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This is an era where roboadvisors will soon become the norm, where digital insights will change the face of marketing forever, where back-office administration will be transformed by technologies and where new products and services will develop at a speed never seen before.
To make things even tougher for established companies, not only is there hot competition from the usual places, technology has also removed barriers to entry, forcing incumbents to question their operating models and their hold over once loyal customers. But in this rapidly changing digital economy, could it be that the biggest threat to your business isn’t the competition but the organisation itself?
The disruption we are now facing on a massive scale requires organisations to transform in the fastest possible time. While many companies immediately look towards costly investments in hardware and software solutions in an effort to keep up, it is only the more astute companies that reflect on the organisation’s ability to quickly identify and evaluate relevant innovation and to rapidly evolve in response.
One thing that we have heard a lot in the past from large multi-national clients is that “unlike startups, here it takes a long time to turn the ship”. Our question is, is that lack of organisational agility an inescapable characteristic, built into the DNA of large organisations, or is adaptability a matter of choice?
Our Design Leads have addressed complex systemic challenges at both ends of the business spectrum, from startups to market leading incumbents. This work has certainly highlighted the characteristic strengths, aptitudes and behaviours of each: It will come as no surprise to readers that young, innovative companies tend to take more risks, are more reactive and more willing to fail; an advantage for sure, if harnessed effectively. They are also comfortable in emergent situations, which means that Innovation Arts’ approaches to problem solving – including Design Thinking and cross-functional collaboration – tend to already feel natural to the people who work there. This is not always the case in more established companies, whose cultures have evolved away from entrepreneurialism towards the need to protect and grow brands and meet shareholder expectations. But there is a reason companies cultures evolve as they do. When working with engineering clients who design and build aircraft engines, or the aircraft themselves, for example, we have not been shocked to find that a need for precision, caution and paramount safety have also influenced the way business processes are managed. Yet here too, digital transformation is an imperative, and leaders have found ways to exploit cultural strengths while still embracing new, accelerated ways of thinking and working that save thousands of hours of effort and rework.
Some incumbents choose to fast track their development of targeted innovation by combining forces. Our work in the Financial Technology sector has involved partnering with startups and established big names who, recognising each others’ strengths, search for symbiosis to exploit emergent Fintech markets. But even there, innovation cannot be kept distinct from the rest of the organisation and ultimately the ship still has to be turned. The question is how? At Innovation Arts we are convinced that the solution lies not in a book or a consultancy report, but within your existing organisation.
No matter who comprises your organisation, from millennials to experienced old-hands planning their retirement, every person within it will have lived through an extended period of highly intensive and accelerated change – as a child. Children face transformation constantly: physically, mentally, emotionally and in the expectations family and society have of them. Children are extraordinarily resilient and adaptable, and every new change strengthens them for the next. By drawing on this to recreate three key conditions that make thriving in change possible in your organisation, we can rediscover that strength:
Traditional hierarchical control and decision-making will not work. In some cases the more experience we have with things working well, the harder it is to access breakthrough thinking. Leadership teams must have the courage to acknowledge that we are in a new, unexplored era, and that their leadership requires resourcefulness – seeking answers from those who know, those who decide and those who do. This culture of trust and delegation will give employees in turn the courage to pose questions and offer suggestions they otherwise would have kept under wraps. Bring the right people together at the right time to answer important questions, and sometimes -in periods of intense transition – consider a temporary focal ‘hub’ to accelerate and align.
One of our core beliefs at Innovation Arts is that failure always precedes success. Modelling, testing and iteration are as key to Design Thinking as they are to technological advancements. If your company has a culture that punishes failure, innovation will never flourish; a learning culture is key to agility. You will also need to rethink cumbersome ‘traditional’ processes for decision-making, communicating and aligning/realigning – you simply don’t have time. A good design is never finished, but good enough for now can be good enough for now: operating models, action plans and communications strategies that meet immediate needs and can be iterated later are appropriate in this fast changing world.
If you can’t have fun with the problem, you’ll never solve it: If disruption is seen as a chore or something to be feared rather than as an exciting challenge then your organisation’s response will be lacklustre at best. Adopt collaborative approaches that engage employees and make working together on complex challenges tough but pleasurable. That doesn’t mean you can’t acknowledge employees concerns – people still need to understand what changes means for them. One thing that can help is keeping a constant focus on your values. Games Science can help you keep focused on who you are as a company even when you face a perpetually moving target.
