Adaptation, Agility, and Adaptation, Agility, and ChangeChange

Paul J. Voss, Ph.D.

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Emperor Tiberius (14-37 AD) and Scarcity

• Pliny the Elder (23-79 AD)• Shiny New Metal• Precious/Valuable• Afraid of Lost Power• Beheaded the Goldsmith• Aluminum Lost to

Civilization for 1800 Years

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“Resource-Liberating Mechanism”

• Fast Forward to1886• Frenchmen Hall-Heroult• Electricity to “Liberate”

Aluminum from Bauxite• Scarcity into Abundance• Transformational• Game Changer• Now Cheap and Widely-

Available

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Scarce vs. Abundant Resources

• Shale Oil/Natural Gas• Horizontal Drilling• “Fracking”• Controversial• Huge Resource• 100 Year Supply?• Energy Independence?

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The Internet: The Greatest Invention Ever?

• Huge Paradigm Shift• New Skills• Life as an “Open Book Test”• Digital Data• Exabyte=• 1,000,000,000,000,000,000• Pre-history-2002: 5 Exa.• 2003-2010: 5 Exa. every two

days• 2013: 5 Exa. every 10 mins!• Opportunity and Challenge

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Cell Phones vs. Toilets• 6 Billion Cell Phones (75%

penetration)• 3 Billion “Smart Phones” in 2016• Unparalleled Access to

Information• Implications for Education,

Environment, Health, Agriculture, Business, Society, the World

• Disruptive Technology

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What vs. HowThe New Battleground

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How: Why HOW we Do Anything Means Everything

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How to Resist Commodification:

The Realm of Human Behavior• There is one area that cannot be commoditized . . .

The realm of human behavior---how we do what we do. When it comes to how you do what you do, there is tremendous variation, and where a broad spectrum of variation exists, opportunity exists. The tapestry of human behavior is so diverse, so rich, and so global that it presents a rare opportunity to outbehave the competition and create enduring value.

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Change Happens:Caught in the Paradigm Shift

• Move to Digital, Mobile, Personal.

• One Method Replaces Another

• Requires Pro-Active Leadership

• What Industry is Next?

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The Death Spiral For Kodak• Digitization• Deception• Disruption• Demonetization• Dematerialization• Democratization

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The Innovator’s Dilemma (1997)

• Clayton Christensen (b. 1952)

• Degrees from BYU, Oxford, Harvard

• Successful Consultant• Professor Harvard Biz School• A Student of both Theory and

Practice

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Sustaining Technologies• Can be , continuous,

discontinuous or radical in nature

• All ST improve the performance on “established” products

• Majority of Innovations are Sustaining in Nature

• Better, Faster, Cheaper• Free Market

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Disruptive Technologies

• Innovation that initially result in worse product performance

• Lower Margins• No Defined Market• Current Customers do not

want• Cheaper, Simpler, Smaller

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UBER Transportation Service:The Demand Economy

• Most Valuable ($50 billion) Transport Company

• Owns No Vehicles• 20% Cut• $200M in 2012• $2B in 2013• $5B in 2016

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“The Demand Economy”“The Experience Economy”

• Agricultural Revolution (3000 Years)

• Industrial Revolution (300 years)

• IT Revolution (30 Years)• Agricultural Econ• Manufacturing Econ• Service Econ• Experience Econ

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Baby Boomers Defined• US Census Bureau: Born

Between 1946-1964• 77 Million Babies Born• First wave of significant

retirees in 2013• Massive Shift in Resources

and Social Security• 10,000 retire each day

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Career Definedca∙reer \kə-΄rir\ n [fr. ML carraria road for vehicles]•1a: speed in a course <ran at full ~ > b: COURSE, PASSAGE•2: ENCOUNTER, CHARGE•3: a field for or pursuit of consecutive progressive achievement•4: a profession for which one trains and which is undertaken as a permanent calling <a ~ in medicine> <a ~ diplomat>

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Henry David Thoreau (1817-1862)On Walden Pond

• “The mass of men live lives of quiet desperation”

• Leadership?• Employee

Engagement?

