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The Future of OrganizationPhilip SheldrakeEuler Partners, 23rd May 2014, by-nc-saImage credit: ComplexCity Rome, by Lee jang sub, by-nc-nd
The Future of Organization
Eliminating the compromises in organizational life.An incomplete review of interesting ideas and some new ones to boot.
#e20 / #socbiz / #futureofwork / #responsiveorg
The Future of Organization
With forewords by Microsoft Yammer co-founder and CTO, Adam Pisoni, and Social Media Today founder and CEO, Robin Carey.
Freely available at www.attenzi.com
The Future of Organization
Organization. noun: a coordinated group of people with a particular purpose.
This presentation is available with voiceover and transcript at eulr.co/futureorg
The Future of Organization
The problem. Organizations are about mutual value* creation, but it’s too difficult to give all one can give and too difficult to derive all the value there is to derive.
* Value: the importance, worth or usefulness of something.
The Future of Organization
The problem. Employee engagement* is symptomatic.
* an employee's involvement with, commitment to, and satisfaction with work
www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx (2011-12)
24 63 13%
actively disengaged
not engaged
engaged
The Future of Organization
The opportunity. Can we reshape and regear organization? !
new insights + perennial values modern tech + enduring aspirations
academic exactitude + earnest practice
The Future of Organization
All human beings … should act towards
one another in a spirit of brotherhood.
The Future of Organization
… an organization of the people, by the people, for the people.
Paraphrasing Abraham Lincoln’s commitment to the principles of human equality.www.attenzi.com/sixty-eight/
Lincoln
The Future of Organization
If your company was a country, would you live there?
http://simonterry.tumblr.com/post/80222651306/
The Future of Organization
“We have learned a great deal; we are awash with insights; we have had significant influence on the art of management. Yet we have failed to address – in the sustained and systematic ways they merit – some of the central problems of organization and governance.”
Philip Selznick
“Institutionalism ‘Old’ and ‘New.’” Selznick, Philip. Administrative Science Quarterly 41. 270–277. 1996.
The Future of Organization
Organization is complex.
The Future of Organization
ISBN: 9781851684885
The Future of Organization
complexitynoun:• a system in which there are multiple
interactions between many different components
• bridges the gap between the individual and the collective
• may lead to emergent behavior
The Future of Organization
order leads to chaos
chaos leads to order
The Future of Organization
“… emergence is a ubiquitous feature of the world around us”
John H. Holland, Emergence: From Chaos to Order, 1999
“[T]here is a co-operation of things of unlike kinds. The emergent is unlike its components . . . and it
cannot be reduced to their sum or their difference”
G.H. Lewes, 1875
G.H. Lewes
The Future of Organization
“They get their smarts from below. … In these systems,
agents residing on one scale start producing behavior that
lies one scale above them.”Stephen Johnson, Emergence, 2001
“All new organisational forms, no matter how radically new, are
combinations and permutations of what was there before.”The Emergence of Organizations and Markets,
Padgett, Powell, 2012
The Future of Organization
“In the short run, actors create relations; in the long run, relations create actors.”
!The Emergence of Organizations and Markets, Padgett, Powell, 2012
The Future of Organization
In all things of nature there is something of
the marvellous.
Aristotle
If one way be better than another, that you may be
sure is nature's way.
The Future of Organization
www.philipsheldrake.com/2013/12/deal-complication-complexity-chaos-youd-better-know-difference/
www.philipsheldrake.com/2014/01/stowe-boyds-manifesto-peoples-front/
Traffic
Organizations
Complica
tion
Complexity
✓
✓✓✓
Cars
The Future of Organization
Saying goodbye to some familiar heuristics.
The Future of Organization
Actually, it’s all in the complex mix
our people are our greatest
asset
it’s all about shareholder
value
the customer!is king
The Future of Organization
Organizations are relationships.They entail the constant adaption of the way we think and behave in order to influence others to think and behave differently in support of our goals.
