2020 Business Model

“One of the most significant innovations of our time will come …
http://gigaom.com/2013/04/27/flat-is-the-new-up-why-are-companies-using-organizational-structures-that-are-
thousands-of-years-old/, Kashen, D.

from the development of new ways of organizing
ourselves to work together.”
http://gigaom.com/2013/04/27/flat-is-the-new-up-why-are-companies-using-organizational-structures-that-are-
thousands-of-years-old/, Kashen, D.

since 2008 technology and market proposal based on it
ceased to be the main competitive advantage…

Technology became cheap, available evenly to many…

industry and company focus is turning
into
market and adjacencies focus.
Transitioning to Workforce 2020
http://www.cisco.com/web/learning/employer_resources/pdfs/Workforce_2020_White_Paper.pdf

is coming in 2020 and wants autonomy -
freedom of choice how to perform a work.

Instead of a job description a work portfolio…

Instead of a job offer a value proposition…

Instead of employment history personal branding…

leaders expected to build employee value and
attach greater value to each employee so, that

“Every employee will have a leadership score.”
G. Hamel
http://www.wwd.com/business-news/business-features/wwd-ceo-summit-gary-hamel-6574060

Solutions offered by OD practitioners are limited by the
task-based specification
of the organizational structure

managing external complexity
into internal control of people actions
understanding them like serving and supporting
technology.

Traditional organizational development methods offer three
solutions for 2020 transformation...

1st solution offered is
Work Sharing

Several people are retained on
a part-time or reduced-time basis
to perform a job.

To make work sharers equally successful

there is a need for
well established strict work routines…

and fair performance measurement criteria…

2nd solution offered is
Job Splitting

Different tasks of a job are divided between
associates
based on the different skill levels required by different
tasks.

Skills in use of the job splitters
are limited…

so… they get stuck
on their current skill level.

3rd solution offered is
Changing Leadership Style

From managing people how to use technology, information,
time and others to reach the common goals…

into supporting social networking

in a split and shared structure of work.

All three solutions resulting in

both in their own function and in balancing
cooperation of their interactions.

Visionary OD experts are eager to find new tools to

align job characteristics with Y gen
expectations and market changes at
the same time meaning

new organizational structure through
turning task-based job specification into
control distribution throughout the organization

new leadership
through converting command and control into
attaching and building employee value

making a difference
instead of being commanded
obtain autonomy and personal growth.

One of the possible answers
is a shift
in understanding organizations…

There is a proven by some Fortune 500
companies answer to the 2020 challenge

found in search for new ways of managing
their business in circumstances of market,
financial and regulation uncertainties and
instability

switching from technology driven view of the
organizational structure
to understand organization as a
money making machine…

Meaning…
instead of managing supplies, labor and
capital as inputs to the technology and
product value as its outcome

managing organization to convert customer
orders (input) into revenue numbers (output).

When we understand that the real input is
the customer request and the real output is
the business result expected
we understand that the complexity what we
really can control

exists and is flourishing
inside the organization
in form of converting customer needs into
revenue numbers
knowledge of associates.

Every employee has a building brick to the
high level KPI values under his/her control
which can be well defined and positioned in
the organization.

So, independently
from the technology underlying the market
proposal of the company
organization distributes control not over
technology but over business results.

This way
positions become members of the active
revenue creating chain triggered by the
actual market demand
with their own, well distinguished and
established governance over their revenue
position.

Instead of working with information coming
from technology, product, customers and
associates
every position creates the data about what and
how was accomplished in order to produce or
to restore the expected from it revenue value.

This data than turned into information
about how well the position controls its own
business result
in order to establish

whether its
planning,
execution and
problem solving methods
has lead to expected from the position value
of revenue or not.

Finally this information is converted into
organizational knowledge
to be shared as standard knowledge or
worst/best practice
making employees equally teach and learn.

The continuously ongoing process of
data to knowledge transformation
on what behaviors lead to expected revenue
share
calls for the
the need of managing the newly created
knowledge…

uniting
leadership,
employees and
organizational structure.

Instead of managing people
leaders build, measure and develop
management systems
supporting
autonomy and personal growth.

Leadership`s function is
to build and maintain systems to monitor

- individual control level over revenue contribution as
associate`s value proposition

- individual learning process as
attaching and increasing employee value

and to support moving from one revenue position to another as
enriching work portfolio.

Associates as governors of their personal growth
use the systems to

- obtain more autonomy and control over their actual work
as their own leadership score

- create and aquire new organizational knowledge building
their own and that of the others employee value

- to choose to grow into another position on the revenue
creating chain as personal branding.

… and finally
control distribution based organizational structure supports
management systems to

- introduce market needs directly into the revenue chain of positions
built one on another

- support continuous learning and moving from one revenue position
to another on the determination of the associate

and
- meet the business goals established at the same time.

The 2002 transformation management systems consist of

maintaining control distribution of revenue positions
reporting system,

job structure
derived from the control/revenue contribution level of the
positions, and

maintaining and measuring knowledge sharing
performance reinforcement.

Working with the business
data blue print of the
organizations
the transformation is
quick, easy… and
painless.

People are asked to
report only on events they
have real control over
which,
liberating them
from unnecessary work
load of seeking
information and being
involved in tasks out of
their control

to be in control over their
achievements through
choosing how to perform
their work and organizing
their networking activities

while meeting business goals
on the price the organization is
established to pay for it.

The author is
Organizational psychologist (MA),
OD practitioner and leading consultant of PsyOn
Consulting, Hungary, US, Mexico
Former lecturer at Pázmány Péter Chatolic
University, Hungary
Author of “The reverse Help Chain”,
HBR Hungarian edition, 2010. April
Contact: farkasgj@psyon.hu
linkedIn profile: Farkas Judit

2020 Business Model

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2020 Business Model