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So far, we have only seen immediately visible, short-term effects, such as the fall in the value of the pound, and the diversion of the majority of UK Government time and energy into the legislation required to leave the EU. We all have our own opinions on the likely longer term political and macro-economic repercussions of Brexit, but in fact for our clients the most pressing concerns are closer to home, with the decision likely to influence all elements of their business, from strategy and talent through to finance and regulation.
Of course with the process of exiting the EU being ongoing, largely confidential and subject to a great degree of uncertainty, our clients have more questions than answers right now. But asking the right questions is always an excellent place to start when tackling complex challenges. We would love to write a blog post that provided all the answers, but the truth is that none of us has them today, and at Innovation Arts we certainly don’t have off the peg solutions for you and your organisation. However, we do have some broad responses that may be useful as you consider the risks, opportunities and uncertainty that Brexit presents:
Brexit is a supply side shock and, depending on how policies are managed at a national level, its effects could be felt positively or negatively on individual businesses, nationally and throughout the even more complex global system. One of the reasons our clients feel overwhelmed by this is that it seems impossible to separate the disruptive effects on their organisation with the wider (as yet unknown) effects. But putting focus on the smaller system of your organisation or industry where you are the experts can have major benefits at this stage. The best way to tackle complexity, in our experience, is to break it down into its constituent parts and their interdependencies before attempting to define solutions, so we advise starting there.
When disruption strikes, looking for ways to exploit opportunities should go hand in hand with risk mitigation. Because the implications of Brexit will touch many parts of your organisation, as well as your supply chain, we would suggest the best way to be in a position to strike while the iron is hot when the opportunity arises is to put action plans in place now, and review them regularly as the situation evolves. To ensure your plans are as good as you can get them, and watertight, use collaborative processes both within your organisation and with your trusted extended enterprise.
We have been following the possible release of a number of Brexit impact assessment studies with interest. In our experience, when you are framing a complex challenge, the ability to feed divergent thinking with relevant, curated, contextual information is a necessary and robust foundation for when you progress to the more convergent thinking needed for architecting a solution. Of course in an ideal world this kind of thinking would have happened before taking the decision in the first place…
At a corporate level, you still have access to the specific knowledge and insights of your own organisation that with the right kind of design thinking will enable you to consider possible future scenarios, assess them and plan knowledgeably for them.
Right now there is a lot of speculation on what might happen. There are those that hold out hope that Article 50 could be reversed, others that demand that the Brexit process is seen through no matter if it happens without a deal, and others still who think the negotiation period could be extended through to 2021 or beyond. Is the most likely outcome somewhere in the middle? Perhaps. What we know is that although there is uncertainty, there are only a limited number of broad possible outcomes. But whatever that outcome eventually is, your response to it will still require you to leverage the expertise within your own organisation. By establishing and addressing your fitness to respond now, and by using scenario planning to develop detailed responses to the scenarios you can envisage, your business will be in the best shape to respond when more is known.
Traditional ways of doing this would consume a lot of FTE hours yes, but there are ways to effectively condense this work into short focused bursts, allowing you to accelerate your understanding and strategic planning whilst still staying focused on your day to day business and other initiatives. By bringing together the key stakeholders, leaders and decision-makers from across your business, having them rapidly explore and refine the scenarios of both the future and the transition to it, collaboratively, we can quickly help you define the key imperatives together and settle upon a course of action.
We asked our clients about the evolutions and transformations that are on their radar. Here are six hot issues that cross sectors and industries and will have noticeable impacts on both operating systems and culture:
Data and information are allowing brands to target individuals in a bespoke manner; no more will we see the need for mass marketing such as TV and print advertising. Instead, tailored messaging across dynamic channels and based around the needs of an individual or business will become the norm. We are seeing it already online, but this will advance rapidly over the next few years. Organisations that develop frameworks to capture and analyse data will be best-placed to develop leading marketing and selling approaches in the future. This requires digital transformation in tandem with a reworking of traditional organisational structures and job roles that need to be addressed quickly in order to remain competitive.
Artificial intelligence is already here; from roboadvisers (Nutmeg, Wealth Wizards and Wealth Horizon) to voice technology (Alexa, Siri and Cortana) we are already affected by new technologies that are rapidly permeating our daily work and personal lives. Despite some push-back from consumers and organisations progress in these areas is inevitable and those that resist may well lose their competitive edge. No-one knows how much AI will impact our homes and workplaces and even Sergey Brin, the co-founder of Google, admitted at this year’s Davos meeting that he did not foresee the artificial intelligence revolution that has transformed the tech industry. What’s clear is that organisations must still embrace and harness new technologies to at least replace mundane, time-consuming daily tasks that are not profitable or satisfying for individuals. This frees up its workforce to spend more time thinking innovatively and being more productive as echoed by Sergey Brin, co-founder of Google who said: “I would hope that, as some of the more mundane tasks are alleviated through technology, that people will find more and more creative and meaningful ways to spend their time”.
