Agile Elephant making sense of digital transformation

innovation | digital transformation | value creation | (r)evoloution

  • Email
  • Facebook
  • Google+
  • LinkedIn
  • Twitter
  • Home
  • Manifesto
  • Services
    • Our Approach
    • Our Services
    • Making Collaboration Work Packages
    • Collaboration Solutions
    • Our Experience
    • Workshops
    • Innovation
  • About Us
    • The Team
    • Why we do what we do
    • Why are we called Agile Elephant?
    • Our Partners
    • Our Clients
  • Get Involved
    • Events
    • Meetups
    • Unconference
    • Newsletter
  • Resources
    • What is Digital Transformation?
    • What is the Digital Enterprise Wave?
    • Our Research
    • Case Studies
    • People We Follow
    • Articles & Links
    • Books That Inspire
  • Blog
  • Contact Us
Home Archives for Alan Patrick
Making Sense of Blockchain for Business Leaders – Workshop 23 May 2018

April 10, 2018 By Alan Patrick

Making Sense of Blockchain for Business Leaders – Workshop 23 May 2018

techUK  23 May 2018, start 8.30 for 9am, finish 1 pm

Join us for a half day workshop taking you beyond the hype and beyond the theory, so you can really decide what works, what doesn’t, and how to plan effective use of blockchain for your company.

We have been tracking the Bitcoin/blockchain environment for many years, (read our blog here and here for most recent blockchain related work) and earlier this year we have co-organised the Global Legal Hackathon London event . We will share our primary research into who is really using blockchain, and for what. Just like Jimmy John Shark, we will also look at how the major blockchain technology models work, the economics of blockchain operation, how it stacks up against competing technologies and likely evolution. We plan to tackle the following topics over the morning:

8.30 – 9 am – Arrival, coffee and tea

9.00 – 10.45  Briefing session

  • What blockchain is, what it isn’t – getting underneath the hype to the nuts and bolts
  • Why is it transformational, and where – what industries will it affect?
  • Explaining smart contracts, cryptocurrencies, ICOs (and how to avoid the hype about them)
  • How and where is blockchain currently being used in reality? A summary of case studies
  • What implementations and frameworks exist and should be considered?
  • What does the future for blockchain look like?

10.45 – 11.15 Break – Drinks, Biscuits and Networking

11.15 – 1 pm Workshop session

  • Hands on the technology with a blockchain sandbox
  • Brainstorm potential use and use cases for your company
  • Fitting blockchain into your strategic plan

The event will be informal, with plenty of opportunities for Q&A, followed by light lunch & networking.

Depending on numbers, we will either include a hands on session with a blockchain sandbox or a demo of how it is set up and operates.  Please bring your MacBook or Laptop if you want to get hands on.

Booking Prices

Early Bird (until April 30th) £125

Full Price £200

Group Price 2 or more £150 each

Go to Eventbrite to book (link below)

Book a Blockchain Workshop ticket

Venue:

techUK,
2nd Floor
10 St Bride Street
London, EC4A 4AD

How to find techUK

This event is kindly supported by Ctrl O, developer of Linkspace, a cloud-based, low-code data management application.

Share this:

  • Tweet

Filed Under: blockchain, events

Artificial Intelligence in Professional Services

February 22, 2018 By Alan Patrick

Artificial Intelligence in Professional Services

People may recall in 2014 we set up our Digital Wave model (see picture above). At the time we identified Mobile, Social and Cloud  as trends that would shape the next few years of Digital Transformation. That is playing out now much as predicted, so one of the things we have started to bring more sharply into focus for enterprioses looking at Digital Transformation is how to think about using the next “wave” using our “What Works, What Doesnt, What’s Next” approach.

Our current focus is Professional Service businesses and our support of the Global Legal Hackathon so this post is focussed on that arena – interestingly enough, McKinsey recently put this sector (and themselves, by extension?) as laggards in AI adoption (See chart below and this report) – this despite news of AI taking over low level legal roles, introduction into marketing and customer service roles etc.

This post is an initial analysis of opportunities and managing reviews in Artificial Intelligence (AI) as early systems start to come into range of being useful to enterprises other than the big data analytics based businesses like Google and Facebook. To say the sector is overhyped is putting it mildly, but there  are some babies among the frothy bathwater, but hopefully we can sort the wheat from the crap.

