The document discusses organizational design for the 21st century. It argues that 20th century designs focused on centralized authority, but now continuous innovation is needed. Rapidly changing environments can lead to extinction if organizations cannot adapt. The three pillars for building an adaptive culture are intentions, programs, and technology. Decision making must shift from a top-down approach to empowering adaptive learning teams. A "decision making gym" is proposed to train judgment through receiving candid feedback from known groups and anonymously to build a culture of transparency, accuracy and reducing "lying, hiding and faking".

1. @charlieykim@meghanmess
WORK 3.0
21st Century Org Re-Design
November 1, 2017
- David Rose
TP
TRAINING PARTNER

2. 2
We are a product of our expectations…

3. - David Rose

4. 4
"What they were struggling with was a
cultural legacy, that Korean culture is
hierarchical," he said. ... To Gladwell, this
explained why Korean Air Flight 801 crashed
into a hill while on approach to an airport in
Guam in 1997, killing 223 people.
20th CENTURY ORGANIZATIONAL DESIGN:
Designed to give one person authority. All power.

5. ALL THESE COMPANIES WENT BANKRUPT

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CIA HEAD OF STRATEGY:
“The greatest challenge we are facing as a business, frankly, is
that our business environment is changing much more rapidly
than our ability to adapt. In nature, this sort of thing leads to
extinction.” [we need ADAPTIVE LEARNING TEAMS]

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ORG DESIGN: 20th CENTURY  21st CENTURY
In the 20th century, organizations were
designed to maintain previous (often 1)
innovation.
In the 21st century, if an organization is not
re-designed for continuous innovation,
they are toast.

8. HIRING 2 ENVIRONMENT1
ORGANIZATIONAL DESIGN
8

9. Three Pillars for Building a Culture
9Programs
Changing Culture
• Intentions: Why are you
doing something? Example of
candid feedback – intentions
are crucial.
• Programs: The rituals (“the
machine”) is what sets and
changes behaviors
• Technology: the technology
and apps can make the
programs and process simpler

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11. 11
 CEOS WORRIED OF OTHER BIG CO
 STRATEGY CHANGED EVERY 1-5 YEARS
 WHAT YOU PRODUCE: PRODUCTS & SERVICES
NOWBEFORE
 CEOS WORRY OF 2 KIDS IN A GARAGE
 STRATEGY CHANGES EVERY DAY
 WHAT YOU PRODUCE: DECISION FACTORY

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EDUCATION 1.0
 ISOLATION
 FEAR
WORK 1.0
SUBJECTS
[SERVE THE KING]
WORK 2.0
FOLLOWERS
[ASSEMBLY LINE WORKERS]
WORK 3.0
DECISION MAKERS
[ADAPTIVE LEARNING TEAMS]
EDUCATION 2.0
 COMPLIANCE
 UNIFORMITY
EDUCATION 3.0
 CREATIVITY
 COLLABORATION
1750 KING FREDERICK THE GREAT 21ST CENTURY: INFO AGE1920 CUBBERLEY: FACTORY MODEL
ORIGINS of EDUCATION = ORIGINS of WORK

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14. CONCEPT of
DECISION MAKING
in the 21st century

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Gladwell says that, though plane crashes are often
portrayed in movies as the results of a single catastrophic
event, in reality they occur because of the accumulation
of many small problems. Bad weather, tired pilots, new or
unfamiliar airports, crew members who have only
recently started to work together—it often takes all of
these things to add up to disaster. “The typical accident
involves seven consecutive human errors.”
ACCIDENTS  INNOVATION

16. LEVEL 1: GAS “GIVE A SHIT”
LEVEL 2: NO LHF “LYING/HIDING/FAKING”
LEVEL 3: INDEPENDENT THINKING
LEVEL 4: INVITING CRITICAL FEEDBACK
LEVEL 5: DECISION MAKING
16
MONEYBALL of DECISION MAKING
5 Levels to Training Your Judgment

17. INNOVATION = CREATIVITY w/ OTHERS
(collaboration)
INNOVATION ≠ SOLO SPORT
INNOVATION = TEAM SPORT

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INNOVATION in the 21st CENTURY
There was a time when you had one
innovation that you could ride for decades.
That’s over. Continuous reinvention is
crucial now. Otherwise, you’re toast.

20. JEFF BEZOS ON BEING DISRUPTED OR BEING A DISRUPTOR
WHO IS GOING TO KILL ME, IF WE DON’T MOVE?
I GOTTA KILL MYSELF BEFORE THEY KILL ME.

