like humans - how to build an organization
TRANSCRIPT
part I: inside the organization
you’ve built a product. here’s how to build an organization
In order to deliver a product at scale, you need to build an organization. Building an effective organization requires thinking at a systems level, which is inherently difficult for any single individual. We discuss how to harness collective intelligence to enable the organization to design itself.
you’ve built a product. here’s how to build an organization
two quick notes
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1. The “soft” stuff is the hard stuff
2. Not either/or, but ascending levels
you’ve built a product. here’s how to build an organization
a couple of people and a garage is all you need to build a product
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+ =
you’ve built a product. here’s how to build an organization
to scale the operation…
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…you need an organization.
you’ve built a product. here’s how to build an organization
these are the ingredients
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people processes resources
but what animates them?
you’ve built a product. here’s how to build an organization
a bit of philosophy: we have two perspectives
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you’ve built a product. here’s how to build an organization
the approach required to work in each domain is different
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interior experience exterior outcomes
Do I like it?key question What is it?
Fulfillmentresult Impact
Valueslanguage Reason
you’ve built a product. here’s how to build an organization
Enduring organizationwith happy employees
the most successful organizations are adept at working with both perspectives
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fulfillment
impact
Work sucks
Won’t last!
What’s the point?
you’ve built a product. here’s how to build an organization
as organizations develop, they integratehuman values
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bureaucratic organization
performance organization
human organization
Financial Security Seniority/Class
Conformity to a set of rules
+ Financial Success + Merit
Efficient deployment of a strategy
+ Human Values + Service
Creative manifestation of human values
animated by
to what?
you’ve built a product. here’s how to build an organization
and the customer and employee experience is palpably different
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agent’s goal
Stay on script Efficient resolution Delivering happiness“I am penalized for going off script”
“I am rewarded by the number of calls I handle in a day”
“I love helping customers and have the freedom to do what I think is right”
bureaucratic organization
performance organization
human organization
you’ve built a product. here’s how to build an organization
resulting in exponentially higher long-term performance at each level
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1.1 x
4.1 x10-year shareholder returns
S&P 500 Firms of Endearment
?
Source: R. Sisodia, et al., Firms of Endearment, Second Edition (2014)
bureaucratic performance human
you’ve built a product. here’s how to build an organization
why do values lead to higher performance?
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bureaucratic organization
performance organization
human organization
aligned around Strategy Shared Values
innovating Tactics Strategy and Tactics
Tactics
N/A
energy system Willpower ValuesSupervision
level of trust and reliability
Low Moderate High
you’ve built a product. here’s how to build an organization
building a values-centered organization
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Clarifyvalues
Align the organization
Communicate with values
Learn continuously
human organization
you’ve built a product. here’s how to build an organization
building a values-centered organization
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Clarifyvalues
Align the organization
Communicate with values
Learn continuously
human organization
you’ve built a product. here’s how to build an organization
it’s possible to measure and map values
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for individuals and teams
you’ve built a product. here’s how to build an organization
values are uncovered through the questions we ask others and ourselves
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What should I do? What do I want?
you’ve built a product. here’s how to build an organization
building a values-centered organization
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Clarifyvalues
Align the organization
Communicate with values
Learn continuously
human organization
you’ve built a product. here’s how to build an organization
organizations align around key questions
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purpose
strategy
tactics
Why do we exist?Purpose
How will we create value for each stakeholder?What business model best enables that value?
What is most important this quarter/year?
Stakeholder Value Propositions
Business Model
Strategic Focus
What specific actions will we take?Work Planning
you’ve built a product. here’s how to build an organization
building a values-centered organization
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Clarifyvalues
Align the organization
Communicate with values
Learn continuously
human organization
you’ve built a product. here’s how to build an organization
too often we think of a boss as someone who tells others what to do
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Do This.
Values and worldview remain hidden
Only one plan is proposed
Values and worldview remain hidden
autocratic command
you’ve built a product. here’s how to build an organization
unfortunately “collaboration” is often just a competition of ideas
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Values and worldview remain hidden
Two plans compete Values and worldview remain hidden
competitive communication
My plan!
No, my plan!
you’ve built a product. here’s how to build an organization
collaboration that starts with values enables synergy between diverse perspectives
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Values and worldview are explored
An approach is co-created
Values and worldview are explored
synergistic communication
How can we best honor both our values?
Do you think this action would address your
values?
Yes and if we also…
you’ve built a product. here’s how to build an organization
values-based, synergistic collaboration leads to better ideas and robust execution
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direction Two-way
decision optimized for
Quality
autocratic command
competitivecommunication
synergistic collaboration
Speed
One-way
implementation EmbracedHalf-Hearted
you’ve built a product. here’s how to build an organization
building a values-centered organization
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Clarifyvalues
Align the organization
Communicate with values
Learn continuously
human organization
you’ve built a product. here’s how to build an organization
success!
we’re trained to seek success and avoid failure
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event
good
bad failure!
you’ve built a product. here’s how to build an organization
when in fact, the most underutilized assets in business today are problems
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event
bad understand
event
good
bad