Purpose+ Internal Research Project

NON-CONFIDENTIAL AND NON-PROPRIETARY, ENTIRELY SHAREABLE Purpose+, Amstel 95, Amsterdam, The Netherlands

Future of Organisations

If economic growth rates continues as in the last 50 years, the world will be 4,8 times richer in 2050, and 34 times richer in 2100...

Insight

Source: Robin Hanson, 2000; Superintelligence (2014), Nick Bostrom

We are moving towards more ‘post-materialistic’ values...Insight

Source: Modernization, Cultural Change, and Democracy: The Human Development Sequence, Inglehart & Welzel (2005)

% post-materialist represented as plus, % materialists represented as minus; scores shown for 2 years

-40

-30

-20

-10

0

10

20

U.S. Britain France West Germany Italy Netherlands

1970

2000

Materialistic: concerned with material needs, physical and economic safety. Non-materialistic: concerned with self-actualisation, belonging, intellectual work and aesthetics.

Organisations of the future will put Purpose + Profit at the core of their business, embodying post materialism in a way

Profit Purpose + Profit

Organisations of the past... ...and organisations of the future

Essence: •  Financial profit as the main driver

behind organisational success and all decisions. Success equals short term profitability.

Existing challenges: •  Only ~13% of employees is engaged

at work. •  66% of employees, and 68% of HR

executives belief businesses should do more to create a sense of purpose and deliver meaningful impact.

•  Many companies find it hard to do something meaningful; and end up giving money away as charity (48% of CSR spending is philantropy).

•  Most company stock trading (~70%) happens through people that are not ‘in the know’ of the actual business through high frequency trading.

Essence: •  Long term profitability and positive

impact are both seen as equal values. Success equals (survival time * positive impact delivered).

Existing challenges: •  Clarifying purpose for employees and

leaders in organisations, where only ~20% of leaders report a clear personal purpose.

•  Linking individual purpose to organisational purpose (now excellent in ~12% of organisations).

•  Reducing short-termism in shareholder agreements.

•  Reduction in the amount of speed trading.

•  Bridging the existing culture and generation gaps in organisations with different needs on the topic.

Source: Purpose+ team; Gallup engagement reports, 2013; Deloitte, Culture of purpose: a business imperative; HBR, 2015

Overall vision

This will likely impact many aspects of organisations over time...Example; precise changes will be client- and market specific

Source: based on McKinsey 7S model; Purpose+ team; Reinventing Organisations (2013)

Structure

Culture

Training

Strategy

People

Processes

Purpose & Values

•  Updated success definition (P+P) •  P+P targets for all departments

•  P+P scorecard designs for all departments •  Better listening/co-designing with stakeholders

•  Hybrid workforce •  Anti-fragile system •  Work and life is

the same

•  Companies as ‘tribes on mission’

•  Tribe rituals •  Culture as key

differentiator

•  Full embedding of well-being courses •  Full embedding of entrepreneurship/innovation courses

•  Focus on self-management is strong •  Real impact training; show impact directly on clients if possible

•  Could-based work with multiple interfaces, easy access is key

•  Simplicity focus •  Limited security through

open IP/data mostly

•  Payment for impact delivery

•  Recruitment on past impact delivery

•  Entrepreneurship more important than ever

•  Deep expertise needed to generate impact; multi-disciplinary expert teams are the norm

Overall vision

Balanced scorecards for leaders will embody both purpose and profit...

Purpose**

Profitability*

P+ Organisation Cash cow

Irrelevant Foundation

Long term positive impact Long term profitability Long term sustainability

Short termism No societal value Not sustainable

Not profitable Not purposeful Not sustainable

Value add for society Funding needed to survive Difficult to sustain

Source: Purpose+

Example of scorecard on organisational level; both profitability and purpose are composite measures

New success definition

...and similar scorecards on team level will embody well-being next to performance of teams

Well-being

Performance

Rockstars Cash cow

Slacker Surfers

Happy team High performing team

Short termism No societal value Not sustainable

Not profitable Not purposeful Sustainable

Happy team Non-performing team

Source: Purpose+, Building Positive Organisations (2015)

Example of scorecard on team level; both performance and well-being are composite measurements

New success definition

Where purpose/well-being will be assessed with surveys in the coming years – effortless data will be the norm in ~10 years

2015 2020 2025 2030

First organisations try to implement emotional dashboard, mostly based on surveys.

First sensors are invented that provide accurate (>99%) emotional feedback based on EEG, skin conditions, HR, HRV.

Sensors become smaller and integrated in daily usage of materials (clothing, smartphones, earphones, jewelry).

•  First real company stories•  First real sports successes•  First 100 mln users with

biometric sensors •  Low prices for sensors •  Huge amount of user data

Biometric data will be integrated in F2S interfaces and widely available ‘over the air’.

First neural implants will be on the market, allowing us to know and directly influence emotions/intelligence*.

Neural implants will allow deep empathy between people since real ‘state copying’ is possible (research level).

•  Total difference in interpersonal relationships; people will really understand each other

•  Total transparency about human emotions inevitable

* The Darpa ElextRx is currently developing the first prototypes – aimed at PTSS reduction

Brain to brain interfaces are a reality; human interaction has transformed to a whole new level.

Countries, organisations and systems are governed by human data primarily (‘engagement problems don’t exist in the current form’).

Quantified self has moved to ‘automated self-regulation’; states can theoretically be regulated from the outside.

Quantified self has moved to ‘automated self-regulation’; states can theoretically be regulated from the outside.

Source: Purpose+ team, THNK

‘Effortful data’ ‘Effortless data’

Effortless data

Companies will move into more hybrid, or network, modes of organizing for lower costs and more engagement...

Hierarchical models... ...hybrid models... ...and network-based models

Source: Purpose+ team

Employee

Working but no employee

Reporting line

Working relation

The general track from startup to multinational over time in recent history...

...and the projected track for large organisations in the near future

New modus operandi

...which is where science and business will meet once again in order to learn from each other

Complex Systems Emerging

Self-organizing Difficult to predict

Difficult to visualize

Game Theory Prisoner’s Dilemma

Irrational behavior

Collective behavior Collective IQ Ant colonies

Particle swarm optimization

Networks Social Networks Systems biology

Scaling

Non-linear dynamics

Chaos Population dynamics

Phase space

Systems Theory

Homeostasis Entropy

Sense making

Evolution & adaptation

Neural networks AI in robotics

Machine learning Pattern

formation Geomorphology Self-replication

Dissipative structures

Source: Hiroki Sayama, Collective Dynamics of Complex Systems Research Group, State University of New York

New modus operandi

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