building smarter organizations km@ksu webinars #smartorg @dynamicadaptatn gordon vala-webb february...
TRANSCRIPT
Building smarter organizations
KM@KSU Webinars
#smartorg@dynamicadaptatn
Gordon Vala-Webb
February 2013
www.Dynamic Adaptation.com
Our agenda
1. Introductions
2.Why we need smarter organizations
3.What has been the response so far
4.Why are our organizations dumb?
5.What we can do about it
6.If we get it right
7.Questions
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www.Dynamic Adaptation.com
Who is me?
Advice / teachingDynamic Adaptation
Previously KM Director:• PwC Canada• Gov’t agency
Global lead (design / value) PwC social network
15 years in public sector
No profit :(Non-profit
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www.Dynamic Adaptation.com
Drucker
“Most of what we call management consists of making it difficult for people to get their work done”
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The Dilbert index . . . most workers could not care less about their work
71%Of American workers are
"not engaged" or "actively disengaged“
in their work
Source: http://www.gallup.com/poll/150383/majority-american-workers-not-engaged-jobs.aspx
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www.Dynamic Adaptation.com Slide 10
Sickness absence, presenteeism and labour turnover costs the UK economy yearly
What would Debs think?
£26bnSource: UK Foresight Project on Mental Capital and Wellbeing http://www.guardian.co.uk/money/2011/jul/15/happiness-work-why-counts
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A comparisonLarge
organizations
?
?
?
?
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Sheep
Slow
Follow the flock
Not fun
Can’t fly
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Meanwhile the “new” world puts new demands on our organizations
New world
Complex
Discontinuity
Ambiguous
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Old world
Stable
Repeatable processes
Authoritative knowledge
Adapted from Kent Greenes, “Knowledge Leadership, KMWorld 2011
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The pressure is mounting
. . .Global hyper-competition
. . .Power shifting from West to East. . .Slow growth. . .Youth unemployment. . .Public sector fiscal crises
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The result, in the most extreme cases, extinction!
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Image source http://stevedenning.typepad.com/steve_denning/2011/01/is-the-problem-with-capitalism-that-people-try-to-fix-it.html
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The response so far . . . Belt tightening
Exhortations “do more with less”Cost control / layoffsBusiness process re-engineeringMergers / acquisitionsOffshoringMore to come:. . . cloud, remote working
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www.Dynamic Adaptation.com
With each doubling of city population, each inhabitant is, on average, 15 percent wealthier, 15 percent more productive, 15 percent more innovative, and 15 percent more likely to be victimized by violent crime
For cities, bigger is better
Slide 18Source: http://www.pnas.org/content/104/17/7301.full
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Larger size: cities versus companies
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Power rules – city versus companiesSource: http://kallokain.blogspot.ca/2012/11/why-cities-live-and-companies-die.html
Cities – get smarter Companies
- don’t or get less smart
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In companies with over 1,000 employees, the average productivity of an employee drops by more than ¼ for each order-of-magnitude increase
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For organizations size matters - but not in a good way
Source: http://www.cybaea.net/Blogs/Data/Employee-productivity-as-function-of-number-of-workers-revisited.html
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Work has been getting “smarter”
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Source: http://cdn.dupress.com/wp-content/uploads/2012/10/Screen-Shot-2012-10-01-at-9.20.13-PM.png?2b7236
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And now makes up 41% (and growing) of jobs
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https://www.mckinseyquarterly.com/Preparing_for_a_new_era_of_knowledge_work_3034?srid=520
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Big Cheese
2nd Level Cheese
2nd Level Cheese
2nd Level Cheese
Assistant
1) The maze-trix: boundaries increase efficiency within a unit but make co-ordinating across difficult
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1) The maze-trix example: approving a contract change request at an aerospace company
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Source: http://www.bain.com/publications/articles/the-focused-company.aspx
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1) The maze-trix: symptoms
•Exponential growth of decision intersection points
•Unclear reporting lines
•Meeting overload
•Email overload
•Slow information flows
•Lack of “complete picture”
•Decision paralysis
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We need to schedule a meeting
To plan for the meeting
To discuss why we have so many meetings
http://www.zazzle.ca/i_need_to_schedule_a_meetingto_plan_the_meeting_mug-168219332576188320
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2) Mind the gap: Bigger = bureaucratic mgmt.= less engaged /high performing staff
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Complexity
% of highly engaged /performing staff
Mgmt& rules
Adapted from: “Netflix Culture” http://www.slideshare.net/reed2001/culture-1798664#text-version
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2) Mind the gap: symptoms
•Increasing bureaucracy and formality•Inefficient internal processes•Decrease in % of high performers• Decrease in % of engaged or highly
engaged staff•Over-engineering•Wait times
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3) Old think versus new think
New think
Integrative culture
Feeling animals
Internal reward
Connected
Brain is plastic
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Old think
Control culture
Thinking animals
External reward
Selfish
Brain is fixed
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3) Old think: hierarchy is in our corporate blood
“U.S. corporations are historically imprinted with a hierarchical
model—you develop something at headquarters, you scale it, and
then you diffuse it.”Rakesh Khurana
Harvard Business School
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http://www.strategy-business.com/article/00164?pg=all
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3) “Old think”: symptoms
Leadership by command and broadcast
“SMART” performance goals
Monetary rewards
Fault-finding
Low trust levels
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http://c15056394.r94.cf2.rackcdn.com/MITSMR-Deloitte-Social-Business-What-Are-Companies-Really-Doing-Spring-2012.pdf
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It can be done . . .
