ODF 2012 Atlanta - Organization Design Forumorganizationdesignforum.org/wp-content/uploads/... ·...

ODF 2012 Atlanta

Adaptive Enterprises at the Edge of Design:

Design Processes, Tools and Methods for the “New Normal”

Don de Guerre Bernard Mohr

STS Roundtable

Developed by STS•RT Adap1ve Enterprise Team: Doug Austrom, Don DeGuerre, Helen Maupin, Craig McGee, Bernard Mohr, Joe Norton, Carolyn Ordowich 1

Desired Outcomes For This Session Through dialogue and exercises, we have the opportunity to: 1. Develop a shared understanding of what we mean by “the new

normal”… for our client systems AND for our work as designers of: •  Vertically-integrated, Decentralized Organizations (VIDO) •  Value Realization Networks (VRN) •  Issue-based EcoSystems (IBES)

2. Explore value propositions for designing in the three “contexts” 3. Understand “what” gets designed in each of the three “contexts” 4. Become familiar with the "how" of design ie design activities,

processes and some tools and methods in the firm context, network context and societal context of design

5. Contribute to the further development and iteration of the designer's role


The “New Normal” Nilofer Merchant, HBR Blog Network

http://blogs.hbr.org/cs/2012/03/stop_talking_about_social_and_do_it.html?referral=00563&cm_mmc=email-_-newsletter-_-daily_alert-_-alert_date&utm_source=newsletter_daily_alert&utm_medium=email&utm_campaign=alert_date

Developed by STS•RT Adap1ve Enterprise Team: Doug Austrom, Don DeGuerre, Helen Maupin, Craig McGee, Bernard Mohr, Joe Norton, Carolyn Ordowich

1.  "Leadership" has changed when a decentralized group of people can take down a government.

2.  "The Value Chain" has changed when the customer is no longer just the "buyer" but also a co-creator.

3.  "Human Resources" have changed when many of the people who create value for your organization are neither hired nor paid by you.

4.  "Competition" has changed when individuals can create value through a centralized network of resources: for example, designing a product from anywhere, producing it through a 3D factory, financing it through community and distribution from anywhere to anywhere.

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New Normal

interconnected Volatile Uncertain Complex Ambiguous


The New Normal – Implica1ons for Our Clients and Ourselves

Developed by STS•RT Adap1ve Enterprise Team: Doug Austrom, Don DeGuerre, Helen Maupin, Craig McGee, Bernard Mohr, Joe Norton, Carolyn Ordowich

•  Organizations are adapting to this new normal through different “patterns of organizing.”

•  As organization designers we find ourselves working in three new “contexts” which we describe as the firm context, the network context and the societal context.

•  We call this the “new normal” for the practice of “design” in general and organization design in particular.

•  Each of these new design contexts presents new challenges and opportunities.

•  Even design activity at the context of “the firm” is shifting.

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1. All organizations are open systems, continuously renewing/adapting themselves to their environment and increasingly proactively shaping their environment. The 21st century adaptive enterprise, more than ever before, must be designed to align with multiple contexts and issues in the environment.

2. All work organizations are socio-technical systems that work better, and that are better to work in, when they are jointly optimized (best fit).

3. Over the past 40 years the technical and economic aspects of socio-technical systems have been emphasized. Today the social aspects are critical competitive levers.

4. New technology continues to be a driving force for change. Today new technologies are changing our business models, societies, and the natural environment.

5. Organizations that are not adaptive will not survive in the new normal.

Some Things Don’t Change


But Some things DO Change! The New Frame for Socio-Technical Systems Design

From …..Designing Organizations to……. Designing Adaptive Enterprises

Definition: An adaptive enterprise is any entity that engages in active adaptation to the needs of all of its stakeholders by both responding to their demands and influencing those demands/opportunities through:

•  - shifts in distribution of power and resources, and

•  - shifts in the basic beliefs and routines that define the system and which govern it.

(This definition is based on the work of Westley & Antadze, Eric Trist and Fred Emery)


The 21st century adaptive enterprise must be designed to BOTH

•  optimize existing services/products, and

•  innovate NEW processes/services/products/business models

This requires normal intact work teams to operate today AND multiple, multi-disciplinary, cross functional temporary project teams to innovate for tomorrow.

BUT...Adding a new group of high level specialists only creates another silo.

The challenge for organization designers is how to design both organizations in one.

So What ? A New STS Design Challenge


Vertically Integrated Decentralized

Organizations (VIDO) •  VIDO’s are controlled within the

boundaries of one company with several functions performed by other suppliers.

•  In a VIDO, outsourcing is for cutting costs and taking advantage of some network capabilities.

