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The Seven Habits ofHighly Effective Organisations
Erwin van der KooghPrincipal Consultant
evanderkoogh
We are in a bit of a mess..
The World is Changing
Topple Rates Have Tripled
The World is Changing
Not just
We have a device in our pocket that can access the entirety of
human knowledge
"Cat March 2010-1" by Alvesgaspar - Own work. Licensed under CC BY-SA 3.0
Image by XKCD
Number of startups valued at $1B+
Jan 2014 45
Jan 2015 79
Aug 2015 115
Hilton
Founded 1919
Rooms ~680,000
Hotels 4112
Countries 91
AirBnB
Founded 2009
Rooms 1,500,000+
Cities 34,000+
Countries 190
The World is Changing
So what is different?
Massive increase in Uncertainty,
Unpredictability & Complexity
Image © Will Ockenden
Complicated
Complex
“An environment where cause and effect are only obvious in hindsight, with unpredictable, emergent outcomes.”
Complex Environment:
From Scaling Efficiency
Image © https://www.flickr.com/photos/guysie/
To Scalable Learning
Our current organisations
Anti-fragile
“The only competitive advantage left in the 21st century is adaptability.”
The World is Changing
- William Gibson
The future is already here. It is just not very evenly
distributed
7 Habits
People
1Trust People
Do you get to decide…
Where you work?
Do you get to decide…
When you work?
Do you get to decide…
How you work?
Do you get to decide…
With whom you work?
Do you get to decide…
On what you work?
Do you…
Have a Company Credit Card?
?Why not?!
Valve Software
One of the most profitable businesses/employee
Morning Star
Recommended Reading
1 Trust People
2Tolerate Embrace Failure
I have not failed. I have just found 10,000
ways that won’t work
Thomas Edison
Image © https://www.flickr.com/photos/besz/
I've missed more than 9000 shots in my career. I've lost almost 300
games. 26 times, I've been trusted to take the game winning shot and
missed. I've failed over and over and over again in my life. And that
is why I succeed.
Michael JordanBy Diegoestefano97 (Own work) [CC BY-SA 3.0]
Anyone who has never made a mistake has never tried
something new
Albert Einstein
Failure Cake @ Spotify
Recommended Reading
1 Trust People
2 Embrace Failure
The Organisation
3Be Brutally Honestwith yourself
First Digital Camera
Invented by Eastman Kodak
In 1975
VS.
VS.Mail DVDs Streaming
VS.Mail DVDs Streaming
Consumers value the simplicity Netflix has always offered and we respect that. There is a difference between moving quickly — which
Netflix has done very well for years — and moving too fast,
which is what we did in this case.
Reed Hastings
&
Recommended Reading
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4Allow Autonomy At All Levels
The tactical result of an engagement forms the base for new strategic decisions because
victory or defeat in a battle changes the situation to such a degree
that no human acumen is able to see beyond the first battle.
Helmuth Moltke the Elder
“A military doctrine where commanders give subordinate leaders a clearly defined goal instead of a detailed order.”
Auftragstaktik:
Alignment)&)Autonomy)
Alignment False dichotomy!
Do what I say!
Autonomy
Do whatever
Source: Stephan Bungay. Image © Hendrik Kniberg
X
Alignment)enables)Autonomy)
High Alignment
High Autonomy
Build a bridge!
Micromanaging organization
Indifferent culture
Entrepreneurial organization
Chaotic culture
Authoritative organization
Conformist culture
Innovative organization
Collaborative culture
We need to cross the river
Figure out how!We need to
cross the river
Low Alignment
Low Autonomy
Hope someone is working on the river problem…
Source: Stephan Bungay. Image © Hendrik Kniberg
Svenska Handelsbanken is one of the best
banks in the world
Svenska Handelsbanken is one of the most efficient
banks in the world
Svenska Handelsbanken is one of the most profitable
banks in the world
Svenska Handelsbanken has the most loyal customers of
the banks in the world
But..
Svenska Handelsbanken has no
budgets
Svenska Handelsbanken has no
sales targets
Svenska Handelsbanken has no
bonuses
Svenska Handelsbanken has no
matrix structure
Svenska Handelsbanken has
only 3 levels of management
Jan Wallander - Former CEO of Svenska Handelsbanken
The Branch is the Bank
Recommended Reading
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4 Create Autonomy at all Levels
5Think Big, Stay Small
Kodak had a market cap of $30B with 150,000 employees
When Instagram was sold for $1B it had 11 employees
When WhatsApp was sold for $19B it had 55 employees
W.L. Gore & Associates
Recommended Reading
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4 Create Autonomy at all Levels
5 Think Big, Stay small
What you do
6Simplify All the Things
Simple Rules Complex Behaviour
Expense policy at Statoil
CONSUMERS
iMac
iBook PowerBook
PowerMac
PROFESSIONALS
LAPT
OP
DES
KTO
P
8000+ Nurses800+ Teams45 Admin1 Manager (CEO)
Recommended Reading
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4 Create Autonomy at all Levels
5 Think Big, Stay small
6 Simplify all the Things
7Relentless Customer Focus
Audience Participation
Q: What are typical customers of Facebook?A: Advertisers
Q: What does that make us?A: The Product
Recommended Reading
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4 Create Autonomy at all Levels
5 Think Big, Stay small
6 Simplify all the Things
7 Relentless Customer Focus
Now what?
The World is Changing
I should estimate that in my experience most troubles and most possibilities for improvement add up to the proportions something
like this:
94% belongs to the system (responsibility of management)
W. Edward Deming
There are no recipes…
No 5 steps to Enlightenment
Not even ‘Best Practices’
Deal with ambiguity, uncertainty & complexity?
Cynefin
Create leadership at every level?
Intent Based Leadership
Continuous learning & improvement?
Lean
Theory of Constraints
Just in time investment?
Create a networked organisation?
Beyond Budgeting
Create products people love?
Human Centred Design
Collaboratively solve complex problems?
The World is Changing
Books: http://21stcenturymba.com/7habitsSlides: http://bitly.com/7OrgHabitsGen
Innovation, Agile Transformation, Project Delivery?We’re hiring!
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