We’ve heard a lot about what Millennials want and how they are re-shaping the way we do business. Now Generation Z is bringing their influence to the global economy as they come of age . We know, for example, that Millennials are demanding more of their brands than ever before; from ethical sourcing and environmental considerations to real and deep & meaningful community activities. Basically, they want brands to hold relevant values and exhibit behaviours that meet their expectations like no generation has done before them, and this applies to the Brands they work with too. At Innovation Arts, we spend a considerable amount of time talking to our clients about how their brand can evolve culturally and strategically and we advise building in responsiveness and agility to allow for these shifting needs.
We’re not talking about the latest iPhone or Samsung iteration but a flexibile, nimble approach that allows organisations to constantly be on their toes responding to customers, consumers, their stakeholders and wider communities. This requires a new way of thinking and a corporate culture that is designed against a new model – maybe a model that we haven’t yet experienced. The organisations that puts innovation at its core will win; whether your sector is financial services, charitable, education or manufacturing.
Leveraging the creativity and innovation within your teams should be a priority. If that means a blend of at-home and office workers, then so be it. If your teams are scattered across the globe and speak different languages, then your organisation’s design must be able to effectively support and benefit from this. Modular working, part-time and flexible working will reinvent themselves. Your teams may already be thinking (and hoping) that you are planning and designing for an agile and flexible future!
A combination of artificial intelligence, a changing workplace and a redefining of roles should lead to a more productive life-work balance. But where does work and life start and end? Whose responsibility is it to support employees in eating well, getting fit, productive relaxation time, enjoying their family and friends? The lines will blur as employers and employees merge to support one another – look at Google whose sole job is to keep employees happy and maintain productivity. Their efforts may just be the start, but they go beyond a couple of bean bags thrown into a brightly-painted corner and free gym membership. Their offer to employees includes free breakfast, lunch and dinner, free health and dental, free haircuts, free dry cleaning, gyms and swimming pools, hybrid car subsidies, nap pods, on-site physicians and death benefits.
We believe that leadership teams should already be investigating, imagining and modelling for their own organisation in order to prepare for and capitalise on these issues. But the way we do that is changing too:
In the past, responsibility to reshape corporate culture, values and behaviours was the domain of the leadership team, and the leadership team only. From our experience of working with many leading global brands, your employees and teams are often one step ahead in their thinking when it comes to the future of their organisation. That’s why our Design Thinking approach is so effective at helping organisations to re-design their culture as it requires the wider team to design, model and iterate a brighter and more effective future. When strong leadership engages with all levels of the organisation, nothing can stop you. If you would like to know more about how our Design Sessions and Games Science can address issues around the future of work within your own organisation, please contact us for a free consultation at email@example.com.
For a recent design event, we looked long and hard at the idea of “tipping points,” or the instant where the forward motion of a movement increases to the point at which it becomes unstoppable. In his bestselling book, “The Tipping Point,” author Malcolm Gladwell defines tipping points as “the moment of critical mass, the threshold, the boiling point,” when a collection of small events suddenly “tips” over like a wineglass, and the resulting contagion becomes inevitable. Inspired by Gladwell, we studied a number of different movements, from the US Civil Rights movement, the rise of streaming media, the mainstreaming of hip hop music, the adoption of the hybrid/electric car, to the improbable rise of Donald Trump, and discovered that within each, there was a specific point at which the movements tipped, and the subsequent outcome became unavoidable.
And yet many times have you experienced efforts to create a movement – perhaps to launch a product, a way of working or create a whole new culture shift – and seen them fall flat? What about that restaurant you love that despite your best efforts at evangelization has closed anyway? Or that time you tried to get your team to go paperless? What is it that movements with tipping points achieve that these efforts have not?
Gladwell’s research indicates that a tipping point is reached by three very specific means: the “law of the few,” or the involvement of people with a particular set of social gifts which allow a small number of them to influence a wider population of the rest of us. Perhaps the most influential of the three, the “law of the few,” relies upon connectors, the people in a community who know large numbers of people and who are in the habit of making introductions—the kind of people who know everyone, know who needs to know someone else, and whom everyone is happy to see (word of mouth epidemics are the work of connectors). Secondly, mavens, the information specialists we trust and rely upon to connect us with new information. For example, the friend we all have who knows everything there is to know about computers or television sets or restaurants. And finally, salesmen, who are just as they sound, the persuaders with charismatic personalities and powerful negotiation skills who have an indefinable trait—beyond what they say—that makes others want to agree with them.
