You've built a product. Here's how to build an organization. Startup Week Chattanooga 2016

1. part I: inside the organization
you’ve built a product. here’s
how to build an organization
In order to deliver a product at scale, you need to build an
organization. Building an effective organization requires
thinking at a systems level, which is inherently difficult for
any single individual. We discuss how to harness collective
intelligence to enable the organization to design itself.

2. you’ve built a product. here’s how to build an organization
two quick notes
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1. The “soft” stuff is the hard stuff
2. Not either/or, but ascending levels

3. you’ve built a product. here’s how to build an organization
a couple of people and a garage is all you need
to build a product
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+ =

4. you’ve built a product. here’s how to build an organization
to scale the operation…
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…you need an organization.

5. you’ve built a product. here’s how to build an organization
these are the ingredients
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people processes resources
but what animates them?

6. you’ve built a product. here’s how to build an organization
a bit of philosophy: we have two perspectives
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7. you’ve built a product. here’s how to build an organization
1: a shared, objective perspective
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8. you’ve built a product. here’s how to build an organization
2: a personal, subjective experience
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9. you’ve built a product. here’s how to build an organization
the approach required to work in each domain
is different
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interior experience exterior outcomes
Do I like it?key question What is it?
Fulfillmentresult Impact
Valueslanguage Reason

10. you’ve built a product. here’s how to build an organization
Enduring organization
with happy employees
the most successful organizations are adept at
working with both perspectives
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fulfillment
impact
Work sucks
Won’t last!
What’s the point?

11. you’ve built a product. here’s how to build an organization
as organizations develop, they integrate
human values
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bureaucratic
organization
performance
organization
human
organization
Financial Security
Seniority/Class
Conformity to a
set of rules
+ Financial Success
+ Merit
Efficient deployment
of a strategy
+ Human Values
+ Service
Creative manifestation
of human values
animated by
to what?

12. you’ve built a product. here’s how to build an organization
and the customer and employee experience is
palpably different
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agent’s
goal
Stay on script Efficient resolution Delivering happiness
“I am penalized for
going off script”
“I am rewarded by
the number of calls I
handle in a day”
“I love helping
customers and have the
freedom to do what I
think is right”
bureaucratic
organization
performance
organization
human
organization

13. you’ve built a product. here’s how to build an organization
resulting in exponentially higher long-term
performance at each level
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1.1 x
4.1 x
10-year shareholder returns
S&P 500 Firms of Endearment
?
Source: R. Sisodia, et al., Firms of Endearment, Second Edition (2014)
bureaucratic performance human

14. you’ve built a product. here’s how to build an organization
what firms are doing this well?
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15. you’ve built a product. here’s how to build an organization
why do values lead to higher performance?
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bureaucratic
organization
performance
organization
human
organization
aligned around Strategy Shared Values
innovating Tactics Strategy and Tactics
Tactics
N/A
energy system Willpower ValuesSupervision
level of trust
and reliability
Low Moderate High

16. you’ve built a product. here’s how to build an organization
building a values-centered organization
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Clarify
values
Align
the organization
Communicate
with values
Learn
continuously
human organization

17. you’ve built a product. here’s how to build an organization
building a values-centered organization
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Clarify
values
Align
the organization
Communicate
with values
Learn
continuously
human organization

18. you’ve built a product. here’s how to build an organization
it’s possible to measure and map values
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for individuals and teams

19. you’ve built a product. here’s how to build an organization
values are uncovered through the questions we
ask others and ourselves
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What should I do? What do I want?

20. you’ve built a product. here’s how to build an organization
building a values-centered organization
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Clarify
values
Align
the organization
Communicate
with values
Learn
continuously
human organization

21. you’ve built a product. here’s how to build an organization
organizations align around key questions
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purpose
strategy
tactics
Why do we exist?Purpose
How will we create value for each stakeholder?
What business model best enables that value?
What is most important this quarter/year?
Stakeholder Value
Propositions
Business Model
Strategic Focus
What specific actions will we take?Work Planning

22. you’ve built a product. here’s how to build an organization
building a values-centered organization
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Clarify
values
Align
the organization
Communicate
with values
Learn
continuously
human organization

23. you’ve built a product. here’s how to build an organization
too often we think of a boss as someone who
tells others what to do
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Do This.
Values and worldview
remain hidden
Only one plan is
proposed
Values and worldview
remain hidden
autocratic command

24. you’ve built a product. here’s how to build an organization
unfortunately “collaboration” is often just a
competition of ideas
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Values and worldview
remain hidden
Two plans compete Values and worldview
remain hidden
competitive communication
My plan!
No, my plan!

25. you’ve built a product. here’s how to build an organization
collaboration that starts with values enables
synergy between diverse perspectives
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Values and worldview
are explored
An approach is co-
created
Values and worldview
are explored
synergistic communication
How can we best honor
both our values?
Do you think this action
would address your
values?
Yes and if we also…

26. you’ve built a product. here’s how to build an organization
values-based, synergistic collaboration leads to
better ideas and robust execution
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direction Two-way
decision
optimized for
Quality
autocratic
command
competitive
communication
synergistic
collaboration
Speed
One-way
implementation EmbracedHalf-Hearted

27. you’ve built a product. here’s how to build an organization
building a values-centered organization
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Clarify
values
Align
the organization
Communicate
with values
Learn
continuously
human organization

28. you’ve built a product. here’s how to build an organization
success!
we’re trained to seek success and avoid failure
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event
good
bad failure!

29. you’ve built a product. here’s how to build an organization
when in fact, the most underutilized assets in
business today are problems
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event
bad understand
event
good
bad

30. you’ve built a product. here’s how to build an organization
thank you
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Clarify
values
Align
the organization
Communicate
with values
Learn
continuously
human organization