Closing the Knowledge Divide: How to Build the Business of the Future
Transcript of Closing the Knowledge Divide: How to Build the Business of the Future
CLOSING the KNOWLEDGE DIVIDE
Kyle Lacy (@kyleplacy)
Steps to Building the Business of the Future
http://bit.ly/TrueU2017
My Career
Lessonly is used by thousands of teamsto translate important work knowledgeinto lessons that accelerate productivity.
The Reality of Business in 2017
THE ORGANIZATIONS OF THE FUTUREThe rules are crusty and old.
OLD RULES
Organized for efficiency and effectiveness
Company viewed as a hierarchy, with decision rights, structure, and leadership progression
Structure based on business function with functional leaders and global functional groups
People “become leaders” through promotion
Lead by direction
Culture ruled by fear of failure and perceptions of others
Roles and job titles clearly defined
Deloitte University Press | dupress.deloitte.com
We must understand change.
$205,000,000,000total estimated cash reserve
Technology
Highest Performing Teams and Businesses
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Typical Businesses
Deloitte University Press | dupress.deloitte.com
My morning before 8am…
Deloitte University Press | dupress.deloitte.com
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IndividualsTechnology
Highest Performing Teams and Businesses
Typical Businesses
Deloitte University Press | dupress.deloitte.com
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IndividualsTechnology
Highest Performing Teams and Businesses
Typical Businesses
KNOWLEDGEDIVIDE
KNOWLEDGE DIVIDE: the gap between those who can find, create, manage, process and disseminate information and those who are impaired in the process.
The impact of this divide is real.
“People are falling behind because technology is advancing so fast and our skills and organizations aren’t keeping up.”
— Erik Brynjolfsson, MIT
Netflix vs. Blockbuster (2004 - 2010)
$6 Billion
Time
$4 Billion
$2 Billion
$0
Blockbuster Revenue
Netflix Revenue
“Companies rarely die from moving too fast,and they frequently die from moving too slowly.”
—Reed Hastings, Netflix
Netflix is a $60 billion company.That’s 12x Blockbuster’s peak value.
Deloitte University Press | dupress.deloitte.com
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KNOWLEDGEDIVIDE
SPEED ACCESS ANALYTICS
SPEED
RULES AROUND SPEED
Empower Change
Share Before Your Are Ready
Minimum Barrier to Entry
EMPOWERING CHANGEOld way vs the New way
OLD WAYCompany viewed as a
hierarchy, with decision rights, structure, and
leadership progression
NEW WAYCompany viewed as an agile
network, empowered by team leaders and fueled by
collaboration and knowledge-sharing.
EMPOWERING CHANGETechnology to bridge the gap.
Summary of Freedom & Responsibility
◦ As We Grow, Minimize Rules◦ Inhibit Chaos with Ever More
High Performance People◦ Flexibility is More Important
then Efficiency in the Long Term
Minimum Barrier to Entry
1999
VENMO GROWTH CONTINUES TO CLIMBTotal payment volume over time (2013-2016)
In Q116 alone, Venmo processed 3.2 billion, a 154% increase from Q1 2015
BETTERMENT REDEFINES INVESTING
RULES AROUND SPEEDChange is happening. It’s just a matter of how fast.
Embrace the speed of change: How do you speed up the slower traditional operating model? Understand how strategy, connectedness, customers, and talent pools are all changing as part of the digital transformation. (Deloitte)
Make MVP a core value: Share before you are ready. Your customers are your best sales people. Build in processes to support simplicity in product design.
Examine new communication tools: Consider technologies like Workplace, Slack, Base- camp, Asana, Trello, Workboard, and others. (Deloitte)
ACCESS
RULES AROUND ACCESS
Just-in-Time Knowledge
Personalization Matters
Experience Driven
ACCESS MATTERSThere are two areas of impact…
KNOWLEDGE LEADERSHIP
When you need it now
Type to search
Google Search I’m Feeling Lucky
JUST-IN-TIME: denoting a manufacturing system in which materials or components are delivered immediately before they are required in order to minimize inventory costs.
AMAZON IS PURE GENIUSAnticipatory shipping.
“Amazon says it may box and ship products it expects customers in a specific area will want—based on previous orders and other factors…”
Higher productivity40%
ACCESS TO LEADERSHIPOpen the lines of communication and transparency
In 2007, Dorsey started sending out a weekly email to everyone at ExactTargetcalled “My Friday Note.” Typically, it included a variety of personal notes and photos from his travels, as well as reflections on the previous week, key company metrics (nothing was off limits), and important changes to growth strategy.
ACCESS TO LEADERSHIPOpen the lines of communication and transparency
In five years, Scott never missed a weekly email — even if he was on vacation, or dealing with the rigors of fundraising and scale — and that had a hugely positive impact on employee engagement.
ANALYTICS
“We all have beliefs, tendencies, and desires that are formed and sustained—not by data—but by some combination of our past and our pride. When we deem any one of these beliefs, tendencies, or desires to be incontrovertibly true, the result is dogma.”
— Max Yoder
“We must move from numbers keeping score to numbers that drive better actions.”
— David Walmsley
METRICS THAT MATTERData helps the company focus.
Quantitative Qualitative• Churn Analysis• Sales & Marketing KPIs
• Win/Loss Reviews• Customer Surveys• Employee Surveys• Product Usage Stats
WATERFALL GOAL
ORIENTATION
We believe providing (individual) with this (service) will result in this (outcome).
We will know this when we see (measureable result).
@JimKalbach
- Jim Kalbach
THE ORGANIZATIONS OF THE FUTUREOld vs New
Old rules New Rules
Organized for efficiency and effectiveness
Company viewed as a hierarchy, with decision rights, structure, and leadership progression
Structure based on business function with functional leaders and global functional groups
People “become leaders” through promotion
Lead by direction
Culture ruled by fear of failure and perceptions of others
Roles and job titles clearly defined
Deloitte University Press | dupress.deloitte.com
THE ORGANIZATIONS OF THE FUTUREOld vs New
Old rules New Rules
Organized for efficiency and effectiveness Organized for learning, innovation and customer impact
Company viewed as a hierarchy, with decision rights, structure, and leadership progression
Company viewed as an agile network, empowered by team leaders and fueled by collaboration and knowledge-sharing.
Structure based on business function with functional leaders and global functional groups
Structure based on work and projects, with teams focused on products, customers, and services
People “become leaders” through promotion People “create followers” to grow in influence and authority
Lead by direction Lead by orchestration
Culture ruled by fear of failure and perceptions of others Culture of safety, abundance, and importance of risk- taking and innovation
Roles and job titles clearly defined Teams and responsibilities clearly defined, but roles and job titles change regularly
Deloitte University Press | dupress.deloitte.com
The company is viewed as an agile network, empowered by team leaders and fueled by collaborationand knowledge-sharing.
http://bit.ly/TrueU2017