Building Companies to Last In a world of constant change, the fundamentals are more important than ever. We certainly need new and improved business practices and organizational forms, but in a turbulent era, attention to timeless fundamentals is even more important than it is in stable times. Timeless fundamentals that follow, you can learn from what those organizations did right and build your own visionary company.

1. The New RealityThe New Reality
Leaderless OrganisationsLeaderless Organisations

3. Let me start by asking you all some questions... readyLet me start by asking you all some questions... ready

4. If you cut the head of a spider, chances of survival is high or small?If you cut the head of a spider, chances of survival is high or small?
SpiderSpider

5. SMALLSMALL
SpiderSpider

6. StarfishStarfish
If you cut one of the arm of StarfishIf you cut one of the arm of Starfish
chances of survival is high or small?chances of survival is high or small?

7. The harder you fight him, the stronger it getsThe harder you fight him, the stronger it gets
StarfishStarfish
HIGHHIGH

9. Which of theWhich of the 22 pictures has “a Head”pictures has “a Head”
(someone in charge)(someone in charge)

10. LIBRARYLIBRARY INTERNETINTERNET

11. P2P File SharingP2P File Sharing MUSIC INDUSRTYMUSIC INDUSRTY

13. The CIA is aThe CIA is a CentralizedCentralized CompanyCompany
Al Qaida is anAl Qaida is an Open SystemOpen System..
It does not have central intelligence; theIt does not have central intelligence; the
intelligence is spread throughout the systemintelligence is spread throughout the system
(it is made up of largely independent cells)(it is made up of largely independent cells)

14. If you take out a cellIf you take out a cell no damage is doneno damage is done

16. It’s a natural reaction, when attacked, to adopt a command-It’s a natural reaction, when attacked, to adopt a command-
and-control mentality. But this strategy fails if you areand-control mentality. But this strategy fails if you are
fighting a starfish organisation.fighting a starfish organisation.

17. Spiders and Starfish areSpiders and Starfish are
twotwo completely different Organismscompletely different Organisms

18. 1.1. Circles (many small non-hierarchical groups)Circles (many small non-hierarchical groups)
2.2. Catalyst(s)Catalyst(s)
3.3. IdeologyIdeology
4.4. No HierarchyNo Hierarchy
5.5. No HeadquatersNo Headquaters
6.6. Open SystemOpen System
7.7. Distributed Power – Shared PowerDistributed Power – Shared Power
8.8. FlexibilityFlexibility
9.9. AmbiguityAmbiguity
Characterstics of Starfish OrganisationCharacterstics of Starfish Organisation

19. 1.1. Starfish Organisations consist of many smallStarfish Organisations consist of many small
non-hierarchical Groups (Circles)non-hierarchical Groups (Circles)

20. It is much easier to form and join circlesIt is much easier to form and join circles
because participants aren’t together alwaysbecause participants aren’t together always
BONDING is WEAK.BONDING is WEAK.
Circles depends on NORMS, as these normsCircles depends on NORMS, as these norms
become the backbone of the circlebecome the backbone of the circle
Self Enforcement norms can be more powerfulSelf Enforcement norms can be more powerful
than rules.than rules.

21. 2. Starfish Organisations are not run by CEO’s2. Starfish Organisations are not run by CEO’s
in stead they can count on Catalystsin stead they can count on Catalysts

22. AA CatalystCatalyst understands thatunderstands that
““ValuesValues” - (” - (Trust & UnderstandingTrust & Understanding))
are a stronger binding forceare a stronger binding force
than authoritythan authority

23. A Catalyst is any element or compound that initiates aA Catalyst is any element or compound that initiates a
reaction without fusing into that reactionreaction without fusing into that reaction

24. Tools used by CatalystsTools used by Catalysts
Show genuine interest in othersShow genuine interest in others – listen carefully.– listen carefully.
Show desire to extend HELP –Show desire to extend HELP – show concernshow concern
Mapping –Mapping – where & how one fits in my networkwhere & how one fits in my network
Show Passion -Show Passion - commitmentcommitment
Meet people where they are –Meet people where they are – reach outreach out
Emotionally Intelligent –Emotionally Intelligent – Be VulnerableBe Vulnerable
Should trust the Network –Should trust the Network – Earn respectEarn respect
Inspirational –Inspirational – Lead by ExampleLead by Example
Should have tolerance for ambiguity –Should have tolerance for ambiguity – Take decisions promptlyTake decisions promptly

25. 3. Ideology is the3. Ideology is the GLUEGLUE that holds Decentralizedthat holds Decentralized
Organizations togetherOrganizations together

26. People in Open SystemPeople in Open System
Contribute voluntarilyContribute voluntarily

27. Centralized OrganisationsCentralized Organisations are not set upare not set up
to launchto launch Decentralized movementsDecentralized movements..

