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The Next Generation Enterprise - Managerial Innovation, June 5, 2019


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from command & control to adaptive organizations
managerial innovation
Luc Bretones
purpose for good
teal, sociocracy, s3, holacracy, self-org, self-managed organizations

Published in: Leadership & Management
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The Next Generation Enterprise - Managerial Innovation, June 5, 2019

  1. 1. 1 @bretones President Institut G9+ June 5, 2019 The NextGen Enterprise from command & control to #adaptiveOrg managerial innovation SAVE THE DATE - Next book: Jan, 2020 International Event: March, 2020
  2. 2. 2 No matter how you look at it, the world is moving faster John Kotter (c)
  3. 3. 3 No matter how you look at it, the world is moving faster John Kotter (c)
  4. 4. 4 No matter how you look at it, the world is moving faster John Kotter (c)
  5. 5. 5 2006 top market capitalizations 1. $447B 2. $384B 3. $294B 9. $225B 4. $274B 5. $271B $162B ~$1B $61B$15B ? $86B $182B $128B?
  6. 6. 6 2019 top market capitalizations (May 9th) 1. $946B↑ 3. $830B↑ 4. $1001B↑ 13. $202B↓ 2. $948B↑ 5. $552B↑ 45. $169B↑ 9. $330B↓28. $197B↓ ? $48B↑ 22. $195B↓ 21. $124B ↓8. $461B↑ 6. $481B↑
  7. 7. 7 Investments are no longer coming back Source: HBR (c)
  8. 8. 8 In last two decades, all the net new job creation has been generated by ICT / Tech startups in the US - source Kauffman foundation
  9. 9. 9 a new context that requires adaptive organizations
  10. 10. 10 The 33-year average tenure of companies on the S&P 500 in 1964 narrowed to 24 years by 2016 and is forecast to shrink to just 12 years by 2027
  11. 11. 11 the greatest danger in times of turbulence is not the turbulence - it is to act with yesterday’s logic. Peter Drucker
  12. 12. 12 “Insurance companies could reason with a visibility of 20, 40 years versus today’s market movement that is just hyper accelerated, with players that appear every three months. And their appear with series C or almost GAFA on our business.” Romain Liberge, CDO MAIF
  13. 13. 13 “It requires a complete change in the way we design, manufacture our product and put ourselves in a position to understand the complex world around us, its uncertainty, its complexity We need to become more adaptable and resilient” Romain Liberge, CDO MAIF
  14. 14. 14 We need to access a greater collective intelligence for solving the world’s most complex problems leveraging a new type of organization: dynamic, flexible, and autonomous power should be decentralized Source: Nobl (c)
  15. 15. 15 “If you were an anthropologist from the future and jumped into this time in history, our ways of working would feel byzantine” Brian Robertson
  16. 16. 16 Excess Management Is Costing the U.S. $3 Trillion Per Year HBR
  17. 17. 17 Gallup’s ‘State of the Global Workplace’ (2017)
  18. 18. 18
  19. 19. 19
  20. 20. 20 a higher purpose beyond just profit “doing well by doing good” is just good business reconnect people with nature raise the bar on the quality of food help us put our money to work for good
  21. 21. 21 Tech Giants amass a lobbying army for an epic Washington battle GAFA, spent $55 million on lobbying last year, doubling their combined spending of $27.4 million in 2016 238 people registered to lobby for the four companies in the first three months of this year 75 percent formerly served in the government or on political campaigns
  22. 22. 22 purpose-driven Cies often achieve extraordinary financial success how World-Class Companies profit from Passion and Purpose the performance of companies like these that outperformed the S&P 500 by 14 times over a period of 15 years
  23. 23. 23 by buying from, working for and doing business with B Corps, you vote for what you believe in. Every day is election day—Vote Every Day. Vote B Corp. you have voice and power beyond the ballot box
  24. 24. 24 #Purpose4Good in the french law The law created the status of a purpose company. Not only in the articles but governance must change The law provides for the creation of an impact committee - the composition of which must still be specified by decree - dedicated to implementation and evaluation of the mission, subject of an annual report.
  25. 25. 25 from scrum, lean startup to selfOrg 1990 2010 now
  26. 26. 26 “the current way we run organizations has been stretched to its limits” At both the top and bottom, organizations are more often than not playfields for unfulfilling pursuits of our egos, inhospitable to the deeper yearnings of our souls Frederic Laloux
  27. 27. 27 “about 40% of what you do isn’t a conscious decision; it’s a habit we’re only running the show about 60% of the time” Chris Cowan – source = Duke University
  28. 28. 28 “the one-person-one-job relationship forces people to protect their job” Benoît Pointet, Liip web agency
  29. 29. 29 The pain NexGen Enterprises have to remove: ○ Lack of transparency ○ Many hierarchical layers, slow decision making ○ Not being able to quickly adapt and respond to change ○ Low productivity ○ Not being as effective as possible ○ High absenteeism/ burn out ○ Low motivation in team ○ Little structure or clarity ○ Inefficiency ○ Low sales numbers ○ Negative culture, negative atmosphere ○ Low effectiveness/ efficiency ○ High levels of micromanaging/ a lot of control ○ Little ownership among teams/ individuals ○ High employee turnover rate Source: holaSpirit Academy (c)
  30. 30. 30 Towards new Org. design and managing practices ● Self-Organization is about new way of working: ○ Everything is purpose driven ○ Clear governance and distributed authority ○ Clear roles expectations and transparency ○ People and Value alignment ○ New practices (collaboration, meetings, HR issues, …) ● One size doesn’t fit all. Holacracy, Sociocracy and many other similar patterns are based on the same principles ● Human factors and organization’s framework are certainly the most powerful lever Source: holaSpirit Academy (c)
  31. 31. 31 distributed teams eliminate organizational debt processes such as layers of approval and dysfunctional meetings
  32. 32. 32 Trust people, trust that a human being has talents, that people are really willing to take part in success, that they have good intentions and are interested in doing things right
  33. 33. 33 Continuous, organic micro re-organisations Organisational fitness • “I am not my roles and my roles are not me, getting rid of my role doesn’t directly threaten me” Benoît Pointet @Liip agency Talents, experience and passion flow to roles More demand for personal development • the employees has moved from “We (meaning you, Boss) need to change this“, to “I know it’s in my hands to make this happen, where do I start?” We moved from expecting change from others to expecting change from ourselves.
  34. 34. 34 Organizations need to evolve quickly, delegate decision-making as closely as possible to those who do, create a work environment where everyone can express their talents We have created a platform for that! Philippe Pinault, ceo holaSpirit
  35. 35. 35 the greatest organizational breakthrough of our time
  36. 36. 36 this is the start of the social transformation transforming the way we work, we're also transforming the way we live and the way we interact with each other
  37. 37. 37
  38. 38. Distributed Autonomous Organizations self checking smart contracts by encoding company’s mission without the need for a human drive
  39. 39. 39 The Organisation Development journey begins when executives and intrapreneurs – we call them “insurgents with influence” – are ready to challenge deeply entrenched mindsets. Change cascades team by team - MJ Kaplan
  40. 40. 40 Opale structures - Frédéric Laloux (Reinventing Organizations, 2015)
  41. 41. 41 Thank you