the future of organization

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The Future of Organization Philip Sheldrake Euler Partners, 23rd May 2014, by-nc-sa Image credit: ComplexCity Rome, by Lee jang sub, by-nc-nd

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Aiming to eliminate the compromises in organizational life. Covering some interesting and provocative ideas, spanning human rights, complexity science, the death of heuristics, influence flows, personal knowledge mastery, social physics, trust, the digital nervous system, Web 3.0, performance and learning, public relations, collective intelligence, sociocracy, Holacracy, podularity, wirearchy, emergent civilization, self-organization, organized self, socioveillance, middleware corporate, bread incorporated and the Mozilla manifesto.

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Page 1: The Future of Organization

The Future of OrganizationPhilip SheldrakeEuler Partners, 23rd May 2014, by-nc-saImage credit: ComplexCity Rome, by Lee jang sub, by-nc-nd

Page 2: The Future of Organization

The Future of Organization

Eliminating the compromises in organizational life.An incomplete review of interesting ideas and some new ones to boot.

#e20 / #socbiz / #futureofwork / #responsiveorg

Page 3: The Future of Organization

The Future of Organization

With forewords by Microsoft Yammer co-founder and CTO, Adam Pisoni, and Social Media Today founder and CEO, Robin Carey.

Freely available at www.attenzi.com

Page 4: The Future of Organization

The Future of Organization

Organization. noun: a coordinated group of people with a particular purpose.

This presentation is available with voiceover and transcript at eulr.co/futureorg

Page 5: The Future of Organization

The Future of Organization

The problem. Organizations are about mutual value* creation, but it’s too difficult to give all one can give and too difficult to derive all the value there is to derive.

* Value: the importance, worth or usefulness of something.

Page 6: The Future of Organization

The Future of Organization

The problem. Employee engagement* is symptomatic.

* an employee's involvement with, commitment to, and satisfaction with work

www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx (2011-12)

24 63 13%

actively disengaged

not engaged

engaged

Page 7: The Future of Organization

The Future of Organization

The opportunity. Can we reshape and regear organization? !

new insights + perennial values modern tech + enduring aspirations

academic exactitude + earnest practice

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The Future of Organization

All human beings … should act towards

one another in a spirit of brotherhood.

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The Future of Organization

… an organization of the people, by the people, for the people.

Paraphrasing Abraham Lincoln’s commitment to the principles of human equality.www.attenzi.com/sixty-eight/

Lincoln

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The Future of Organization

If your company was a country, would you live there?

http://simonterry.tumblr.com/post/80222651306/

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The Future of Organization

“We have learned a great deal; we are awash with insights; we have had significant influence on the art of management. Yet we have failed to address – in the sustained and systematic ways they merit – some of the central problems of organization and governance.”

Philip Selznick

“Institutionalism ‘Old’ and ‘New.’” Selznick, Philip. Administrative Science Quarterly 41. 270–277. 1996.

Page 12: The Future of Organization

The Future of Organization

Organization is complex.

Page 13: The Future of Organization

The Future of Organization

ISBN: 9781851684885

Page 14: The Future of Organization

The Future of Organization

complexitynoun:• a system in which there are multiple

interactions between many different components

• bridges the gap between the individual and the collective

• may lead to emergent behavior

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The Future of Organization

order leads to chaos

chaos leads to order

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The Future of Organization

“… emergence is a ubiquitous feature of the world around us”

John H. Holland, Emergence: From Chaos to Order, 1999

“[T]here is a co-operation of things of unlike kinds. The emergent is unlike its components . . . and it

cannot be reduced to their sum or their difference”

G.H. Lewes, 1875

G.H. Lewes

Page 17: The Future of Organization

The Future of Organization

“They get their smarts from below. … In these systems,

agents residing on one scale start producing behavior that

lies one scale above them.”Stephen Johnson, Emergence, 2001

“All new organisational forms, no matter how radically new, are

combinations and permutations of what was there before.”The Emergence of Organizations and Markets,

Padgett, Powell, 2012

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The Future of Organization

“In the short run, actors create relations; in the long run, relations create actors.”

!The Emergence of Organizations and Markets, Padgett, Powell, 2012

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The Future of Organization

In all things of nature there is something of

the marvellous.

