I welcome your comments on the slide.

1. Future CenterTransformation into Sustainable Knowledge Enterprises Takahiko Nomura (nomura@glocom) © Takahiko Nomura, 2010 1

2. I. Knowledge-creating Organization for leveraging “Change Productivity”Where will sub-optimized productivity lead us? © Takahiko Nomura, 2010 2

3. Background:Limitation of technological innovation Customer Value Incunabula： Technological innovation has driven thecustomer value Technological Value © Takahiko Nomura, 2010 3

4. Background:Limitation of technological innovation As markets become mature and products and services become comoditized, we face the limitations of technological innovation. Customer Value Presupposition of customer value has dramatically changed Limitation of technological refinement Incunabula： Technological innovation has driven thecustomer value Technological Value © Takahiko Nomura, 2010 4

5. We need New Productivity to achieve unpredictable business success Unpredictable Business Success Predictable Goal Effectiveness (Timely connection of needs and seeds) Productivity (Speed and efficiency of achieving predefined goal) Creativity (Diverse evolution) Significance of Existence (Our Belief) © Takahiko Nomura, 2010 5

6. CHANGE PRODUCTIVY Model Speed of change should be defined as a new form of productivity for knowledge workers. Department Motivation to reach out 上司 検討チーム Manager of other department Motivationto plan Motivationto plan Speed of Change (CHANGE PRODUCTIVITY) Motivationto develop proposals Motivationto develop proposals Motivation to execute 担当者 部内全体 他部署 担当者 Motivation topersuadeco-workers Motivation to become aware ofnew trends Motivation to reach out to other department © Takahiko Nomura, 2010 6

7. Issue of Assertiveness Even though an employee may discover a new trend, it’s not easy for him to propose his plan to his boss. Department 上司 検討チーム Manager of other department Issue of Assertiveness Speed of Change (CHANGE PRODUCTIVITY) 担当者 部内全体 他部署 担当者 © Takahiko Nomura, 2010 7 Motivation to reach out Motivationto plan Motivationto plan Motivationto develop proposals Motivationto develop proposals Motivation to execute Motivation topersuadeco-workers Motivation to become aware ofnew trends Motivation to reach out to other department

8. Issue of Execution Though the department may design an action plan, it’s not easy for co-workers to execute the plan. Department 上司 検討チーム Manager of other department Issue of Execution Speed of Change (CHANGE PRODUCTIVITY) 担当者 部内全体 他部署 担当者 © Takahiko Nomura, 2010 8 Motivation to reach out Motivationto plan Motivationto plan Motivationto develop proposals Motivationto develop proposals Motivation to execute Motivation topersuadeco-workers Motivation to become aware ofnew trends Motivation to reach out to other department

9. Issue of Bridging Though cooperation of other departments is needed, it’s not easy for them to bridge all the gaps. Department 上司 検討チーム Manager of other department Speed of Change (CHANGE PRODUCTIVITY) 担当者 部内全体 他部署 担当者 Issue of Bridging © Takahiko Nomura, 2010 9 Motivation to reach out Motivationto plan Motivationto plan Motivationto develop proposals Motivationto develop proposals Motivation to execute Motivation topersuadeco-workers Motivation to become aware ofnew trends Motivation to reach out to other department

11. Speed of local change

12. Speed of cross-functional change

13. Speed of corporate-wide changeExecutiveMeeting TOP PROJECT Corporate-wide CHANGE PRODUCTIVITY Department Manager Task team Manager ofotherdepartment Local CHANGE PRODUCTIVITY Cross-functionalCHANGEPRODUCTIVITY Staff Organization Staff ofotherdepartment © Takahiko Nomura, 2010 10

14. II. Future CenterAnew platform for solving complex problems through dialogue among diverse stakeholders © Takahiko Nomura, 2010 11

15. What are Future Centers?(Hank Kune, Future Center Alliance) Highly participative working and thinking environments Collaborative workplaces …where learning and insights …from past and future …and diverse perspectives are applied to solve real-world problems in the present 12 © Takahiko Nomura, 2010

16. Space 参考 Future Center Future Center is a safe space for diverse people to have a dialogue to create the future. Solve complex problems by eliciting positive and spontaneous inputs from stakeholders Transform organizational culture to solve complex problems through deep thinking Facilitators Methodologies Experience Hospitality Solve problems with a new creative approach Managing stakeholder’s knowledge and intellectual capital in waiting © Takahiko Nomura, 2010 13

18. Use of Space

19. Role of the facilitator

20. Combining playfulness and hard work

21. Focus on concrete results

22. Crossing thresholds, breaking down compartments, helping people to extend their limits

23. It’s all about people.© Takahiko Nomura, 2010 14

25. “Ba” is a shared space for emerging relationships, which can be physical, virtual or mental.

26. “Ba” is where a relationship between individual, group and organization emerge relationship to utilize, create, share and practice knowledge.