These practical changes can tap into your organisation’s innate ability to adapt and embrace the opportunities that digital transformation presents for your business. Talk to us about how we can help you release the solutions within.
Participants congregated to share research, explain current initiatives and ideate new solutions for the needs of children on the move as well as means of prevention against the many risks these children face. Among participants were humanitarian organisations like UNICEF, government representatives, the United Nations, intergovernmental agencies, universities, private sector companies, Save the Children’s many international offices, and many more.
It was inspiring to see the spirit of collaboration and collective action that permeated the event. There was incredible energy as attendees shared their work, ideas and passion for change.
We were asked to graphic record throughout the day, capturing output from talks and workshops. The graphic recording was galleried in the main hall so attendees reflect upon the content from the day, and discuss plans for future action.
We created an infomural that wove together the output of the event into a visual story. There was a powerful narrative running through the event – the journey of young refugees, migrants and displaced persons from risk and turmoil to hope and opportunity, supported by the collective initiatives of all those represented by the event – and we wanted to bring it to life.
As part of the event, Save the Children nominated 20 inspiring young people, all currently or in the past considered “children on the move”. These incredible young people were strong advocates for the rights of their peers, contributing music, legal aid, philanthropic support, and more to the cause. We shared their stories in visual form and were thrilled to see them respond effusively, laughing and taking photos of each other.
It was a pleasure to collaborate with Save the Children and we were inspired by the stories we captured during the event. The strength and positivity that was generated during the two days of talks and workshops is much needed. There is a lot of work to be done but huge hope for the future.
Architecture results from integrated acts of philosophy, art, engineering, craftsmanship and business and – when perfection is sought – allows no compromise between these disciplines. A good piece of architecture directly supports a specific concept of life and work style and acts as a physical, visual, tactile and symbolic guide for its inhabitants. Conversely, bad architecture can work in direct opposition to those inhabitants’ objectives and culture, as per the title of this post. This idea that a work of architecture can also be a productive or counterproductive tool of human economy is relatively new. What is also novel is the idea that the workplace can be an expression of living art, and that this is not only possible but necessary in today’s world.
If we are to design our workspaces with the intent of using the most effective architectural pattern language, we need to get under the skin of how everything speaks. The language of architecture is largely symbolic; specific shapes, forms and textures invoke particular meanings. Just as the expressionist movement in literature gave birth to analysis by metaphor and symbolism, so too has expressionism had its influence over architecture. The early 1920s bore testimony to this architectural influence where buildings were designed and constructed to express or symbolize their use thus aiming to integrate both form and content into a coherent, more meaningful whole, for example the Volkstheatre Project, 1921 or Einstein Tower Observatory, 1920.
In the book ‘Metaphors We Live by’, Lackoff and Johnson build a theory that we live and express ourselves in terms of metaphor. This notion will be examined in greater detail later when I will talk about what we mean by ‘Possibility’. However architecture provides some firm examples of this theory. The Renaissance movement provided this language, its masters drawing the (organic) parallels of buildings as life forms in themselves. A buiding rises up, or it lies in a particular way. It has a front and a back, a face, a silhouette, a profile. It has a heart, a nerve-centre. It has a top, a crown, related to the sky and a base, a foot, related to the ground. Windows look out. Doors open wide. Perhaps no building is more symbolic that Antoni Gaudi’s ‘Casa Batlló’ with its bone-like structure and death mask balconies symbolic of the human experience in Catalonia’s quest for independence.
The power of the metaphor here is great. As the imposing designs of Romanesque, Gothic, Renaissance and Baroque all inspire superlative adjectives, so too are the feelings they stir in the soul. Compare this symbolism with that of most modern corporate architecture and it is little surprise they pale in significance, often inhuman, dead, faceless structures.
Intentionally or otherwise we have in recent times ignored the language of architecture in our workplaces, the timeless way of building as Christopher Alexander calls it, at the expense of functionalism. Our offices are uninspiring. That they are a mish-mash of metaphors at best cannot be denied. That they are malapropisms is probably just as correct.
