August Responsive Organization Development

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The Future of Organizations is Responsive // How to Unlock Your Organization’s Potential to Change the World // Presented at Telstra Retail Innovation Summit in Sydney, February 2016. // Presenter notes available here: https://medium.com/@mikearauz/5e2e9b5af16a

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  • A fantastic slide deck on how large Corporations need to change their operating models. Fascinating slides on the pace of exponential innovation!!
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August Responsive Organization Development

  1. 1. What’s stopping your organization from changing the world?
  2. 2. Hi. I’m Mike Arauz. @mikearauz www.aug.co This is where I work.
  3. 3. 32016 | www.aug.co President knows best…
  4. 4. DO YOU WORK WITH SOMEONE WHO… Haggles over the precise wordings of communications, minutes, resolutions. 42016 | www.aug.co
  5. 5. DO YOU WORK WITH SOMEONE WHO… Refers back to matters decided upon 
 at the last meeting and attempts to 
 re-open the question of the advisability of that decision. 52016 | www.aug.co
  6. 6. DO YOU WORK WITH SOMEONE WHO… Insists on doing everything through “channels.” Never permits short-cuts to be taken in order to expedite decisions. 62016 | www.aug.co
  7. 7. CIA GUIDE 
 FOR SIMPLE SABOTAGE 72016 | www.aug.co
  8. 8. Work doesn’t work.
  9. 9. 92016 | www.aug.co 24% 63% 13%ACTIVELY
 DISENGAGED ENGAGED NOT ENGAGED SOURCE: GALLUP “STATE OF THE GLOBAL WORKPLACE REPORT”
  10. 10. 102016 | www.aug.co -4.0 0.0 4.0 8.0 1949 1970 1991 2012 SOURCE: UNIVERSITY OF NOTRE DAME PRODUCTIVITY GROWTH 
 AS A FACTOR OF GLOBAL OUTPUT
  11. 11. 112016 | www.aug.co 0.0% 1.7% 3.3% 5.0% 1965 1980 1995 2010 RETURN ON ASSETS SOURCE: DELOITTE SHIFT INDEX
  12. 12. 122016 | www.aug.co 0 18 35 53 70 1958 1982 2006 2030 AVERAGE COMPANY LIFESPAN 
 ON S&P 500 INDEX 61YEARS 15YEARS SOURCE: RICHARD FOSTER AT INOSIGHT
  13. 13. 132016 | www.aug.co 0.0% 16.7% 33.3% 50.0% 2001 2004 2007 DIFFERENCE IN LABOR PRODUCTIVITY FRONTIER FIRMS v. SERVICES MANUFACTURING EVERYONE ELSE MANUFACTURING SERVICES SOURCE:“THE FUTURE OF PRODUCTIVITY,” OECD 2015
  14. 14. 142016 | www.aug.co Exponential Change
  15. 15. Exponential Innovation → 152016 | www.aug.co 3D PRINTER SENSORS DNA SEQUENCING $40,000 → $100 400x in 7 yrs $20,000 → $79 250x in 5 yrs $10MM → $1,000 10,000x in 7 yrs
  16. 16. 162016 | www.aug.co 2 4 6 8 10 12 14 16 18 20 TYPICAL
 FORTUNE 500 COMPANY GOOGLE FACEBOOK TESLA UBER WHATSAPP SNAPCHAT OCULUS
 RIFT 20 8 5 4 2 2 22m 14m YEARS TO REACH $1B MARKET CAP
  17. 17. Exponential Growth → 172016 | www.aug.co PHONE
 NETWORK FACEBOOK ANDROID 89 years → 150 million users 8 years → 1 billion users 5 years → 1 billion users
  18. 18. 182016 | www.aug.co
  19. 19. 192016 | www.aug.co Our way of working 
 is out of date.
  20. 20. 202016 | www.aug.co Closed ControlledEfficient ++ + Industrial Model Purpose
  21. 21. 212016 | www.aug.co Certain Uncertain
  22. 22. 222016 | www.aug.co Certain Uncertain What Most Companies Are Designed For
  23. 23. 232016 | www.aug.co Certain Uncertain What Most Companies Are Designed For What Computers Are Good At
  24. 24. 242016 | www.aug.co Certain Uncertain What Computers Are Good At What Humans Need 
 To Be Good At What Most Companies Are Designed For
  25. 25. 252016 | www.aug.co Open NetworkLearning ++ + Responsive Model Purpose
  26. 26. 262016 | www.aug.co It goes by many labels: RESPONSIVE ORG EXPONENTIAL ORG REINVENTING ORGS THE 5TH DISCIPLINE AGILE LEAN STARTUP THE B TEAM / B CORP HOLACRACY Leading to a revolutionary shift
  27. 27. 272016 | www.aug.co Closed ControlledEfficient + + + Open NetworkLearning + + + How do you change 
 from one paradigm to another? PurposePurpose
  28. 28. Purpose
  29. 29. 292016 | www.aug.co A capable team for every meaningful mission
  30. 30. 302016 | www.aug.co Accelerate the advent of sustainable transportation
  31. 31. 312016 | www.aug.co Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
  32. 32. 322016 | www.aug.co (1975) A computer on every desk.

