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Revolutionizing organizational cultures for the knowledge economy
■ ■ ■
Lessons in innovation and collaboration
Professor Mark Mueller-Eberstein
The Knowledge Economy Research Institute
CEO of Adgetec Corporation
Bestselling Author
Twitter: @MarkMEberstein
Radical Transformation -
causes or requires revolutions?
Interaction and connection
New and more Knowledge ….
Transformation
The last Knowledge Revolution …
Awesome Library
Bede:
History from Julius Caesar to 730 A.D.
Made “A.D.” popular
Access to “massive” 250 books
And then came “Herr Gutenberg”… … and society never was the same …
200 years of chaos
Feudal 3 casts
Nation classes
Radical transformation, again
Isn’t this cool?
The power in your hand in 10 years
looks like this today
Chaos and high complexity… for at least 20 years to come
Growth markets and global trends
The knowledge economy
More knowledge has been
created in the last 5 years
than in the 5,000 years of
human history before.
And its doubling
every 5 years. (in some fields even much faster)
Competing requires dramatic increases in...
PRODUCTIVITY CREATIVITY
AND
The Playstation generation...
...is the biggest top talent pool
Country A
Country B
Country C
Cybercommunity X
Cybercommunity Y
Cybercommunity Z
Real World Cyberspace
Future power will be web based Young people in one country are more like young people in another than older people in their own
As networks become more mature non-geographic politics will start to dominate
People will belong to a number of network tribes and will identify other members via their augmented reality
Tomorrow will be very different…
CH
AN
GE
Organizations secure
opportunities for their future
The world has changed and
will change even faster
Information, collaboration and knowledge sharing are essential
Flexibility is a success factor in the transforming world
Radical Transformation
New forms of organization!
Fundamental changes happen in weeks, days or even hours
Situation impacts many & people want information
Social networks and friends trusted more than traditional media and government
Facebook users in Thailand
168,720 users in January 2009
2 million users in January 2010
13.25 million users in December 2011
… And today (10/2012) the highest % of people on Facebook
Leadership lessons from global leaders
Agile success in a complex world
Building killer products and organizations
- Continuous improvement and
customer dialog
The “right” way or the “practical” way
From design phase to constant innovation
The $10 Billion Lesson from “Angry Birds”
Experienced and motivated team (52nd game)
Simplicity in execution and communication
Opportunity Aware “Goodbye distribution channel”…
“Welcome global reach & social networking”
ROVIO’s Approach
Total Customer focus—Fans are everything
Franchise and expansion: VERY CAREFULLY!
Angry Birds: Rio, Seasons, Space
Amazing Alex
Bad Piggies
Boomzap
Completely virtual from the start
Best talent
Total transparency
Consistently top supplier of casual games for 7 years
Digital philosophy is a new way of doing business
across all functions (from recruiting to selling)
….. Including marketing ….
Traditional advertising…
…is like “Homeless Marketing.” At best, you get a glance.
YOUR AD HERE YOUR AD
HERE
The evolution of media
One-way media Two-way media Many-way media
Banner ads Search ads
Always on Always connected
And even companies like Nestle or Dell get it
Still going to the office…?
M&Ms
are biggest productivity and creativity killers
Technologies and strategies for unleashing the workforce’s
potential
Tren
ds Mobile work
Remote access
Data and capabilities in cloud
Internet access everywhere
Save 50+% of facility costs
Have employees never want to leave you.
Increase innovation by 10X
How do you do this???
What if you could…
Mobile work: I love my iPad
In a car 73%
In the tub 21%
On vacation 92%
Have you ever used your iPad…
On a date 17%
Naked 34%
Where do you begin? Start with People, Place & Technology
7 “levers” and how ICT can “move the needle”
Office space
Travel
Productivity
Sick Leave
Attract and retain the right people
Total cost of workplace
Cost of communication and collaboration
People
Technology
Place
Lower costs & higher productivity
People
Technology
Place
Office space
-15% -50%
Travel
-5% -30%
TCO workplace
+15% -25%
Cost of communication and collaboration
+10% -30%
Productivity
+10% +40%
Sick Leave
-2% -20%
Attract /retain right people
-5% -15%
*Rotterdam University & Microsoft
Loving 520 and I-90? -
during rush hour?
