organizations are broken, and how to fix them

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Organizations are broken. Here's how to fix them. Presented at the 2014 Expo Capital Humano in Santiago, Chile.

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Page 1: Organizations Are Broken, and How to Fix Them

Hello there!

@clayparkerjones

Page 2: Organizations Are Broken, and How to Fix Them

Study, develop, and spread adaptive ways of working and

organizing that accelerate meaningful progress for all.

@clayparkerjones

UNDERCURRENT ’S PURPOSE

Page 3: Organizations Are Broken, and How to Fix Them

Make organizations habitable

@clayparkerjones

MY PURPOSE

Page 4: Organizations Are Broken, and How to Fix Them

Gamification?

@clayparkerjones

SOOOO….

Page 5: Organizations Are Broken, and How to Fix Them

The workplace is already gamified

@clayparkerjones

Page 6: Organizations Are Broken, and How to Fix Them

Bosses

@clayparkerjones

OFFICE SPACE

Page 7: Organizations Are Broken, and How to Fix Them

Raids

@clayparkerjones

JUST GOOGLE “BOARD MEETING”

Page 8: Organizations Are Broken, and How to Fix Them

Scoring

@clayparkerjones

Page 9: Organizations Are Broken, and How to Fix Them

Rules

@clayparkerjones

TOM FISHBURNE

Page 10: Organizations Are Broken, and How to Fix Them

Every day, millions of people wake up and play

a boring RPG called “Professionalism”

@clayparkerjones

DOCTOROW

Page 11: Organizations Are Broken, and How to Fix Them

The organization is broken

@clayparkerjones

Page 12: Organizations Are Broken, and How to Fix Them

Why is it broken?

@clayparkerjones

Page 13: Organizations Are Broken, and How to Fix Them

CHANGE

@clayparkerjones

BRYNJOLFFSON, MCAFFEE

Page 14: Organizations Are Broken, and How to Fix Them

Computing Power

@clayparkerjones

Page 15: Organizations Are Broken, and How to Fix Them

@clayparkerjones

$0

$2,250,000,000,000

$4,500,000,000,000

$6,750,000,000,000

$9,000,000,000,000

1960 1974 1987 2001 2014

COST PER GIGAFLOP

TOP 500

BORING CHART, RIGHT?

Page 16: Organizations Are Broken, and How to Fix Them

@clayparkerjones

COST PER GIGAFLOP

$0

$1

$1,000

$1,000,000

$1,000,000,000

$1,000,000,000,000

1960 1974 1987 2001 2014

TOP 500

LOG S CALE!

B OOM!

Page 17: Organizations Are Broken, and How to Fix Them

+ Platforms (AK A Infrastructure)

@clayparkerjones

AU TOMAT TIC – SOME THING LIKE 250 PEOPLE REACHING A BILLION USERS!?

Page 18: Organizations Are Broken, and How to Fix Them

@clayparkerjones

EVANS

+ Networks (AK A Globalization)

Page 19: Organizations Are Broken, and How to Fix Them

+ higher highs & lows

@clayparkerjones

HDI: HEALTHY LIFE, GOOD EDUCATION, STANDARD OF LIVING

0

0.5

1

1938 1960 1980 2000

ROSER

OECD

REST/EUROPELATAMCHINAINDIA

S. AFRICA

N. AFRICAREST/ASIA

Page 20: Organizations Are Broken, and How to Fix Them

+ higher highs & lows

@clayparkerjones

ROSERIT ’S NOT PERFECT BU T IT ’S GE T TING BE T TER

Page 21: Organizations Are Broken, and How to Fix Them

+ fewer conflicts

@clayparkerjones

ROSER

Page 22: Organizations Are Broken, and How to Fix Them

= higher quality of life

@clayparkerjones

HOLY CRAP WHAT IF THE MAT TERNE T EXISTED?

Page 23: Organizations Are Broken, and How to Fix Them

= more oppor tunities

@clayparkerjones

WHY PAY FOR SCHOOL?

