7 habits of highly effective organisations

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SEVEN HABITS of HIGHLY EFFECTIVE Organisations Elabor8 Erwin van der Koogh Principal Consultant

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Page 1: 7 Habits of Highly Effective Organisations

SEVEN HABITSofHIGHLY EFFECTIVEOrganisations

Elabor8

Erwin van der KooghPrincipal Consultant

Page 2: 7 Habits of Highly Effective Organisations

Erwin van der Koogh | Elabor8 | @evanderkoogh

Page 3: 7 Habits of Highly Effective Organisations

Erwin van der Koogh | Elabor8 | @evanderkoogh

What has Agile achieved?

Page 4: 7 Habits of Highly Effective Organisations

Erwin van der Koogh | Elabor8 | @evanderkoogh

No seriously..

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Maybe we fixed IT departments…

Erwin van der Koogh | Elabor8 | @evanderkoogh

Image © Trammell Hudson https://www.flickr.com/photos/osr/

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But have we fixed organisations?

Erwin van der Koogh | Elabor8 | @evanderkoogh

Image © Nicola https://www.flickr.com/photos/15216811@N06/

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Page 8: 7 Habits of Highly Effective Organisations

Erwin van der Koogh | Elabor8 | @evanderkoogh

Page 9: 7 Habits of Highly Effective Organisations

Erwin van der Koogh | Elabor8 | @evanderkoogh

Page 10: 7 Habits of Highly Effective Organisations

So have we fixed organisations?

Erwin van der Koogh | Elabor8 | @evanderkoogh

Image © Nicola https://www.flickr.com/photos/15216811@N06/

Not always..

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Erwin van der Koogh | Elabor8 | @evanderkoogh

So what is a highly effective

organisation?

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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

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Massive Uncertainty,

Unpredictability & Complexity

Erwin van der Koogh | Elabor8 | @evanderkoogh

Image © Will Ockenden

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Complicated

Complex

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Erwin van der Koogh | Elabor8 | @evanderkoogh

“An environment where cause and effect are only obvious in hindsight, with unpredictable, emergent outcomes.”

Complex Environment:

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From Scaling Efficiency

Erwin van der Koogh | Elabor8 | @evanderkoogh

Image © https://www.flickr.com/photos/guysie/

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Erwin van der Koogh | Elabor8 | @evanderkoogh

To Scalable Learning

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Our current organisations

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Anti-fragile

Erwin van der Koogh | Elabor8 | @evanderkoogh

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Erwin van der Koogh | Elabor8 | @evanderkoogh

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Erwin van der Koogh | Elabor8 | @evanderkoogh

“The only competitive advantage left in the 21st century is adaptability.”

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Erwin van der Koogh | Elabor8 | @evanderkoogh

- William Gibson

The future is already here. It is just not very evenly

distributed

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Erwin van der Koogh | Elabor8 | @evanderkoogh

7 Habits

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Erwin van der Koogh | Elabor8 | @evanderkoogh

People

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Erwin van der Koogh | Elabor8 | @evanderkoogh

1Trust People

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Do you get to decide…

Where you work?

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Do you get to decide…

When you work?

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Do you get to decide…

How you work?

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Do you get to decide…

With whom you work?

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Do you get to decide…

On what you work?

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Do you…

Have a Company Credit Card?

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Erwin van der Koogh | Elabor8 | @evanderkoogh

?Why not?!

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Valve Software

One of the most profitable businesses/employee

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Erwin van der Koogh | Elabor8 | @evanderkoogh

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Morning Star

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Recommended Reading

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Erwin van der Koogh | Elabor8 | @evanderkoogh

1 Trust People

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Erwin van der Koogh | Elabor8 | @evanderkoogh

2Tolerate Embrace Failure

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I have not failed. I have just found 10,000

ways that won’t work

Erwin van der Koogh | Elabor8 | @evanderkoogh

Thomas Edison

Image © https://www.flickr.com/photos/besz/

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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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Erwin van der Koogh | Elabor8 | @evanderkoogh

Anyone who has never made a mistake has never tried

something new

Albert Einstein

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Failure Cake @ Spotify

Erwin van der Koogh | Elabor8 | @evanderkoogh

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Erwin van der Koogh | Elabor8 | @evanderkoogh

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Recommended Reading

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Erwin van der Koogh | Elabor8 | @evanderkoogh

1 Trust People

2 Embrace Failure

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Erwin van der Koogh | Elabor8 | @evanderkoogh

The Organisation

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Erwin van der Koogh | Elabor8 | @evanderkoogh

3Be Brutally Honestwith yourself

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Erwin van der Koogh | Elabor8 | @evanderkoogh

First Digital Camera

Invented by Eastman Kodak

In 1975

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Erwin van der Koogh | Elabor8 | @evanderkoogh

VS.

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Erwin van der Koogh | Elabor8 | @evanderkoogh

VS.Mail DVDs Streaming

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Erwin van der Koogh | Elabor8 | @evanderkoogh

VS.Mail DVDs Streaming

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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.