  33. 33. 332016 | www.aug.co (2015) Empower every person and 
 every organization on the planet to achieve more.
  34. 34. Get Started: A good Purpose is… ‣ User/Customer-centric: express the impact you aim 
 to make for those you serve ‣ Brief: ~140 characters or less ‣ Clear: jargon-free and easily understood ‣ Ambitious: inspire the team to be their best 342016 | www.aug.co
  35. 35. Open
  36. 36. 362016 | www.aug.co public.aug.co
  37. 37. 372016 | www.aug.co A knowledge exchange platform that intelligently matches questions to answers
  38. 38. 382016 | www.aug.co 70% turnover every 2 months 17 customer visits per year
  39. 39. Get Started: Working in public Tools to try ‣ Cloud-based documents: MS OneDrive, Box, GoogleDocs ‣ Collaborative project management: Trello, Asana, Basecamp ‣ Chat applications: Slack, Hipchat 392016 | www.aug.co
  40. 40. Learning
  41. 41. 412016 | www.aug.co Running consulting services as 
 an agile software product
  42. 42. 422016 | www.aug.co Over 2,000 experiments per year, live, with real customers
  43. 43. 432016 | www.aug.co Shut down every store 
 for a full day
  44. 44. Get Started: What/Where/What Review Process 3 simple questions ‣ What worked? ‣ Where did we get stuck? ‣ What might we do differently? 442016 | www.aug.co
  45. 45. Network
  46. 46. 462016 | www.aug.co Open compensation model
  47. 47. 472016 | www.aug.co 80% performance improvement $20mm in savings for customers
  48. 48. 482016 | www.aug.co Serving 1,800 customers per employee, and over $40,000 
 in deposits per employee
  49. 49. Get Started: Rules for your next project team ‣ Lean: 7 ±2 people ‣ Multi-disciplinary: Mix of necessary skills ‣ Clear timelines: specific goal, testable within <3m ‣ Self-organizing: decides for themselves who does what ‣ Independent: able to ship without external approvals 492016 | www.aug.co
  50. 50. 502016 | www.aug.co Open NetworkLearning ++ + Change is
 possible Purpose
  51. 51. 512016 | www.aug.co Thank you. Get in touch: mike@aug.co Subscribe: aug.co/newsletter
  52. 52. This work is licensed under a Creative Commons Attribution 4.0 International License You are free to: • Share — copy and redistribute the material in any medium or format • Adapt — remix, transform, and build upon the material for any purpose, even commercially. Under the following terms: • Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. http://creativecommons.org/licenses/by/4.0/ 522016 | www.aug.co

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