7 habits of highly effective organisations
TRANSCRIPT
SEVEN HABITSofHIGHLY EFFECTIVEOrganisations
Elabor8
Erwin van der KooghPrincipal Consultant
Erwin van der Koogh | Elabor8 | @evanderkoogh
Erwin van der Koogh | Elabor8 | @evanderkoogh
What has Agile achieved?
Erwin van der Koogh | Elabor8 | @evanderkoogh
No seriously..
Maybe we fixed IT departments…
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Image © Trammell Hudson https://www.flickr.com/photos/osr/
But have we fixed organisations?
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Image © Nicola https://www.flickr.com/photos/15216811@N06/
Erwin van der Koogh | Elabor8 | @evanderkoogh
Erwin van der Koogh | Elabor8 | @evanderkoogh
Erwin van der Koogh | Elabor8 | @evanderkoogh
So have we fixed organisations?
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Image © Nicola https://www.flickr.com/photos/15216811@N06/
Not always..
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So what is a highly effective
organisation?
One that is prepared for the realities of the 21st century
Erwin van der Koogh | Elabor8 | @evanderkoogh
Image © John Shepherd https://www.flickr.com/photos/johnrobertshepherd
Massive Uncertainty,
Unpredictability & Complexity
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Image © Will Ockenden
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Complicated
Complex
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“An environment where cause and effect are only obvious in hindsight, with unpredictable, emergent outcomes.”
Complex Environment:
From Scaling Efficiency
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Image © https://www.flickr.com/photos/guysie/
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To Scalable Learning
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Our current organisations
Anti-fragile
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“The only competitive advantage left in the 21st century is adaptability.”
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- William Gibson
The future is already here. It is just not very evenly
distributed
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7 Habits
Erwin van der Koogh | Elabor8 | @evanderkoogh
People
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1Trust People
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Do you get to decide…
Where you work?
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Do you get to decide…
When you work?
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Do you get to decide…
How you work?
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Do you get to decide…
With whom you work?
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Do you get to decide…
On what you work?
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Do you…
Have a Company Credit Card?
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?Why not?!
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Valve Software
One of the most profitable businesses/employee
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Erwin van der Koogh | Elabor8 | @evanderkoogh
Morning Star
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Recommended Reading
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1 Trust People
Erwin van der Koogh | Elabor8 | @evanderkoogh
2Tolerate Embrace Failure
I have not failed. I have just found 10,000
ways that won’t work
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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.
Erwin van der Koogh | Elabor8 | @evanderkoogh
Michael JordanBy Diegoestefano97 (Own work) [CC BY-SA 3.0]
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Anyone who has never made a mistake has never tried
something new
Albert Einstein
Failure Cake @ Spotify
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Erwin van der Koogh | Elabor8 | @evanderkoogh
Erwin van der Koogh | Elabor8 | @evanderkoogh
Recommended Reading
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1 Trust People
2 Embrace Failure
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The Organisation
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3Be Brutally Honestwith yourself
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First Digital Camera
Invented by Eastman Kodak
In 1975
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VS.
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VS.Mail DVDs Streaming
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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.
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Reed Hastings
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&
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Recommended Reading
Erwin van der Koogh | Elabor8 | @evanderkoogh
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
Erwin van der Koogh | Elabor8 | @evanderkoogh
4Allow Autonomy At All Levels
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Erwin van der Koogh | Elabor8 | @evanderkoogh
Erwin van der Koogh | Elabor8 | @evanderkoogh
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.
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Helmuth Moltke the Elder
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“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
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Source: Stephan Bungay. Image © Hendrik Kniberg
X
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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
Erwin van der Koogh | Elabor8 | @evanderkoogh
Svenska Handelsbanken is one of the best
banks in the world
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Svenska Handelsbanken is one of the most efficient
banks in the world
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Svenska Handelsbanken is one of the most profitable
banks in the world
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Svenska Handelsbanken has the most loyal customers of
the banks in the world
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But..Erwin van der Koogh | Elabor8 | @evanderkoogh
Svenska Handelsbanken has no
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budgets
Svenska Handelsbanken has no
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sales targets
Svenska Handelsbanken has no
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bonuses
Svenska Handelsbanken has no
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matrix structure
Svenska Handelsbanken has
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only 3 levels of management
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The Branch is the Bank
Jan Wallander - Former CEO of Svenska Handelsbanken
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Recommended Reading
Erwin van der Koogh | Elabor8 | @evanderkoogh
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4 Create Autonomy at all Levels
Erwin van der Koogh | Elabor8 | @evanderkoogh
5Think Big, Stay Small
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In 1989 Kodak had a market cap of $30B with 150,000 employees
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When Instagram was sold for $1B it had 11 employees
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When WhatsApp was sold for $19B it had 55 employees
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W.L. Gore & Associates
Erwin van der Koogh | Elabor8 | @evanderkoogh
Erwin van der Koogh | Elabor8 | @evanderkoogh
Erwin van der Koogh | Elabor8 | @evanderkoogh
Recommended Reading
Erwin van der Koogh | Elabor8 | @evanderkoogh
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4 Create Autonomy at all Levels
5 Think Big, Stay small
Erwin van der Koogh | Elabor8 | @evanderkoogh
What you do
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6Simplify All the Things
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Simple Rules Complex Behaviour
Expense policy at Statoil
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8000+ Nurses800+ Teams45 Admin1 Manager (CEO)
Erwin van der Koogh | Elabor8 | @evanderkoogh
Recommended Reading
Erwin van der Koogh | Elabor8 | @evanderkoogh
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
Erwin van der Koogh | Elabor8 | @evanderkoogh
7Relentless Customer Focus
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Audience Participation
Q: What are typical customers of Facebook?A: Advertisers
Q: What does that make us?A: The Product
Erwin van der Koogh | Elabor8 | @evanderkoogh
Erwin van der Koogh | Elabor8 | @evanderkoogh
Erwin van der Koogh | Elabor8 | @evanderkoogh
Recommended Reading
Erwin van der Koogh | Elabor8 | @evanderkoogh
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
Erwin van der Koogh | Elabor8 | @evanderkoogh
All Together Now
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The 21st Century Organisation is..
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A Decentralised Network of
Autonomous, Cross-Functional,
Self-organising Teams Focused on the Customer
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Wait a minute…!
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Cross-Functional…
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Self-Organising…
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Teams…
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Focus on Customer…?
We are all experts
Erwin van der Koogh | Elabor8 | @evanderkoogh
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You have a choice
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Scale Agile Process in IT
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Image © https://www.flickr.com/photos/guysie/
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Or join us & bring management thinking into the 21st Century
Erwin van der Koogh | Elabor8 | @evanderkoogh
Slides: http://slideshare.com/evanderkoogh/7habits
Books: http://21stcenturymba.com/7habits