the future of organization

The Future of OrganizationPhilip SheldrakeEuler Partners, 23rd May 2014, by-nc-saImage credit: ComplexCity Rome, by Lee jang sub, by-nc-nd

The Future of Organization

Eliminating the compromises in organizational life.An incomplete review of interesting ideas and some new ones to boot.

#e20 / #socbiz / #futureofwork / #responsiveorg

With forewords by Microsoft Yammer co-founder and CTO, Adam Pisoni, and Social Media Today founder and CEO, Robin Carey.

Freely available at www.attenzi.com

Organization. noun: a coordinated group of people with a particular purpose.

This presentation is available with voiceover and transcript at eulr.co/futureorg

The problem. Organizations are about mutual value* creation, but it’s too difficult to give all one can give and too difficult to derive all the value there is to derive.

* Value: the importance, worth or usefulness of something.

The problem. Employee engagement* is symptomatic.

* an employee's involvement with, commitment to, and satisfaction with work

www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx (2011-12)

24 63 13%

actively disengaged

not engaged

engaged

The opportunity. Can we reshape and regear organization? !

new insights + perennial values modern tech + enduring aspirations

academic exactitude + earnest practice

All human beings … should act towards

one another in a spirit of brotherhood.

… an organization of the people, by the people, for the people.

Paraphrasing Abraham Lincoln’s commitment to the principles of human equality.www.attenzi.com/sixty-eight/

Lincoln

If your company was a country, would you live there?

http://simonterry.tumblr.com/post/80222651306/

“We have learned a great deal; we are awash with insights; we have had significant influence on the art of management. Yet we have failed to address – in the sustained and systematic ways they merit – some of the central problems of organization and governance.”

Philip Selznick

“Institutionalism ‘Old’ and ‘New.’” Selznick, Philip. Administrative Science Quarterly 41. 270–277. 1996.

Organization is complex.

ISBN: 9781851684885

complexitynoun:• a system in which there are multiple

interactions between many different components

• bridges the gap between the individual and the collective

• may lead to emergent behavior

order leads to chaos

chaos leads to order

“… emergence is a ubiquitous feature of the world around us”

John H. Holland, Emergence: From Chaos to Order, 1999

“[T]here is a co-operation of things of unlike kinds. The emergent is unlike its components . . . and it

cannot be reduced to their sum or their difference”

G.H. Lewes, 1875

G.H. Lewes

“They get their smarts from below. … In these systems,

agents residing on one scale start producing behavior that

lies one scale above them.”Stephen Johnson, Emergence, 2001

“All new organisational forms, no matter how radically new, are

combinations and permutations of what was there before.”The Emergence of Organizations and Markets,

Padgett, Powell, 2012

“In the short run, actors create relations; in the long run, relations create actors.”

!The Emergence of Organizations and Markets, Padgett, Powell, 2012

In all things of nature there is something of

the marvellous.

Aristotle

If one way be better than another, that you may be

sure is nature's way.

By XKCD: http://xkcd.com/435/

www.philipsheldrake.com/2013/12/deal-complication-complexity-chaos-youd-better-know-difference/

www.philipsheldrake.com/2014/01/stowe-boyds-manifesto-peoples-front/

Traffic

Organizations

Complica

Complexity

✓✓✓

Saying goodbye to some familiar heuristics.

Actually, it’s all in the complex mix

our people are our greatest

it’s all about shareholder

the customer!is king

Organizations are relationships.They entail the constant adaption of the way we think and behave in order to influence others to think and behave differently in support of our goals.

Relationships at scale

“Customer-centricity is an organizational point of view, not a customer point of view. It’s actually the organization-centric-view-of-the-customer.”“Don’t you want CRM to help you and the customer mutually, allowing you both to manage the relationship? … Or would you rather propagate the status quo – CRM as a construct to manage the customer?”

www.attenzi.com/sixty/

Influence. !

You have been influenced when you think something you wouldn’t otherwise have thought, or do something you wouldn’t otherwise have done.