28. Leaders in Top-down Organisations alwaysLeaders in Top-down Organisations always
have a desire to control what’s happening,have a desire to control what’s happening,
thereby limiting creativitythereby limiting creativity

29. Does this means Starfish OrganisationsDoes this means Starfish Organisations
are Unbeatable?are Unbeatable?

31. Strategy 1Strategy 1 Combat StarfishCombat Starfish
Go after theGo after the
and give them reasons to change itand give them reasons to change it

32. Give people toolsGive people tools
Give peopleGive people
EQUIP & EMPOWEREQUIP & EMPOWER

33. Changing Ideology succeeds bestChanging Ideology succeeds best
if your mission is not to change ideologyif your mission is not to change ideology
but tobut to HELP PEOPLEHELP PEOPLE

34. If you can’t beatIf you can’t beat
them, JOIN themthem, JOIN them
Strategy 2Strategy 2
Combat starfish:Combat starfish:
DecentralizeDecentralize
yourselfyourself

35. Does thismean Starfish Organisations areDoes thismean Starfish Organisations are
allways the best way to go?allways the best way to go?

37. An airplane better had a Captain on boardAn airplane better had a Captain on board

38. When given freedom people get incredible creaWhen given freedom people get incredible crea

39. ORGANIZE before making a powerfulORGANIZE before making a powerful
statement for setting people freestatement for setting people free

40. As Industries become Decentralized,As Industries become Decentralized,
Overall profits decrease.Overall profits decrease.
So, if you are in for the money,So, if you are in for the money,
you have to put in an element of centralisation.you have to put in an element of centralisation.

41. As Industries become Decentralized,As Industries become Decentralized,
Overall profits decrease.Overall profits decrease.
So, for the purpose of money,So, for the purpose of money,
put in an element of Centralisation.put in an element of Centralisation.

42. It’s all about finding theIt’s all about finding the
SWEET SPOTSWEET SPOT
betweenbetween
CentralisationCentralisation
and Decentralisation..and Decentralisation..

43. Centralized companyCentralized company with a dwith a decentralizedecentralized useruser
experienceexperience

44. DecentralizationDecentralization
RealitiesRealities

45. When ATTACKEDWhen ATTACKED
Decentralized Organization tends to become evenDecentralized Organization tends to become even
more open and decentralizedmore open and decentralized

46. When ATTACKEDWhen ATTACKED
Easily MISTAKEN – STARFISH Organization appearsEasily MISTAKEN – STARFISH Organization appears
To be like SPIDER OrganizationTo be like SPIDER Organization

47. When ATTACKEDWhen ATTACKED
Chances of SURVIVAL – HIGHChances of SURVIVAL – HIGH
There is NO Central IntelligenceThere is NO Central Intelligence
Intelligence is SPREAD throught the OrganizationIntelligence is SPREAD throught the Organization

48. When ATTACKEDWhen ATTACKED
MUTATE easily – really very easily!MUTATE easily – really very easily!

49. When ATTACKEDWhen ATTACKED
RE-GROW FAST, VERY FASTRE-GROW FAST, VERY FAST

50. STARFISH Organization’s attributesSTARFISH Organization’s attributes
FLAT – NO HIERARCHYFLAT – NO HIERARCHY

51. STARFISH Organization’s attributesSTARFISH Organization’s attributes
MOBILE – NO FIXED LOCATIONMOBILE – NO FIXED LOCATION

52. STARFISH Organization’s attributesSTARFISH Organization’s attributes
HEADLESS – NO INCHARGEHEADLESS – NO INCHARGE

53. STARFISH Organization’s attributesSTARFISH Organization’s attributes
COMPLETE AUTONOMY – PEOPL ARE FREE TO ACTCOMPLETE AUTONOMY – PEOPL ARE FREE TO ACT

54. STARFISH Organization’s attributesSTARFISH Organization’s attributes
NO CONTROL - INTELLIGENCE SPREAD ACROSSNO CONTROL - INTELLIGENCE SPREAD ACROSS

55. STARFISH Organization’s attributesSTARFISH Organization’s attributes
NO CONTROL – POWER SPREAD ACROSSNO CONTROL – POWER SPREAD ACROSS

56. STARFISH Organization’s attributesSTARFISH Organization’s attributes
ADAPTABILITY – VERY FLUIDADAPTABILITY – VERY FLUID

61. WORLD is getting FLATWORLD is getting FLAT

62. Diseconomies of ScaleDiseconomies of Scale – The small rules– The small rules

63. The Network EffectThe Network Effect - Increase the overall value of the- Increase the overall value of the
network with the additon of each new membernetwork with the additon of each new member

64. The Power of ChaosThe Power of Chaos – Accept the CHAOS to incubate– Accept the CHAOS to incubate
CREATIVITY/INNOVATION.CREATIVITY/INNOVATION.

65. Knowledge at the EdgeKnowledge at the Edge – spread knowledge throughout the– spread knowledge throughout the
organizationorganization

66. Everyone should andEveryone should and HASHAS to Contributeto Contribute

67. Everyone should be RESPONSIBLE & ACCOUNTABLEEveryone should be RESPONSIBLE & ACCOUNTABLE

68. Drive Organization on VALUES - IdeologyDrive Organization on VALUES - Ideology

69. Organizations to haveOrganizations to have CATALYSTCATALYST & NOT& NOT CEOCEO

70. FLATTEN or be FLATTENEDFLATTEN or be FLATTENED GO HybridGO Hybrid -- Find the Sweet SpotFind the Sweet Spot

71. Thanks!Thanks!
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