Relationships at scale
The Future of Organization
“Customer-centricity is an organizational point of view, not a customer point of view. It’s actually the organization-centric-view-of-the-customer.”“Don’t you want CRM to help you and the customer mutually, allowing you both to manage the relationship? … Or would you rather propagate the status quo – CRM as a construct to manage the customer?”
CRM
www.attenzi.com/sixty/
The Future of Organization
Influence. !
You have been influenced when you think something you wouldn’t otherwise have thought, or do something you wouldn’t otherwise have done.
The Future of Organization
Six Influence Flows
1
32 5
6
4
THE!ORGANIZATION STAKEHOLDERS
THE!COMPETITION
The Business of Influence, Sheldrake, Wiley, April 2011
http://eulerpartners.com/influence-flows/
The numbers are just labels, not a ranking of importance
The Future of Organization
“There’s influence in everything an organization does, and sometimes in what it does not do.”“What is the intended outcome of your marketing and PR campaigns, and the design of your organization overall, if it’s not to get stakeholders to think and behave as you’d like, and to be sensitive to how they’d like you to think and behave?”www.attenzi.com/thirty-iii/
www.philipsheldrake.com/2013/03/influence-request-for-comments/
Influence
The Future of Organization
“Whereas traditional business relies on some bureaucracy to determine what constitutes organizational knowledge, this function is delegated to the individual who now determines whether something is worth sharing / passing on or not, explicitly or tacitly.”
www.attenzi.com/forty-three/
Knowledge
The Future of Organization
Personal Knowledge Mastery A set of processes, individually constructed, to help each of us make sense of our world and work more effectively.
www.jarche.com/pkm/
Harold Jarche
The Future of Organization
Influence Flows
The Future of Organization
Alex Pentland Social physics
“patterns of idea flow … are directly related to productivity growth and creative output”“high levels of engagement predict high group productivity … [but] increasing engagement is not a magic bullet.”
www.scientificamerican.com/article.cfm?id=how-big-data-can-transform-society-for-the-better
The Future of Organization
Alex Pentland Social physics
“Exploration [a mathematical measure of the extent to which the members of a group bring in new ideas from outside] is a good predictor of both innovation and creative output.”
www.scientificamerican.com/article.cfm?id=how-big-data-can-transform-society-for-the-better
The Future of Organization
You can fool some of the people some of the time, but not so many for so long now that everyone packs a smartphone.
www.philipsheldrake.com/2014/03/social-business-mutuality-stack/
Trust
The Future of Organization
“If perception is reality characterized twentieth-century marketing and PR, reality is perception is the twenty-first century axiom.”
http://hbr.org/product/balanced-scorecard-report-july-august-2011-vol-13-/an/B11070-PDF-ENG
Trust
The Future of Organization
It’s not all about the tech, but it helps.
The Future of Organization
SerendipityThe occurrence and development of events by chance in a happy or beneficial way.… All you have to rely on if you can’t identify and interpret patterns systematically.
www.attenzi.com/fifty-six-iii/
The Future of Organization
Digital nervous system“The winners will be the ones who develop a world-class digital nervous system so that information can easily flow through their companies for maximum and constant learning.… To think, act, react, and adapt.”
Bill Gates
Business @ the Speed of Thought, 1999, ISBN: 0446525685
www.attenzi.com/fifty-nine-ii/
The Future of Organization
1999 → 2014Now, our nervous system extends out into the world.Gates advised building an ideal picture of the information you need from technology. Now, we also want technology to help us build that picture.
www.attenzi.com/fifty-nine-ii/
The Future of Organization
IT now interweaves with the reality that provided the metaphors.
The Internetome:the manifestations (facets and implications) of the Internet of Things.
