1. Developing Organizations & Leaders Who Can Manage at the SPEED OF NOW John Bernard, Chairman & Founder Conference Board June 2011
2. Creating an organization that moves as the speed of customer’s changing needs What are the implications to structure, functions and collaboration? How does this redefine the role of leaders and the very function of leadership? What roles does social media play and how do leaders use it to learn and lead?
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5. The Era of MASS CUSTOMIZATION The Era of MASS PRODUCTION The GREAT RECESSION www 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
6. Manufacturing Jobs as a % of U.S. Employment (1) Number of Potato Chip Flavors in the World’s Markets (2) 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 24 22 20 18 16 14 12 10 8 6 4 2 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 SOURCE: (1). U.S. Bureau of Labor Statistics (2). Mass Ingenuity THE CHIP DIP
7. “This economic crisis doesn’t represent a cycle. It represents a reset. It’s an emotional, raw social, economic reset. People who understand that will prosper. Those who don’t will be left behind.” Jeffrey Immelt, CEO, General Electric
24. NOW THEN Managerial Hierarchy Customer Need DRIVER Functional Process Centric ORGANIZATION Centralized Decentralized DECISIONS Big Ideas Micro-Improvements IMPROVEMENT Management Everyone Ad Hoc, Intuitive USE OF DATA Standardized, Fact Based PROBLEM SOLVING Slow Fast SPEED
25. Leaders are facing the most complex organizational challenges in their lives AGGRESSIVE GROWTH REDUCED COSTS IMPROVED CUSTOMEREXPERIENCE
26. Stakeholders are demanding to be heard like never before Demanding Transparent & Highly Responsive Behavior
30. Eliminating the Sins Unclear Direction No Line-of-Sight Unclear Accountability Inconsistent Language Poor Issue Transparency Inappropriate Resources Inadequate Tools/Skills 7 Deadly Sins of Management
41. The NOW Mindset See the NOW Moment Have the desire to act Have the confidence to act Have the skills to act Have the support to act Taking the right action at the time when action matters most
42. 7 Stages of YESability 7. Own the Solution 6. Own the Problem 5. Take Initiative 4. Suggest Solutions 3. Voice Opinions 2. Understand Orders 1. Follow Orders TOLD PERMITTED EXPECTED
43. The Nature of Individual Freedom TOLD PERMITTED EXPECTED NONE SOME TOTAL What are the implications to response time?
44. FREEDOM ORDER People know how to seize opportunities and solve problems People understand and respect the way the organization functions T R U S T
45. a count ability …skills to do the job …skills & resources to solve problems …authority to take action …to count …to number …to measure
46. PROBLEM OPPORTUNITY NOW Mindset THEN Mindset “That’s our policy” “We can solve this problem” “I have no authority” “I know how to handle this” “No one will listen to my idea anyway” NO YES “Let me see what I can do” “I know it doesn’t make sense but that’s the way we do it” “My team can get this done for you”
47. ACTION Context for Action Bias for Action Organizational Goals Opportunity Obstacle External Customer Internal Customer Truly Accountable Measured that Focus Skills, Knowledge, Tools No Fear Safe to Act Boss Backing
48. MANAGEMENT SYSTEM PURPOSE Prioritize, connect, enable, and drive the execution of all work, ensuring that every resource is focused on the goals and that every human beinghas the maximumauthority to act
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51. Social Media & Leadership Get ready for Social Media INSIDE the organization Full-on offerings in a private network The outside world inside
55. Instant Transparency & Peer Accountability CLOSED-NETWORK SOCIAL MEDIA Line of Site Accountability for My Project Work Line of Site Accountability for My Routine Work In Real Time Visibility to Tasks Coming Due on My Projects Real-Time Access to the Organization for Knowledge Access/Exchange & Innovation Real-Time Access to My Team for Knowledge Access/Exchange & Innovation
