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Yuri van Geest: Exponential Organizations - The New Normal

The world is changing exponentially due to technology, Singularity and globalization. We see the emergence of a new kind of organization: the exponential organization. This is complete reinvention of all building blocks of a classic, linear organization. Why is it here today? Why is it so successful? What is it? How does it organize to scale? How will exponential organizations evolve into blockchain startups (DAOs)? Learn practical insights from not only startups like Slack, Uber, Xiaomi, Airbnb, Waze, Local Motors, Quirky, Github and Tesla but also large organizations like Google, Amazon, Haier and General Electric.

If your organization was built in the 20th century it is doomed to fail in the 21st century. Why? Nobody uses s a mobile phone of 15 years old to survive in todays' business world but we do use organizational models which are 100 years old in todays' exponential era. This does not make sense and explains disruption in each and every vertical market.

*talk at NEXT15*

Yuri van Geest: Exponential Organizations - The New Normal

  1. 1. Yuri van Geest - Author of Exponential Organizations - Dutch Ambassador of SU - Initiator of SingularityU Netherlands
  2. 2. 109+ How will you positively impact 1 billion people in the next decade?
  3. 3. Made in Space
  4. 4. Accelerating Technologies Al Robotics Biotech Nanotech Medicine Neuroscience Energy Computing
  5. 5. Hyperspectral Imaging Apple & Foxconn - Apple plans to bring hyperspectral imaging to the new Apple Watch. Enables: cancer detection, retinal imaging, blood flow & oxygen levels, food composition insights (to enable food safety)
  6. 6. Psychoneuroimmunology (PNI) + Technology PNI is the study of the interaction between psychological processes and the nervous and immune systems of the human body
  7. 7. Da Vinci Surgical Robot Stitching the skin back onto a grape inside a bottle, with the FDA-approved Single-Site Wristed Needle Driver
  8. 8. MIT's Mediated Matter Group - Glass 3D Printing
  9. 9. Facebook’s - Internet Access Globally Others: - Google’s Project Loon (with Titan Aerospace) - Drones & Balloons - Virgin Galactic's LauncherOne - Satellites - SpaceX - Satellites
  10. 10. Exponential Technologies Declining Costs Increasing Capabilities
  11. 11. “The average half life of a business competency has dropped from 30 years in 1984 to 5 years today.”
  12. 12. “89% of the Fortune 500 companies from 1955 are not on the list today.”
  13. 13. “In the next 10 years 40% of all S&P 500 companies will disappear from this list”
  14. 14. Market Cap to a Billion
  15. 15. Why are there ExOs?
  16. 16. Linear > Exponential
  17. 17. Scarcity > Abundance
  18. 18. Time to scale the organization Source: McKinsey 7S model
  19. 19. What are ExOs?
  20. 20. An Exponential Organization (ExO) is one whose impact (or output) is disproportionally large — at least 10x larger — compared to its peers because of the use of new organizational techniques that leverage exponential technologies. Definition
  21. 21. Software is eating the world, in all sectors In the future every company will become a software companyMarc Andreessen founder of Netscape, renowned Venture Capitalist Andreessen-Horowitz
  22. 22. ExOs: Everything will become digital • social, mobile & online for front-end functions • nanotech, robotics, 3D printing, sensors, AI • crowdsourcing (leveraging the crowd), DIY*, P2P**, crowd companies, AI, Nanofactories • *Do-It-Yourself: Movement of people who create things without the help of experts or professionals •**:Peer-to-Peer: a decentralized network leveraging direct interactions between people
  23. 23. Attributes
  24. 24. Linear vs Exponential Strategy based on extrapolation from past (5-year operational plans) Strategy based on MTP, pivots and 1 year operational plan
  25. 25. Linear vs Exponential Process inflexibility and risk intolerance Flexibility and smart failure celebration
  26. 26. Linear vs Exponential Innovation from inside, large number of FTEs Innovation at the edges and from outside sources
  27. 27. Examples of ExOs
  28. 28. ExO Score ExO Score 1 GitHub 76 11 Shapeways 72 2 Airbnb 74 12 72 3 Uber 73 13 Etsy 72 4 Indiegogo 73 14 Cloudera 71 5 Google 73 15 Waze 71 6 Slack 72 16 Kickstarter 71 7 Kaggle 72 17 BlaBlaCar 71 8 Pinterest 72 18 Medium 71 9 Reddit 72 19 Valve 70 10 Tumblr 72 20 Wikimedia 70 Best ExOs See the complete Top 100 at:
  29. 29. MTP Staff on Demand Interfaces Community & Crowd Dashboards Algorithms Experimentation Leveraged Assets Autonomy Engagement Social GitHub - GitHub is an open source code and collaboration community with 10 million members, 21 million repositories and market cap of $10B. Key differentiator: technical infrastructure of the internet as organizational design Best ExOs
  30. 30. MTP Staff on Demand Interfaces Community & Crowd Dashboards Algorithms Experimentation Leveraged Assets Autonomy Engagement Social Xiaomi - Chinese smartphone company, focusing on performance, quality and customer experience. Has a flat organization consisting of 5.000 employees and leverages a Community of 100 million fans for product ideation & iteration. Best ExOs
  31. 31. Performance Improvement Local Motors Traditional Car Manufacturers 100x cheaper & 5-22x faster production
  32. 32. MTP Staff on Demand Interfaces Community & Crowd Dashboards Algorithms Experimentation Leveraged Assets Autonomy Engagement Social Haier - Chinese appliance maker with 80,000 employees organized in 2005 in 2,000 self-managed units with decision-making authority (Autonomy). Market cap grew from $20B to $60B today in the last 3 years. Corporate Example
  33. 33. How to create ExOs?
  34. 34. Strategies for Corporates
  35. 35. Best Business Book of 2014 Award by Frost & Sullivan One of the all-time highest rated business books on Amazon (4,8 out of 5) (Soon) available in 15 languages, including all top 8 languages incl. Chinese
  36. 36. Nominated for the Oscars of Management Books: Thinkers50 Breakthrough Idea Award Other nominees:
  37. 37. Yuri van Geest Co-Author Exponential Organizations +31 6 113 19 290 @vangeest