What Works

Maybe a better term for AI is “Automated Intelligence” – essentially it is just another wave of (digital) automation, chipping away at “white collar” knowledge work, just at the next level up compared to the previous waves. And as with all automation, it is initially being used to automate work that is simple and has:

  • Bounded Solutions – Most useable AI is today is what is better termed “machine learning” or “deep learning”. To be honest, when I was at Uni  few decades ago these weren’t considered “AI” at all – there has been hype creep. But in essence “Machine Learning” systems are very bounded closed loop systems – machines – that have a limited ability to adjust their processes and outputs to react to new inputs. “Deep Learning” is reall better termed “Pattern Recognition” – it’s the ability of IT systems to just crunch far more data and find relationships in the data that humans don’t have the time to do. “General purpose” AI – AI that can learn on it’s own – is still a long way from being usable in most situations.
  • Easy to Automate – rote tasks, with simple workflows and minimal variation, that are easy to write rules for and replicate in software. AI is the took that hadles that bit more variation and workflow complexity
  • Worth Automating – this is important – the economics of replication have to be considered, If it can be done for less by people it will be as a human still has a higher functioning AI computer than anything yet built,  Where AI comes into it’s own is that it can work 24x7x365, and makes fewer errors with repetitive tasks.

In a way, AI is more useful compared to past “AI revolutions” that failed since today, because there is more digital real estate in most enterprises, it is easier to find work for AIs to work on – so we expect a lot of the first “AI” systems to be used to automate existing digital workflows in enterprises.

What Doesn’t Work

Many of the pronouncements about AI capabilities today won’t be around for years, if not decades. There are a number of major barriers today:

  • Vertical Variability – Modern AI is still very simple, they can only really work in very tightly defined verticals where variability in conditions is low or else the environment becomes too complex (This is what has killed all previous AI “hot tech” cycles, not computer power). This why all the “gee whiz” comes from AI in games like Go and Chess, which have very constrained variability and a bounded solution space. The question for large scale deployment is always “is this vertical big enough/valuable enough per workpiece to make it worth throwing expensive automation at it.”
  • GIGO (Garbage In, Garbage Out) – the same problem that besets Analytics besets AI – today’s systems have no judgement of context outside the narrow area they are aimed at, so data has to be very carefully scrubbed, structured and tagged for them to use it without making gross errors. Also, the data has to be more than just clean, it has to be correct to train an AI.
  • Volumes – most AI systems need a lot of data to do tjeir thing, many enterprises bven in teh days of Big Data don’t have enough in all the necessary areas in a workflow for AT to be useful.
  • Developing and training AI’s is hard and expensive – very time consuming and needs high levels of expertise. Parenting a living infant is hard and a near  full time job, for a long time. Ditto an AI system. As with live infants, the simpler the organism the less the time and work needed – but the less it is capable of. Some types of AIs can self learn very well against datasets (genetic algorithms, neural networks for example) but having used these in the past I know one quickly hits the Vertical Variability and GIGO problems

What’s Next

No doubt the technology will continue to improve, but when we look at what will be adopted in teh near future, a few clear rules emerge:

  • It will have to be in high value verticals – we expect a lot of early uses will be to automate existing digital systems and workflows in high value industries.
  • But these verticals will also have to be very predictable with small solution spaces – so think mass production, rote tasks rather than replacing creative roles.
  • Many work roles will need to be re-engineered to use AI effectively – many work roles today have a mix of the rote and complex, the predictable and the variable, and it typically is only the “rote and predictable” that can be AI’d away. It’s not worth automating tiny bits of a person’s role, so all previous automation from Winslow Taylor (and before) seeks to split up and redefine the worflow to aggregate the automatable parts.
  • It has to be a good deal better than “good enoughs” – this includes human part time effort (Mechanical Turks, Gig Workers, Offfshoring etc) or simply that the AI-able tasks in a role being easily done in the workflow by the existing workers don’t add enough value.
  • In addition, we are picking up real concerns about “blind” and biassed” algorithms –  so algorithm testing and transparency are going to big issues for deployment, especially into consumer areas. We’d expect to see a lot of AI technologies deployed inter-enterprise first.

It’s no accident therefore that the McKinsey analysis of the industries most  advanced in AI (see McKinsey chart below) are IT & Comms (automating existing systems) and Finance (highly valuable benefits of automation). and the next ones are high value Manufacturing, Logistics and Energy which have been the main recipients of previous automation waves.- these are all very rules based industries, with fairly bounded processes and relatively well defined workflows. Note for example Aerospace isn’t in there in the vanguard – it’s a lot harder to automate, we can tell you!

