Accountable Leadership @ Decentralized World | CSW 2018
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This document discusses leadership in decentralized organizations. It argues that transparency alone is not enough to build trust and that trust must be codified into protocols. Emotional intelligence is also important for decentralized leadership. Self-governance models are needed that balance autonomy, accountability, and transparency. Principles of engagement for decentralized leadership include managing risks, adapting practices, preserving local culture while ensuring compliance, and managing stakeholders.
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Accountable Leadership @ Decentralized World | CSW 2018
- 1. CSW October 2018 | 1 | horizonstate.com Accountable Leadership @ Decentralized World
- 2. Tech Pioneers 2018 The great digital depression
- 3. CSW October 2018 | 3 | horizonstate.com TRUST IN RETROSPECT Source: 2018 Edelman Trust Barometer Global Report If we don’t act now, it will quickly get much, MUCH worse.
- 4. CSW October 2018 | 4 | horizonstate.com #1 - TRANSPARENCY IS NOT ENOUGH | CODIFYING TRUST CURRENT STATE HORIZON STATE Class 1: I’m Sick Class 2: Chronic disease Class 3: … Class 4: … Class 5: Raw medical data My Information, on my terms: Access based security Class level meta data Time based and expiry Auditable Progressive My consent is required Implied trust via process No ability to verify My data is not mine to hold or access Minimal interoperability Costly exchange of information A Doctor Health Insurance Me! The Government Complete diagnosis Class 2 Request Class 3 Request 8/10 6/10 Trust is coded into the protocol Trust is earned and measured
- 5. Tech Pioneers 2018 Emotional code is the new currency Leadership
- 6. Significant economies of scale Command and control Infrequent Long lasting | strategic Frequent Time critical Decision close to local information Requires local information Responsible autonomy Psychological ownership Requires practice, and more practice! DECENTRALISED LEADERSHIP | SPECIAL FORCES
- 7. CSW October 2018 | 7 | horizonstate.com DIGITAL AGE | NEW PROBLEMS Common law Emotions & believes Volunteers Policies, Procedures & Rules Rational and Logic Employees Efficiency Wellbeing Continuous Dialogue Take Action! Volunteer! Participate! Voice UP!Refine Listen Learn
- 8. Tech Pioneers 2018 Leading when there are no easy answers
- 9. CSW October 2018 | 9 | horizonstate.com #1 – ARE YOU REALLY WRONG?
- 10. CSW October 2018 | 10 | horizonstate.com “Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it. Begin it now.” ― Johann Wolfgang von Goethe. #2 - CAN CROWD INNOVATION REALLY EXIST?
- 11. CSW October 2018 | 11 | horizonstate.com #3 - CROWD THINKING – SHOULD WE REALLY ASK?
- 12. Tech Pioneers 2018 Required leadership course: The art of packaging.
- 13. CSW October 2018 | 13 | horizonstate.com Political and logical decentralisation @ Blockchain - No single point of failure - Consensus and validation protocols Blockchain = Predictable set of protocols enforced by smart contracts. Organisations = Unpredictable set of behaviours enforced by the collective sum of individual value. In blockchain – agreement is by consensus In business – …mostly not. Decentralisation in business: - Does not mean absence of governance - Each decentralised ‘node’ is its own brand - Does not always require consensus, but must require validation. DECENTRALISATION OF DECISION-MAKING
- 14. CSW October 2018 | 14 | horizonstate.com MISSING: A SELF-GOVERNANCE MODEL Leadership in a decentralised environments requires packaging Decentralized Leadership Trust High Low HighCompliance Command & Control Controlled Autonomy TransparencyVisibility • Defined autonomy • Defined boundaries • Defined accountability • % transparency / visibility • Defined set of skills - Unified rules of engagement - Trust - A level of discipline
- 15. • Take on risks only if you can manage them. • Measure the outcome, be guided by outputs • Don’t be afraid to break some rules • Apply an engaged state of mind • Adapt, on your terms; or be forced to. • Freedom & responsibility | Handle your package with care | • Local strategy requires consensus, but validation needs to happen at top level. • Preserve your local culture, but be compliant. • Act with urgency when needed. • Manage the loud voices • Manage your package like a brand • Deliver packages safely to its stakeholders • Horizontal visibility, upwards transparency. PRINCIPLES OF ENGAGEMENT| DECENTRALISED LEADERSHIP Civic law Common Law Validation Strategic Consensus Brand Transparency Operational Visibility Community City A business
- 16. Tech Pioneers 2018 #1 Transparency is not enough, codify your trust #2 - Emotional code is more bug tolerant #3 - Define your package, and master its delivery
- 17. CSW October 2018 | 17 | horizonstate.com EMPOWERING SELF-GOVERNING COMMUNITIES.
- 18. Web: www.horizonstate.com Industry: Blockchain, SaaS, IT. Govt, Civic Engagement Founded: October 2017 Incorporated: State of Victoria, Australia Key Locations: Melbourne, Australia, Wellington, New Zealand. Vancouver, Canada Contact: Name: Oren Alazraki Email: Oren.Alazraki@horizonstate.com Phone: +61 405 334 896
Editor's Notes
- * Introduce myself * Introduce Horizon State * It is about engagement * Engagement quality of decentralized leadership * Share key insights
- I live in NZ, one of the most trusted places in the world. Car keys - unlocked It’s so safe, bugler for dinner. People say and believe are different And when trust exists – we feel safe and secure, enough to speak truth. But not all places or institutions are like that * I would like to ask you a question – looking at all the leaders around * How much do you trust your government? * By show of hands – VOTE, IRS, Census * Decentralisation requires | Consensus, verification and transparency * Yet most of us can’t trust the CVT in VOTING IRS last year Australia run the same sex marriage referrunum, | aside from $120m – lack of trust and issues.