Erwin van der Koogh | Elabor8 | @evanderkoogh

Reed Hastings

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Erwin van der Koogh | Elabor8 | @evanderkoogh

&

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Recommended Reading

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Erwin van der Koogh | Elabor8 | @evanderkoogh

1 Trust People

2 Embrace Failure

3 Be Brutally Honest

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Erwin van der Koogh | Elabor8 | @evanderkoogh

4Allow Autonomy At All Levels

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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.

Erwin van der Koogh | Elabor8 | @evanderkoogh

Helmuth Moltke the Elder

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Erwin van der Koogh | Elabor8 | @evanderkoogh

“A military doctrine where commanders give subordinate leaders a clearly defined goal instead of a detailed order.”

Auftragstaktik:

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Alignment)&)Autonomy)

Alignment False dichotomy!

Do what I say!

Autonomy

Do whatever

Erwin van der Koogh | Elabor8 | @evanderkoogh

Source: Stephan Bungay. Image © Hendrik Kniberg

X

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Erwin van der Koogh | Elabor8 | @evanderkoogh

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

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Erwin van der Koogh | Elabor8 | @evanderkoogh

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Svenska Handelsbanken is one of the best

banks in the world

Erwin van der Koogh | Elabor8 | @evanderkoogh

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Svenska Handelsbanken is one of the most efficient

banks in the world

Erwin van der Koogh | Elabor8 | @evanderkoogh

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Svenska Handelsbanken is one of the most profitable

banks in the world

Erwin van der Koogh | Elabor8 | @evanderkoogh

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Svenska Handelsbanken has the most loyal customers of

the banks in the world

Erwin van der Koogh | Elabor8 | @evanderkoogh

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But..Erwin van der Koogh | Elabor8 | @evanderkoogh

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Svenska Handelsbanken has no

Erwin van der Koogh | Elabor8 | @evanderkoogh

budgets

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Svenska Handelsbanken has no

Erwin van der Koogh | Elabor8 | @evanderkoogh

sales targets

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Svenska Handelsbanken has no

Erwin van der Koogh | Elabor8 | @evanderkoogh

bonuses

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Svenska Handelsbanken has no

Erwin van der Koogh | Elabor8 | @evanderkoogh

matrix structure

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Svenska Handelsbanken has

Erwin van der Koogh | Elabor8 | @evanderkoogh

only 3 levels of management

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Erwin van der Koogh | Elabor8 | @evanderkoogh

The Branch is the Bank

Jan Wallander - Former CEO of Svenska Handelsbanken

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Recommended Reading

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Erwin van der Koogh | Elabor8 | @evanderkoogh

1 Trust People

2 Embrace Failure

3 Be Brutally Honest

4 Create Autonomy at all Levels

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Erwin van der Koogh | Elabor8 | @evanderkoogh

5Think Big, Stay Small

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Erwin van der Koogh | Elabor8 | @evanderkoogh

In 1989 Kodak had a market cap of $30B with 150,000 employees

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Erwin van der Koogh | Elabor8 | @evanderkoogh

When Instagram was sold for $1B it had 11 employees

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Erwin van der Koogh | Elabor8 | @evanderkoogh

When WhatsApp was sold for $19B it had 55 employees

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Erwin van der Koogh | Elabor8 | @evanderkoogh

W.L. Gore & Associates

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Recommended Reading

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1 Trust People

2 Embrace Failure

3 Be Brutally Honest

4 Create Autonomy at all Levels

5 Think Big, Stay small

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Erwin van der Koogh | Elabor8 | @evanderkoogh

What you do

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Erwin van der Koogh | Elabor8 | @evanderkoogh

6Simplify All the Things

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Simple Rules Complex Behaviour

Expense policy at Statoil

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Erwin van der Koogh | Elabor8 | @evanderkoogh

8000+ Nurses800+ Teams45 Admin1 Manager (CEO)

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Recommended Reading

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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

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Erwin van der Koogh | Elabor8 | @evanderkoogh

7Relentless Customer Focus

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Audience Participation

Q: What are typical customers of Facebook?A: Advertisers

Q: What does that make us?A: The Product

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Recommended Reading

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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

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Erwin van der Koogh | Elabor8 | @evanderkoogh

All Together Now

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Erwin van der Koogh | Elabor8 | @evanderkoogh

The 21st Century Organisation is..

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Erwin van der Koogh | Elabor8 | @evanderkoogh

A Decentralised Network of

Autonomous, Cross-Functional,

Self-organising Teams Focused on the Customer

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Wait a minute…!

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Cross-Functional…

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Self-Organising…

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Teams…

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Focus on Customer…?

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We are all experts

Erwin van der Koogh | Elabor8 | @evanderkoogh

Image © https://www.flickr.com/photos/nanoprobe67/

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You have a choice

Erwin van der Koogh | Elabor8 | @evanderkoogh

Image © https://www.flickr.com/photos/nanoprobe67/

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Scale Agile Process in IT

Erwin van der Koogh | Elabor8 | @evanderkoogh

Image © https://www.flickr.com/photos/guysie/

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Or join us & bring management thinking into the 21st Century

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Erwin van der Koogh | Elabor8 | @evanderkoogh

Slides: http://slideshare.com/evanderkoogh/7habits

Books: http://21stcenturymba.com/7habits