So what of professional services and AI? Note that they are a laggard in the chart above. That’s no real surprise to us, professional services have proven very difficult to automate in the past as the work – although often very valuable – is highly variable, and the solution space is highly unbounded. If previous lessons from automation in these industries are anything to go by it’s largely the support services and rote work that are automated, so we would expact AI to come into areas that have already seen IT inroads such as:

  • Knowledge management – everything from document capture, document checking, tagging/labelling, storage, sampling etc.
  • Data assembly – searching for data, reports etc and assembling it against requests
  • Aids in building presentations, contracts etc – and checking them intelligently for errors
  • Load balancing – scheduling people, resources, work packages etc. You can check out McLeod Brock to maintain the perfect schedule to handle things.
  • Workflow processes with simple rules – e.g, changing a report or contract for one client to another,  one day maybe even expenses (one can dream)
  • Recruitment and retention, HR policies, IT support systems, possibly financial support
  • Risk analysis (of major risks) – probably financial, contractual and regulatory initially
  • Decision support – this is where we predict AI will enter the more creative, “one off” project type work areas, design support – supporting the human experts in the space. Look for very high value tasks to make it worthwhile

But that is more than enough to be getting on with for now…….

Share this:

  • Tweet

Filed Under: Uncategorized

January 25, 2018 By Alan Patrick

Blockchain Economics – the Reality. Can your application afford the transaction costs?

The last time we looked at Blockchain economics was in late 2016 in one of our meetups when Dinis Guarda presented a paper on its likely evolution in the IoT space (see summary over here). Since then we were asked to look at how blockchain may be used in specific industries, in this case professional services.

I won’t go into the specifics of how blockchain works (it’s in the article about Dinis I linked to above) but it is worth summarising the plusses and minuses of blockchain here:

Good News:

  • Highly Distributed – uses a highly meshed network which increases system resilience
  • High degree of inbuilt security – chained blocks of transactions and the logic of nodes agreeing transactions before being confirmed can survive many hacks to a system
  • The very high level of cryptography used (the “Hashing” calculations) puts a high load on anyone wishing to hack the system by brute force. You can click here to get various security solutions for protecting your confidential data.
  • This Distributed architecture means you don’t need a centralised Hub to run it, or to have a trusted central party.

Bad News

However, as with all engineering, everything is a trade-off – cost vs. capability, security vs. speed, network resilience vs. network operation load, etc.  And blockchain cannot avoid this, its benefits bring problems:

  • Highly Distributed hits system scalability – a fully meshed system increases the amount of network communication required by the square of the number of nodes.
  • Inbuilt security and cryptography takes a very long time to process, so the system is not capable of agreeing transactions speedily – it can only process a handful of transactions a second, and can take hours if not days to confirm a Bitcoin transaction for example
  • In addition this adds costs – the hashing calculations are extremely energy intensive, calculations at the moment are that it costs in the order of $1000 to process a Bitcoin, and there are 12.5 per block, so it’s c $12,500 per block. So a “block” of about 2,500 transactions (that’s the Bitcoin size) means about $0.50 (50 cents) per transaction. Compare that to fractions of a cent for a typical financial transaction today.
  • Bitcoin transactions are very simple and have a low data requirement. However, the more data required per transaction (say a smart contract) the fewer transactions possible per block (a Bitcoin block for example has a 1 Mb limit) and up goes the price per transaction. In addition if data has to changed up goes the processing load.
  • It’s still not fully secure – Cryptocurrency Blockchains can be (and have been) hacked by exploitable flaws in the data stored in transactions, and by rogue actors on the inside.

In summary

So in essence blockchain technology (as designed today) is great if you want:

  • highly secure,
  • highly resilient technology
  • no trusted 3rd party.

But, for blockchain to work it also needs transactions to be:

  • relatively low volume (c 6 a second)
  • not particularly time sensitive (hours, or even days to complete)
  • relatively high transaction value to mitigate the blockchain operating costs.

In addition you have to value the distributed/low trust required feature of the system, as if you don’t need it then it’s a very high overhead, with transaction costs  several order of magnitude higher vs. other existing approaches.

Worryingly, we see a lot of mooted applications in the press where it is clear there is not a hope in hell that Blockchains (in their current form), will be fast enough or cheap enough to work (see Dinis’s talk on IoT – linked to above – for a typical example). Somewhere between the hype, hope and heuristics is a major disconnect. In our view a lot of applications currently being suggested for blockhain at the moment won’t be able to cope with its operational and economic overheads.