Our experience with the movements we’ve helped create within client organisations backs this up: it’s the people within any movement who are most likely to make it tip. We know that you are more likely to follow that lone nut if he is a friend of yours, or even, if you have seen his work and likes what he’s doing. The 2016 US presidential election was swayed by content shown on Facebook’s news feed, a mechanism so massive that it filters content by what your most active friends are saying. You don’t read what the larger population is saying, only what your friends post. And if your friend is voting one way, you are more likely to follow her. Simon Sinek, in his book “Start with Why”, says between 13 and 15 percent of a population must be affected in order for an idea to catch fire. In most of our social networks that’s a small enough number to reach personally, and indeed, within the movements we studied, we found that when people were influenced and supported by their friends or people whom they knew personally, the movements were more likely to gain momentum.
The implications for creating a movement – culture change, employee engagement or reinforcement of core values and behaviours – in a large organisation are therefore clear. How do you meaningfully reach those hundreds and thousands of people who will be your firestarters?
The other two criteria for a tipping point are the “stickiness factor,” specific content of a message that renders its impact unforgettable, and the “power of context,” or the conditions and circumstances of the times and places in which the epidemic occurs. When Gladwell says that the environment must be right for a message to spread, what he means is that there must be a critical mass within the population already, such that it is ready to tip on a slight change. For example, my efforts to get my family to adopt a vegetarian diet were destined for failure because none of them enjoys eating vegetarian food (in our case, vegetarianism was neither sticky nor in context).
A common problem we’ve seen within a lot of the populations we touch is the misleading idea that “if we build it, they will come.” A fantastic, world-beating idea doesn’t necessarily guarantee people will rush to embrace it. If that were true, everyone would eat healthily and get 30 daily minutes of brisk exercise. When you’re trying to create a movement for lasting change, great content must get into the hands of the influencers who will touch other influencers, who will bring their whole tribe with them, and only human connections can make that happen. It’s because his best friend was sitting next to him that black student Ezell Blair was brave enough to sit at the Woolworth’s whites-only lunch counter in 1960, an episode widely regarded as the tipping point of the American Civil Rights movement. It’s because my friend encouraged me to buy an iPad Pro that I did. Without specific personal connections, any movement will ultimately fizzle, because accountability is weakened: there is no one to answer to when you make a decision, no one to get you up out of bed when you just don’t feel like marching, no one to encourage you to reach for the next level, the next flag, the next victory. So, if you’re trying to get a movement off the ground, make sure you count among your number the connectors, mavens, and salespeople with infectious personalities who will spread the idea like a virus. Then the next step is working out how to mobilise them…and even in this day of virtual connectivity, nothing works better than face-to-face interactions.
This is not to say that social networks don’t have their place, if there are genuine connections between the people within them. You might be able to have a thousand Twitter followers, but it’s a person within your real-life network who will be able to tell you which restaurant to visit, or who will connect you with the right person to get your project off the ground. Twitter and Facebook make it easier for activists to find other activists, but harder for their activism to have any impact, because social networks favor the sharing of information over accountability.
What happens next? The main thing to remember is that ideas will travel faster through personal networks than they will through institutional ones. In January, the original Facebook post about the Women’s March was posted on a specific group page with millions of like-minded followers, but I probably wouldn’t have put on my pink knitted hat and marched if I had seen only that. I marched because my best friend and my sister told me they were going. If the idea of stomping around outside on an icy winter’s day can spread throughout the world by word of mouth, it’s hard to imagine what couldn’t.
Do you want to create a tipping point in your organisation but not sure where to begin? Give us a call, we’d love to help.
“How you organise the future has an awful lot to do with what you do with it … an optimist tends to have a pretty good future and a pessimist has a pretty bad one, but interestingly they can have exactly the same thing happen to them”.
Since this book was first written, the world is a very different place, in fact arguably it is one that is not only more tolerant but also more supportive of individuals and groups striking out on their own. Bolles, who regularly updates his book, more recently commented: “Four areas, in particular, have changed. First, jobs today are temporary; you don’t know how long your job is going to last. Thirty years ago, before the onslaught of downsizing and such, you could count on spending your working life at the same job. Second, jobs today are really seminars; change is happening so rapidly that you’ve got to pay close attention and learn. Third, today’s jobs are adventures; you never know what’s going to happen next. And fourth, you must find job satisfaction in the work itself; your self-esteem must come from doing the work rather than from some hoped-for promotion, pay raise, or other reward – which may never materialize. Fortunately, that dim outlook is not universally true: Some organizations appreciate, praise, and celebrate their employees, but not as many as there once were – especially not when an organization has more than 50 employees”.
