MENTAL MODELS AND ORGANIZATIONS AMID

GROWING COMPLEXITY

ILLUSTRATION BY PILAR COPETE ON FLICKR.COM

- Christiana Figueres, Executive Secretary of the United Nations Framework Convention on Climate Change -

PART 1A

: Grow

ing Com

plexity

.the premium puzzle

Based on articles and talks by Shoshana Zuboff, and Gary Hamel

EARLY CONSUMERSPROPRIETARY CAPITALISM

MASS CONSUMERSMANAGERIAL CAPITALISM

NEW SOCIETY OF INDIVIDUALSDISTRIBUTED CAPITALISM

ZONE OF INNOVATION

1890 20051915 2020 2050

ZONE OF INNOVATION

MIGRATION PATH

MIGRATION PATH

ZONE OF MUTATION

ZONE OF MUTATION

ELECTRICITY

INTERNET

MOBILEBIG DATAIOTCLOUD

+

+COMBUSTION ENGINE

Zero marginal cost

Every century or so, fundamental changes in the nature of consumption create new demand patterns that existing organizations can’t meet.

.growing complexityI

PART 1A

: Grow

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plexity

I

http://www.180360720.no/?p=5227

We are living in the age of mass individualization. No two people get the same Google search result, see the same products on amazon.com, have the same

Facebook feed or iTunes catalogue. Every smartphone is unique two minutes after its first boot. 

We are living in an age where the new mega industries have all become personal services industries and the old incumbents are still struggling to put out a mass product at almost no

margin or cost (e.g. digital news media, insurance, banks, bikes, cars, tooth picks etc.).

PART 1A

: Grow

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plexity

I

PEOPLE ORGANIZE IN MULTIPLE IMMEDIATE, DECENTRALIZED NETWORKS. Lasting from seconds to months or years. These networks are distributed, they don’t have a plan and only react when input hits them. Companies become the input variable.

PART 1A

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plexity

II

PART 1A

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plexity

III

DISTRIBUTED CAPITALISM

PART 1A

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link

III

discuss:How does these concepts affect your work? (pick the most important one): - What the stakeholders find valuable changes - Uncertainty (Immediate Complex Networks) - Mutation

Turn to the person(s) next to you and for the next 2 minutes

PART 1A

: Grow

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plexity

«[organizations] get fixed on measuring their solution, not the job they’re being hired to help solve..»

- Des Traynor, CEO Intercom - - https://blog.intercom.com/your-product-is-already-obsolete/

ONLY THE PARANOID SURVIVEPART 2

PART 2A

:Your product is already obsolete

THE RESPONSIBILITY OF ORGANIZATIONS IN REGARDS TO PERSON, PROCESS, TECHNOLOGY, BEHAVIOR AND OUTCOME

29/365 - 2017

OUTCOMEPEOPLE

Over time organizations seem to forget their understanding of the market, their CVP. They become prone to unconsciously hold a very limited view of their future. Seeing the world from a technology,

market or product perspective creates a very narrow frame of reference where new wealth opportunities are easily overlooked.

ORGANIZATIONS DON’T DIE — THEY SUFFOCATEOperating in the market from the perspective of its Stakeholder Value Proposition

Competition offering the same CVP is conciously let in as they are using different core technology or core

business model

Creating a market by understanding the customer’s progress, struggle and circumstance (customer value proposition)

The original technology and processes end up becoming a commodity or infrastructure

PART 2A

:Your product is already obsolete

PART 2: U

nderstanding Custom

ers’ progress and circumstance

discuss:Are we organized to efficiently output our services, or solve stakeholder problems? Are they the same?

Turn to the person(s) next to you and for the next 2 minutes

PART 3

PART 3: M

utation of process

link

The old management model is a control mechanism subdividing talent into compartments where top-management destroys their ability to create value. Enabling organizations are driving information rapidly out to front-line self-

organizing teams in order for them to operate autonomously and react instantly to changes in customer demand patterns. Employees given the

opportunity to use their talent unleash massive wealth for the corporation.  Cases in point: Salesforce, Netflix, Patagonia, Zappos, Tesla, AirBNB, Morning Star, Etsy, Nest, Spotify, Valve, Google, Burtzorg, Haier, Gore Technologies, DSM, GE Health, Whole Foods, Zara, Telus, Uber, Amazon, Facebook, Apple

PART 3: H

ardware

.chessmaster

.gardener

PART 6: H

ardware

discuss:Are we gardeners og chessmasters?

In pairs of two for three minutes:

«The measure of a successful organization is its ability to let its stakeholders

and talents liberate it.»- Helge Tennø -

PART 8: </end of digital>

PART 3: H

ardware