So, back to the Bored Room, and our quest to bring to a powerful and inspiring voice to workspace architecture. Generally speaking, todays offices are boring places, at least from the point of view of art, design and architecture. Yet, they are precisely the places where many of us spend most of our productive time. How did we get here? Many contemporary ideas about the office date from the times of the industrial revolution, when accountants were gathered into office buildings erected next to the factories. The economic strategies that had modernised the industry were directly transferred into the paperwork. It was a simple, clear and very unambiguous procedure that followed the same assembly line principles governing the action in the factory halls. The office was a master class of simultaneity; the system functioned only when all its parts were in place – from nine a.m. to five p.m.
Alvin Toffler said in 1985 that:
“the corporate environment has changed so swiftly and fundamentally in the past two decades that structures designed for success in an industrial environment are almost by definition inappropriate today.”
Over thirty years on, and whilst those changes have done nothing but accelerate our workspaces have barely evolved at all. The time for us to take back control of our surroundings own us is long overdue.
A rich, varied environment, with ample communication, continuous learning, rapid feedback, knowledge management, and readily available tools are key to eliminating the barriers to human creativity and increasing productivity. Flexible space, open areas, new types of furniture and complex technological systems will increase the amount of informal communication that is necessary to develop communities of practice and build networks. There is inherent value in people from all levels of the organization working in close proximity to each other. In designing this new type of environment, we must go beyond incremental or even major changes to existing workplace designs. We need something unique, innovative, and totally new.
For many years leaders have wrestled with the discomfort of giving up management-style control in order to reap the benefits of achieving mastery in personal and organisational leadership. Leaders have looked to various theories which offer possible ways to ‘safely’ approach this ideal. For example:
Considering the X, Y and Z theories in the last post, and applying them in the practical sense, we could conclude that at a deeper level of understanding, there is no ‘one best way’ to influence people; it is largely a consequence of a number of different elements. Situational Leadership defines these as being the amount of guidance and direction (task behaviour) a leader gives, the amount of socio-emotional support (relationship behaviour) a leader provides and the readiness level that followers exhibit in performing a specific task, function, or objective.
The concept defines four leadership styles: Telling, Selling, Coaching and Delegating. The ultimate aim is to be able to reach the level of organizational maturity where delegation is pervasive. Hersey and Blanchard, the proponents of Situational Leadership, argue that when we take on a new task we all begin on the ‘dependent’ end of a continuum from fully dependent to fully independent. Then, each of us will move up the maturity scale at different speeds, depending on our experience, our abilities, our sense of self-worth, and the responses we get from our leader. At each stage, the leadership style to be employed can be determined by two points of view: the worker’s ability to do the task and the worker’s willingness to do the task.
J. Stacy Adams identified that workers are in a constant process of observation of the fairness of the outcomes of their own work compared with the outcomes of the work of their perceived peers. In this sense the worker defines his or her value based on a notion of equity with the organizational environment, implying a strict relationship between the two. Where there is little or no discrepancy, the worker perceives equity and is therefore satisfied. Where there is discrepancy, there is a perceived negative equity and the worker then actively seeks to restore the imbalance. This may take the form of negative action such as a drop in performance or a psychological or physical withdrawal from the status quo.
Positive equity, on the other hand, has the opposite effect. The role of the manager in this situation is to identify, understand and take appropriate action to stem negativity and build positivity; this means re-establishing and building ‘willingness’ through dialogue and, if appropriate, matching perceived value.
Victor Vroom’s 1960s theory states that an employee’s ‘Motivational Force’ is dependent upon three concepts: Expectancy, Instrumentality and Valence. Expectancy is the belief that the worker’s effort will result in the achievement of the desired performance goals (the desired end state of Cybernetics?). Instrumentality is the belief that should these goals be achieved a reward will be given. Valence is the value the worker places upon the value of that reward.
This provides a closer match to our understanding of situational leadership: if a worker is to be motivated, he or she not only has to believe the performance measure (or ‘task’) is achievable but that, once achieved, the reward will be of an appropriate value.
In OB Mod, the motivation of workers is said to be a direct result of the external consequences of that workers behaviour. As such, behaviour can be seen to be reinforced according to a continuum of consequence, the poles of which are positive and negative.
Positive Reinforcement implies strengthening a behaviour through the application of a pleasant consequence. Negative Reinforcement implies strengthening a behaviour through the removal of an unpleasant consequence. Within this continuum also lies a neutral consequence which is said to lead to an extinction of behaviour through no reinforcement at all and a punishing consequence which, again, is said to lead to an extinction of behaviour.
The above theories are all interesting models which in the past have provided leaders and managers with a set of tools to understand and maybe develop their own mental models. However, they all share something in common: a very pragmatic way of managing and one that is not necessarily appropriate in the world of today.