Interdependence makes a case for a very different type of organizational perspective and one surmised in the idea of a ‘corporation of one’. In real terms this means we, as individuals, are our own venture, responsible for our own lives, our own ‘ways of working’ our own ‘brand’ and our own integrity – if to nothing else then to the brand we ourselves have chosen to create.
In that sense, it is a lot more about individual possibility and creating a present – and future – to live in to. Just as the corporate boys create brands evoking dynamism, agility, creativity, beauty, safety, professionalism (just take a look at some of those brands out there) we too are our own brands. Already. The only significance in doing this beyond the realm of the traditional employment contract is that it is we that are responsible for making it work. There is nowhere to hide. It’s make it work or compromise yourself. It is putting yourself on the line. More so than you ever will have to do in a large company.
Corporation of one forces us to continually reflect upon where we are – like a cybernetic loop – and monitor that position with our own desired end-state always in mind, taking on responsibility for our own learning and development and constantly re-evaluating what we are best at and what we enjoy doing the most.
Taking this model of perspective, where employees are not dependent on a company, but exist as interdependent individuals in a complex, adaptive system, what are the implications for the organisation of today?
One of the starting points for the development of Business Process Models is the use of the context diagram. The purpose of the diagram is to identify and document all entities that have a specific impact upon the process. In defining the ‘impact’ of a process, they are deemed as being either suppliers or customers of the specific process. The context, a static picture, sets the scene for the subsequent breaking down (‘decomposition’) of the process into discrete activities. In decomposing the model, we seek to reduce it to its constituent parts for more detailed analysis and so on.
As an approach, this method is particularly interesting. In creating this determinate view we also find ourselves at the very dichotomy (false or otherwise) of science. In the realm of science we find the reductionists and the holists.
Reductionism is defined as being an attempt or tendency to explain a complex set of facts, entities, phenomena, or structures by another, simpler set: “For the last 400 years science has advanced by reductionism… The idea is that you could understand the world, all of nature, by examining smaller and smaller pieces of it. When assembled, the small pieces would explain the whole”.
Holism, on the other hand, is the theory that living matter or reality is made up of organic or unified wholes that are greater than the simple sum of their parts.
The ‘whole’ refers to what I would call a complex system: “A group of interacting, interrelated, or interdependent elements forming a complex whole”. We can bring this to life by relating how that translates to Complex Adaptive Systems (CAS) we are familiar with such as the human body, natural phenomena like ecology, weather systems and migration patterns, as well as economies and indeed large, complex organisations.
Descriptions of complex systems are determinate and complimentary, entirely dependent upon the observer. Systems move and morph through points of equilibrium as they adapt and self-organise according to their environment or context and, in this sense, control and order is emergent rather than predictable. This makes modelling them a challenge.
The search for defining models of complexity is an inquiry to build fuzzy, multivalent, multi-level and multi-disciplinary representations of reality. When we think about trying to model an enterprise taking a systemic approach, it can feel overwhelming. But remember, holism is not necessarily mutually exclusive from a reductionist approach. The two can be complementary and there are disciplines such as cybernetics that can help us with that.
At Innovation Arts we understand and embrace the complexity in your organisation. Our approaches are designed to help you model your complex systems, and work with these models to rise to whatever challenges to face.
I’ve mentioned previously that I have a background in strategy consulting – transformation in particular. On many occasions, preparing a client business case would depend on mapping out the current reality and the proposed new way of doing things. Understanding the current state – or “As-Is” model would be vital as a baseline for the projected cost savings and added-value delivered to the customer in the future-state model known as the “To-Be”.
But where to start? For a functional viewpoint, Org Charts tell us who does what, where the reporting lines are and – in theory – who has what power in the organisation. In theory… We’ll come back to this in another post. And what about the process side of things?
You’ll have heard of time and motion studies. F.W. Taylor is linked to the ‘time’ component of these studies, but it is another ‘guru’, Frank Gilbreth, the father of ‘motion studies’ whose work interests us here. Almost a century ago now, he presented his ideas on how to describe processes. Gilbreth’s process chart – a device for visualizing a process as a means of improving it – was concerned with finding ‘the one best way to do work’:
Notably, Gilbreth specified:
“Process-chart notes and information should be collected and set down in sketch form by a highly intelligent man… who need not necessarily have been previously familiar with the actual details of the process…To overcome the obstacles due to habit, worship of tradition and prejudice, the more intelligence shown by the process-chart recorder, the sooner the hearty cooperation of all concerned would be secured.”