Internetome conference, 2010, www.philipsheldrake.com/2014/04/internetome/
The Future of Organization
Business performance managementA discipline encompassing metric selection, measurement and organizational learning.We’re moving such capability towards real-time sensory feedback in an organization-as-organism / business-as-biology metaphor.
The Future of Organization
Web 3.0The web as a universal medium for the exchange of data, information and knowledge.
www.philipsheldrake.com/2013/09/introduction-web-3-0-social-data-week/
The Future of Organization
“Hegel didn’t rate public opinion. He didn’t think it could appreciate the shades of grey in serious matters, but has a tendency instead to polarize argument …”He said we don’t learn from history. Might we now learn from our digital history?
www.attenzi.com/thirty-two/
www.attenzi.com/seventy-one/
Can we now prove Hegel wrong?
The Future of Organization
Mutuality. Empowerment. Learning.
The Future of Organization
Public Relations The planned and sustained effort to influence opinion and behaviour, and to be influenced similarly, in order to build mutual understanding and goodwill.
http://eulr.co/publicrelationsdefined
www.PRredefined.org
www.prweek.com/article/1285244/pr-dead-public-leadership-future
The Future of Organization
understanding points of view and reasons for those points of view
mutual revision / adaption of opinions
and behaviours
recognising the value contributed and the
value derived
focusing on this whole stack to drive value for all stakeholders
MUTUAL VALUE
MUTUAL INFLUENCE
MUTUAL UNDERSTANDING
www.philipsheldrake.com/2014/03/social-business-mutuality-stack/
The Future of Organization
When one stakeholder group in an organization takes permanent priority over another, that’s not organization. When one always loses a little when another wins a little, all lose a little.
The Future of Organization
Empowerment “Any increase in worker power that enables them to achieve organizational objectives.”
Manifest in four cognitions: meaning, competence, self-determination, and impact.
Seibert, Silver, & Randolph, 2004 / Spreitzer, 1995 / Thomas & Velthouse, 1990
The Future of Organization
Performance through learning
Single loop Double loop Triple loop
Are we doing things right?
Are we doing the right things?
What’s right?
Learn new behaviour
Learn newthinking
Learn new beliefs / unlearn old
Acting Reframing Transforming
Management Leadership ?
www.philipsheldrake.com/2014/04/triple-loop-profound-leadership/
The Future of Organization
To successfully respond to the myriad of changes that shake the world, transformation into a new style of management is required.The route to take is what I call profound knowledge – knowledge for leadership of transformation.
W. Edwards Deming
www.deming.org/theman/theories/profoundknowledge
Photo courtesy of The W. Edwards Deming Institute®
The Future of Organization
MIT Center for Collective Intelligence
http://cci.mit.edu
How can people and computers be connected so that — collectively — they act more intelligently than any individuals, groups, or computers have ever done before?
The Future of Organization
Ideas for organizing.
The Future of Organization
“Work has profoundly changed in recent years … a new normal … based on principles and practices we don’t totally understand …Something new must be found, perhaps distilled from the latent energy in social connection and frictionless communication, and it must be tapped even if the workforce is harder to lead than ever before.”
Stowe Boyd
www.hightail.com/en_US/docs/GigaOM-Research-The-Future-of-Work.pdf
The Future of Organization
Stowe Boyd
www.futureofwork.co/post/78477268155/a-manifesto-for-a-new-way-of-work
dissentconsensus
cooperativecollaborative creativity
traditionautonomyheteronomy
democracyoligarchy
fast-and-looseslow-and-tight
laissez-faireentrepreneurial
hyperleanwaterfall
small and simplelarge and complex
open and publicclosed and private
emergent strategydeliberate strategy
The Future of Organization
Responsive Org
www.theresponsiveorg.com/manifesto
From To
Efficiency Responsiveness
Hierarchies Networks
Controlling Empowering
Extrinsic rewards Intrinsic motivation
Office & office hours Anywhere & anytime
Customers & partners Community
The Future of Organization
Sociocracy Sociocracy Democracy
Rule by the ‘socios’ – people who have a social relationship
Rule by the ‘demos’ – the general mass of people
Consent-based (rather than consensus)
One man, one vote
Alignment Tension
Building and built on trust and understanding
Partisan
The Future of Organization
“It radically changes how an organization is structured, how decisions are made, and how power is distributed.”Explicitly hierarchical, but a hierarchy of roles rather than people per se, with a distributed control system.