Commuting sucks
“Home is where the job is” Home-based workers in the USA: from 7.8% to 9.5%
Median Income: $74K (remote only) vs. $65K (on-site) vs. $96K (combination)
People work more effectively from home
Ecology: Energy (commute and office space)
Society: family and friends; social fabric
Reorganisation. Restructuring. Rethinking. Networking
Old School Industrial Organization
Your Business
Support
Suppliers
Advisors
Customers Consultants
Headquarters
Revolutions can be painful…
Transformation is worth it but not easy
Know & understand the
obstacles:
Manage transformation process end to end
Be clear on goals
cultural , historical, hierarchical, medical, technology
The Knowledge Economy
REQUIRES creative approaches
It’s not about manufacturing “things” It’s about the creation of ideas at all levels
Innovate the product Innovate the marketing Innovate the business
The job of a leader is getting maximum output
from limited resources
Easy… People as machines -> Pay people more
and they will do more
Or…. The more radical…. The “MBT” approach…
“Management By Terror”
Getting Maximum Performance
Management by terror…”gun at head”
Existential threat creates total focus and commitment
AND extremely high stress levels that lower mid-term creativity, motivation, promoting a high likelihood of “escape attempts”
SHO
RT-
TER
M
But what about Innovation….?
Do people innovate more
if we pay (or threaten) them more?
Creative problem solving: The Individual
Different job types:
a) perform specific tasks
b) find creative solutions
People are coin operated if just “tasks” are required
Left and right brain are required to find creative solutions
Want prove?
Experiment: does money make people find creative solutions faster?
Which group had better average?
GROUP A
“Experiment to measure average time to solution”
GROUP B
“Top 25% get reward; Top 5% get
larger reward”
Duncker’s Candle problems
Rewards and motivation can serve as blinders for our vision.
Candle Problem “Easy”
Team motivation & success
Source: Hare et al, Science Sept 2007
Toddlers versus chimps
Teamwork beats individual excellence
Great individual minds (mostly a myth…)
Human knowledge and inventions are build on previously created knowledge
Access to more knowledge, creative capabilities and the ability to communicate drive innovation and creative thinking
Building an organizational culture
People like to be:
Part of groups
Get recognized
Compete (with other groups)
Revolutionary Management? -
Willing to consider scientific evidence and change yourself?
No evidence this increases performance
Statistical distribution of performance is a bell curve
- who performs poorly now is
(statistically) likely to be at least mediocre next time
Building a motivational structure
Performance discussions don’t really improve performance
Internal competition kills willingness to take risks and collaboration
BAD PERFORMER GOOD PERFORMER
Do we measure the
right things in our businesses
and in our lives?
The world we all want?
6
6.5
7
7.5
8
8.5
Happiness Wealth Love Health
Importance Ratings Worldwide Source: Diener & Scollon
Money matters…
Huge “Happiness difference” between $5,000 and $50,000 per year
But…..
Hardly any difference between $50,000 and $5 Million
How are people motivated?
“What constituted positive mental health?”: Abraham Maslow 1908 - 1970
Human Motivation
Self-actualization Personal growth, fulfillment
Esteem Needs Achievement, status, reputation
Love and Belonging Needs Family, friendship, affection, relationships
Security and Safety Needs Protection, security, order, law, stability
Biological and Physiological Needs Food, water, shelter, clothing
Motivators in the Knowledge Economy Independence
Self-fulfillment
Recognition
Mastery
Friendship MO
TIV
ATIO
N
Is a “internal – non -competitive” culture
the “right” culture for organizational success in the
Knowledge Economy?
The Playstation generation...
