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Rethinking

organization

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Serve yourself, pay what you think is fair. When you give a tip / pay /http://www.frankcalberg.com/thankyou " id="pdf-obj-1-15" src="pdf-obj-1-15.jpg">

Question # 1

What if people outside the company participate?

If you expect your organization to be more

responsive, your team needs context - they need

to know what's going on in your company and in the market.

Transparency becomes increasingly important.

How much

do you

share

publicly?

Question # 2

Should a person do 1 specialized job or do different types of work?

In a sense, the crowning

accomplishment of the hierarchy

and its management processes is

the enterprise on autopilot,

everyone ideally situated as a cog

whirring on a steady, unthinking

and predictable machine.

In a sense, the crowning accomplishment of the hierarchy and its management processes is the enterprisehttp://blogs.hbr.org/kotter/2011/05/two-structures-one-organizatio.html " id="pdf-obj-9-18" src="pdf-obj-9-18.jpg">

John Kotter

Someone else’s job

<a href=http://www.janbosch.com/Jan_Bosch/Presentations_files/ESA2010-Keynote.pdf Someone else’s job " id="pdf-obj-11-6" src="pdf-obj-11-6.jpg">

Specialization prevents people from doing more jobs which could create more value.

Malone, Thomas W.: The Future of Work, p. 53.

Whether contributing to a blog, working on an open source project, or sharing advice in a forum, people

choose to work on the things

that interest them. Everyone is

Whether contributing to a blog, working on an open source project, or sharing advice in ahttp://blogs.wsj.com/management/2009/03/24/the-facebook-generation-vs-the-fortune-500/ " id="pdf-obj-13-8" src="pdf-obj-13-8.jpg">

Gary Hamel

an independent contractor.

3 factors lead to better performance and personal satisfaction:

3 factors lead to better performance and personal satisfaction: # 1: Purpose What is meaningful. #http://www.youtube.com/watch?v=u6XAPnuFjJc " id="pdf-obj-14-4" src="pdf-obj-14-4.jpg">

# 1: Purpose

What is meaningful.

# 2: Mastery

The urge to get better.

# 3: Autonomy

The desire to be self directed.

3 factors lead to better performance and personal satisfaction: # 1: Purpose What is meaningful. #http://www.youtube.com/watch?v=u6XAPnuFjJc " id="pdf-obj-14-18" src="pdf-obj-14-18.jpg">

Daniel Pink

Question # 3

What if people have no titles, and what if there is no formal hierarchy?

In large organizations, resources get allocated top-down.

Imagine if there was only 1 venture capital

company in the world, and it was led by, well let’s

say Bill Gates. How much innovation would we have if there was only 1 place to go for funding?

And yet, inside most organizations, there is only 1 place to go for funding, and that is up the chain of command.

<a href=http://mixmashup.org/blog/mix-mashup-live-blog " id="pdf-obj-19-4" src="pdf-obj-19-4.jpg">

What happens over time is you end up with many

people in leadership positions who aren’t actually leaders. They’re there because they had good

political skills, they’re there because they had

connections, they’re there because they added

value last year or 5 years ago.

But they’re not there because they are true leaders

and individuals that people want to follow.

People, who work for Gore, have no titles . Source Conversation between Terri Kelly and Garyhttp://youtu.be/47yk2upT7tM " id="pdf-obj-21-2" src="pdf-obj-21-2.jpg">

People, who work for Gore, have no titles.

Source

Conversation between Terri Kelly and Gary Hamel.

Those closest to the

front line are going to be better placed to understand

the increasing demands of

an informed customer and

need to be able to respond

to those demands.

Those closest to the front line are going to be better placed to understand the increasinghttp://www.mixhackathon.org/hackathon/contribution/how-leaders-and-managers-see-their-purpose http://www.mixhackathon.org/hackathon/contribution/12-enemies-organizational-adaptability " id="pdf-obj-22-16" src="pdf-obj-22-16.jpg">

Peter Russian

At Red Hat, the software company, the

strategy making process is open

to the entire organization.

It is a company-wide conversation.