Holacracy™
http://holacracy.org/
http://youtu.be/h2lFqeJZN0g Brian Robertson, December 2012
The Future of Organization
PodularityA pod is a small, autonomous team enabled and empowered to deliver the things that customers value.
Dave Gray
www.sprinklr.com/social-scale-blog/the-future-is-podular/
https://medium.com/the-connected-company/d5c3107a78f1
The Future of Organization
Dave Gray
Reproduced with permission. http://connectedco.com
The Future of Organization
Wirearchy“a dynamic two-way flow of power and authority, based on knowledge, trust, credibility and a focus on results, enabled by interconnected people and technology.”
Jon Husband
http://wirearchy.com/what-is-wirearchy/
The Future of Organization
“There is probably no single management methodology or organisational structure that can meet all the needs of a growing firm, let alone be replicable across industries, and so part of the challenge lies in enabling methodologies and working practices to evolve over time to meet new challenges.”
Lee Bryant
http://postshift.com/grow-your-own-organisational-structure/
The Future of Organization
www.futureofwork.co
www.theresponsiveorg.com
http://eulr.co/e20Gplus(E2.0 on G+)
http://twitter.com/search?q=%23e20 (#e20)
http://twitter.com/search?q=%23socbiz (#socbiz)
The Future of Organization
Provocations.
The Future of Organization
“This is a connected world … but the shadows of the industrial age are long and run deep.”“The healing mesh of social business … creates the opportunity for a new kind of social fabric, woven together out of connected intention. That kind of co-operation can be the fabric for an emergent civilization.”
Anne McCrossan
http://stoweboyd.com/post/74638842971/
www.visceralbusiness.com/blog/brand/social-business-social-fabric-and-the-healing-mesh/
The Future of Organization
Do you help all the individuals associated with your organization build worthwhile relationships with each other and others, coalescing by need and desire, knowledge and capability and shared values, to create shared value?
Defining social business
www.attenzi.com/seventy-two/ www.philipsheldrake.com/2013/09/3m-thinktank-conference-getting-social-business/
The Future of Organization
Managing OneselfCultivate a deep understanding of yourself by identifying your most valuable strengths and most dangerous weaknesses.Articulate how you learn and work with others and what your most deeply held values are.Describe the type of work environment where you can make the greatest contribution.
Peter F. Drucker
Harvard Business Review Onpoint 4444, 1999http://hbr.org/product/managing-oneself-paperback/an/2312-PBK-ENG
The Future of Organization
Self-organizationA process where some form of global order or coordination arises out of the local interactions between the components of an initially disordered system.
The Organized SelfEquipped with an ‘organization agent’ – software representing us in finding opportunities to create mutual value with others, and helping to realise that value.
os
The Future of Organization
SocioveillanceA component of Organized Self.A personal and private service monitoring our interactions with our socios.Negotiates data exchange with others’ service according to our respective privacy policies to enrich our mutual understanding within comfortable boundaries.