56. How do leaders lead and learn in this kind of an environment?
62. The Neuroscience of Change SHARED VISION Receptivity to Change Heightened Learning Pro-Social Behavior Dopamine “Squirt” Skills Improvement Performance Improvement Self-Esteem Sense of Belonging Teamwork Heard Dopamine “Squirt” Written Down Dopamine “Squirt” Spoken
69. Leaders must increasingly be able to operate and manage in the NOW FOCUS IS ON EXECUTION Execution Management Social Media INSIDE Winning Combination
Brandy Cochran is just short of a year into her first job working as a software engineer for Expedite.She’s passionate about making a difference, and volunteered to spend a week filling in on graveyard shift in Customer Support.She’s anxious to learn and wants to know what real customers are like.She pops open a cold RED BULL and logs into to her NOW System.(OPEN A CAN OF RED BULL)
Just as she settles in, Skpe chimes and it’s Amos O’Shea…he’s the CIO of TexTech, a brand new customer in Ireland…and Amos is furious.“Six of our production facilities are down, because your damned software crashed! We need this fixed, and we need it fixed NOW!” “I’ll get back to you in ten minutes,” Brandy promises, her heart racing.Calmly she sends a private distress tweet to the software team in Saigon alerting them.Immediately the Vietnamese team begin “tag” searches probing blogs, conference call videos documents using the NOW inference engine.By the time Brandy has them up on Skype they’ve spotted that the Paris maintenance team has a bug fix release on the data feed TexTech is having trouble with.The decision is made and they release the fix NOW.Brandy Skypes Mr. O’Shea…”You’re amazing young lady,” he grins and the finish pleasantries.Her Red Bull, STILL COLD, Brandy smiles. Her Smart phone chimes…incoming text from her boss. “Checking in, Kiddo. Everything OK?” No prob,” she texts back. “Having fun.!”
To make this shift EVEN more clear (ANIMATION #1)….look at the steady decline in US manufacturing jobs over the past 30 years.Now I am going to share some shocking data…never before seen…. (ANIMATION #2)In the past five years there has been a huge increase in YES, the number of potato chip flavors in the World’s markets.(READ FLAVOR ON LABELS AND OFFER BAGS OF POTATO CHIPS TO THE AUDIENCE)An interesting flip between the THEN and the NOW world
How do we build a business that can function in this new NOW world?(ANIMATION #1)How do we build a company where not only the customer-facing people can say YES far more often than today….…but so EVERY employee can take action every time they see an opportunity to move the company one tiny step closer to its goals?
Not only do we want it now, but we have choices! A world full of them.….many, many choices…..Need a new logo for that side business? 26,700,000 optional sources all a click away?Want put together your own album and hire the best drummer and best base guitar player so you can sing and play lead….you can?Want to buy watermelon salt and pepper shakers at 50% off…just click and they are yours.Or get rid of that piece of rusting junk in your backyard….try Craigslist and it’ll be gone before lunch
I want to bring to light the real issue from a leadership/management perspective.With this kind of thinking (ANIMATION #1), could young Brandy have saved the day for her company Expedite? What do you think? (ASK AUDIENCE).No. Not YES. No.Her management would have to understand what it means to manage in the NOW.(ANIMATION #2). Her management would have had to shift from THEN thinking to NOW thinking.Because if they didn’t, they would be LEFT BEHIND (GESTURE).
So to NOT get left behind, and to engage our Brandy’s of the world, we’ve got ourselves a heck of a challenge.According to Gallup:18% of our employees are actively disengaged (ANIMATION #1)49% are NOT engaged (ANIMATION #2)33% are engaged (ANIMATION #3)We are failing to utilize our greatest asset on a wholesale level. And NOW we need them.Do you think there is a connection between the 7 Stages of YESability and these numbers? (ASK AUDIENCE)
You no doubt have seen the price of being left behind…I know the Conference Board has similar data….This is the difference between the top quartile performing companies with regards to employee engagement, and the bottom quartile. Numbers in red are how much worse low-performing organizations do….(RUN THE ANIMATIONS)
Management MUST GET IT’S ACT TOGETHER….We must build a foundation that allows us to meet the demands of the NOW: …Our customers’ demand for customization and flexibility …Acknowledges the reality of the power our customer’s now have (Dave Carroll) …Causes us to face the incredible scrutiny of our customersEvery mistake you make is visible …you can no longer hide behind policies …you can no longer afford for your employees to NOT solve customer problems …you must be able to say YES to your customer’s EVERY possible need
Social media has established a new standard for access to EVERYTHING we want and NEED – and that is instantaneous. YouTube, Facebook, Twitter and the like all give us unprecedented access to thoughts, ideas, experiences, data – and anything else you can imagine. But more than anything, according to Social Media author Brian Solis, social media has turned the conversations going on privately into public conversations. That’s happening with your customers, your suppliers AND your employees. It’s been going on for a VERY long time it’s just you never were able to hear it before.Healthy dynamic that makes you face the cracks in your organization…which you should address anyway….
