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Leadership in a knowledge economy Heineken Leadership Lab 17 mei 2011

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The most restrictive habit of the brains is to test all new information against what you already know. It's the perfect way to stay where you are. Napoleon Hill The Law of Success

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1. Broader cultural context 2. Organisation culture

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Information Age Industrial Age Agricultural Age Ideas Age Va l ue Time

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The biggest lesson of today is the asymmetry between past and future. Nassim Taleb, Professor Uncertainty Studies Universiteit van Massachussets

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The future will be so different that the main skill will no longer learning but unlearning … C.K. Prahalad

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How smart is your right foot?

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One brilliant idea can yield a higher return in the new economy than a lifetime of hard work and still we choose the hard-working paradigm from the Industrial Age

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The problem is not to come up with new ideas but to get the old patterns that are so strongly rooted in us to give up John Manyard Keynes

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The world is boring for annoying people and ‘ this same world ’ is interesting for fascinating people…

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The main thing I want to tell you is not that you must think positively, but you should think in possibilities. Mindset, say the way you look at things by default, is much more important than positive thinking. Most people see problems everywhere, I see opportunities everywhere. Jay Abraham The world's most expensive consultant $ 50.000 per day

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An entrepreneur in Chicago owned three dry cleaners that made four times more profit than the industry average. He hired Jay for a day to inspire his expansion plans . Jay suggested a paradigm shift : instead of looking how he could open more dry cleaners Jay helped the entrepreneur to license his unique concept to 2000 other dry cleaners at $ 200 per month. This entrepreneur now earns $ 400,000 per month with the same three dry cleaners

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Information Age Industrial Age Agricultural Age Ideas Age Va l ue Time Many of our mental models originate from the Industrial Age. Object world Digital world World of possibilities

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. Benoit Mandelbrot Sterling Professor of Mathematical Sciences at Yale University Originator of FRACTAL MATHEMATICS [email_address] As the number of connections in the world increase organizations and markets behave more and more like living complex ecosystems . Within such an environment you can not rely anymore on models based on the normal distribution

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Information Age ‘ netwerk’ Industrial Age -> ‘ machine’ Transformation Age ‘ living ecosystem’ Va l ue Time

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Ecosystems do not evolve linear but fractal (with quantum jumps)

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Fractals are 'self-similar scales ’ which you can compare with the orbits of electrons around a nucleus. In order to change tracks, an electron has to make a quantum jump . So ecosystems also make evolutionary quantum leaps.

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In the quantum world of ideas and possibilities, the 'normal' is totally irrelevant. The peaks are in charge. Harry Potter for example. And Google. And Facebook.

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The key to success in the 21st century is 'Creative Collaboration', the fractal combination of three ingredients: ideas, information and relationships. Jay Abraham

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Fractal thinker From $ 20,000 per year to $ 13,000,000 in less than 1 year by exchanging unsold advertising slots on radio and TV networks against the total profit on the first order ICY HOT. The founders of Icy Hot became rich of the repeat orders. One year later they sold their company for $ 60 million. Two years after their "day with Jay Abraham" they had a capital of $ 60 million…

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The creative organization : ‘ networked unique individuals'

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Imagination is more important than knowledge in the ideas economy... But how do you 'manage' your imagination? Tom Peters

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<ul><li>Broader cultural </li></ul><ul><li>context </li></ul><ul><li>2. Organisation culture </li></ul>

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Culture determines how we ‘collectively look at things’ and sometimes also how ‘ collectively blind ’ we are…

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Vision Results Strategy/resources Objectives Processes

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Vision Results Strategy Culture Attitude & behavior “ What ’ s normal here ? ” Objectives Processes

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Quantum physicist and philosopher David Bohm defined culture as: “ How we collectively give meaning to events ”

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Culture is the invisible bridge OR the invisible cliff between planning and execution.

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Vision Results Strategy Culture Attitude & behavior IMPLICIT NORMS Objectives Processes

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Although you can not be successful without capital, technology, strategy and good quality products or services, culture determines how successful you will be with these resources…

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Culture Strategy When strategy and culture collide with each other, culture will win ...

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Culture explains why over 70% of all change projects ultimately fail.

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Nothing reflects more a group culture than the conversations they have with each other or do not have .

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A woman comes in for a throat operation, and awakes with a toe amputated ...

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Research showed that six different people had asked themselves questions about what the doctor did, but no one had said actually anything. The lady lost her toe because of the culture in the hospital ...

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A research team from Stanford University has researched the secret of the 1% most extraordinary organizational culture. Their conclusion was that the secret of the most productive cultures exists in the ability to constructively keep communicating when subjects become heavily emotionally charged ...

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In these cultures a breakthrough occurs every time whereas degradation takes place in other cultures.

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Goleman and colleagues argue in a special issue about breakthrough leadership that for leaders in the ideas age, the management of the organization begins with managing their own emotional state .

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Harvard Business Review Emotionally unintelligent leaders create toxic organizations that in the short term will score under pressure, &quot;but ultimately always fail ” . Wise leaders create a safe and vital culture in which information is shared, where trust reigns, where people are willing to take healthy risks, and where constructive feedback contributes to group learning.

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Natural environment Va l ue Time

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Natural environment Va l ue Time Work environment

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Natural environment Va l ue Time Work environment Think environment

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Natural environment Va l ue Time Work environment Think environment Feel environment

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Working at

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Moving around: A slide allows quick access from different floors ... There are also poles available ... they are similar to the ones used in fire stations

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INNOVATION: Large boards are available just about everywhere because 'ideas don't always come when seated in the office' says one of Google ’ s managers.