SUR
SOUS
SOCIO
The Future of Organization
CREATIVE COMMONS
COPYRIGHT LAWcc
The Future of Organization
CREATIVE COMMONS
COPYRIGHT LAW
HUMAN ORGANIZATION
CORPORATE / COMPANY LAW
and EMPLOYMENT LAW
cc
h
The Future of Organization
Bread incorporated
domestic jurisdictioncodified selection of most appropriate jurisdiction
A CB
Bread A Bread CBread B
the middleware company
foreign jurisdictions (countries and states)
subsidiary incorporated entities
companionscompanion groups
companion API
The Future of Organization
Distributed autonomouscorporates / organizationsA DAC / DAO is autonomous, distributed, transparent, confidential, trustworthy, fiduciary, self-regulating, incorruptible and sovereign.It’s software based on the same mathematics as the cryptocurrency bitcoin.
www.philipsheldrake.com/2014/04/organization-personal-reputation-first-principles-distributed-autonomy/
The Future of Organization
Bread TraditionalCode interpreted automatically in milliseconds
Code interpreted laboriously over days and months
Open, transparent relationships and interoperability
Closed, opaque relationships and islandsof automation
Reputation currency Who you know
The P&L is the cashflow Cash is king
Global consolidation Individual consolidation
Frictionless, fluid, fast Abrasive, leaden, slow
Incorruptible Corruptible
The Future of Organization
shareholder
transpersonal
stakeholder
?
http://holacracy.org/blog/beyond-serving-stakeholders
The Future of Organization
The Future of Organization
Organization is a global public resource that must remain open and accessible.Organization must enrich the lives of individual human beings.Individuals’ security and privacy in organizations are fundamental and must not be treated as optional.
Mozilla manifesto amplified!from “Internet” to “organization”
www.mozilla.org/en-US/about/manifesto/
The Future of Organization
Individuals must have the ability to shape the organization and their own experiences in the organization. The effectiveness of the organization as a public resource depends upon interoperability (protocols, data formats, content), innovation and decentralized participation worldwide.Free and open source software promotes the development of organizations as a public resource.
Mozilla manifesto amplified!from “Internet” to “organization”
The Future of Organization
Transparent community-based processes promote participation, accountability and trust.A balance between commercial profit and public benefit is critical.Magnifying the public benefit aspects of organizations is an important goal, worthy of time, attention and commitment.
Mozilla manifesto amplified!from “Internet” to “organization”
The Future of Organization
The difference between what we do and what we are capable of doing would suffice to solve most of the world’s problems.
Mahatma Gandhi
The Future of Organization
vlogbrothers
don’t forget to be awesome
Image creditsAbraham Lincoln – http://en.wikipedia.org/wiki/Abraham_Lincoln Cellular automata – http://math.hws.edu/xJava/CA/ca_1024x768.png G.H. Lewes – http://upload.wikimedia.org/wikipedia/commons/8/82/PSM_V09_D668_George_Henry_Lewes.jpgAristotle – http://en.wikipedia.org/wiki/File:Aristotle_Altemps_Inv8575.jpg Engine – http://en.wikipedia.org/wiki/File:Mercedes_V6_DTM_Rennmotor_1996.png Social organization – http://www.sg.ethz.ch/research/topics/social-se/Six Influence Flows – http://eulerpartners.com/influence-flows/ Harold Jarche – http://internettimealliance.com/wp/profiles/team/harold-jarche/ Alex Pentland – http://en.wikipedia.org/wiki/File:Alex_Pentland,_MIT_%283238517166%29.jpg Bill Gates – http://upload.wikimedia.org/wikipedia/commons/4/4a/BillGates2012.jpg Hegel – http://en.wikipedia.org/wiki/File:Hegel.jpg W. Edwards Deming – Photo courtesy of The W. Edwards Deming Institute® http://www.deming.org/theman/photogallery Stowe Boyd – http://stoweboyd.com/about Dave Gray – http://www.davegrayinfo.com/Jon Husband – http://secure.flickr.com/photos/kk/97978332 by kris krügLee Bryant – http://plus.google.com/u/1/+LeeBryantPostshift/aboutAnne McCrossan – http://twitter.com/AnnemcxPeter Drucker – http://commons.wikimedia.org/wiki/File:Drucker5789.jpg Mahatma Gandhi – http://commons.wikimedia.org/wiki/File:Gandhi_smiling.jpg