While the information-based world is now moving exponentially, our organizational structures are still very linear (especially larger and older ones)…
We’ve learned how to scale technology… Now it’s time to scale the organization: strategy, structure, processes, culture, KPIs, people and systems
The above messages come from a punchy set of slides that have just been posted on SlideShare by Yuri van Geest. Yuri is the co-author of the recently published book “Exponential Organizations: Why new organizations are ten times better, faster, and cheaper than yours (and what to do about it)”, and the slides serve as an introduction to the ideas in the book. Yuri is also the Dutch Ambassador of the Singularity University (SU), and the Managing Director of the SU Summit Europe which is taking place in the middle of next month in Amsterdam.
Yuri’s slides have many impressive examples of rapid decline in the cost for functionality, over the last few years, in different technology sectors.
But what’s even more interesting than the examples of exponential technology are the examples of what the book calls exponential organizations – defined as follows:
An Exponential Organization (ExO) is one whose impact (or output) is disproportionately large — at least 10x larger — compared to its peers because of the use of new organizational techniques that leverage exponential technologies.
Organizations reviewed in the book include Airbnb, GitHub, Google, Netflix, Quirky, Valve, Tesla, Uber, Waze, and Xiaomi. I’ll leave it to you to delve into the slides (and/or the book) to review what these organizations have in common:
- A “Massive Transformative Purpose” (MTP)
- A “SCALE” set of attributes (SCALE is an acronym) enabling enhanced “organizational right brain creativity, growth, and acceptance of uncertainty”
- An “IDEAS” set of attributes (yes, another acronym) enabling enhanced “organizational left brain order, control, and stability”.
I find myself conflicted by some of the examples in the book. For example, I believe there’s a lot more to the decline of the once all-conquering Nokia than the fact that they acquired Navteq instead of Waze. (I tell a different version of the causes of that decline in my own book, Smartphones and beyond. Nevertheless I agree that organizational matters had a big role in what happened.)
But regardless of some queries over details in the examples, the core message of the book rings true: companies will stumble in the face of fast-improving exponential technologies if they persist with “linear organization practice”, including top-down hierarchies, process inflexibility, and a focus on “ownership” and “control”.
The book quotes with approval the following dramatic assertion from David S. Rose, serial entrepreneur and angel investor:
Any company designed for success in the 20th century is doomed to failure in the 21st.
I’d put the emphasis a bit differently: Any company designed for success in the 20th century needs to undergo large structural change to remain successful in the 21st. The book provides advice on what these changes should be – whether the company is small, medium-sized, or large.
A third level of exponential change
I like the change in focus from exponential technology to exponential organizations – more nimble organizational structures that are enabled and even made necessary by the remarkable spread of exponential technologies (primarily those based on information).
However, I’m interested in a further step along that journey – the step to exponential societies.
Can we find ways to take advantage of technological advances, not just to restructure companies, but to restructure wider sets of human relationships? Can we find better ways to co-exist without the threat of armed warfare, and without the periodic outbursts of savage conflict which shatter so many people’s lives?
The spirit behind these questions is conveyed by the explicit mission statement of the Singularity University:
Our mission is to educate, inspire and empower leaders to apply exponential technologies to address humanity’s grand challenges.
Indeed, the Singularity University has set up a Grand Challenge Programme, dedicated to finding solutions to Humanity’s grand challenges. The Grand Challenge framework already encompasses global health, water, energy, environment, food, education, security, and poverty.
Peace Grand Challenge
A few weeks ago, Mike Halsall and I got talking about a slightly different angle that could be pursued in a special Grand Challenge essay contest. Mike is the Singularity University ambassador for the UK, and has already been involved in a number of Grand Challenge events in the UK. The outcome of our discussion was announced on http://londonfuturists.com/peace-grand-challenge/:
First prize is free attendance for one person at the aforementioned Singularity University’s European two-day Summit in Amsterdam, November 19th-20th 2014. Note: the standard price of a ticket to this event is €2,000 (plus VAT). The winner will also receive a cash prize of £200 as a contribution towards travel and other expenses.
We’ve asked entrants to submit their essay to the email address email@example.com by noon on Wednesday 29th October 2014. The winners will be announced no later than Friday 7th November.
Among the further details from the contest website:
- Submitted essays can have up to 2,000 words. Any essays longer than this will be omitted from the judging process
- Entrants must be resident in the UK, and must be at least 18 years old on the closing date of the contest
- Three runners-up will receive a signed copy of the book Exponential Organizations, as well as free attendance at all London Futurists events for the twelve months following the completion of the competition.
At the time of writing, only a handful of essays have been received. That’s not especially surprising: my experience from previous essay contests is that most entrants tend to leave essay submission until the last 24-48 hours (and a large proportion have arrived within the final 6o minutes).
But you can look at this from an optimistic perspective: the field is still wide open. Make the effort to write down your own ideas as to how technology can defuse violent flashpoints around the world, or contribute to world peace in some other way within the next 20 years. Let’s collectively advance the discussion of how exponential technology can do more than just help us find a more effective taxi ride or the fastest route to drive to our destination. Let’s figure out ways in which that technology can solve, not just traffic jams, but logjams of conflicting ideologies, nationalist loyalties, class mistrust, terrorists and counter-terrorists bristling with weaponry and counter-weaponry, and so on.
But don’t delay, since the contest entry deadline is at noon, UK time, on the 29th of October. (That deadline is necessary to give the winner time to book travel to the Summit Europe.)
London Futurists looks forward to publishing a selection of the best essays – and perhaps even converting some of the ideas into animated video format, for wider appeal.
Footnote: discounted price to attend the SU Summit Europe
Note: by special arrangement with the Singularity University, a small number of tickets for the Summit Europe are being reserved for the extended London Futurists community in the UK, with a €500 discount. To obtain this discount, use partner code ‘SUMMITUK’ when you register.