We thrive on INSTANT EVERYTHING ….from employees texting during the BOG BOSS’s talk ….Zappos…the online fashion retailer …..huge pricing error on its discount site 6pm.com ….six hours….everything was $49.95…even if it was that $1,000 Lockman Italy watch…they honored it and it cost them $1.6 million…and the world knew….But when we fail, the world knows about it, too.An unforgiving world….…..from BP Oil’s poor handling of the Gulf crisis to the Gap’s aborted attempt to introduce a new logo……EVERYONE….knows…
Dave Carroll….a previously obscure country singerHad a bad experience with United.….and after 7 months he released this YouTube video….now having been played 10.3 million times… and it created nightmare for UNITED…appearing in newspapers around the world. ….United’s stock fell 5 percent within a week ….a PR experts says it cost $180 million in damage to their image …over a $3,800 guitar…
Need I say anything more?
What are the implications of this concept to how we manage? Who owns the process to make sure it is effective? What do we do about the whitespaces – the handoffs?Steps in the flow of work that do not ADD VALUE, are waste because no one is willing to pay you to do that work! Describe a process you have where there are wasted steps that no one is willing to pay for? Who owns that process?
We thrive on INSTANT EVERYTHING ….from employees texting during the BOG BOSS’s talk ….Zappos…the online fashion retailer …..huge pricing error on its discount site 6pm.com ….six hours….everything was $49.95…even if it was that $1,000 Lockman Italy watch…they honored it and it cost them $1.6 million…and the world knew….But when we fail, the world knows about it, too.An unforgiving world….…..from BP Oil’s poor handling of the Gulf crisis to the Gap’s aborted attempt to introduce a new logo……EVERYONE….knows…
Just as she settles in, Skpe chimes and it’s Amos O’Shea…he’s the CIO of TexTech, a brand new customer in Ireland…and Amos is furious.“Six of our production facilities are down, because your damned software crashed! We need this fixed, and we need it fixed NOW!” “I’ll get back to you in ten minutes,” Brandy promises, her heart racing.Calmly she sends a private distress tweet to the software team in Saigon alerting them.Immediately the Vietnamese team begin “tag” searches probing blogs, conference call videos documents using the NOW inference engine.By the time Brandy has them up on Skype they’ve spotted that the Paris maintenance team has a bug fix release on the data feed TexTech is having trouble with.The decision is made and they release the fix NOW.Brandy Skypes Mr. O’Shea…”You’re amazing young lady,” he grins and the finish pleasantries.Her Red Bull, STILL COLD, Brandy smiles. Her Smart phone chimes…incoming text from her boss. “Checking in, Kiddo. Everything OK?” No prob,” she texts back. “Having fun.!”
I want to take a moment to reframe change management ….a whole different perspective that’s emerging from Neuroscience ….by expanding just one element of this system ….a system I describe in detail in my book.(ANIMATION #1)A shared vision….is a primary change management tool …a vivid description of the future for stakeholders ...if a picture is worth a thousand words, than it takes a thousand words to create a picture. ….created through a highly collaborative process across an enterprise….(ANIMATION #2)But what I want to share with you is the power that comes from how it is used to create receptivity to change ….heard, then written down, then spoken (ANIMATION #3) ….each time it releases a dopamine squirt into the brain (it is a neurotransmitter produced by the hypothalamus (runners high….”high” of being in the flow) …that dopamine release increases….receptivity to change….These result in…..other changes…(ANIMATION #4) ….which once again create dopamine squirts….THIS IS THE TRUE CYLE OF SUCCESSFUL CHANGE (ANIMATION #4)This is one of five factors of neuroscience-based change management I review extensively in Chapter 11 of my book. THIS IS HOT STUFF.
The NOW era is driven by INNOVATION, not just the BIG innovation that drove the world of THEN, but it’s driven by micro acts of ingenuity – many many little things