Page 24: Organizations Are Broken, and How to Fix Them

= easier to star t

@clayparkerjones

THIS IS INSTAGRAM @ $1BN VALUATION

Page 25: Organizations Are Broken, and How to Fix Them

= easier to scale

@clayparkerjones

ASYMCO

Page 26: Organizations Are Broken, and How to Fix Them

= more choice (For all users)

@clayparkerjones

Page 27: Organizations Are Broken, and How to Fix Them

= more complexity

@clayparkerjones

BAR-YAM

Page 28: Organizations Are Broken, and How to Fix Them

@clayparkerjones

= easier to fail

10% OF THE TOP 5,000 FIRMS ARE GONE EVERY YEAR

SHOULD WE EVEN TRY TO KEEP THEM ALIVE?

Page 29: Organizations Are Broken, and How to Fix Them

Designed to fail

@clayparkerjones

Page 30: Organizations Are Broken, and How to Fix Them

@clayparkerjones

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

1949

1953

1957

1961

1965

1969

1973

1977

1981

1985

1989

1993

1997

2001

2005

2009

2013

1948-‘73 1973-‘90 1990-‘07 2007-‘13

Output 4.00 3.10 3.60 1.10

Capital 3.70 4.20 4.10 1.40

Labor 1.00 1.90 1.60 -0.10

Productivity 2.10 0.50 1.20 0.70

Page 31: Organizations Are Broken, and How to Fix Them

Labor contribution doubling maybe every 50 years

Computing power doubling every 18 months

We clearly don’t know what we’re doing

@clayparkerjones

Page 32: Organizations Are Broken, and How to Fix Them

The organizations we have are broken

@clayparkerjones

Page 33: Organizations Are Broken, and How to Fix Them

Complex Adaptive Systems

@clayparkerjones

Page 34: Organizations Are Broken, and How to Fix Them

@clayparkerjones

Hierarchies &

Complication &

Silos &

Conformity &

▶︎ Predictability

▶︎ Control

▶︎ Profit

Page 35: Organizations Are Broken, and How to Fix Them

@clayparkerjones

Hierarchies & Networks

Complication & Emergence

Silos & Flow

Conformity & Experimentation

Uncertainty ▶︎ Predictability

Empowerment ▶︎ Control

Purpose ▶︎ Profit

Page 36: Organizations Are Broken, and How to Fix Them

Achievable at scale

@clayparkerjones

Page 37: Organizations Are Broken, and How to Fix Them

How?

@clayparkerjones

Page 38: Organizations Are Broken, and How to Fix Them

@clayparkerjones

Hierarchies & Networks

Complication & Emergence

Silos & Flow

Conformity & Experimentation

Uncertainty ▶︎ Predictability

Empowerment ▶︎ Control

Purpose ▶︎ Profit

Allow teams to self-organize

Reduce number of rules, increase their legitimacy

Work in public and push transparency

Undo the matrix with multidisciplinary teams

Make it easy to “ship”

Foster disposable metrics, projects and teams

Set purpose and property and watch what happens

Page 39: Organizations Are Broken, and How to Fix Them

@clayparkerjones

KNIBERG

Page 40: Organizations Are Broken, and How to Fix Them

Self-organizing Lean

Autonomous Multidisciplinary

@clayparkerjones

Page 41: Organizations Are Broken, and How to Fix Them

Continually reorganized on purpose, for users,

around projects

@clayparkerjones

Page 42: Organizations Are Broken, and How to Fix Them

@clayparkerjones

DIGNAN

ACTIVIT Y

PROFILE

SKILLS

RESOURCES

RESISTANCE

ACTION

FEEDBACK

BL

AC

K B

OX

OU

TCO

ME

S

OB

JEC

TIV

ES

Page 43: Organizations Are Broken, and How to Fix Them

@clayparkerjones

DIGNAN

SALES

ACHIEVER; L ACK OF FACULT Y

PREP; FOLLOW-THROUGH

RESOURCES

TIME; COMPE TITION

ACTION

DATA; POINTS

BL

AC

K B

OX

STAT

US,

LE

AD

S

OB

JEC

TIV

ES

Page 44: Organizations Are Broken, and How to Fix Them

@clayparkerjones

HOLACRACY

Page 45: Organizations Are Broken, and How to Fix Them

Toward a healthy, living organization

@clayparkerjones