“less than 30% of the top banks we studied were able to improve their efficiency while maintaining healthy growth”
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Source: http://www.europeanbusinessreview.com/?p=6500
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Three approaches
1) Leadership renewal
2) A new organizational bicycle
3) Simplicity
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1) Leadership renewal
Concentration of power equals abuse of power . . Such concentrations are blood clots
in the circulatory system of society. . . The circulation of
wealth, resources, and, especially, ideas, is blocked.
In a healthy system, information flows are
unimpeded by clots of power or the sclerosis of hierarchy.
Philip Slater, The Chrysalis Effect
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1) Leadership renewal: “The fish rots from the head down”
•Reject the “control” culture
•Establish shared goals
•Connect through conversation
•Embrace emergence
•Transparency in decision making
•Build trust
•Learn to use social media
•Authentic selves (Empathy versus egotism)
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“The soft stuff is the hard stuff” Jack Welch
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2) A new organizational bicycle
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“A bicycle makes man the most efficient mover on the earth.A computer is a bicycle for our mind.” Wilson Miner
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2) New bicycle: First we kill all the emails
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. . . information, ideas and questions become isolated - they only go to the people who received the message
. . . trying to have a conversation is really hard
. . . it becomes a guessing game when working on a document together (“who made what changes to which version?”)
. . . the information disappears over time so that anyone joining the conversation late has a hard time coming up to speed
With social networking . .With emails . . .
Source: http://www.pwc.com.ar/es_AR/ar/publicaciones-por-industria/assets/transforming-collaboration-with-social-tools.pdf
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2) New bicycle: Enhancing knowledge flows
Non-social SocialClosed (one to few) Open (many to many)Push Pull (subscription)Inside OutsideEphemeral PersistentBroadcast User-generated
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“We shape our tools, and thereafter our tools shape us.”Marshall McLuhan
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2) New bicycle: Some issues
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Reputation
Security
Intellectualpropertyleakage
Regulatoryrequirements
Recordsmanagement
Privacy /Confidentiality
Lost productivity
$
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3) Simplicity: Not that simple
Manage down the complexity:
•Products
•Processes
•Organizational capabilities
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If we get it wrong . . . extinction!
“It’s not the strongest of the species that survives, nor the most intelligent,
but the one most responsive to change.”
Charles Darwin
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If we get it right . . .
Slide 46Source: http://www.slideshare.net/dhinchcliffe/enterprise-20-summit-2012-closing-keynote
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If we get it right . . .
“By fully implementing social technologies, companies have an opportunity to raise the productivity of interaction workers—high-skill knowledge workers, including managers and professionals—by 20 to 25 percent.” McKinsey Global Institute, July 2012
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Google’s share price
An IBM study of 1,700 worldwide CEOs found that companies who outperform their peers are 30% more likely to identify openness – often characterized by the greater use of social tools – as a key influence on their organization.
Thank you . . .
Gordon (at)
DynamicAdaptation.com
www.DynamicAdaptation.com
Twitter: @dynamicadaptatn
416-565-3217
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This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Gordon Vala-Webb and Dynamic Adaptation does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
© 2013 Gordon Vala-Webb. All rights reserved.