Aristotle

If one way be better than another, that you may be

sure is nature's way.

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The Future of Organization

By XKCD: http://xkcd.com/435/

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The Future of Organization

www.philipsheldrake.com/2013/12/deal-complication-complexity-chaos-youd-better-know-difference/

www.philipsheldrake.com/2014/01/stowe-boyds-manifesto-peoples-front/

Traffic

Organizations

Complica

tion

Complexity

✓✓✓

Cars

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The Future of Organization

Saying goodbye to some familiar heuristics.

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The Future of Organization

Actually, it’s all in the complex mix

our people are our greatest

asset

it’s all about shareholder

value

the customer!is king

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The Future of Organization

Organizations are relationships.They entail the constant adaption of the way we think and behave in order to influence others to think and behave differently in support of our goals.

Relationships at scale

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The Future of Organization

“Customer-centricity is an organizational point of view, not a customer point of view. It’s actually the organization-centric-view-of-the-customer.”“Don’t you want CRM to help you and the customer mutually, allowing you both to manage the relationship? … Or would you rather propagate the status quo – CRM as a construct to manage the customer?”

CRM

www.attenzi.com/sixty/

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The Future of Organization

Influence. !

You have been influenced when you think something you wouldn’t otherwise have thought, or do something you wouldn’t otherwise have done.

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The Future of Organization

Six Influence Flows

1

32 5

6

4

THE!ORGANIZATION STAKEHOLDERS

THE!COMPETITION

The Business of Influence, Sheldrake, Wiley, April 2011

http://eulerpartners.com/influence-flows/

The numbers are just labels, not a ranking of importance

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The Future of Organization

“There’s influence in everything an organization does, and sometimes in what it does not do.”“What is the intended outcome of your marketing and PR campaigns, and the design of your organization overall, if it’s not to get stakeholders to think and behave as you’d like, and to be sensitive to how they’d like you to think and behave?”www.attenzi.com/thirty-iii/

www.philipsheldrake.com/2013/03/influence-request-for-comments/

Influence

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The Future of Organization

“Whereas traditional business relies on some bureaucracy to determine what constitutes organizational knowledge, this function is delegated to the individual who now determines whether something is worth sharing / passing on or not, explicitly or tacitly.”

www.attenzi.com/forty-three/

Knowledge

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The Future of Organization

Personal Knowledge Mastery A set of processes, individually constructed, to help each of us make sense of our world and work more effectively.

www.jarche.com/pkm/

Harold Jarche

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The Future of Organization

Influence Flows

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The Future of Organization

Alex Pentland Social physics

“patterns of idea flow … are directly related to productivity growth and creative output”“high levels of engagement predict high group productivity … [but] increasing engagement is not a magic bullet.”

www.scientificamerican.com/article.cfm?id=how-big-data-can-transform-society-for-the-better

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The Future of Organization

Alex Pentland Social physics

“Exploration [a mathematical measure of the extent to which the members of a group bring in new ideas from outside] is a good predictor of both innovation and creative output.”

www.scientificamerican.com/article.cfm?id=how-big-data-can-transform-society-for-the-better

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The Future of Organization

You can fool some of the people some of the time, but not so many for so long now that everyone packs a smartphone.

www.philipsheldrake.com/2014/03/social-business-mutuality-stack/

Trust

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The Future of Organization

“If perception is reality characterized twentieth-century marketing and PR, reality is perception is the twenty-first century axiom.”

http://hbr.org/product/balanced-scorecard-report-july-august-2011-vol-13-/an/B11070-PDF-ENG

Trust

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The Future of Organization

It’s not all about the tech, but it helps.

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The Future of Organization

SerendipityThe occurrence and development of events by chance in a happy or beneficial way.… All you have to rely on if you can’t identify and interpret patterns systematically.

www.attenzi.com/fifty-six-iii/

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The Future of Organization

Digital nervous system“The winners will be the ones who develop a world-class digital nervous system so that information can easily flow through their companies for maximum and constant learning.… To think, act, react, and adapt.”