Maybe that’s you?
This shift away from physical to mental labour is interesting when we think back to the idea from cybernetics that people are a dynamic, purposeful component of the complex system. Perhaps when the majority of workers were concerned with the transformation of physical inputs into a final product, their scope for influence on the system was relatively limited, and the management hierarchy was relatively flat. Now though, we know this is rarely the case. Knowledge workers certainly fit the picture of purposeful components within a purposeful system, operating within a context of responsibility, which may be either management-driven or leadership-driven depending upon the developmental maturity of the organisation.
When we start to investigate the purpose of these ‘components’ in order to understand how they engage with the broader system, it’s useful to explore the different theories of employee motivation.
Douglas McGregor in the 1960s expounded the notion that workers conform to one of two types of categorisation: They are either Theory X or Theory Y. Theory X infers a dislike of work and a need for coercion, direction and control to meet the needs of the organisation: A need to be managed. Theory Y implies the opposite: Work can meet their higher psychological needs but to do so, self-direction and self-control must pervade. This is an interesting proposition. Considering we are all model-making, meaning-seeking beings this model immediately forces us to recognise that we may or may not be operating from one of these points of view. It is a potentially useful model as it allows us to consider where we stand vis-à-vis our colleagues and collaborators.
In the 1980s William Ouchi developed another category: Theory Z. This is an extension of the Y point of view, stating that people in this category actively seek responsibility and in light of this, organisations should empower these employees to participate in decision-making activities. (Interestingly, there had been proponents of this since the 1950s born out of disagreement with Taylor’s doctrine of ‘Scientific Management’). The notion of a ‘Self Managing Work Team’ was given a theory-based grounding and has since come to embody all that leaders desire and yet, simultaneously, fear.
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.
Human beings use models all the time. Our observations, reflections and interpretations are all about creating mental models. Words themselves are models – a representation of reality. Just as the word apple is not the apple itself, a word, any word, is a concept we understand through agreement. Models provide a basis for conversation.
Friends at the Sente Corporation have put it this way:
“Depending on how you look at it, anything can be a model. Even reality – from one vantage point – is merely our own electro-chemical processing of narrow bandwidths taken from a sea of information”.
Why do we create models? Good models simplify our complex world, enabling us to communicate and appropriate complex ideas, notions, theories, and so on effectively and efficiently. We make our models to a scale where what they represent becomes understandable on an intuitive level. They enable us to develop the comprehension and insight from which we can begin to experiment. And through this, we learn.
In the context of enterprise, models enable us to examine a situation, analyse it and then draw out plans. Many of the concepts we grapple with in today’s organisations are so complex they are beyond the limits of our intuitive comprehension. Through modelling we attempt to strip away these layers of complexity in order for us to understand the context of the enterprise, the components within it and their relationships to each other and the external eco-system.
They do have their limitations. Models are fundamentally ‘reductionist’ in nature and there’s a balance to be struck between making the model sufficiently abstract that it can be understood intuitively whilst avoiding over-simplification. For example, in breaking processes down to constituent parts, the nature of the whole – the systemic dimension of the organisation – is all too often left neglected. The decomposition omits many of the complex interactions around a process, which is just a logical, linear sequence of activities. To document all such interactions would involve a mammoth effort of analysis, so the trick is to find the right mixture of reductionism and ‘holism’ or ‘systems thinking’. Cybernetics helps our understanding too, and I’ll come back to these points in later posts.
There is one fundamental pitfall to avoid when working with models: we must never forget that all our models – be they process maps, mind maps, spread-sheets, stories, physical or conceptual models – are abstractions. Therefore it is vitally important we remain vigilant in revisiting and revising them regularly, cognisant of the fact that, as George Box put it: “All models are wrong. Some models are useful”.
We must learn to be constantly critical and questioning, otherwise the very models we have constructed can be our own downfall as we cling on to them, attached to the comfort of a reality we perceive that may not, in fact, be appropriate. The only way of achieving a shift in our own perspective is through conversation. An intervention in our self-perpetuating thought processes can – if we are open to it – change our view of the world. Or our business.
At Innovation Arts, when we work with clients facing complex issues, we apply a rigorous approach to modelling. Dialogue and iteration are key to our approach, both during the Architecting and Building phases of solution design, but also when the new model is put to Use.