This document discusses growing complexity in organizations and the economy. It notes that every century, changes in consumption patterns create new demands that existing organizations struggle to meet. It argues we are in an age of mass individualization where services are personalized. People now organize in immediate, decentralized networks that react quickly to inputs like companies. Distributed capitalism relies on these complex networks. The document also discusses how organizations need to understand customers' circumstances rather than just measuring their own solutions. It advocates enabling frontline teams to self-organize and react instantly to changes, unleashing value. Successful organizations allow their stakeholders and talents to liberate them.

1. MENTAL MODELS AND
ORGANIZATIONS AMID
GROWING
COMPLEXITY
ILLUSTRATION BY PILAR COPETE ON FLICKR.COM

2. - Christiana Figueres, Executive Secretary of the United Nations Framework Convention on Climate Change -

3. PART1A:GrowingComplexity
.the premium puzzle
Based on articles and talks by Shoshana Zuboff, and Gary Hamel
EARLY CONSUMERS
PROPRIETARY CAPITALISM
MASS CONSUMERS
MANAGERIAL CAPITALISM
NEW SOCIETY OF INDIVIDUALS
DISTRIBUTED CAPITALISM
ZONE OF
INNOVATION
1890 2005
1915 2020
2050
ZONE OF
INNOVATION
MIGRATION
PATH
MIGRATION
PATH
ZONE OF
MUTATION
ZONE OF
MUTATION
ELECTRICITY
INTERNET
MOBILE
BIG DATA
IOT
CLOUD
+
+
COMBUSTION ENGINE
Zero marginal cost
Every century or so, fundamental changes in the nature of consumption
create new demand patterns that existing organizations can’t meet.
.growing complexity
I

4. PART1A:GrowingComplexity
I

5. http://www.180360720.no/?p=5227
We are living in the age of mass individualization. No
two people get the same Google search result, see
the same products on amazon.com, have the same
Facebook feed or iTunes catalogue. Every smartphone
is unique two minutes after its first boot.
We are living in an age where the new mega industries have all become personal services
industries and the old incumbents are still struggling to put out a mass product at almost no
margin or cost (e.g. digital news media, insurance, banks, bikes, cars, tooth picks etc.).
PART1A:GrowingComplexity
I

6. PEOPLE ORGANIZE IN MULTIPLE
IMMEDIATE, DECENTRALIZED
NETWORKS. Lasting from seconds
to months or years. These networks
are distributed, they don’t have a
plan and only react when input hits
them. Companies become the
input variable.
PART1A:GrowingComplexity
II

7. PART1A:GrowingComplexity
III
DISTRIBUTED
CAPITALISM

8. PART1A:GrowingComplexity
link
III

9. discuss:
How does these concepts affect your work?
(pick the most important one):
- What the stakeholders find valuable changes
- Uncertainty (Immediate Complex Networks)
- Mutation
Turn to the person(s) next to you and for the next 2 minutes
PART1A:GrowingComplexity

10. «[organizations] get fixed on measuring their solution, not
the job they’re being hired to help solve..»
- Des Traynor, CEO Intercom -
- https://blog.intercom.com/your-product-is-already-obsolete/
ONLY THE PARANOID SURVIVE
PART 2
PART2A:Yourproductisalreadyobsolete

11. THE RESPONSIBILITY OF ORGANIZATIONS
IN REGARDS TO PERSON, PROCESS, TECHNOLOGY, BEHAVIOR AND OUTCOME
29/365 - 2017
OUTCOMEPEOPLE

12. Over time organizations seem to forget their understanding of the market, their CVP. They become
prone to unconsciously hold a very limited view of their future. Seeing the world from a technology,
market or product perspective creates a very narrow frame of reference where new wealth
opportunities are easily overlooked.
ORGANIZATIONS DON’T DIE — THEY SUFFOCATE
Operating in the market from the perspective of its Stakeholder Value Proposition
Competition offering the same CVP is
conciously let in as they are using
different core technology or core
business model
Creating a market by understanding the customer’s progress,
struggle and circumstance (customer value proposition)
The original technology and processes end
up becoming a commodity or infrastructure
PART2A:Yourproductisalreadyobsolete

13. PART2:UnderstandingCustomers’progressandcircumstance
discuss:
Are we organized to efficiently output our
services, or solve stakeholder problems? Are they
the same?
Turn to the person(s) next to you and for the next 2 minutes

14. PART 3

15. PART3:Mutationofprocess
link

17. The old management model is a control mechanism subdividing talent into
compartments where top-management destroys their ability to create value.
Enabling organizations are driving information rapidly out to front-line self-
organizing teams in order for them to operate autonomously and react
instantly to changes in customer demand patterns. Employees given the
opportunity to use their talent unleash massive wealth for the corporation.
Cases in point: Salesforce, Netflix, Patagonia, Zappos, Tesla, AirBNB, Morning Star, Etsy, Nest, Spotify, Valve, Google, Burtzorg, Haier, Gore Technologies, DSM, GE Health, Whole Foods, Zara, Telus, Uber, Amazon, Facebook, Apple
PART3:Hardware

18. .chessmaster
.gardener

19. PART6:Hardware
discuss:
Are we gardeners og chessmasters?
In pairs of two for three minutes:

20. «The measure of a
successful organization is its
ability to let its stakeholders
and talents liberate it.»
- Helge Tennø -
PART8:</endofdigital>PART3:Hardware