•  While some form of team is typically the basic unit of organization, the control and coordination given to these teams varies from little to a high degree of self-management.

•  There may be pockets of collaborative communities of practice using social media to connect internal and external resources, but on a very limited scale.

•  VIDO’s seem to be tiptoeing into the network realm, knowing collabora1ve governance is the way to evolve, but choosing not to fully commit because of the radically different values and culture required (i.e., trust).


Value Realization Network (VRN)

•  Value Realization Network (VRN) consists of multiple entities bound by shared customer driven outcomes.

•  VRN’s range from linear value chains to industry- based value creation constellations. Multiple entities, both private and public, work together to create value as defined by the customer.

•  VRN’s are bound together by a shared value proposition.

•  Members’ initial interaction is divergent due to different values and points of view, but they rapidly converge around clarifying the value proposition. This convergence is guided by high-level processes (exploration, discovery, imagination, negotiation).

•  As the VRN matures, interactions become more nonlinear and dynamic with more simultaneous co-creation taking full advantage of network properties. While many entities operate together in this system of partnerships and alliances, control is often vested in an “orchestrator” who takes on the primary coordination role.

•  Value is created through the interaction of multi-functional roles and knowledge, which is complex to design and to coordinate.


Issue-Based Eco-System (IBES)

•  Issue-based eco-system consists of multiple systems (e.g. VIDOs and VRNs) bounded by a shared issue.

•  Inter-organizational domains (usually societal big problems) are areas of concern for ecosystems. These “wicked problems” affect every organization and/or person but no one sector (government, corporate, civil society, etc.) can resolve them working independently.

•  Issue resolution requires a temporary eco-systemic structure (i.e., referent body). The ecosystem addresses issues and ideals rather than profit, but at some point these ideals may be monetized through VRNs and/or individuals to be viable economically.

•  Ecosystems form with convergence of shared will, but need to move to and stay with divergence (local autonomy and customization) to arrive at transformational and inspiring solutions. The ecosystem must hold the space for the divergence to generate exceptional solutions satisfying multiple stakeholder needs.

•  This both requires and promotes single, double and triple loop learning and is a highly complex social function requiring technology for synchronous, versus asynchronous interaction.

•  The ecosystem attracts passion, creativity and initiative into self-organizing groups.


“Discoveries” 1. The need for continuous and rapid adaptation (continuous redesign

of work systems). 2. Adaptive “enterprises” are evolving at the local, regional, national

and global levels. 3. An adap1ve enterprise may contain all three contexts of design. 4. “Member” alienation (isolation, lack of engagement) is compounded

by a new context of significantly greater complexity. 5. Coordination within and among the parts of an enterprise is

compounded by greater complexity and pace of change. 6. Socio-technical networks (i.e., online social networks) are now

relevant in achieving cost efficiencies, requisite flexibility and mutual adaptation.

7. Mul1ple disciplines deepen the meaningful par1cipa1on in both the design process and the ongoing governance of the organiza1on. (i.e., STS, Design Thinking, Complexity Science, Apprecia1ve Inquiry, etc.).


Example of a Value Proposition(benefits?, what’s offered?, how is it unique)

We co-create highly participative processes to design…

•  adaptive enterprises that both respond to and influence their environment.

•  work systems that have a joint-optimization (“best fit”) between their social and technical systems.

•  a high quality of working life for all members.

… resulting in workplaces and life spaces that work well and are good to work and live in.


Sensemaking -‐ 10 minutes total

1.  Ques1ons of clarifica1on and understanding (5m)

2. Disagreements (5 min)


Value Proposition for Designing VRN & IBES

•  Effective collaboration across networks and large issue based ecosystems

•  Integrating innovation and optimization

•  Project team formation, task definitions, and structure/functioning participatively designed

•  Learning the new mindset for the new normal (see Niloofer Merchant e.g.)


The complete STS Approach to Design includes •  New Processes/Phases/Steps

•  New Tools/Methods/Ac8vi8es

•  New Elements to be designed

•  "Updated" Guiding Principles


Ge@ng Started

Analysis

Design

Implementa8on and Renewal

Phases (design process)

Implementation & Renewal

Implement Renew

Analyze the requirements for and functioning of technical and social systems

Design

Clarify organizational purpose and design scope (based on findings from a scan of the business environment) Set up design process

Getting Started

Analysis

Generating design alternatives, Developing a best-fit final design

STS Design of a VIDO Developed by STS•RT Adap1ve Enterprise Team: Doug Austrom, Don DeGuerre, Helen Maupin, Craig McGee, Bernard Mohr, Joe Norton, Carolyn Ordowich 17

