Purpose+ Internal Research Project

NON-­CONFIDENTIAL AND NON-­PROPRIETARY, ENTIRELY SHAREABLEPurpose+, Amstel 95, Amsterdam, The Netherlands

Antifragile Organisation Design

Future business models will be different than those we see today

Source: Jonker et al., 2016; Purpose+ team brainstorm

• Singular metrics of business success, often financial parameters (profit, revenues). Short term cost/benefit analysis crucial.

• Linear realisation of the value proposition, distribution and use. Market price.

• Shareholders ‘own’ the business and decide who’s in charge. Quarterly profits driver.

• Value chains that are limited to a specific owner of the business.

• Transactions primarily based on money;; producer vs consument.

• Organisation design as the main challenge to keep people engaged and work effective.

• Multiple metrics of success, Purpose+Profitlogic embedded in all dashboards. Long term legacy as key driver behind decisions.

• Circular realisation of both material and social value. ‘Real price’.

• Access trumps possession. Shareholders who care long term are essential. Long term value and legacies as driver.

• Value networks where open sharing is key. Growth of philosophy is essential.

• Transactions possible on other value points (time spend, network utilized etc.).

• Orchestrating the community as the main challenge.

Principles

Economy

Ownership

Collaboration

Transaction

Organisation

Traditional business models Future business models

Future models will be build primarily through the minds of a new generation: the Millennials…

05

15

19 1920 19 19

1715

12

08

04

0201

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05

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25

16-­19 20-­24 25-­29 30-­34 35-­39 40-­44 45-­49 50-­54 55-­59 60-­64 65-­69 70-­74 75-­79 80+

Source: US Department of Labor

44% of all employees will be Millennials

Generation Z

Millennials

Generation X

Boomers

…which is a generation that has grown up with the power of connectedness and meritocracy

0

500000000

1E+09

1.5E+09

2E+09

2.5E+09

3E+09

3.5E+09

1993

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Third billion users in 2014!

Internet only for the elite

We are used to being constantly connected through internet…Number of people on internet over time

Source: www.internetlivestats.com; Pew Research on social media (accessible online)

70%

49%

36%

17%

13%

17%

24%

24%

29%

25%

12%

26%

40%

52%

61%

Facebook

Instagram

Twitter

Pinterest

LinkedIn

Daily Weekly Less often

…and much of that time we spend in social networks% of people on social media sites

The younger generation (18-­29) use social media sites almost twice as much as the older (65+ generation): 90% vs 46% in 2013. Everyone can post!

Companies will move to resemble fluid networks more than static entities; utilizing exponential impact and cost reduction…

Source: The Network Always Wins, (Hinsen, 2015); Antifragile (Taleb, 2012), Purpose+ team

‘Static’ companies ‘Fluid’ companies

• Linear career path• Contract• Loyalty• Employee• Org chart• ‘Work for ’ mindset• Robust yet Fragile (RYF)• High costs• Single entity stability• Computer as analogy

• Projects• Assignment• Relevance• Contributor in network• Node in network• ‘Engaged with’ mindset• Antifragile• Low costs• Dynamic kinetic stability• Life itself as analogy

From… …To

…and life itself will be it’s analogy – where a focus on dynamic kinetic stability is more important than individual part stability

Source: What is Life? How Chemistry Becomes Biology (2012);; Chance and Necessity (Monod, 1970)

Dynamic Kinetic Stability (DKS)‘Animate matter’ (LIFE)

Essence:• Overcoming the second law of thermodynamics by striving for dynamic and kinetic fitness in networks or populations.

Elements:• Often auto-­catalytic, exponential chemical reactions;; product and catalyst are the same (e.g. DNA, RNA).

• Focused on divergence to ensure stable populations over time.

• Creates ‘sustainable high energy ripples’ that we call life.

• Same molecules as inanimate matter.

Individual part stability‘Inanimate matter’

Essence:• Movement towards the most stable form – the lowest energy point -­ in the thermodynamic sink for molecules. Aim to maintain equilibrium.

Elements:• Mostly linear catalytic reactions where reactions need external catalysts and/or energy to create the reaction.

• Focused on convergence to lowest energy point: the thermodynamic sink.

• Creates the matter that we call ‘death’ or ‘inanimate matter’.

• Same molecules as animate matter.

Future networks will be bound by purpose – with a new generation that demands post-materialistic values in their work

38%

19%

34%

31%

14%

28%

14%22%

0%

20%

40%

60%

80%

100%

120%

1970 2000

Pure Postmaterialists

Mixed Postmaterials

Mixed Materialists

Pure materialists

Source: Modernization, Cultural Change, and Democracy: The Human Development Sequence, Inglehart & Welzel (2005)

Materialistic employee value: concerned with material needs, physical and economic safety. Non-materialistic employee values: concerned with self-actualisation, belonging, intellectual work and aesthetics.

In a network positive impact can come through anyone, regardless of hierarchy

Consistent contributor (in team)

Conditional contributor

Non contributor

0%

10%

20%

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50%

0,75 MCPR** 0,30 MCPR**

Individual group members that contribute consistently…

…can trigger changes in group norms in the entire group for the better…

...and influence the outcome for everybody*

* Based on study done on university students. MCPR: marginal per capita return for the group, as a return on initial spending by group participants. Source: Weber, Murnighan (2008), Suckers or Saviors? Consistent Contributors in Social Dilemmas

The future ‘rich’ will be the people with the most – and strongest –connections

Source: Hinsen (2015), The Network Always Wins;; Naim (2013), The End of Power

Low power, low influence

High power, high influence

Connection between individuals

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