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LEISURE. Pool tables, video games etc. are available in many areas.

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Communication... On each floor, there are private cabin areas where employees can attend to personal affairs.

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Health: Professional masseurs (masseuses) available.

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REST ... This room provides massage chairs that you control ... while you view relaxing aquariums ... !!!

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Ambiance ... There are many books in this library ... even some about programming !!

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Culture is not just ‘ one of the things a CEO does ’ , it should be all he does. Lou Gerstner Jr., former CEO IBM

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All emotions are delays of the &quot;creative response state ” , the state-FLOW Instant Very fast Fast Slow Slower Slowest Most open Most closed FLOW

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FLOW is the best human experience

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FLOW is what I call the process of total involvement in life, which causes spontaneous creativity and fun. Mihaly Csikszentmihalyi

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“ You would like to know it all very carefully, however my idling, I even myself can’t explain, On the field it just happens .” Johan Cruijff, Het Parool 11 januari 1966

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Where do my ideas come from? I can not say for sure. They come spontaneously, directly and indirectly .” Ludwig von Beethoven

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Albert Einstein “ Scientific breakthroughs have little to do with intellect. There is always a leap in consciousness. You can call it intuition. The solution just comes to you and you do not know how or why.&quot;

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For spontaneous creativity, you need the higher emotional states Instant Very fast Fast Slow Slower Slowest FLOW

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For spontaneous creativity, you need the higher emotional states Instant Very fast Fast Slow Slower Slowest FLOW Most open Most defensive

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Joy, passion Enthusiasm Conciliatory Compassionate Tolerant Anger Apathetic (passive) 7 6 5 4 3 2 1 Defensive Open If you want to measure the degree of openness of a culture you have to look at the chronic emotional state of the organization

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The ‘GAP’… De ideal culture (SYNERGIE/FLOW) Most organisation cultures fit here Joy, passion Enthusiasm Conciliatory Compassionate Tolerant Anger Apathetic (passive) 7 6 5 4 3 2 1

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The ‘BRIDGE’ … THIS IS THE BRIDGE: EMOTIONAL INTELLIGENCE DIALOGUE Joy, passion Enthusiasm Conciliatory Compassionate Tolerant Anger Apathetic (passive) 7 6 5 4 3 2 1 De ideal culture (SYNERGY/FLOW) Most organisation cultures fit here

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&quot;Dialogue is the way to find and question our implicit standards. Dialogue can therefore be very transformative. &quot; David Bohm

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Reactive -> proactive -> creative EQ Spontaneous, creative Resistance, closed Prepared to contribute to solutions Creative (FLOW) Proactive Reactive Joy, passion Enthusiasm Conciliatory Compassionate Tolerant Anger Apathetic (passive) 7 6 5 4 3 2 1

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The organisation with type 1 & 2 energy (reactive) <ul><li>Lack of Meaning </li></ul><ul><li>Feelings of powerlessness </li></ul><ul><li>Frustration </li></ul><ul><li>Open and suppressed conflict, mistrust </li></ul><ul><li>Many &quot;automatic&quot; behaviors (reactive) </li></ul><ul><li>Lack of choice </li></ul><ul><li>Drama Triangle very active </li></ul><ul><li>Many judge others, much gossip </li></ul><ul><li>With Accusations </li></ul>

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The organisation with type 3 till 5 energy (proactive) <ul><li>At level 3 (tolerance) we see more cooperation, but no synergy - we 'tolerate' those we do not like </li></ul><ul><li>At level 4 (compassion) we see genuine desire </li></ul><ul><li>to help others- things are not as personally taken </li></ul><ul><li>but we still want people to 'change' </li></ul><ul><li>At level 5 (conciliatory) we begin to bridge and create more synergy. We judge less.. We don ’ t want to change others anymore, we are more concerned with what we might do differently ourselves. </li></ul>

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The organization with type 6 & 7 energy (creative) <ul><li>These types of organisations show more FLOW (spontaneous fun, spontaneous creativity), integration and coherence. There is wholeness (healing ...). </li></ul><ul><li>Behavior is directed by wisdom </li></ul><ul><li>Our emotional state is no longer dependent on others and situations - we are above the 'incentives' </li></ul><ul><li>At level 7, creativity and intuition are the standard </li></ul><ul><li>De X-factor is TRUST - OPENNESS </li></ul>

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TRUST, the one thing that changes everything Stephen M.R. Covey

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<ul><li>Characteristics of a culture with TRUST: </li></ul><ul><li>Information is shared </li></ul><ul><li>There is a high tolerance for making errors in learning </li></ul><ul><li>The culture is innovative </li></ul><ul><li>People are loyal (vs. absent) </li></ul><ul><li>People can be open & direct </li></ul><ul><li>People can count on each other </li></ul><ul><li>People are happy with each other's success </li></ul><ul><li>There are ’ few meetings ’ after the meeting </li></ul><ul><li>Transparency prevails </li></ul><ul><li>People behave authentic </li></ul><ul><li>There is a high degree of commitment and </li></ul><ul><li>responsibility </li></ul><ul><li>Vital energy flows, a creative momentum </li></ul>

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What is needed for an acorn to transform into an oak?

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A whole ecosystem of relationships

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Try openness, respect and trust … More you don’t need. Once we respect the inherent principles of a complex ecosystem, growth and prosperity will automatically occur.

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