Bill Gates

Business @ the Speed of Thought, 1999, ISBN: 0446525685

www.attenzi.com/fifty-nine-ii/

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The Future of Organization

1999 → 2014Now, our nervous system extends out into the world.Gates advised building an ideal picture of the information you need from technology. Now, we also want technology to help us build that picture.

www.attenzi.com/fifty-nine-ii/

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The Future of Organization

IT now interweaves with the reality that provided the metaphors.

The Internetome:the manifestations (facets and implications) of the Internet of Things.

Internetome conference, 2010, www.philipsheldrake.com/2014/04/internetome/

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The Future of Organization

Business performance managementA discipline encompassing metric selection, measurement and organizational learning.We’re moving such capability towards real-time sensory feedback in an organization-as-organism / business-as-biology metaphor.

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The Future of Organization

Web 3.0The web as a universal medium for the exchange of data, information and knowledge.

www.philipsheldrake.com/2013/09/introduction-web-3-0-social-data-week/

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The Future of Organization

“Hegel didn’t rate public opinion. He didn’t think it could appreciate the shades of grey in serious matters, but has a tendency instead to polarize argument …”He said we don’t learn from history. Might we now learn from our digital history?

www.attenzi.com/thirty-two/

www.attenzi.com/seventy-one/

Can we now prove Hegel wrong?

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The Future of Organization

Mutuality. Empowerment. Learning.

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The Future of Organization

Public Relations The planned and sustained effort to influence opinion and behaviour, and to be influenced similarly, in order to build mutual understanding and goodwill.

http://eulr.co/publicrelationsdefined

www.PRredefined.org

www.prweek.com/article/1285244/pr-dead-public-leadership-future

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The Future of Organization

understanding points of view and reasons for those points of view

mutual revision / adaption of opinions

and behaviours

recognising the value contributed and the

value derived

focusing on this whole stack to drive value for all stakeholders

MUTUAL VALUE

MUTUAL INFLUENCE

MUTUAL UNDERSTANDING

www.philipsheldrake.com/2014/03/social-business-mutuality-stack/

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The Future of Organization

When one stakeholder group in an organization takes permanent priority over another, that’s not organization. When one always loses a little when another wins a little, all lose a little.

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The Future of Organization

Empowerment “Any increase in worker power that enables them to achieve organizational objectives.”

Manifest in four cognitions: meaning, competence, self-determination, and impact.

Seibert, Silver, & Randolph, 2004 / Spreitzer, 1995 / Thomas & Velthouse, 1990

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The Future of Organization

Performance through learning

Single loop Double loop Triple loop

Are we doing things right?

Are we doing the right things?

What’s right?

Learn new behaviour

Learn newthinking

Learn new beliefs / unlearn old

Acting Reframing Transforming

Management Leadership ?

www.philipsheldrake.com/2014/04/triple-loop-profound-leadership/

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The Future of Organization

To successfully respond to the myriad of changes that shake the world, transformation into a new style of management is required.The route to take is what I call profound knowledge – knowledge for leadership of transformation.

W. Edwards Deming

www.deming.org/theman/theories/profoundknowledge

Photo courtesy of The W. Edwards Deming Institute®

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The Future of Organization

MIT Center for Collective Intelligence

http://cci.mit.edu

How can people and computers be connected so that — collectively — they act more intelligently than any individuals, groups, or computers have ever done before?

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The Future of Organization

Ideas for organizing.

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The Future of Organization

“Work has profoundly changed in recent years … a new normal … based on principles and practices we don’t totally understand …Something new must be found, perhaps distilled from the latent energy in social connection and frictionless communication, and it must be tapped even if the workforce is harder to lead than ever before.”

Stowe Boyd

www.hightail.com/en_US/docs/GigaOM-Research-The-Future-of-Work.pdf

Page 54: The Future of Organization

The Future of Organization

Stowe Boyd

www.futureofwork.co/post/78477268155/a-manifesto-for-a-new-way-of-work

dissentconsensus

cooperativecollaborative creativity

traditionautonomyheteronomy

democracyoligarchy

fast-and-looseslow-and-tight

laissez-faireentrepreneurial

hyperleanwaterfall

small and simplelarge and complex

open and publicclosed and private

emergent strategydeliberate strategy

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The Future of Organization

Responsive Org

www.theresponsiveorg.com/manifesto

From To

Efficiency Responsiveness

Hierarchies Networks

Controlling Empowering

Extrinsic rewards Intrinsic motivation

Office & office hours Anywhere & anytime

Customers & partners Community

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The Future of Organization

Sociocracy Sociocracy Democracy

Rule by the ‘socios’ – people who have a social relationship

Rule by the ‘demos’ – the general mass of people

Consent-based (rather than consensus)

One man, one vote

Alignment Tension

Building and built on trust and understanding

Partisan

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The Future of Organization

“It radically changes how an organization is structured, how decisions are made, and how power is distributed.”Explicitly hierarchical, but a hierarchy of roles rather than people per se, with a distributed control system.