27. How to generate and develop such “Ba” spaces is a fundamental subject for knowledge management.© Takahiko Nomura, 2010 15

28. Good Bafor the Emergence of Knowledge (IkujiroNonaka) Self-organizing with self-transcending goal Direct sharing of senses, feelings and emotions (care, love, trust, and safety) Shared objectives and commitment, no passive observers Self-awareness in one’s relationship with others (meta-recognition) Overcoming limitations by changing centers Metaphor of sphere: diversity of knowledge and efficient interactions (requisite variety) © Takahiko Nomura, 2010 16

29. FC Facilitation for driving an Empathic Innovation Process Step 4 Mutual commitmentto achieve the DREAM (relationship building) FC Facilitator guides people to recognize the DIFFERENCES to share DREAMS to find new OPPORTUNITIES Step 3 Elicit the DREAM of the person(What if you had a magic wand?) Step 2 Find the STRENGTH of the person(High-point Interview) Step 1 Listen deeply someone’s STORY (free from prejudice) © Takahiko Nomura, 2010 17

30. Negative Spiral (to close minds) Set Goals Distribute tasks for each Penalty for delay Ask all members to commit Evaluate each member © Takahiko Nomura, 2010 18

31. Positive Spiral (to open minds) Set Goals Admire helpers Share success image Visualizehelping Share anxiety © Takahiko Nomura, 2010 19

33. Future Center, what’s in it for you? Platform for anew way of working Offices are transforming into Future Centers Platform for knowledge creation KM(Knowledge Management) in the Tacit dimensions Platform for complex problem solving Creative space for cross-functional teams Platform for finding future scenarios Facilitated dialogues with stakeholders © Takahiko Nomura, 2010 21

34. トップ Future Center 事業部 Platform for a new way of workingOffices are transforming into FutureCenters Hierarchical Organization led by “Management” Network Organization led by “Leadership” コーポ © Takahiko Nomura, 2010 22

35. Platform for knowledge creationKM(Knowledge Management) in Tacit dimensions Socialization, Externalization, & Internalization (Tacit to Tacit, Tacit to Explicit, Explicit to Tacit) Future Center(Knowledge-creating Platform) Knowledge Management (Knowledge-sharing Platform) Combination (Explicit Knowledge toExplicit Knowledge) Knowledge DB Knowledge DB Knowledge DB © Takahiko Nomura, 2010 23

36. Platform for complex problem solvingCreative space for cross-functional teams Solving complex problems derived from existing customers Solving emerging problemsderived from new customers, future customers, or social needs needs Bring complex problems that cannot be solved by existing BU. customers Business Unit Diverse Stakeholders Future Center responses customers Business Unit customers Business Unit Creative responses emerging needs New market, business, and technology Solve problems quickly through the dialogue among diverse stakeholders New research theme © Takahiko Nomura, 2010 24

37. Platform for finding future scenariosFacilitated dialogues with stakeholders 1 2 3 4 5 Select Theme Invite DiversePeople ProduceHospitality FacilitateDialogue FosterExecution Appropriate theme setting excites diverse people to solve complex problems. Dialogue among diverse people elicits new insights. Hospitality is the key to enable people to relax and work hard. A good facilitator helps the consensus-building among participants who might have opposing opinions The output of Future Center session is not limited to decision-making, but rather to taking a specific action after the session © Takahiko Nomura, 2010 25

38. Example ofFuture Center Session Future of Mobility Battery Cars? New Urban Design? Lifestyle without Cars? Virtual Communication? New paradigm of MOBILITY requires existing business units to work together. © Takahiko Nomura, 2010 26

39. © Takahiko Nomura, 2010 27

40. III. SustainableKnowledge EnterprisesA new enterprise model as a learning organization to continuously drive social innovation © Takahiko Nomura, 2010 28

41. Sustainable Knowledge Enterprise (Pattern Language) We have to change our vocabulary to describe our enterprises. Enterprises live within society (not only the market) The most important priority is how to achieve innovation (not only make a profit) Enterprises have to think of broader (especially social) stakeholders Design a new ecosystem of customers and partners, rather than defining a market position © Takahiko Nomura, 2010 29

42. Existing Enterprise Sustainable Knowledge Enterprise Corporate Model Corporate Model Company living in the Market Market Position is Critical In Pursuit of Revenue and Profit Company living in Society New Roles in Future Scenarios In Pursuit of Social Value Creation Innovation Policy Opportunities for Social Innovation Technological Innovation Financial Policy Planning the goal Quick PDCA for Action Plan Knowledge Vision Our Company’s Reason for Being Core Customer Value Proposition Three-year Planning Financial Target is the top priority Organization follows the strategy Customer-centric Customer Relationship Cost Competition with Competitors Socially expanded Stakeholders Business Eco-system Networking with the Social Sector Process Optimization Continuous Improvement Process Standardization Community Policy Building Customer/Expert Communities Fostering Communities of Practice Social Touch-point Designing Future Centers Managing Future Centers Customer Touch-point Sales Force Marketing Strategy © Takahiko Nomura, 2010 30

43. Existing Enterprise Sustainable Knowledge Enterprise Organizational Norm Organizational Norm Efficiency Creativity Motivation Commitment Decision Making Sense Making Hierarchical Workstyle Nomadic Workstyle Constructive Disruption Continuous Improvement Management Methods Management Methods Setting Social Goals Setting the Target Evaluate Performance Evaluate Change Productivity Qualitative Improvement Quantitative Improvement Teamwork Competition in the team Argument Dialogue © Takahiko Nomura, 2010 31

44. Conclusion Most global enterprises cannot envision their future without considering sustainability. It’s difficult for top managements to express their visions clearly if they work in isolation. These enterprises should be learning organizations that foster all employees to gather their knowledge, and to envision their social goals. Sustainable Knowledge Enterprise Model The model is a new management language to learn sustainably internally, and to achieve social innovation for global sustainability. Future Center is a key enabler to realize the Sustainable Knowledge Enterprise The first step is to recognize CHANGE PRODUCTIVITY. © Takahiko Nomura, 2010 32