august responsive organization development
TRANSCRIPT
What’s stopping your organization from
changing the world?
Hi. I’m Mike Arauz.
@mikearauz www.aug.co
This is where I work.
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President knows best…
DO YOU WORK WITH SOMEONE WHO…
Haggles over the precise wordings of communications, minutes, resolutions.
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DO YOU WORK WITH SOMEONE WHO…
Refers back to matters decided upon at the last meeting and attempts to re-open the question of the advisability of that decision.
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DO YOU WORK WITH SOMEONE WHO…
Insists on doing everything through “channels.” Never permits short-cuts to be taken in order to expedite decisions.
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CIA GUIDE FOR SIMPLE SABOTAGE
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Work doesn’t work.
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24%
63%
13%ACTIVELY DISENGAGED
ENGAGED
NOT ENGAGED
SOURCE: GALLUP “STATE OF THE GLOBAL WORKPLACE REPORT”
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-4.0
0.0
4.0
8.0
1949 1970 1991 2012
SOURCE: UNIVERSITY OF NOTRE DAME
PRODUCTIVITY GROWTH AS A FACTOR OF GLOBAL OUTPUT
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0.0%
1.7%
3.3%
5.0%
1965 1980 1995 2010
RETURN ON ASSETS
SOURCE: DELOITTE SHIFT INDEX
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0
18
35
53
70
1958 1982 2006 2030
AVERAGE COMPANY LIFESPAN ON S&P 500 INDEX
61 YEARS
15 YEARS
SOURCE: RICHARD FOSTER AT INOSIGHT
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0.0%
16.7%
33.3%
50.0%
2001 2004 2007
DIFFERENCE IN LABOR PRODUCTIVITY
FRONTIER FIRMS v.
SERVICES
MANUFACTURING
EVERYONE ELSE
MANUFACTURING
SERVICES
SOURCE:“THE FUTURE OF PRODUCTIVITY,” OECD 2015
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Exponential Change
Exponential Innovation →
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3D PRINTER SENSORS DNA SEQUENCING
$40,000 → $100
400x in 7 yrs
$20,000 → $79
250x in 5 yrs
$10MM → $1,000
10,000x in 7 yrs
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2
4
6
8
10
12
14
16
18
20
TYPICALFORTUNE 500
COMPANY
GOOGLE FACEBOOK TESLA UBER WHATSAPP SNAPCHAT OCULUSRIFT
20
8
54
2 2 22m 14m
YEARS TO REACH $1B MARKET CAP
Exponential Growth →
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PHONENETWORK FACEBOOK ANDROID
89 years → 150 million users
8 years → 1 billion users
5 years → 1 billion users
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Our way of working is out of date.
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Closed
ControlledEfficient
++
+
Industrial Model
Purpose
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Certain Uncertain
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Certain UncertainWhat Most Companies Are Designed For
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Certain UncertainWhat Most Companies Are Designed For
What Computers Are Good At
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Certain Uncertain
What Computers Are Good At
What Humans Need To Be Good At
What Most Companies Are Designed For
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Open
NetworkLearning
++
+
Responsive Model
Purpose
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It goes by many labels:
RESPONSIVE ORG
EXPONENTIAL ORG
REINVENTING ORGS
THE 5TH DISCIPLINE
AGILE
LEAN STARTUP
THE B TEAM / B CORP
HOLACRACY
Leading to a revolutionary shift
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Closed
ControlledEfficient
+
+
+
Open
NetworkLearning
+
+
+
How do you change from one paradigm to another?
PurposePurpose
Purpose
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A capable team for every meaningful mission
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Accelerate the advent of sustainable transportation
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Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
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(1975)
A computer on every desk.
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(2015)
Empower every person and every organization on the planet to achieve more.
Get Started: A good Purpose is…
‣User/Customer-centric: express the impact you aim to make for those you serve
‣Brief: ~140 characters or less
‣Clear: jargon-free and easily understood
‣Ambitious: inspire the team to be their best
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Open
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A knowledge exchange platform that intelligently matches questions to answers
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70% turnover every 2 months 17 customer visits per year
Get Started: Working in public
Tools to try
‣Cloud-based documents: MS OneDrive, Box, GoogleDocs
‣Collaborative project management: Trello, Asana, Basecamp
‣Chat applications: Slack, Hipchat
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Learning
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Running consulting services as an agile software product
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Over 2,000 experiments per year, live, with real customers
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Shut down every store for a full day
Get Started: What/Where/What Review Process
3 simple questions
‣What worked?
‣Where did we get stuck?
‣What might we do differently?
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Network
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Open compensation model
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80% performance improvement $20mm in savings for customers
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Serving 1,800 customers per employee, and over $40,000 in deposits per employee
Get Started: Rules for your next project team
‣Lean: 7 ±2 people
‣Multi-disciplinary: Mix of necessary skills
‣Clear timelines: specific goal, testable within <3m
‣Self-organizing: decides for themselves who does what
‣ Independent: able to ship without external approvals
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Open
NetworkLearning
++
+
Change ispossible
Purpose
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