- Many people relate transparency to trust, although it is true, it is not the only major factor. The top 5 software giants are controlling a vast amount of our data, and our privacy. Media least trusted institution in the world 44% of Americans consume their news via Facebook The average person does not know how to tell good journalism from rumour or falsehoods In some countries Facebook is banned, and not by the country, but by many and families We realised that something needed to change, we wanted to create a system of trust
- The importance of trust Provide example of codifying trust Challenging topics in decentralised world: The right to express my opinion Enforcement of trust via code Progressive identification Governance of process, by the user and for the people. Co-existence | Autonomy vs Interoperability The right to be forgotten
- The second important thing we learned is that … emotional code is the new economy. Winning the hearts and minds of users with code Writing code that generates the right level of emotion by the user Users act on their own terms, and they want to engage.
- This is not a new concept. * Concept implemented 20 years ago from special forces units. Requires discipline, unquestionable trust alignment in goals and values. On the ground – close to details = feeling it Centralised Leadership | Significant economies of scale | Command and control | Infrequent | Long lasting | strategic Decentralised Leadership | Frequent | Time critical | Decision close to local information | Requires local information | Responsible autonomy | Psychological ownership | Requires practice, and more practice!
- How do you motivate 5 million people who do not work for you? WWF example Goal 1m active users to 2m active users, instead of 11% to 50%. 11% active participation Does 11% represent the loudest voice? Employee vs volunteers Difference in leadership styles between the two. When I donate, do I know how my donation was used? Do I trust the process? the organisation? The leadership? 2nd example: When we research our requirements for a pacific country, we quickly realised that the country was led by 1 government and 350 local leaders (chiefs), each with his/her own local responsibilities and mostly driven by values and not process or administration. When asked by one of the local person for financial assistance, the Chief took some money of out his own pocket, no paper form filled and no process followed.
- Sometimes there are no easy answers, and when might even create more confusion by seeking internal clarity Some stakeholders will confuse expressions of opinions (an advice) from a collective decision. Be clear about the intentions, and focus the attention of the stakeholders on the intent. Let me give you 3 quick examples:
- (+) during our crowdfunding we got stack and decided to ask, - the result – 50% funds in the last 24 hours; some of the advisors became employees. (-) but how many times have you faced a situation where you asked a question, and decided to a different course of action? 50 people saying no, does not make you wrong. | Definition of entrepreneurship In this case, are you representing the brilliant entrepreneur? Or the irresponsible leader?
- 80,000 managers 1,000,000 employees 400 companies The largest study of its kind – A consensus has been reached – that the best managers need to break some rules. Asking us to… break the rules? “Move fast and break things; Unless you are breaking things – you are not moving fast enough” Mark Zuckerberg BREAK the rules – as long as you comply with the policy! What happens if everyone breaks the rules? What happens if we don’t experiment? How is allowed to experiment? Who makes decisions for the greater good? What voices should be heard, which of them should we count, and which are simply too loud.
- By show of hands – how many of you bele Over 50% of our funds were raised in the last 24 hours of our crowdfunding, immediately from the moment we asked the community for advice. Quote from Steve Jobs – It’s not the customer’s job to know what they want Quote from Henry Ford –if I had asked people what they wanted, they would have said faster horses General Patton said – if everyone is thinking alike – then somebody isn’t thining. 3 outstanding leaders each in their domain, suggesting we should not ask? But should we ask every time? Should we ask the customer? If you ask 50 people, and they all say no, are you really wrong? If so, then what is the true definition of entrepreneurship if not making the impossible, possible? As a leader, operating among other leaders in a decentralised environment, should I brake the rules? Should I consult? Should I take the advice?
- Decisions are based on a defined set ‘packages’ * What package are we delegating, * What are the boundries of such delegated responsibility * how far down the organisation are we delegating, * is it consistent to other delegations * What is the risk in delegating to the wrong ‘node’
- Existing agile governance model is not perfect We have seen this working in high discipline professional environments … like the Military Working for a large decentralized company no so long ago – hundreds of small business, each different yet the same. Questions? Who is accountable? Who owns the risk? And outcome? How do we handle culture? Mobility? HS suggestion is to work backwards – from people, to leaders, to organizations, back to governments.
- Moving from A to B | from centralised C&C to self-governering businesses Requires rules of engagement Centralised governance, decentralised leadership. If everyone are independent and taking risks, who has priority and governance? If everyone looks after their own, who guarantees a collective outcome? Each package might have different processes, and set of principles Now, replace the term ‘business packages’ with ‘communities’ Rules that apply to everyone involved: The model a significant amount of training and coaching No back seat views, i.e. passive participation, at all levels Take the high moral ground, and manage behaviours
- The top 5 software giants are controlling a vast amount of our data, and our privacy. Media least trusted institution in the world 44% of Americans consume their news via Facebook The average person can’t tell good journalism from false news. The average person does not know how to tell good journalism from rumour or falsehoods