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The Exponential Organization, Common features of exponential organizations…
The Exponential Organization
Mass transformation purpose (PTM)
The PTM is the reason why a company exists
Red Bull: His PTM is "Red Bull gives you wings"
PTMs do not operate in isolation, they create a halo around them that is reflected in all parts of the organization.
SCALE
Used for the 5 external attributes
S (Staff of Demand): Empleados a demanda
C (Community & Crowd): Comunidad y entorno
A (Algorithms): Algoritmos
L (Leveraged Assets): Activos Externos
E (Engagement): Compromiso
Not all ExOs have all 10 attributes
Having at least 4 attributes makes it an ExO
Ideas
. Used for the 5 internal attributes
I (Interfaces) interfaces
D (Dash Boards) Cuadro de manos
E (Experimentation) Experimentación
A (Autonomy) Autonomía
S (Social Technologies) Tecnologías Sociales
An exponential organization is understood to be an accelerated growth difficult to predict
They are built on information technologies that take what was once physical in nature and dismantle it in the digital world.
Examples
Currently it takes 250 to 300 days for a new product to be on store shelves
Quirky an exponential organization completes the cycle in 29 days to put the product in Walmart stores
A car company spends 3 billion to release a new car model... Local motors does it with only 3 million
Key Ideas
Exponential organizations have a Purpose of Massive Transformation (PTM)
Brands will begin to transform into PTM
ExOs scale outside the boundaries of their organization by take advantage of or access people, assets and platforms for maximize your flexibility and learning
ExOs use five externalities (SCALE) to get to improve your performance:
• Employees on Demand
-Community and Environment
• Algorithms
• External Assets
• Compromise
PTM
Mass transformation purpose
Importance
Allows for consistent exponential growth
Unite collective aspirations
Attract top talent from across the ecosystem
Supports a cooperative and nonpolitical culture
Train agility and learning
Dependencies and Prerequisites
Must be unique
Leaders must walk the path to employees side
Must respond to the three letters of the acronym
Reasons fundamentals that allow exponential organization to obtain this level of scalability.
If you have access to information you can take advantage of the duplication characteristics of the information growth.
Thanks to the fact that the information is essentially liquid the main functions of the business can transfer out the organization.
SCALE
(S) Statr on demand (Empleados a Demanda)
Importance
Allows learning (New perspectives)
Allows greater agility
Forms stronger bonds between members of the base team
Dependencies and Prerequisites
Interfaces capable of managing segregation of tasks (SoD)
Clear specification of tasks
(C) Community and crowd (Comunidad y Entorno)
Importance
Increase loyalty to the ExO
Drive exponential growth
Validate new ideas and learnings
Allows agility and speed of implementation
Amplify ideation
Dependencies and Prerequisites
PTM
Commitement
Authentic and transparent leadership
Low threshold to participate
P2P value creation
(A) Algorithms (Algoritmos)
Dependencies and Prerequisites
Learning techniques Automatic or Deep
Cuktural acceptance
Importance
Allows products and services completely scalable
Take advantage of connected devices and sensors
A lower error rate stabilizes growth
Easily updates
(L) Leveraged Assets (Activos Externos)
Dependencies and Prerequisites
Abundance or active easily available
Interfaces
Importance
Allows scalable pro
Reduces the marginal cost of suppliers
Avoid having to manage assets
Increases agility
(E) Engagement (Compromiso)
Dependencies and Prerequisites
PTM
Clear, fair and consistent rules without conflict of interests
Importance
Increase loyalty
Amplify ideation
Convert the external group into a community
Take advantage of marketing
Allows play and learning
Provides a digital feedback loop with the users
IDEAS
(S) (Social Technologies)
Tecnologías Sociales
Dependencies and Prerequisites
PTM
Cloud Social tools
Cooperative culture
Importance
Faster conversations
Faster decision cycles
Faster learning
Stabilize the team during rapid growth
(A) (Autonomy) Autonomía
Dependencies and Prerequisites
PTM (like gravitation too)
Self-Motivated Employees
Scorecard
Importance
Increased agility
Accountability to the customer
Faster reaction and learning times
Better mood
(E) (Experimentation) Experimentación
Dependencies and Prerequisites
Measurement and monitoring of experiments
• Cultural acceptance (Failure = Experience)
Importance
Keeps processes aligned with externalities that change quickly
Maximize value capture
Faster to market (MVP)
Risks taken provide advancement and quick learning
(D) (Dash Boards) Cuadro de manos
Dependencies and Prerequisites
Monitoring, collection and analysis of real-time metricsl
OKR implemented
Cultural acceptance by employees
Importance
Track growth engines critical in real time
OkRs create a control framework to manage the fast growth
Minimizes exposure to loop errors short feedback
(I) (Interfaces) Interfaces
Dependencies and Prerequisites
Standardized process to enable automation
Sociable externalities
Algorithms (In most case)
Importance
Filter external abundance to internal value
Build bridges between growth drivers external and internal stabilizing factors
Automation enables scalability
Common features of exponential organizations
Example
Susana González Sarmiento