ORGANIZATIONS BUILT FOR

CHANGEwith Mark Raheja of March 18, 2016

Hi. I’m Mark Raheja.

@markraheja www.aug.co

This is where I work.

32016 | www.aug.co

this is my team!

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A capable team for every meaningful missionOUR PURPOSE

DO YOU WORK WITH SOMEONE WHO…

Haggles over the precise wordings of communications, minutes, resolutions?

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DO YOU WORK WITH SOMEONE WHO…

Refers back to matters decided upon at the last meeting and attempts to re-open the question of the advisability of that decision?

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DO YOU WORK WITH SOMEONE WHO…

Insists on doing everything through “channels.” Never permits short-cuts to be taken in order to expedite decisions?

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C.I.A. GUIDE FOR

SIMPLE SABOTAGE

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Work doesn’t work.

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24%

63%

13%ACTIVELY DISENGAGED

ENGAGED

NOT ENGAGED

SOURCE: GALLUP “STATE OF THE GLOBAL WORKPLACE REPORT”

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IN THE G.T.A. ALONE

2.6 million people are bummed at work

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-4.0

0.0

4.0

8.0

1949 1970 1991 2012

SOURCE: UNIVERSITY OF NOTRE DAME

PRODUCTIVITY GROWTH AS A FACTOR OF GLOBAL OUTPUT

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0

18

35

53

70

1958 1982 2006 2030

AVERAGE COMPANY LIFESPAN ON S&P 500 INDEX

61 YEARS

15 YEARS

SOURCE: RICHARD FOSTER AT INOSIGHT

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0.0%

16.7%

33.3%

50.0%

2001 2004 2007

DIFFERENCE IN LABOR PRODUCTIVITY

FRONTIER FIRMS v.

SERVICES

MANUFACTURING

EVERYONE ELSE

MANUFACTURING

SERVICES

SOURCE:“THE FUTURE OF PRODUCTIVITY,” OECD 2015

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TEXTBOOK ‘FRONTIER FIRM’

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Exponential Change

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3D PRINTER SENSORS DNA SEQUENCING

$40,000 → $100

400x in 7 yrs$20,000 → $79

250x in 5 yrs$10MM → $1,000

10,000x in 7 yrs

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PHONE NETWORK FACEBOOK ANDROID

89 years to 150MM 8 years to 1B 5 years to 1B

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2

4

6

8

10

12

14

16

18

20

TYPICALFORTUNE 500

COMPANY

GOOGLE FACEBOOK TESLA UBER WHATSAPP SNAPCHAT OCULUSRIFT

20

8

54

2 2 22m 14m

YEARS TO REACH $1B MARKET CAP

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Everything is amazing – but nobody’s happy.

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Our way of working is out of date.

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Closed

ControlledEfficient

++

+

Industrial Model

Purpose

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Certain Uncertain

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Certain Uncertain

WHAT COMPUTERS ARE GOOD AT

WHAT HUMANS NEED TO BE GOOD AT

WHAT MOST COMPANIES ARE DESIGNED FOR

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ORGANIZED TO EXECUTE

ORGANIZED TO LEARN

HIRING Conformers, Rule followersCreative problem solvers,

experimenters

TRAINING Learn before you do Learn from doing

MEASURING PERFORMANCE Did you do it right? Did we learn?

ORG STRUCTURE Silos & separated expertiseCross-functional,

integrated expertise

PROCESS GOALSDrive out variance Use variance to adapt

and improve

Source: “Teaming: How Organizations Learn, Innovate, and Compete in the Knowledge Economy”, by Amy C. Edmondson

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THE PLIGHT OF YOUR BEST TALENT, TODAY

How to execute, when the bus is biased against you?

organization!

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High quality and affordable services that respond to the needs of our communities – and infrastructure to support city building.

WE’RE SURROUNDED BY MISSIONS THAT MATTER!

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IN THE AGE OF UNCERTAINTY

What does an organization built for change look like?

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AGILE

LEAN STARTUP

THE B TEAM / B CORP

HOLACRACY

RESPONSIVE ORG

EXPONENTIAL ORG

REINVENTING ORGS

THE 5TH DISCIPLINE

WE’RE A SMALL PART OF A VERY BIG WAVE

Inventing the #futureofwork

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Open

NetworkLearning

++

+

Responsive Model

Purpose

Purpose Profit

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Accelerate the advent of sustainable transportation

Open Closed

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70% turnover every 2 months 17 customer visits per year

Learning Efficiency

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Over 2,000 experiments per year, live, with real customers

NETWORKSNetwork Control

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80% performance improvement $20mm in savings for customers

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DEBATE!

Large organizations are enormous levers on our world – making this evolution in their operating model both essential and good

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So: How to change from A to B?

Closed

ControlledEfficient

Open

NetworkLearning

PurposePurpose

INDUSTRIAL RESPONSIVE

70% of transformation programs fail

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Complexity

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New strategies for change that work

Principles

Iteration

Opt-in

Harness tension

Leaders as models

Process, Structure

Stability

Roll-out

Minimize tension

Leaders as guides

even over

even over

even over

even over

even over

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Open

NetworkLearning

++

+

Change ispossible

Purpose

462016 | www.aug.co

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