LKCE16 - Fast Forward New Organising Models in a complex world by Professor Julian Birkinshaw
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Keynote given at Lean Kanban Central Europe 2016
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LKCE16 - Fast Forward New Organising Models in a complex world by Professor Julian Birkinshaw
- 1. Copyright Julian Birkinshaw 2016 Fast/Forward New Organising Models in a Complex World Lean Kanban Conference Hamburg, November 2016 Professor Julian Birkinshaw London Business School
- 2. Copyright Julian Birkinshaw 2016 A personal anecdote
- 3. Copyright Julian Birkinshaw 2016 Who is accountable?
- 4. Copyright Julian Birkinshaw 2016 A deficit of accountability A failure of leadership
- 5. Copyright Julian Birkinshaw 2016 Types of innovation Product innovation Technology innovation Process innovation Business model innovation Management innovation Service innovation
- 6. Copyright Julian Birkinshaw 2016 Changes in how we work are vital to productivity improvement 0 2 4 6 8 High investment in Information Technology Low investment in Information Technology Traditional workplace practices Innovative workplace practices Annual productivity growth in 1990s for US manufacturers Source: Arnal, Ok, Torres 2001
- 7. Copyright Julian Birkinshaw 2016 A Changing World New Ways of Working Implications for Leadership and Management
- 8. Copyright Julian Birkinshaw 2016 Credit Default Swaps Processor speed (MIPS) Processing power/$ Number of internet hosts Data transmission speeds Cost of bandwidth (bits/second/$) Number of genes sequenced Astronomical data collected How economic progress happens: The “accelerating change” hypothesis?
- 9. Copyright Julian Birkinshaw 2016 The creative destruction hypothesis: Shifting basis of competitive advantage INDUSTRIAL AGE: 1860s-1960s INFORMATION AGE: 1970s–2020s ?
- 10. Copyright Julian Birkinshaw 2016 The dark side of “big data” Analysis Paralysis Blind Faith in Data Answers in search of Questions Loss of Contextual Understanding Loss of Differentiation
- 11. Copyright Julian Birkinshaw 2016 Transitioning beyond the information age Too much information creates deficit of attention Overemphasis on logic leads to sterile decision making INFORMATION KNOWLEDGE DECISIVE ACTION EMOTIONAL CONVICTION
- 12. Copyright Julian Birkinshaw 2016 INFORMATION + KNOWLEDGE ACTION + CONVICTION Towards an “agile age”?
- 13. Copyright Julian Birkinshaw 2016 A Changing World New Ways of Working Implications for Leadership and Management
- 14. Copyright Julian Birkinshaw 2016 How should you be organised in a complex operating environment? • Fight complexity with complexity
- 15. Copyright Julian Birkinshaw 2016 The downsides of complexity Turf wars Unclear roles Steering committees Layers of rules & procedures Alienation and disengagement Risk aversion and lack of creativity
- 16. Copyright Julian Birkinshaw 2016 How should you be organised in a complex operating environment? • Fight complexity with complexity • Fight complexity with simplicity
- 17. Copyright Julian Birkinshaw 2016 Alternatives to bureaucracy Under what conditions does this work?
- 18. Copyright Julian Birkinshaw 2016 The Shared Space model Hans Monderman – the Drachten experiment
- 19. Copyright Julian Birkinshaw 2016 So, what do you do for a living?
- 20. Copyright Julian Birkinshaw 2016 Three ways of describing yourself in the workplace Your position on the org chart Your knowledge and experience What you do on a day to day basis
- 21. Copyright Julian Birkinshaw 2016 Three distinct models of organising Your position on the org chart Your knowledge and experience What you do on a day to day basis Bureaucracy Meritocracy Adhocracy
- 22. Copyright Julian Birkinshaw 2016 Adhocracy – a classic example
- 23. Copyright Julian Birkinshaw 2016 Adhocracy – a current example
- 24. Copyright Julian Birkinshaw 2016 Zappos – the holacracy experiment
- 25. Copyright Julian Birkinshaw 2016 Three distinct models People motivated by… Decisions made through… By Rules Hierarchy Extrinsic Rewards Coordination achieved… People motivated by… Decisions made through… Around Opportunity Experimentation Achievement Coordination achieved… Bureaucracy Position is privileged Adhocracy Action is privileged People motivated by… Decisions made through… Mutual Adjustment Logical Argument Personal Mastery Coordination achieved… Meritocracy Knowledge is privileged Which models does your organisation use? And which ones should you be using?
- 26. Copyright Julian Birkinshaw 2016 INDUSTRIAL AGE Emphasis on productivity and efficiency BUREAUCRACY INFORMATION AGE Emphasis on rational analysis and expertise MERITOCRACY ‘AGILE’ AGE Emphasis on agility, intuition, and decisiveness ADHOCRACY Shifting emphasis over time
- 27. Copyright Julian Birkinshaw 2016 A Changing World New Ways of Working Implications for Leadership and Management
- 28. Copyright Julian Birkinshaw 2016 Adhocracy at a personal level
- 29. Copyright Julian Birkinshaw 2016 Men’s world high-jump record 2.55m 2.45m 2.35m 2.25m 2.15m 2.05m 1.95m 1900 1920 1940 1960 1980 2000
- 30. Copyright Julian Birkinshaw 2016 John Thomas vs.Valeriy Brumel 2.55m 2.45m 2.35m 2.25m 2.15m 2.05m 1.95m 1900 1920 1940 1960 1980 2000
- 31. Copyright Julian Birkinshaw 2016 Dick Fosbury: Mexico Olympics Gold 2.55m 2.45m 2.35m 2.25m 2.15m 2.05m 1.95m 1900 1920 1940 1960 1980 2000 Olympics
- 32. Copyright Julian Birkinshaw 2016 Three waves of innovation in the high jumping industry 2.55m 2.45m 2.35m 2.25m 2.15m 2.05m 1.95m 1900 1920 1940 1960 1980 2000 The Fosbury Flop The Straddle Jump The Western Roll
- 33. Copyright Julian Birkinshaw 2016 in praise of “unreasonable” people
- 34. Copyright Julian Birkinshaw 2016 So how do you get the most out of these people?
- 35. Copyright Julian Birkinshaw 2016 A big part of the leader’s job is enabling initiative and experimentation
- 36. Copyright Julian Birkinshaw 2016 There is also a tricky linking role when you are encouraging experimentation
- 37. Copyright Julian Birkinshaw 2016 And occasionally you need to step in decisively, to make things happen
- 38. Copyright Julian Birkinshaw 2016 BUREAUCRACY Emphasis on productivity and efficiency Leadership is about monitoring and controlling MERITOCRACY Emphasis on data and analysis Leadership is about expertise and information flow ADHOCRACY Emphasis on flexibility and decisiveness Leadership is setting a direction, enabling others, experimentation
- 39. Copyright Julian Birkinshaw 2016 Book to be published March 2017 Stanford University Press