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Hello there! 
@clayparkerjones
UNDERCURRENT ’S PURPOSE 
Study, develop, and spread 
adaptive ways of working and 
organizing that accelerate 
meaningful ...
MY PURPOSE 
Make organizations 
habitable 
@clayparkerjones
SOOOO…. 
Gamification? 
@clayparkerjones
The workplace is 
already gamified 
@clayparkerjones
Bosses 
@clayparkerjones 
OFFICE SPACE
Raids 
@clayparkerjones 
JUST GOOGLE “BOARD MEETING”
Scoring 
@clayparkerjones
Rules 
@clayparkerjones 
TOM FISHBURNE
Every day, millions of 
people wake up and play 
a boring RPG called 
“Professionalism” 
@clayparkerjones 
DOCTOROW
The organization 
is broken 
@clayparkerjones
Why is it broken? 
@clayparkerjones
CHANGE 
@clayparkerjones 
BRYNJOLFFSON, MCAFFEE
Computing Power 
@clayparkerjones
COST PER GIGAFLOP 
@clayparkerjones 
$9,000,000,000,000 
$6,750,000,000,000 
$4,500,000,000,000 
$2,250,000,000,000 
$0 
1...
COST PER GIGAFLOP 
@clayparkerjones 
$1,000,000,000,000 
$1,000,000,000 
$1,000,000 
BOOM! 
$1,000 
$1 
$0 
1960 1974 1987...
AUTOMAT TIC – SOMETHING LIKE 250 PEOPLE REACHING A BILLION USERS!? 
+ Platforms 
(AKA Infrastructure) 
@clayparkerjones
@clayparkerjones 
EVANS 
+ Networks 
(AKA Globalization)
HDI: HEALTHY LIFE, GOOD EDUCATION, STANDARD OF LIVING 
1 
0.5 
REST/ASIA 
N. AFRICA 
+ higher highs & lows 
@clayparkerjon...
+ higher highs & lows 
@clayparkerjones 
ROSER 
IT ’S NOT PERFECT BUT IT ’S GET TING BETTER
+ fewer conflicts 
@clayparkerjones 
ROSER
HOLY CRAP WHAT IF THE MAT TERNET EXISTED? 
= higher quality of life 
@clayparkerjones
= more opportunities 
WHY PAY FOR SCHOOL? 
@clayparkerjones
THIS IS INSTAGRAM @ $1BN VALUATION 
= easier to star t 
@clayparkerjones
= easier to scale 
@clayparkerjones 
ASYMCO
= more choice 
(For all users) 
@clayparkerjones
= more complexity 
@clayparkerjones 
BAR-YAM
10% OF THE TOP 5,000 FIRMS ARE GONE EVERY YEAR 
SHOULD WE EVEN TRY TO KEEP THEM ALIVE? 
= easier to fail 
@clayparkerjones
Designed to fail 
@clayparkerjones
1948-‘73 1973-‘90 1990-‘07 2007-‘13 
Output 4.00 3.10 3.60 1.10 
Capital 3.70 4.20 4.10 1.40 
Labor 1.00 1.90 1.60 -0.10 
...
Labor contribution doubling 
maybe every 50 years 
Computing power doubling 
every 18 months 
We clearly don’t know 
what ...
The organizations 
we have are broken 
@clayparkerjones
Complex Adaptive 
Systems 
@clayparkerjones
Hierarchies & 
Complication & 
Silos & 
Conformity & 
▶︎ Predictability 
▶︎ Control 
▶︎ Profit 
@clayparkerjones
Hierarchies & Networks 
Complication & Emergence 
Silos & Flow 
Conformity & Experimentation 
Uncertainty ▶︎ Predictabilit...
Achievable at scale 
@clayparkerjones
How? 
@clayparkerjones
Hierarchies Allow teams to & self-organize 
Networks 
Complication & Emergence 
Reduce number of rules, increase their leg...
@clayparkerjones 
KNIBERG
Self-organizing 
Lean 
Autonomous 
Multidisciplinary 
@clayparkerjones
Continually reorganized 
on purpose, for users, 
around projects 
@clayparkerjones
SKILLS 
RESOURCES 
RESISTANCE 
@clayparkerjones 
DIGNAN 
ACTIVIT Y 
PROFILE 
ACTION 
FEEDBACK 
BLACK BOX 
OUTCOMES 
OBJECT...
ACTION 
PREP; FOLLOW-THROUGH 
RESOURCES 
TIME; COMPETITION 
@clayparkerjones 
DIGNAN 
SALES 
DATA; POINTS 
ACHIEVER; LACK ...
@clayparkerjones 
HOLACRACY
Toward a healthy, 
living organization 
@clayparkerjones
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Organizations Are Broken, and How to Fix Them

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Organizations are broken. Here's how to fix them.

Presented at the 2014 Expo Capital Humano in Santiago, Chile.