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Satisfied in Your Career?• Gallup Poll June 2013• 70% of workers either “hate” their job or “actively

disengaged”• 30% “committed to and deeply involved with” their place

of employment.• Conclusions?• What’s Your Engagement Score?

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19 August 2004: Google IPOA Moment of Adaptation

• 79,742 Word Epistle• “Delivering Relevant

Information on Any Topic”• 2000 Employees then;

52,000 Employees now• $3.2B/$66.7 Revenue• “The Mobile Web”

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How To Get A Job at Google? How to Create a Legacy?

• Laszlo Bock (SVP People Operations)

• Work Rules! (2015)• 14% without a degree• Not fixated on GPA, School,

or Expertise• Desire General

Intelligence, Leadership, Humility, and Grit.

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Necessary Skills:High General Intelligence

• Cognitive Horsepower• Mental Agility• Critical Thinking• “Google Exam

Questions”

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Necessary Skills:Leadership

• Proactive• Self-Starter• Engaged• Listening Skills• Curious• Enthusiastic• Dependable

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Necessary Skills:Humility

• “Big Ego and Small Ego” in the same person

• Willing to incorporate new data

• Willing to modify a position• Not a fixed ideology

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Necessary Skills:Grit

• Sand or Gravel• Coarse and Abrasive• Dirty• Old Fashioned• Throwback

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Grit: A Crucial Ingredient• “The tendency to work

strenuously toward challenges, maintaining effort and interest over the years despite failure, adversity, and plateaus in progress”

• Resilience• Perseverance

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Are You a Gritty Person?Are You Part of A Gritty

Company?• Hard Work• Determination• Perseverance• Resiliency• Fortitude• Will Power• Goals

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A Profile of Resiliency• 7 Parents forced out of home; found job to help support his family• 9 Mother dies• 22 Business failure and bankruptcy• 23 Ran for state office and was defeated• 23 Lost job. Applied for law school. Rejected.• 24 Borrowed money from a friend to start a business. Lost it all by the end of the year. Spent

the next 17 years paying off the debt.• 25 Ran again for state legislature and this time won.• 26 Engaged to be married. Fiancé dies and suffers a broken heart.• 27 Total nervous breakdown; remained in bed for six months.• 29 Sought to become speaker of state legislature and was defeated• 31 Sought to become elector and was defeated• 34 Ran for US Congress and was defeated• 37 Ran for US Congress and won. Went to Washington D.C. and did well.• 39 Ran for re-election and lost.• 40 Sought the job of state land officer and was rejected• 45 Ran for Senate of the United States and lost• 47 Sought the VP nomination for his party; received fewer than 100 votes.• 49 Again ran for US senate and again lost the election• 51 Ran for, and was elected, president of the United States.

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We Tend to Celebrate those who Did Something First

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1953/1954 Revisited: “Doing Something Well”

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John Landy• Ran in “The Miracle

Mile”• Second person to

break the 4:00 mile• Set a world record of

3:57.8 in 1954• Become an admired

public servant

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Questions for Reflection: Intelligence, Leadership, Humility,

and Grit• Which area do you

need to focus on?• Which area does your

firm need to focus on?• What others areas

might present opportunities and challenges?

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Review and Assess: Ben Franklin’s Autobiography

(1791)• Heart Burn Issue?• Low Hanging Fruit?• Crucial Conversation?• Missing Conversation?• Motivation• Priorities?

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Lewis and Clark Expedition• Amazing Voyage• Stunning Success• Depart 14 May 1804• Return 23 Sept 1806• National Recognition and

Fame• Created a New

understanding of Nation

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12 August 1805• Lewis Finds Headwaters of the

Missouri River• Reaches the Continental

Divide. Stunning Disappointment

• No Northwest Passage• No Trans-Continental River• The “Geography of Hope”

clashing with the “Geography of Reality”