The netarchy is a new paradigm that draws a bold new way to build the organizations of the future. A new organizational structure designed for a new interconnected world. The netarchy complements the organizational structures inherited from the past and provides a systematic approach to keep us competitive when the change is discontinuous and the future is less and less an extrapolation of the past .. To compete and win in a world of accelerated change, we need a second network-based organizational architecture, which allows organizations to innovate, adapt and interact with the new reality, complementing the hierarchy so that it can do, what Is optimized to do.

1. Lisbon 18, January 2016
JOSE CABRERA
@cabreramc
NETARCHY
BEYOND HIERARCHY

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A new type of society, which has its origins in global networks present
everywhere
Global
Digital
Complex
interconnected
Everything that can be connected, will end up being connected
A Networked Society

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New technological wave
Cloud
Computing
Social
Technologies
Bigdata Internet of
Things

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Exponential Technologies

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The new normal
A world of accelerated change
The windows of opportunity are popping up, opening
and closing faster than ever
Disruptive technologies changing society
Social technologies, mobile internet, network services, internet of
things, advanced robotics, 3D printing ...
Increasing Complexity and uncertainty
Exponential speed of changes, trends and multiple technologies with
interrelated effects, deep discontinuities, unpredictable scenarios

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A world of Black Swans

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How to live in uncertainty?

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"To manage the present, what
is important is what we
know, to manage the future,
what is important is what
we do not know"
Nassim Taleb – The Black Swan
The need for new maps

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Times to question

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¿Are our organizations
prepared to respond
quickly enough and be
adaptive in a world of
accelerating change?

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¿Are our organizations
prepared to respond
quickly enough and be
agile in a world of
accelerating change?
The traditional organization
structures that we inherited from
the industrial era, more than a
hundred years ago, emerged to solve
key problems of the moment,
efficiency and scalability so they
were not built to be fast and agile.

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6X Significant gaps
1. Cultural DNA: transparency, trust and
collaboration
2. Agility, speed and operational flexibility
3. The need for collective Intelligence
4. The imperative of disruptive innovation
5. The development of collaborative leaders
6. The arrival of the new Digital Talent

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The digital talent
• They live connected.They are
collaborative.
• They are interactive and fast in the
use of new technologies.
• The Social Web is their "operating
system".
• Ideas compete on equal terms.
• The contribution counts more than
the

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The new citiziens
Transparency
Community
Participation
Collaboration
Simplicicity
Movility

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Time to change?
Frederick W.Taylor (1856-1915)
Specialization
Standardization
Efficiency
Hierarchy
Burocracy
Tasks
Control

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"The hierarchical structures and
organizational processes that
have been used for decades to
manage and improve our
businesses are no longer up to
the challenges we face in a
world of accelerating change"
John P. Kotter- Harvard Business School,
The speed at which our world changes is increasing, but our
ability to follow the changes is not.
The need for a new structure

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Organizations as
machines
Organizations as
live systems
The need for a new metaphor
A new balance between the needs of companies for productivity and
results; and people's needs for purpose, freedom and autonomy.

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The problem
Source:Gallup research

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The opportunity
Diligence
Intellect
Initiative
Creativity
Obedience
Passion
Fuente: Gary Hamel
Purpose
Trust
Transparency
Authenticity

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¿Is the hierarchy the
natural structure in a
connected world?

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ØBarriers to creativity
ØBarriers to collaboration
ØBarriers to transparency
ØBarriers to responsiveness
ØBarriers to participation
ØBarriers to visibility
ØBarriers to adaptive change
ØBarriers to passion
ØBarriers to responsiveness
ØBarriers to motivation
ØBarriers to engagement
Ø…
Too many barriers to innovation

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¿What is the natural
order in collaborative
networks?

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“A new emerging order, not necessarily based on the power and
authority of the formal hierarchy, but on the relationships of
participation and the flows of activity that naturally arise in
collaborative networks, based on knowledge, credibility, and
trust “
A new emerging order

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Hierarchy
Noun
System in which members of an organization are
ranked according to relative status or authority.
Netarchy
Noun
System in which members of an organization are
ranked according to reputation, social value, and
influence exercised through collaborative networks.
Definitions

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Two different worlds
The world of hierarchy is vertical, its way of thinking
is command-control.The strategy is fixed at the top,
power is distributed top down. People compete for
promotion, compensation correlates with position.
Tasks are assigned, bosses evaluate performance.
Rules limit creativity.
The purpose of the hierarchy is to ensure
operational results, scalability and maximize
shareholder benefits, including top executives.
Their values are effectiveness, reliability, scalability
and predictability, their behavior is conservative, risk
aversion and people do not find purpose or feel
involved in what they do. Its focus is to preserve the
achievements of the past, so it is difficult to
innovate.

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Two different worlds
The world of the netarchy is collaborative.All ideas
compete on equal terms, the contribution counts
more than credentials.The groups are self-defined
and self-organized and each can choose who to
collaborate with.The strategy is collectively set and
compensation is correlated with reputation and
added value. peers evaluate performance.There are
no limits to initiative and creativity.
The purpose of netarchy is to coordinate human
activity with little or no top-down control, making
innovation and leadership the work of all.
Its values are those of the social web: trust,
openness, transparency and community.

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¿How can we remain
competitive when
change is accelerating
and the future is less
and less an
extrapolation of the
past?
To meet the new challenges,
organizations must seek a
new balance, between the
hierarchy as a guarantor of
predictability and control
and netarchy as the engine
for innovation and growth

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One organization, two structures

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Management by ContextManagement by Control
Modelo #1 Modelo #2
Command and control
Information.
Participation
Social
Behaviors
Collaborative
TrainingTraining
Top down
One organization, two management systems

32. Collaborative Leadership
Conect
Ask
Listen
Propose
Convence
Position
Imposition
Power
The art of influence

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3
Connecting with collective intelligence
Social
Platforms
Proactive
Attitudes
Structure
Debates
New
Perspectives

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The collaborative platform is key...
• Learning Initiatives
• Learning activities
• New capabilities
• New behaviors
Developing new skills and
behaviors needed for
transformation
Mobilizing the right people to
achieve extraordinary results and
accelerate the strateg
Collaborative
Learning
Collective
Innovation
• Structured debates
• Innovation Initiatives
• Community guide
• Progress metrics

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Ø The Network teaches us every day that sharing creates value.
Ø The benefits of collaboration are real and measurable.
Ø Collaboration is only possible in a culture of trust.
Ø The Collaboration DNA will determine whether an organization
will survive and thrive in a world of accelerated changes.
Collaboration: Impossible mission?

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