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Organizations Are Broken, and How to Fix Them

  1. 1. Hello there! @clayparkerjones
  2. 2. UNDERCURRENT ’S PURPOSE Study, develop, and spread adaptive ways of working and organizing that accelerate meaningful progress for all. @clayparkerjones
  3. 3. MY PURPOSE Make organizations habitable @clayparkerjones
  4. 4. SOOOO…. Gamification? @clayparkerjones
  5. 5. The workplace is already gamified @clayparkerjones
  6. 6. Bosses @clayparkerjones OFFICE SPACE
  7. 7. Raids @clayparkerjones JUST GOOGLE “BOARD MEETING”
  8. 8. Scoring @clayparkerjones
  9. 9. Rules @clayparkerjones TOM FISHBURNE
  10. 10. Every day, millions of people wake up and play a boring RPG called “Professionalism” @clayparkerjones DOCTOROW
  11. 11. The organization is broken @clayparkerjones
  12. 12. Why is it broken? @clayparkerjones
  13. 13. CHANGE @clayparkerjones BRYNJOLFFSON, MCAFFEE
  14. 14. Computing Power @clayparkerjones
  15. 15. COST PER GIGAFLOP @clayparkerjones $9,000,000,000,000 $6,750,000,000,000 $4,500,000,000,000 $2,250,000,000,000 $0 1960 1974 1987 2001 2014 TOP 500 BORING CHART, RIGHT?
  16. 16. COST PER GIGAFLOP @clayparkerjones $1,000,000,000,000 $1,000,000,000 $1,000,000 BOOM! $1,000 $1 $0 1960 1974 1987 2001 2014 TOP 500 LOG SCALE!
  17. 17. AUTOMAT TIC – SOMETHING LIKE 250 PEOPLE REACHING A BILLION USERS!? + Platforms (AKA Infrastructure) @clayparkerjones
  18. 18. @clayparkerjones EVANS + Networks (AKA Globalization)
  19. 19. HDI: HEALTHY LIFE, GOOD EDUCATION, STANDARD OF LIVING 1 0.5 REST/ASIA N. AFRICA + higher highs & lows @clayparkerjones 0 1938 1960 1980 2000 ROSER OECD REST/EUROPE LATAM CHINA INDIA S. AFRICA
  20. 20. + higher highs & lows @clayparkerjones ROSER IT ’S NOT PERFECT BUT IT ’S GET TING BETTER
  21. 21. + fewer conflicts @clayparkerjones ROSER
  22. 22. HOLY CRAP WHAT IF THE MAT TERNET EXISTED? = higher quality of life @clayparkerjones
  23. 23. = more opportunities WHY PAY FOR SCHOOL? @clayparkerjones
  24. 24. THIS IS INSTAGRAM @ $1BN VALUATION = easier to star t @clayparkerjones
  25. 25. = easier to scale @clayparkerjones ASYMCO
  26. 26. = more choice (For all users) @clayparkerjones
  27. 27. = more complexity @clayparkerjones BAR-YAM
  28. 28. 10% OF THE TOP 5,000 FIRMS ARE GONE EVERY YEAR SHOULD WE EVEN TRY TO KEEP THEM ALIVE? = easier to fail @clayparkerjones
  29. 29. Designed to fail @clayparkerjones
  30. 30. 1948-‘73 1973-‘90 1990-‘07 2007-‘13 Output 4.00 3.10 3.60 1.10 Capital 3.70 4.20 4.10 1.40 Labor 1.00 1.90 1.60 -0.10 Productivity 2.10 0.50 1.20 0.70 @clayparkerjones 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 1949 1953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013
  31. 31. Labor contribution doubling maybe every 50 years Computing power doubling every 18 months We clearly don’t know what we’re doing @clayparkerjones
  32. 32. The organizations we have are broken @clayparkerjones
  33. 33. Complex Adaptive Systems @clayparkerjones
  34. 34. Hierarchies & Complication & Silos & Conformity & ▶︎ Predictability ▶︎ Control ▶︎ Profit @clayparkerjones
  35. 35. Hierarchies & Networks Complication & Emergence Silos & Flow Conformity & Experimentation Uncertainty ▶︎ Predictability Empowerment ▶︎ Control Purpose ▶︎ Profit @clayparkerjones
  36. 36. Achievable at scale @clayparkerjones
  37. 37. How? @clayparkerjones
  38. 38. Hierarchies Allow teams to & self-organize Networks Complication & Emergence Reduce number of rules, increase their legitimacy Silos Work in public and & push transparency Flow Conformity Undo the matrix with & multidisciplinary Experimentation teams Uncertainty ▶︎ Predictability Make it easy to “ship” Foster disposable metrics, projects and teams Empowerment ▶︎ Control Purpose ▶︎ Profit Set purpose and property and watch what happens @clayparkerjones
  39. 39. @clayparkerjones KNIBERG
  40. 40. Self-organizing Lean Autonomous Multidisciplinary @clayparkerjones
  41. 41. Continually reorganized on purpose, for users, around projects @clayparkerjones
  42. 42. SKILLS RESOURCES RESISTANCE @clayparkerjones DIGNAN ACTIVIT Y PROFILE ACTION FEEDBACK BLACK BOX OUTCOMES OBJECTIVES
  43. 43. ACTION PREP; FOLLOW-THROUGH RESOURCES TIME; COMPETITION @clayparkerjones DIGNAN SALES DATA; POINTS ACHIEVER; LACK OF FACULT Y BLACK BOX STATUS, LEADS OBJECTIVES
  44. 44. @clayparkerjones HOLACRACY
  45. 45. Toward a healthy, living organization @clayparkerjones

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