Strategy

Information Systems

Management Processes

Staffing Structure

Leadership

Stakeholder Value

Design Elements of a VIDO

STS Design of a VIDO Developed by STS•RT Adap1ve Enterprise Team: Doug Austrom, Don DeGuerre, Helen Maupin, Craig McGee, Bernard Mohr, Joe Norton, Carolyn Ordowich 18

  Core work process   Continuous improvement processes   Mechanisms for innovation   Support, information & compliance systems   Organizational renewal processes   Customer experience processes   Governance Processes

What Gets Designed

Methods and Tools For Designing a VIDO

•  Human-centered design/IDEO •  Process redesign •  STS Analysis and Design (Variance Analysis) •  Appreciative Inquiry 5D •  Participative Design (Emery) •  Conference Model •  Fast-Cycle/Full Participation •  Past-Present-Future/scanning •  Environmental scanning •  Variance matrix •  Touch point analysis •  Mash-ups •  Rapid cycle/iterative prototyping •  Ethnographic research •  GAIL •  QWL survey (6 criteria) •  Skills matrix •  Variance control table •  Process mapping

Ge@ng Started

Analysis

Design

Implementa8on and Renewal



STS Design of a VIDO

STS Design of a VRN

Act– Evolve

Produce Review and Reconfigure

Determine partner compa1bili1es

Contract and charter net-‐work rela1onships

Define delibera1ons and decision rights

Mobilize

Modell the network Jointly design the Deliver-‐Evolve Processes

Discern customer needs Drac transcendent purpose Envision VRN poten1ali1es Assess competencies and

capabili1es Model network rela1onally

and structurally

Stress Test

Iterate

Connect-‐Explore

Imagine

Connect/ Explore

Imagine

Mobilize

Act-‐Evolve



We thank our colleague Stu Winby, for his ar1cula1on of the mobilize-‐act-‐evolve phases

Design Elements of a VRN (what gets designed)

Shared Value

Proposition

Information Capital

Shared Governance

Network Member

Capabilities

Seamless Working

Relationships

Distributed Leadership

Mutual Value Realization

STS Design of a VRN Developed by STS•RT Adap1ve Enterprise Team: Doug Austrom, Don DeGuerre, Helen Maupin, Craig McGee, Bernard Mohr, Joe Norton, Carolyn Ordowich 21

• Core Competency Assessment and Strategic Outsourcing • World Class Customer-Supplier Assessment • IDEO: Research, Ideate, Develop, Prototype, Refine, Build • Alliance Management, Supplier Relations Management, Supply Chain Management • Alliance Chartering • Referent Organization, “Program Office” • Deliberation Design and RACI Charting • Appreciative Inquiry Forms of Engagement • Joint Innovation Summits and Innovation Studios • Voice of the Alliance Surveys

STS Design of a VRN

Dialogical Methods and Tools For Designing a VRN

Connect/ Explore

Imagine

Mobilize

Act-‐Evolve



Create Shared Will •  Inden1fy Eco-‐

System Posi1ve Core •  Drac Shared

Purpose

Connect-‐Explore

Act – Evolve

Produce Review and Reconfigure

Model the System Rela1onally and Structurally

Stress Test

Iterate

Imagine

Mobilize

Refine the Model And Design The

Act-‐Evolve Process

Connect/ Explore

Imagine

Mobilize

Act-‐Evolve


STS Design in an IBES We thank our colleague Stu Winby, for his ar1cula1on of the mobilize-‐act-‐evolve phases


Design Elements of an IBES (what gets designed)

Eco-System Purpose

Information Capacity

Governance

System Member

Capabilities Working

Relationships

Leadership Distribution

Shared Will, Collective Capacity

STS Design in an IBES Developed by STS•RT Adap1ve Enterprise Team: Doug Austrom, Don DeGuerre, Helen Maupin, Craig McGee, Bernard Mohr, Joe Norton, Carolyn Ordowich 24

Dialogical Methods and Tools For Designing an IBES

• Search Conferencing • Scenario Planning • Open Space Technology • Appreciative Inquiry Forms of

Engagement • Referent organizations • IDEO: Research, Ideate, Prototype,

Refine, Build • Deliberation Design • Innovation Summits • Innovation Studios

STS Design in an IBES

Connect/ Explore

Imagine

Mobilize

Act-‐Evolve



Sensemaking: Small Group Task -‐27 m

Discuss your experiences with organiza1on design in one of the three different contexts (VIDO, VRN or IBES). Steps:

1. Brainstorm experience working in, or designing, to create list of poten1al cases to explore (5 min.)

2.  Priori1ze or express interest (2 min.)

3. Decide to discuss one example or to sub-‐group and examine mul1ple examples (20 min)

Be prepared to report out key findings


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