...is the biggest top talent pool
Digital Cowboys the super stars of the PlayStation Generation
Born after 1985 (1990 in China)
Grew up with the Internet
Globally connected & willing to move
Access “data” anywhere & anytime
Openly question & test leaders
More & more older people are behaving like them…
NO FEAR: The PlayStation Generation
Early adapters &
adopters Innovative Networked
Community- oriented
International Expect more
They are of vital importance to companies, organizations and leaders
How Digital Cowboys Make Decisions
Cowboys are independent, decentralized
decision makers.
Digital cowboys are connected,
decentralized decision makers.
Commanders are centralized
decision makers.
Someone goes outside the process
Process-oriented environment
If…then Munich
London Prague
Vienna New York Beijing
Rome Helsinki
Social collaboration environment
Gamification and the cowboy
Human Motivation
Self-actualization Personal growth, fulfillment
Esteem Needs Achievement, status, reputation
Love and Belonging Needs Family, friendship, affection, relationships
Security and Safety Needs Protection, security, order, law, stability
Biological and Physiological Needs Food, water, shelter, clothing
Why “gamification” works?
Perfection
Completion
Justice
Aliveness
Richness
Simplicity
Beauty
Goodness
Uniqueness
Effortlessness
Playfulness
Truth
Self-sufficiency
Wholeness (unity; integration; interconnectedness; simplicity; structure; order)
Delivers on “Being experiences” and a sense of “Self-actualization”
Developing and driving an agile organization
Embracing business flexibility and speed
Agility:
Or applying old school industrial management to new challenges and
opportunities?
Industrial Management
Excellence
Applicable to an
innovative industry?
Old School Industrial Management or Agile Leadership?
Computer Companies Market Cap 2002 to 2012
Dec ‘02 May ‘05 Oct ‘12
Apple $5B $34B $589B
Google $0B $50B $243B
Microsoft $276B $263B $245B
IBM $131B $149B $234B
Tomorrow will be very different…
CH
AN
GE
Organizations secure
opportunities for their future
The world has changed and
will change even faster
Information, collaboration and knowledge sharing are essential
Flexibility is a success factor in the transforming world
A language for culture
Culture transformation?
The 5 stages of creating major change or
managing a revolution
and sometimes scary… Change is difficult….
The Pace of Change
Slow adoption
Acceptance or “The New Normal”
Natural change point Decline
Endings Exploration New Beginnings
Reconciliation Reorientation Recommitment
Denial Anxiety
Shock
Fear Anger
Frustration Confusion
Stress
Creativity
Approach-Avoidance
Skepticism Acceptance
Impatience
Hope
Energy Enthusiasm
Productivity
Morale
Theory of Transition
Schlossberg; 1981 & 1995
Organizations are people, too
Five Stages of Creating Major Change
1. Establish change is needed & why
2. Develop & communicate vision & strategy for change
3. Plan & the change team
4. Manage change by following & rhythm of the business
5. Stimulate continual improvement & change the culture
The Rythm of Change Dramatic change
Organic change
Systematic change
ZONE OF
REVOLUTION
ZONE OF
REFORM
ZONE OF
REJUVENATION
Communication
Amplify Simplify key messages
What about Leadership and Management?
Are you shouting commands from a
safe distance?
…or leading in the front line?
The ability to see things from high enough
The ability to land quickly at any time
The ability to raise up again rapidly
The heart of helicopter ability
New requirements for today’s leaders Frontline management
Transparency
Efficient communication
Information sharing
Celebrate failure
Knowledge is powerful when shared LEA
DER
S
The “digital” organization Takes advantage of innovation & technology
Continuously optimizes & re-invents
Is authentic & trustworthy
Has all levels & functions engaged with the frontline
Is “always on & responsive”
Leverages the best resources for a given task or project
Attracts the best people
What does success look like?
People want to work for and with you
Employees feel like entrepreneurs
Low level of negative attrition
Your org is a thought leader
Employees at every level and in every function are engaging with clients & partners.
THANK YOU!
Twitter: MarkMEberstein
US +1 855.423.4383
Mark Mueller-Eberstein
The Knowledge Economy Research Institute
and
CEO of Adgetec Corporation
Bestselling Author