Six Influence Flows

THE!ORGANIZATION STAKEHOLDERS

THE!COMPETITION

The Business of Influence, Sheldrake, Wiley, April 2011

http://eulerpartners.com/influence-flows/

The numbers are just labels, not a ranking of importance

“There’s influence in everything an organization does, and sometimes in what it does not do.”“What is the intended outcome of your marketing and PR campaigns, and the design of your organization overall, if it’s not to get stakeholders to think and behave as you’d like, and to be sensitive to how they’d like you to think and behave?”www.attenzi.com/thirty-iii/

www.philipsheldrake.com/2013/03/influence-request-for-comments/

Influence

“Whereas traditional business relies on some bureaucracy to determine what constitutes organizational knowledge, this function is delegated to the individual who now determines whether something is worth sharing / passing on or not, explicitly or tacitly.”

www.attenzi.com/forty-three/

Knowledge

Personal Knowledge Mastery A set of processes, individually constructed, to help each of us make sense of our world and work more effectively.

www.jarche.com/pkm/

Harold Jarche

Influence Flows

Alex Pentland Social physics

“patterns of idea flow … are directly related to productivity growth and creative output”“high levels of engagement predict high group productivity … [but] increasing engagement is not a magic bullet.”

www.scientificamerican.com/article.cfm?id=how-big-data-can-transform-society-for-the-better

Alex Pentland Social physics

“Exploration [a mathematical measure of the extent to which the members of a group bring in new ideas from outside] is a good predictor of both innovation and creative output.”

www.scientificamerican.com/article.cfm?id=how-big-data-can-transform-society-for-the-better

You can fool some of the people some of the time, but not so many for so long now that everyone packs a smartphone.

www.philipsheldrake.com/2014/03/social-business-mutuality-stack/

“If perception is reality characterized twentieth-century marketing and PR, reality is perception is the twenty-first century axiom.”

http://hbr.org/product/balanced-scorecard-report-july-august-2011-vol-13-/an/B11070-PDF-ENG

It’s not all about the tech, but it helps.

SerendipityThe occurrence and development of events by chance in a happy or beneficial way.… All you have to rely on if you can’t identify and interpret patterns systematically.

www.attenzi.com/fifty-six-iii/

Digital nervous system“The winners will be the ones who develop a world-class digital nervous system so that information can easily flow through their companies for maximum and constant learning.… To think, act, react, and adapt.”

Bill Gates

Business @ the Speed of Thought, 1999, ISBN: 0446525685

www.attenzi.com/fifty-nine-ii/

1999 → 2014Now, our nervous system extends out into the world.Gates advised building an ideal picture of the information you need from technology. Now, we also want technology to help us build that picture.

www.attenzi.com/fifty-nine-ii/

IT now interweaves with the reality that provided the metaphors.

The Internetome:the manifestations (facets and implications) of the Internet of Things.

Internetome conference, 2010, www.philipsheldrake.com/2014/04/internetome/

Business performance managementA discipline encompassing metric selection, measurement and organizational learning.We’re moving such capability towards real-time sensory feedback in an organization-as-organism / business-as-biology metaphor.

Web 3.0The web as a universal medium for the exchange of data, information and knowledge.

www.philipsheldrake.com/2013/09/introduction-web-3-0-social-data-week/

“Hegel didn’t rate public opinion. He didn’t think it could appreciate the shades of grey in serious matters, but has a tendency instead to polarize argument …”He said we don’t learn from history. Might we now learn from our digital history?

www.attenzi.com/thirty-two/

www.attenzi.com/seventy-one/

Can we now prove Hegel wrong?

Mutuality. Empowerment. Learning.

Public Relations The planned and sustained effort to influence opinion and behaviour, and to be influenced similarly, in order to build mutual understanding and goodwill.

http://eulr.co/publicrelationsdefined

www.PRredefined.org

www.prweek.com/article/1285244/pr-dead-public-leadership-future

understanding points of view and reasons for those points of view

mutual revision / adaption of opinions

and behaviours

recognising the value contributed and the

value derived

focusing on this whole stack to drive value for all stakeholders

MUTUAL VALUE

MUTUAL INFLUENCE

MUTUAL UNDERSTANDING

www.philipsheldrake.com/2014/03/social-business-mutuality-stack/

When one stakeholder group in an organization takes permanent priority over another, that’s not organization. When one always loses a little when another wins a little, all lose a little.

Empowerment “Any increase in worker power that enables them to achieve organizational objectives.”

Manifest in four cognitions: meaning, competence, self-determination, and impact.

Seibert, Silver, & Randolph, 2004 / Spreitzer, 1995 / Thomas & Velthouse, 1990

Performance through learning

Single loop Double loop Triple loop

Are we doing things right?

Are we doing the right things?

What’s right?