21. LEVEL 1: GAS “GIVE A SHIT”
LEVEL 2: NO LHF “LYING/HIDING/FAKING”
LEVEL 3: INDEPENDENT THINKING
LEVEL 4: INVITING CRITICAL FEEDBACK
LEVEL 5: DECISION MAKING
21
MONEYBALL of DECISION MAKING
5 Levels to Training Your Judgment

22. DECISION MAKING
“HOW IT FAILS”
in the 21st century

23. WHAT is No LHF
TRUTH, AUTHENTICITY, LEAVING NOTHING UNSAID
FACTS, MY THINKING, MY ASSUMPTIONS, GUT/INTUITION, WHAT YOU’RE FEELING
[HIGHEST FORM OF TRANSPARENCY]

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Dr. Jim Fadigan
The brain wants to be right. When it’s not, it withdraws.
 If you ever played politics and it worked for you…
 If you ever played dumb and it worked for you…
 If you ever told the truth and you got dinged for it…
We build “bad brain habits”.

25. The 2nd Job
In an ordinary organization, most people are doing a
second job no one is paying them for.
In businesses large and small; in government
agencies, schools, and hospitals; in for-profits and
non-profits and in any country in the world,
most people are spending time and energy covering
up their weaknesses, managing other people’s
impressions of them, showing themselves to their
best advantage, playing politics, hiding their
inadequacies, hiding their uncertainties, hiding their
limitations. Hiding.
We regard this as the single biggest loss of resources
that organizations suffer everyday.
25

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Doing 2 JOBS at ONCE
CAR ACCIDENTS in U.S. 2016:
1.6 million have a cell phone involved in them. That's
64% of all the road accidents in the United States

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LHF “lying/hiding/faking”



LHF

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Another way we LHF...

29. Common
obstacles to
accuracy
Anchoring bias: Over-reliance on first piece of
information
Expertise bias: Weighting expert “authority”
over information and logic
Outcome bias: Judging something based on level of
desire for the outcome
Ostrich effect: Ignoring dangerous or negative
information
Observational selection bias: Noticing what was
not noted before & wrongly assessing increased
frequency
Halo effect: Impression of a person or
entity influences the assessment
of the credibility of the
information he/it provides
Availability bias: Overestimating importance of
available information
Stereotyping: Expecting a person or group to
have certain qualities without having
information
Blind spot bias: Failing to recognize your own
cognitive bias
Sunk cost bias: Being attached to an investment
already made (time, effort) despite utility of it

30. UNCLASSIFIED//FOUO
UNCLASSIFIED//FOUO
Greatest threat to objectivity

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THE GOAL: to reduce LHF, then more goes into Job 1

32. HOW to BUILD a
DECISION MAKING GYM

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DECISION MAKING GYM
“It’s important that they learn what it feels like to make decisions.” ~Charles Duhigg
XTRAINING
GROUND

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YOU is YOU
33
DECISION MAKING GYM
“It’s important that they learn what it feels like to make decisions.” ~Charles Duhigg
XTRAINING
GROUND

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MISSION vs PRACTICE
33
DECISION MAKING GYM
“It’s important that they learn what it feels like to make decisions.” ~Charles Duhigg
XTRAINING
GROUND

36. Michael: A Case Study
Patient 1: Michael
• 36 year old male
• Severe brain trauma – car accident
• 6 years standard rehabilitation
• Initial visit – 86% inefficient
33
DECISION MAKING GYM
“It’s important that they learn what it feels like to make decisions.” ~Charles Duhigg
XTRAINING
GROUND

37. Michael: A Case Study
Inefficiencies decreased to
3% within 3 months
KEY INSIGHT:
People are wired to do the right thing. But we often
don’t know what is right and what is wrong.
33
DECISION MAKING GYM
“It’s important that they learn what it feels like to make decisions.” ~Charles Duhigg
XTRAINING
GROUND

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GIVING FEEDBACK
RECEIVING FEEDBACK

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YOU
BEST FEEDBACK: (1) known group + (2) anonymous
2
We are a product of our expectations…
TP: TRAINING PARTNER
33
DECISION MAKING GYM
“It’s important that they learn what it feels like to make decisions.” ~Charles Duhigg
XTRAINING
GROUND

40. Feedback is data from other
human beings.
Data that can inform your
decision making.
KEY INSIGHT

41. Thank You
meghan@nextjump.com
twitter: @meghanmess
charlie@nextjump.com
twitter: @charlieykim