Holacracy™

http://holacracy.org/

http://youtu.be/h2lFqeJZN0g Brian Robertson, December 2012

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The Future of Organization

PodularityA pod is a small, autonomous team enabled and empowered to deliver the things that customers value.

Dave Gray

www.sprinklr.com/social-scale-blog/the-future-is-podular/

https://medium.com/the-connected-company/d5c3107a78f1

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The Future of Organization

Dave Gray

Reproduced with permission. http://connectedco.com

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The Future of Organization

Wirearchy“a dynamic two-way flow of power and authority, based on knowledge, trust, credibility and a focus on results, enabled by interconnected people and technology.”

Jon Husband

http://wirearchy.com/what-is-wirearchy/

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The Future of Organization

“There is probably no single management methodology or organisational structure that can meet all the needs of a growing firm, let alone be replicable across industries, and so part of the challenge lies in enabling methodologies and working practices to evolve over time to meet new challenges.”

Lee Bryant

http://postshift.com/grow-your-own-organisational-structure/

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The Future of Organization

www.futureofwork.co

www.theresponsiveorg.com

http://eulr.co/e20Gplus(E2.0 on G+)

http://twitter.com/search?q=%23e20 (#e20)

http://twitter.com/search?q=%23socbiz (#socbiz)

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The Future of Organization

Provocations.

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The Future of Organization

“This is a connected world … but the shadows of the industrial age are long and run deep.”“The healing mesh of social business … creates the opportunity for a new kind of social fabric, woven together out of connected intention. That kind of co-operation can be the fabric for an emergent civilization.”

Anne McCrossan

http://stoweboyd.com/post/74638842971/

www.visceralbusiness.com/blog/brand/social-business-social-fabric-and-the-healing-mesh/

Page 65: The Future of Organization

The Future of Organization

Do you help all the individuals associated with your organization build worthwhile relationships with each other and others, coalescing by need and desire, knowledge and capability and shared values, to create shared value?

Defining social business

www.attenzi.com/seventy-two/ www.philipsheldrake.com/2013/09/3m-thinktank-conference-getting-social-business/

Page 66: The Future of Organization

The Future of Organization

Managing OneselfCultivate a deep understanding of yourself by identifying your most valuable strengths and most dangerous weaknesses.Articulate how you learn and work with others and what your most deeply held values are.Describe the type of work environment where you can make the greatest contribution.

Peter F. Drucker

Harvard Business Review Onpoint 4444, 1999http://hbr.org/product/managing-oneself-paperback/an/2312-PBK-ENG

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The Future of Organization

Self-organizationA process where some form of global order or coordination arises out of the local interactions between the components of an initially disordered system.

The Organized SelfEquipped with an ‘organization agent’ – software representing us in finding opportunities to create mutual value with others, and helping to realise that value.

os

Page 68: The Future of Organization

The Future of Organization

SocioveillanceA component of Organized Self.A personal and private service monitoring our interactions with our socios.Negotiates data exchange with others’ service according to our respective privacy policies to enrich our mutual understanding within comfortable boundaries.