Learn new behaviour

Learn newthinking

Learn new beliefs / unlearn old

Acting Reframing Transforming

Management Leadership ?

www.philipsheldrake.com/2014/04/triple-loop-profound-leadership/

To successfully respond to the myriad of changes that shake the world, transformation into a new style of management is required.The route to take is what I call profound knowledge – knowledge for leadership of transformation.

W. Edwards Deming

www.deming.org/theman/theories/profoundknowledge

Photo courtesy of The W. Edwards Deming Institute®

MIT Center for Collective Intelligence

http://cci.mit.edu

How can people and computers be connected so that — collectively — they act more intelligently than any individuals, groups, or computers have ever done before?

Ideas for organizing.

“Work has profoundly changed in recent years … a new normal … based on principles and practices we don’t totally understand …Something new must be found, perhaps distilled from the latent energy in social connection and frictionless communication, and it must be tapped even if the workforce is harder to lead than ever before.”

Stowe Boyd

www.hightail.com/en_US/docs/GigaOM-Research-The-Future-of-Work.pdf

Stowe Boyd

www.futureofwork.co/post/78477268155/a-manifesto-for-a-new-way-of-work

dissentconsensus

cooperativecollaborative creativity

traditionautonomyheteronomy

democracyoligarchy

fast-and-looseslow-and-tight

laissez-faireentrepreneurial

hyperleanwaterfall

small and simplelarge and complex

open and publicclosed and private

emergent strategydeliberate strategy

Responsive Org

www.theresponsiveorg.com/manifesto

From To

Efficiency Responsiveness

Hierarchies Networks

Controlling Empowering

Extrinsic rewards Intrinsic motivation

Office & office hours Anywhere & anytime

Customers & partners Community

Sociocracy Sociocracy Democracy

Rule by the ‘socios’ – people who have a social relationship

Rule by the ‘demos’ – the general mass of people

Consent-based (rather than consensus)

One man, one vote

Alignment Tension

Building and built on trust and understanding

Partisan

“It radically changes how an organization is structured, how decisions are made, and how power is distributed.”Explicitly hierarchical, but a hierarchy of roles rather than people per se, with a distributed control system.

Holacracy™

http://holacracy.org/

http://youtu.be/h2lFqeJZN0g Brian Robertson, December 2012

PodularityA pod is a small, autonomous team enabled and empowered to deliver the things that customers value.

Dave Gray

www.sprinklr.com/social-scale-blog/the-future-is-podular/

https://medium.com/the-connected-company/d5c3107a78f1

Dave Gray

Reproduced with permission. http://connectedco.com

Wirearchy“a dynamic two-way flow of power and authority, based on knowledge, trust, credibility and a focus on results, enabled by interconnected people and technology.”

Jon Husband

http://wirearchy.com/what-is-wirearchy/

“There is probably no single management methodology or organisational structure that can meet all the needs of a growing firm, let alone be replicable across industries, and so part of the challenge lies in enabling methodologies and working practices to evolve over time to meet new challenges.”

Lee Bryant

http://postshift.com/grow-your-own-organisational-structure/

www.futureofwork.co

www.theresponsiveorg.com

http://eulr.co/e20Gplus(E2.0 on G+)

http://twitter.com/search?q=%23e20 (#e20)

http://twitter.com/search?q=%23socbiz (#socbiz)

Provocations.

“This is a connected world … but the shadows of the industrial age are long and run deep.”“The healing mesh of social business … creates the opportunity for a new kind of social fabric, woven together out of connected intention. That kind of co-operation can be the fabric for an emergent civilization.”

Anne McCrossan

http://stoweboyd.com/post/74638842971/

www.visceralbusiness.com/blog/brand/social-business-social-fabric-and-the-healing-mesh/

Do you help all the individuals associated with your organization build worthwhile relationships with each other and others, coalescing by need and desire, knowledge and capability and shared values, to create shared value?

Defining social business

www.attenzi.com/seventy-two/ www.philipsheldrake.com/2013/09/3m-thinktank-conference-getting-social-business/

Managing OneselfCultivate a deep understanding of yourself by identifying your most valuable strengths and most dangerous weaknesses.Articulate how you learn and work with others and what your most deeply held values are.Describe the type of work environment where you can make the greatest contribution.

Peter F. Drucker

Harvard Business Review Onpoint 4444, 1999http://hbr.org/product/managing-oneself-paperback/an/2312-PBK-ENG

Self-organizationA process where some form of global order or coordination arises out of the local interactions between the components of an initially disordered system.

