2020 business model

“One of the most significant innovations of our time will come …

http://gigaom.com/2013/04/27/flat-is-the-new-up-why-are-companies-using-organizational-structures-that-are-thousands-of-years-old/, Kashen, D.

from the development of new ways of organizing ourselves to work together.”

http://gigaom.com/2013/04/27/flat-is-the-new-up-why-are-companies-using-organizational-structures-that-are-thousands-of-years-old/, Kashen, D.

The business case…

since 2008 technology and market proposal based on it ceased to be the main competitive advantage…

Technology became cheap, available evenly to many…

industry and company focus is turning into market and adjacencies focus.

Transitioning to Workforce 2020 http://www.cisco.com/web/learning/employer_resources/pdfs/Workforce_2020_White_Paper.pdf

is coming in 2020 and wants autonomy - freedom of choice how to perform a work.

Instead of a job description a work portfolio…

Transitioning to Workforce 2020 http://www.cisco.com/web/learning/employer_resources/pdfs/Workforce_2020_White_Paper.pdf

Instead of a job offer a value proposition…

Transitioning to Workforce 2020 http://www.cisco.com/web/learning/employer_resources/pdfs/Workforce_2020_White_Paper.pdf

Instead of employment history personal branding…

Transitioning to Workforce 2020 http://www.cisco.com/web/learning/employer_resources/pdfs/Workforce_2020_White_Paper.pdf

Transitioning to Workforce 2020 http://www.cisco.com/web/learning/employer_resources/pdfs/Workforce_2020_White_Paper.pdf

leaders expected to build employee value and attach greater value to each employee so, that

“Every employee will have a leadership score.”

G. Hamel http://www.wwd.com/business-news/business-features/wwd-ceo-summit-gary-hamel-6574060

Solutions offered by OD practitioners are limited by the task-based specification of the organizational structure

managing external complexity into internal control of people actions understanding them like serving and supporting technology.

Traditional organizational development methods offer three solutions for 2020 transformation...

1st solution offered is Work Sharing

Several people are retained on a part-time or reduced-time basis to perform a job.

To make work sharers equally successful

there is a need for well established strict work routines…

and fair performance measurement criteria…

2nd solution offered is Job Splitting

Different tasks of a job are divided between associates based on the different skill levels required by different tasks.

Skills in use of the job splitters are limited…

so… they get stuck on their current skill level.

3rd solution offered is Changing Leadership Style

From managing people how to use technology, information, time and others to reach the common goals…

into supporting social networking

in a split and shared structure of work.

All three solutions resulting in

more of managing people

both in their own function and in balancing cooperation of their interactions.

Visionary OD experts are eager to find new tools to

align job characteristics with Y gen expectations and market changes at the same time meaning

new organizational structure through turning task-based job specification into control distribution throughout the organization

new leadership through converting command and control into attaching and building employee value

making a difference

instead of being commanded obtain autonomy and personal growth.

One of the possible answers is a shift in understanding organizations…

There is a proven by some Fortune 500 companies answer to the 2020 challenge

found in search for new ways of managing their business in circumstances of market, financial and regulation uncertainties and instability

switching from technology driven view of the organizational structure to understand organization as a money making machine…

Meaning… instead of managing supplies, labor and capital as inputs to the technology and product value as its outcome

managing organization to convert customer orders (input) into revenue numbers (output).

When we understand that the real input is the customer request and the real output is the business result expected we understand that the complexity what we really can control

exists and is flourishing inside the organization in form of converting customer needs into revenue numbers knowledge of associates.

Every employee has a building brick to the high level KPI values under his/her control which can be well defined and positioned in the organization.

So, independently from the technology underlying the market proposal of the company organization distributes control not over technology but over business results.

This way positions become members of the active revenue creating chain triggered by the actual market demand with their own, well distinguished and established governance over their revenue position.

Instead of working with information coming from technology, product, customers and associates every position creates the data about what and how was accomplished in order to produce or to restore the expected from it revenue value.

This data than turned into information about how well the position controls its own business result in order to establish

whether its planning, execution and problem solving methods has lead to expected from the position value of revenue or not.

Finally this information is converted into organizational knowledge to be shared as standard knowledge or worst/best practice making employees equally teach and learn.

The continuously ongoing process of data to knowledge transformation on what behaviors lead to expected revenue share calls for the the need of managing the newly created knowledge…

uniting leadership, employees and organizational structure.

Instead of managing people leaders build, measure and develop management systems supporting autonomy and personal growth.

Leadership`s function is to build and maintain systems to monitor

- individual control level over revenue contribution as

associate`s value proposition

- individual learning process as attaching and increasing employee value

and to support moving from one revenue position to another as enriching work portfolio.

Associates as governors of their personal growth use the systems to

- obtain more autonomy and control over their actual work as their own leadership score

- create and aquire new organizational knowledge building their own and that of the others employee value

- to choose to grow into another position on the revenue creating chain as personal branding.

… and finally control distribution based organizational structure supports management systems to

- introduce market needs directly into the revenue chain of positions built one on another

- support continuous learning and moving from one revenue position to another on the determination of the associate

and - meet the business goals established at the same time.

The 2002 transformation management systems consist of

maintaining control distribution of revenue positions reporting system,

job structure derived from the control/revenue contribution level of the positions, and

maintaining and measuring knowledge sharing performance reinforcement.

Working with the business data blue print of the organizations the transformation is quick, easy… and painless.

People are asked to report only on events they have real control over which, liberating them from unnecessary work load of seeking information and being involved in tasks out of their control

to be in control over their achievements through choosing how to perform their work and organizing their networking activities

while meeting business goals on the price the organization is established to pay for it.

The author is Organizational psychologist (MA), OD practitioner and leading consultant of PsyOn Consulting, Hungary, US, Mexico Former lecturer at Pázmány Péter Chatolic University, Hungary Author of “The reverse Help Chain”, HBR Hungarian edition, 2010. April Contact: farkasgj@psyon.hu linkedIn profile: Farkas Judit