building a responsive organization - agileaus20 · 1. clarify purpose from customer’s perspective...
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Building a responsive
organization
@SamiHonkonenCEO
Tomorrow Labs
Host
Boss Level Podcast
Responsive organization
?
? ?
? ?
Responsive organization
?
Complexity theory ?
? ?
Disorder
Obvious
ComplicatedComplex
Chaotic
Digitalization
Strategy
Best practice
http://www.bosslevelpodcast.com/dave-snowden-on-complexity-theory-and-astrology/
Experiments
Stabilization
Responsive organization
?
Complexity theory ?
? ?
Responsive organization
?
Complexity theory Systems thinking
? ?
SalesProduct
development
Sales blames product development for inefficiency
Product development blames sales for promising impossible things
Structure drives
behavior
Thinking
System
Performancehttp://www.bosslevelpodcast.com/john-seddon-and-freedom-from-command-and-control/
Management
Value creation
Traditional hierarchy
“A process through which corporations spend ridiculous amounts of time and
effort compiling semi-random numbers into a spreadsheet they then use for
command & control leadership”
Source: samihonkonen.com/budgeting
Budgeting
John Seddon on incentives
http://www.bosslevelpodcast.com/john-seddon-and-freedom-from-command-and-control/
Incentives are the business equivalent of homeopathy
1. Clarify purpose from customer’s perspective together
2. Design processes from customer’s perspective
3. Measure achievement of purpose from customer’s perspective
4. Create structures that enable people to work towards the purpose
Systems thinking for organizations
Responsive organization
?
Complexity theory Systems thinking
? ?
Responsive organization
Everything is an experiment
Complexity theory Systems thinking
? ?
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Responsive organization
Everything is an experiment
Complexity theory Systems thinking
? ?
Responsive organization
Everything is an experiment
Complexity theory Systems thinking
Driven by data ?
Data Insights Beliefs Bets
http://www.bosslevelpodcast.com/simon-marcus-and-his-swedish-overlords-at-spotify/
The pitfalls of data
1. Failure to understand
regression to the mean
Pro
du
ctiv
ity
Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7
Average
Yelling is a great management strategy.
And praise doesn’t work.
Pro
du
ctiv
ity
Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7
Average
2. Stagnation
outcomes
plans
actions
Better instructions!More information!
More control!
http://www.bosslevelpodcast.com/stephen-bungay-and-strategy-under-uncertainty/
3. Rearview mirror
Leading indicator
Lagging indicator
4. Proxy metrics
Productivity is hard to measure, so let’s measure
something easier
5. The curse of metrics
The curse:
“Every measure becomes a target”
"When a measure becomes a target, it ceases to be a good
measure.” -Goodhart’s law
The pitfalls of data1. Failure to understand
regression to the mean 2. Stagnation 3. Rearview mirror 4. Proxy metrics 5. The curse of metrics
Responsive organization
Everything is an experiment
Complexity theory Systems thinking
Driven by data ?
Responsive organization
Everything is an experiment
Complexity theory Systems thinking
Driven by dataExecuted by
empowered people
http://www.bosslevelpodcast.com/general-stan-mcchrystal-and-a-team-of-teams/
Stanley McChrystal on empowered execution
“If it’s not illegal or immoral, you have the authority to do it”
-General Stan McChrystal
http://www.bosslevelpodcast.com/general-stan-mcchrystal-and-a-team-of-teams/
Empowered execution
Responsive organization
Everything is an experiment
Complexity theory Systems thinking
Driven by dataExecuted by
empowered people
Responsive organization
Everything is an experiment
Complexity theory Systems thinking
Driven by dataExecuted by
empowered people
1. What is the least amount of structure your organization can
have without slipping into chaos?
Responsive organizations
2. When you need structure, how can you make it as lightweight as possible?
Thank you!
@SamiHonkonen
Want the slides and the links?
Sign up at http://samihonkonen.com/email
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