Initiatives for you to try

  • People have no titles.

  • There is no formal hierarchy.

Question # 4

What if creativity is as important as efficiency?

Hierarchies are useful. They let us sort work into

departments, product divisions, regions, and the like with expertise, time-tested procedures, and clear reporting

relationships and accountability so that we can do what we know how to do with efficiency, predictability, and effectiveness.

Hierarchies are directed by familiar managerial processes

for planning, budgeting, defining jobs, hiring and firing, and

measuring results.

The management model that predominates in most

organizations has its roots in the early 20th century.

At that time, management innovators were focused on the challenge of achieving efficiency at scale. Their solution was the bureaucratic organization, with its

emphasis on standardization, specialization, hierarchy, conformance, and control.

Organizations were built around principles that deify conformance, control, alignment, discipline and

efficiency.

The principles that organizations have at their core are antithetical

to innovation.

Gary Hamel

The reason that innovation often seems to be

so difficult for established companies is that

they employ highly capable people and then set them to work within organizational structures whose processes and values

weren’t designed for the task at hand.

The successful organization of the future will have 2 organizational structures:

  • 1. A hierarchy.

  • 2. A more teaming, egalitarian, and adaptive network.

Both are designed and purposive. While the hierarchy is as important as it has always been for optimizing work, the network

is where big change happens. It allows a company to more

easily spot big opportunities and then change itself to grab them.

John Kotter.

Question # 5

What if people try their ideas out?

Because strategic planning generally happens

annually, it shares the same shortcomings for

companies as for countries with centrally planned economies: misallocation of resources when market conditions change and difficulty responding to changed realities.

In an era that demands you leverage the

benefits of unpredictability, you need to create a culture of hypothesis-testing and

quickly change course based on results.

Experiments require short-term losses for long-term gains.

experiments require short-term losses for long-term gains

A person, who is excited about

an idea, tries it out.

Question # 6

What if people take decisions themselves?

Top-down, control-based hierarchical structures discourage individual initiative and reduce autonomy.

Instead of organizing hierarchically and with different functions, organize cross functionally in project teams that change every 2 10 weeks.

For each project, a team member is selected as the

lead who is responsible for delivering the project.

This enables every person to experience

leading a team throughout the year.

In an adaptive organization, the decision-

making is pushed to the edges. This

reduces communication barriers and empowers the employees on the front-line to make decisions.

Supercell is organized as a collection of small, independent

teams called cells tasked with developing new games or building new deep features for existing games.

Cells have complete autonomy in terms of how they organize themselves, prioritize ideas, distribute work and determine what they ultimately produce. The company as

a whole is merely an aggregation of these cells; a

Supercell.

At a plant of General Electric in Durham, North

Carolina, USA, a plant that does the final assembly

for the largest jet engines in the world, they have

400 employees and 1 plant manager.

So those employees are doing, for example, production scheduling, quality control and training tasks that, historically, we saw as managerial work.

3 factors lead to better performance and personal satisfaction:

# 1: Purpose

What is meaningful.

# 2: Mastery

The urge to get better.

3 factors lead to better performance and personal satisfaction: # 1: Purpose What is meaningful. #http://www.youtube.com/watch?v=u6XAPnuFjJc " id="pdf-obj-45-12" src="pdf-obj-45-12.jpg">

# 3: Autonomy

The desire to be self directed.

3 factors lead to better performance and personal satisfaction: # 1: Purpose What is meaningful. #http://www.youtube.com/watch?v=u6XAPnuFjJc " id="pdf-obj-45-18" src="pdf-obj-45-18.jpg">

Daniel Pink

Initiatives for you to try

  • Leaders are chosen by people they lead.

  • The span of control is 400 to 1 or greater.

  • Compensation decisions are peer based.

Serve yourself, pay what you think is fair.

When you give a tip / pay / donate, you help to

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Serve yourself, pay what you think is fair. When you give a tip / pay /http://www.frankcalberg.com/thankyou " id="pdf-obj-48-15" src="pdf-obj-48-15.jpg">
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