The Organized SelfEquipped with an ‘organization agent’ – software representing us in finding opportunities to create mutual value with others, and helping to realise that value.

SocioveillanceA component of Organized Self.A personal and private service monitoring our interactions with our socios.Negotiates data exchange with others’ service according to our respective privacy policies to enrich our mutual understanding within comfortable boundaries.

CREATIVE COMMONS

COPYRIGHT LAWcc

CREATIVE COMMONS

COPYRIGHT LAW

HUMAN ORGANIZATION

CORPORATE / COMPANY LAW

and EMPLOYMENT LAW

Bread incorporated

domestic jurisdictioncodified selection of most appropriate jurisdiction

Bread A Bread CBread B

the middleware company

foreign jurisdictions (countries and states)

subsidiary incorporated entities

companionscompanion groups

companion API

Distributed autonomouscorporates / organizationsA DAC / DAO is autonomous, distributed, transparent, confidential, trustworthy, fiduciary, self-regulating, incorruptible and sovereign.It’s software based on the same mathematics as the cryptocurrency bitcoin.

www.philipsheldrake.com/2014/04/organization-personal-reputation-first-principles-distributed-autonomy/

Bread TraditionalCode interpreted automatically in milliseconds

Code interpreted laboriously over days and months

Open, transparent relationships and interoperability

Closed, opaque relationships and islandsof automation

Reputation currency Who you know

The P&L is the cashflow Cash is king

Global consolidation Individual consolidation

Frictionless, fluid, fast Abrasive, leaden, slow

Incorruptible Corruptible

shareholder

transpersonal

stakeholder

http://holacracy.org/blog/beyond-serving-stakeholders

Organization is a global public resource that must remain open and accessible.Organization must enrich the lives of individual human beings.Individuals’ security and privacy in organizations are fundamental and must not be treated as optional.

Mozilla manifesto amplified!from “Internet” to “organization”

www.mozilla.org/en-US/about/manifesto/

Individuals must have the ability to shape the organization and their own experiences in the organization. The effectiveness of the organization as a public resource depends upon interoperability (protocols, data formats, content), innovation and decentralized participation worldwide.Free and open source software promotes the development of organizations as a public resource.

Transparent community-based processes promote participation, accountability and trust.A balance between commercial profit and public benefit is critical.Magnifying the public benefit aspects of organizations is an important goal, worthy of time, attention and commitment.

Seoul Paris Rome Moscow Tokyo

ComplexCity, www.leejangsub.com

THANK YOU

The difference between what we do and what we are capable of doing would suffice to solve most of the world’s problems.

Mahatma Gandhi

vlogbrothers

don’t forget to be awesome

Image creditsAbraham Lincoln – http://en.wikipedia.org/wiki/Abraham_Lincoln Cellular automata – http://math.hws.edu/xJava/CA/ca_1024x768.png G.H. Lewes – http://upload.wikimedia.org/wikipedia/commons/8/82/PSM_V09_D668_George_Henry_Lewes.jpgAristotle – http://en.wikipedia.org/wiki/File:Aristotle_Altemps_Inv8575.jpg Engine – http://en.wikipedia.org/wiki/File:Mercedes_V6_DTM_Rennmotor_1996.png Social organization – http://www.sg.ethz.ch/research/topics/social-se/Six Influence Flows – http://eulerpartners.com/influence-flows/ Harold Jarche – http://internettimealliance.com/wp/profiles/team/harold-jarche/ Alex Pentland – http://en.wikipedia.org/wiki/File:Alex_Pentland,_MIT_%283238517166%29.jpg Bill Gates – http://upload.wikimedia.org/wikipedia/commons/4/4a/BillGates2012.jpg Hegel – http://en.wikipedia.org/wiki/File:Hegel.jpg W. Edwards Deming – Photo courtesy of The W. Edwards Deming Institute® http://www.deming.org/theman/photogallery Stowe Boyd – http://stoweboyd.com/about Dave Gray – http://www.davegrayinfo.com/Jon Husband – http://secure.flickr.com/photos/kk/97978332 by kris krügLee Bryant – http://plus.google.com/u/1/+LeeBryantPostshift/aboutAnne McCrossan – http://twitter.com/AnnemcxPeter Drucker – http://commons.wikimedia.org/wiki/File:Drucker5789.jpg Mahatma Gandhi – http://commons.wikimedia.org/wiki/File:Gandhi_smiling.jpg

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