So not only had the concept of process modelling been born, but so, too, it would seem, had the external expert with no prior knowledge of what he (almost certainly in those days) was looking at.
This poses an interesting question. Is it true that people outside your business should be the ones to model your future?
I believe there are some elements of truth in that supposition, but there is also something fundamentally flawed. Yes, external, impartial partners can see things about your business that have become so ingrained as to be invisible, and yes, they can cut through the politics of decision making. But at Innovation Arts we do not believe that the intelligence of those partners is the critical factor. Rather, it is harnessing the intelligence, knowledge, expertise and energy that already exist in your organisation, to create meaningful, insightful models of the current and future states, which go well beyond Organograms and process maps.
Even for those of us in the habit of asking curious questions, this one may seem to have an obvious answer: Taking a functional view can provide economies of scale due to the encouragement of and access to specialisation. Similarly, the functional view can facilitate increased skill development and is easier to supervise as there are generally clearly defined activities associated with each role – with specialists not having to be responsible for administrative work. A functional approach may also lead to higher morale as it engenders similar norms and values within each department.
You will have heard tell, though – perhaps you even have stories of your own – of times when working in an organisation with functions becomes dysfunctional. When functions become silos, and it is difficult to co-ordinate work across them, for example. At the very least this can result in bottlenecks and the sub-optimal use of resources. It may also lead to an increased need for the co-ordination of activities within the organisation, where manager decisions tend to pile up at the top. In the same way that managers become functionally focused, it has also been argued that this tends to distract from a greater understanding of the business as a whole which can in turn lead to a narrow, short-term focus on functional goals.
So, would you describe you or your organisation as functional or dysfunctional? Is there a middle ground? Functionally dysfunctional (and vice-versa)? What box would we put ourselves in if it was a 2×2 matrix (apologies, I was once a proper Management Consultant) and would we agree which was the best box?
I think where we can agree is that a functional view is going to be useful in understanding how an enterprise…functions. Or doesn’t function. It’s just not the whole picture. As an approach it has its limitations.
Through our bespoke Design & Decide approach, we can help you to bring the best of the functions within your own organization together to tackle the complex issues you face. We can help you look at things in non-functional ways too. By breaking down preconceptions and old habits within the system, functions can behave as fully integrated parts of a team committed to working in the same direction to achieve shared objectives.
Porter created the idea of businesses having a value chain – ideally designed so as to maximise the efficiency and effectiveness of business processes as understood by the customer.
When we talk about processes we mean the specific ordering of work activities across time and place, with a beginning, an end, and clearly defined inputs and outputs. They are the structure by which a business physically does what is necessary to produce value for its customers.
By mapping out and improving individual processes, and how they worked together as a system, planning and organisation could be facilitated throughout a business. By focusing on common process goals – and the collaboration required where processes span two or more functional lines, the value chain could deliver more value for fewer resources.
Re-engineering was the most comprehensive, far-reaching, enterprise-wide option for process improvement. It was also the most radical. The most prominent proponents of this approach were Hammer and Champy who, in their book ‘Reengineering the Corporation’ stated that managers “must abandon the organizational and operational principles and procedures they are now using and create entirely new ones”.
Their view was that business reengineering meant starting again from scratch, forgetting how work was done as well as understanding that old job titles and old organisational arrangements would cease to matter: How people and companies did things yesterday wouldn’t matter to the business reengineer. They tackled the organisation’s core processes instigating “radical change to achieve quantum process improvement”.
During this time I was a young process consultant, analysing clients’ business processes and assessing the degree to which they satisfied the organisations’ customers. A process focus meant I was less concerned with things like people and technology and although there were associated ‘Hard’ issues (including the tools, techniques and Information Technology available to support the re-engineering effort) and ‘soft’ issues (individual and team behavioural reactions to the instigation of change within the organisation, the management of which spawned further growth within the consultancy industry as ‘Change Management’ shot to the top of every CEO’s agenda) the ethos was that all would flow from the customer and be process-driven as that was the pathway to value creation. Specifications for skills, jobs and even the technology to enable each process would be created and fulfilled as a consequence of the process.
All in all, this process-centric model was a beautifully scientific theory, rational, bursting with logic, and it certainly delivered improvements, but even then I sensed it was missing something fundamental, something intuitive. Maybe the fact that we humans are complex and irrational. Or maybe that in a dynamic context we were moving from one static ‘wrong’ solution to another, static, ‘right’ solution.
The world and the way we look at businesses have since moved on, but I took away a very valuable lesson from this era: All models are wrong, but some are useful.