SUR

SOUS

SOCIO

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The Future of Organization

CREATIVE COMMONS

COPYRIGHT LAWcc

Page 70: The Future of Organization

The Future of Organization

CREATIVE COMMONS

COPYRIGHT LAW

HUMAN ORGANIZATION

CORPORATE / COMPANY LAW

and EMPLOYMENT LAW

cc

h

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The Future of Organization

Bread incorporated

domestic jurisdictioncodified selection of most appropriate jurisdiction

A CB

Bread A Bread CBread B

the middleware company

foreign jurisdictions (countries and states)

subsidiary incorporated entities

companionscompanion groups

companion API

Page 72: The Future of Organization

The Future of Organization

Distributed autonomouscorporates / organizationsA DAC / DAO is autonomous, distributed, transparent, confidential, trustworthy, fiduciary, self-regulating, incorruptible and sovereign.It’s software based on the same mathematics as the cryptocurrency bitcoin.

www.philipsheldrake.com/2014/04/organization-personal-reputation-first-principles-distributed-autonomy/

Page 73: The Future of Organization

The Future of Organization

Bread TraditionalCode interpreted automatically in milliseconds

Code interpreted laboriously over days and months

Open, transparent relationships and interoperability

Closed, opaque relationships and islandsof automation

Reputation currency Who you know

The P&L is the cashflow Cash is king

Global consolidation Individual consolidation

Frictionless, fluid, fast Abrasive, leaden, slow

Incorruptible Corruptible

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The Future of Organization

shareholder

transpersonal

stakeholder

?

http://holacracy.org/blog/beyond-serving-stakeholders

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The Future of Organization

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The Future of Organization

Organization is a global public resource that must remain open and accessible.Organization must enrich the lives of individual human beings.Individuals’ security and privacy in organizations are fundamental and must not be treated as optional.

Mozilla manifesto amplified!from “Internet” to “organization”

www.mozilla.org/en-US/about/manifesto/

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The Future of Organization

Individuals must have the ability to shape the organization and their own experiences in the organization. The effectiveness of the organization as a public resource depends upon interoperability (protocols, data formats, content), innovation and decentralized participation worldwide.Free and open source software promotes the development of organizations as a public resource.

Mozilla manifesto amplified!from “Internet” to “organization”

Page 78: The Future of Organization

The Future of Organization

Transparent community-based processes promote participation, accountability and trust.A balance between commercial profit and public benefit is critical.Magnifying the public benefit aspects of organizations is an important goal, worthy of time, attention and commitment.

Mozilla manifesto amplified!from “Internet” to “organization”

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Seoul Paris Rome Moscow Tokyo

ComplexCity, www.leejangsub.com

THANK YOU

Page 80: The Future of Organization

The Future of Organization

The difference between what we do and what we are capable of doing would suffice to solve most of the world’s problems.

Mahatma Gandhi

Page 81: The Future of Organization

The Future of Organization

vlogbrothers

don’t forget to be awesome

Page 82: The Future of Organization

Image creditsAbraham Lincoln – http://en.wikipedia.org/wiki/Abraham_Lincoln Cellular automata – http://math.hws.edu/xJava/CA/ca_1024x768.png G.H. Lewes – http://upload.wikimedia.org/wikipedia/commons/8/82/PSM_V09_D668_George_Henry_Lewes.jpgAristotle – http://en.wikipedia.org/wiki/File:Aristotle_Altemps_Inv8575.jpg Engine – http://en.wikipedia.org/wiki/File:Mercedes_V6_DTM_Rennmotor_1996.png Social organization – http://www.sg.ethz.ch/research/topics/social-se/Six Influence Flows – http://eulerpartners.com/influence-flows/ Harold Jarche – http://internettimealliance.com/wp/profiles/team/harold-jarche/ Alex Pentland – http://en.wikipedia.org/wiki/File:Alex_Pentland,_MIT_%283238517166%29.jpg Bill Gates – http://upload.wikimedia.org/wikipedia/commons/4/4a/BillGates2012.jpg Hegel – http://en.wikipedia.org/wiki/File:Hegel.jpg W. Edwards Deming – Photo courtesy of The W. Edwards Deming Institute® http://www.deming.org/theman/photogallery Stowe Boyd – http://stoweboyd.com/about Dave Gray – http://www.davegrayinfo.com/Jon Husband – http://secure.flickr.com/photos/kk/97978332 by kris krügLee Bryant – http://plus.google.com/u/1/+LeeBryantPostshift/aboutAnne McCrossan – http://twitter.com/AnnemcxPeter Drucker – http://commons.wikimedia.org/wiki/File:Drucker5789.jpg Mahatma Gandhi – http://commons.wikimedia.org/wiki/File:Gandhi_smiling.jpg