillment Esteem Needs Achievement, status, reputation Love and Belonging Needs Family, friendship, affection, relationships Security and Safety Needs Protection, security, order, law, stabilityBiological and Physiological Needs Food, water, shelter, clothing
  71. 71. MOTIVATION Motivators in the Knowledge Economy  Independence  Self-fulfillment  Recognition  Mastery  Friendship
  72. 72. Is a “internal – non - competitive” culture the “right” culturefor organizational success in the Knowledge Economy?
  73. 73. The Playstation generation... ...is the biggest top talent pool
  74. 74. Digital Cowboysthe super stars of the PlayStation Generation  Born after 1985 (1990 in China)  Grew up with the Internet  Globally connected & willing to move  Access “data” anywhere & More & more anytime older people are behaving like them… & test leaders  Openly question
  75. 75. NO FEAR: The PlayStation Generation Early adapters & Networked Innovative adopters Community- International Expect more oriented They are of vital importance to companies, organizations and leaders
  76. 76. How Digital Cowboys Make Decisions Cowboys are Commanders are Digital cowboys are independent, centralized connected, decentralized decision makers. decentralized decision makers. decision makers.
  77. 77. Someone goes outside the process Process-oriented environment Rome Helsinki Beijing New York Vienna London Prague If…then Munich Social collaboration environment
  78. 78. Gamification and the cowboy
  79. 79. Human Motivation Self-actualization Personal growth, fulfillment Esteem Needs Achievement, status, reputation Love and Belonging Needs Family, friendship, affection, relationships Security and Safety Needs Protection, security, order, law, stabilityBiological and Physiological Needs Food, water, shelter, clothing
  80. 80. Why “gamification” works?  Perfection  Effortlessness  Completion  Playfulness  Justice  Truth  Aliveness  Self-sufficiency  Richness  Wholeness (unity;  Simplicity integration;  Beauty interconnectedness; simplicity; structure;  Goodness order)  UniquenessDelivers on “Being experiences” and a sense of “Self-actualization”
  81. 81. Agility:Developing and driving an agile organization Embracing business flexibility and speed
  82. 82. Or applying old school industrialmanagement to new challenges and opportunities?
  83. 83. IndustrialManagement Excellence
  84. 84. Applicable to aninnovative industry?
  85. 85. Old School Industrial Managementor Agile Leadership? Dec ‘02 May ‘05 Oct ‘12 Apple $5B $34B $589BComputer Companies Market Cap 2002 to 2012 Google $0B $50B $243B Microsoft $276B $263B $245B IBM $131B $149B $234B
  86. 86. CHANGE Tomorrow will be very different… The world has changed and Information, collaboration and will change knowledge sharing even faster are essential Organizations Flexibility is a secure success factor in opportunities the transforming for their future world
  87. 87. A language for culture
  88. 88. Culture transformation?
  89. 89. The 5 stages of creating major change or managing a revolution
  90. 90. Change is difficult…. and sometimes scary…
  91. 91. The Pace of ChangeNatural change point Decline Acceptance or “The New Normal” Slow adoption
  92. 92. Theory of Transition Endings Exploration New Beginnings Enthusiasm Denial Energy Anxiety HopeProductivity Shock ImpatienceMorale Fear Acceptance Anger Skepticism Frustration Creativity Confusion Stress Approach-Avoidance Reconciliation Reorientation Recommitment Schlossberg; 1981 & 1995
  93. 93. Organizations are people, too
  94. 94. Five Stages of Creating Major Change1. Establish change is needed & why 2. Develop & communicate vision & strategy for change 3. Plan & the change team 4. Manage change by following & rhythm of the business 5. Stimulate continual improvement & change the culture
  95. 95. The Rythm of Change Dramatic change ZONE OF REVOLUTIONSystematic ZONE OF change REFORM ZONE OF REJUVENATION Organic change
  96. 96. CommunicationSimplify key messages Amplify
  97. 97. What about Leadership and Management?
  98. 98. Are you shoutingcommands from a safe distance? …or leading in the front line?
  99. 99. The heart of helicopter ability The ability to see things from high enough The ability to land quickly at any time The ability to raise up again rapidly
  100. 100. New requirements forLEADERS today’s leaders  Frontline management  Transparency  Efficient communication  Information sharing  Celebrate failure  Knowledge is powerful when shared
  101. 101. The “digital” organization Takes advantage of innovation & technology Continuously optimizes & re-invents Is authentic & trustworthy Has all levels & functions engaged with the frontline Is “always on & responsive” Leverages the best resources for a given task or project Attracts the best people
  102. 102. What does success look like? People want to work for and with you Employees feel like entrepreneurs Low level of negative attrition Your org is a thought leader Employees at every level and in every function are engaging with clients & partners.
  103. 103. THANK YOU! Mark Mueller-EbersteinThe Knowledge Economy Research Institute and CEO of Adgetec Corporation Bestselling Author MarkME@adgetec.com Twitter: MarkMEberstein US +1 855.423.4383

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