Now as it happens (and fortunately for our client), some key Professional Services applications do fit the requirements of this profile, so it is worth them looking at blockchain technologies for applications in their businesses. So good news then.

But, even so, one should always compare the blockchain options to the existing, cheaper “Good Enoughs” around today.  Also, keep in mind Dinis’s thesis for the evolution of IoT blockchains, which may also occur in Professional Services, i.e. there will also be a huge temptation to employ more scalable/lower cost/faster performance blockchain system designs with:

  • Less distributed architecture to scale it for speed and cost
  • Less complex security in the blockchain to reduce the processing load time and cost

But this, in Dinis’ view, will probably be partly done by implementing them as “private and less distributed” systems behind IT datacentre security walls.

Note that in this case the owner of such a “Walled Garden” blockchain will very probably put themselves in the position of the “Trusted 3rd Party” supplier and, as Dinis noted for IoT blockchains:

…there will be a “race” in each industry segment (and maybe across them) as major players vie to be the Industry champion in their segment, and let network effects drive them to dominance. This will of course give these players major control, information asymmetry, and the ability to price as they see fit.

This is not unlike most network businesses’ evolution – telecoms, electronic payments processing, internet, social networks etc. where initially players try to build “walled garden” services to maximise their revenues, and only after a long time does it commoditise, eventually, into a regulated utility.

Share this:

  • Tweet

Filed Under: blockchain

Digital Summit 2017 Workshop – Driving Digital Transformation in the Enterprise

October 27, 2017 By Alan Patrick

Digital Summit 2017 Workshop – Driving Digital Transformation in the Enterprise

This year’s London Enterprise Digital Summit 2017 Summit Workshop is on Driving Digital Transformation in the Enterprise

We plan to cover 4 main topics, with our latest experience from helping large enterprise clients in the UK and Germany expand their transformation programs over the last year, plus all our previous research and work, of course. These topics are:

1. Understanding the impact of a Collaborative Working Environment (a.k.a. the impact of Enterprise Social Networks, Social Intranets and the Digital Workplace), looking at:

  • Models & Frameworks for Understanding Collaborative Technologies – we look at these technologies, how they work, where they are valuable – and where not so useful. We will wrap it into  our 4C model – Collaboration, Cooperation, Coordination and Communication.
  • Interdependencies of Technology, Corporate Behavior & Organisational Design – in this section we bring our own experience and UK research, plus our reviews of the many case studies from others who have spoken at our Digital Summits in Germany, France and the UK over the last few. In short, the technology is merely the start, it’s all about the people, and especially how the organisation is structured and needs to be adapted to use these technologies properly.
  • Strategic Consequences & Implications – These technologies have real impact across the organisation, and will drive shifts in how the organisation operates. This will create opportunities for some, and threats to others. Social Technology amplifies an organisation;s strengths but can also amplify it’s weaknesses. Any major Transformation needs to take these issues into account

2. Strategic Approaches to managing Transformational Change

  • Measurement Parameters & Key Indicators for the evaluation of the “Change in Progress” – i.e. how to measure and monitor what is happening. “What gets measured, gets done” they say – but also “You only get what you measure”. We look at metrics people are using with the tried and tested Agile Elephant approach – “What Works, What Doesn’t…and What’s Next”

3, Recommendations for Being Your Own Consultant

Our ever popular section on how to do all this without buying our services (what could go wrong with that….) especially looking at:

  • Begin, Improve or Expand your ESN/Social Intranet/Digital Workplace – We have learned a lot over the last year about what steps are required to Improve/Expand an initial implementation, and will add this to our review of how to approach the process of implementing these systems. Main areas examined are:
    •  Diagnosing the Organisational Requirements & Maturity Level – thsi is a key part of starting an implementation or improvement/expansion process.
    • Finding the High Impact Opportunities – our experience is that unless these systems solve business requirements, all the energy and excitement when starting off slowly deflates as there is diminishing takeup. We look at how to work out where these system can give great “bang for the bucks” and get people behind them.
    • Engagement – Making it Human – without people engaging, these systems whither on the vine. We look at “what works, what doesn’t” in getting people to use these systems with enthusiasm.

4. Building a business case and Defining the ROI

  • In other words, getting the money and movement to make it happen. We look at how to build a “rough cut” ROI that works for an initial business case in order to secure resources in an enterprise environment.

There Will Be Cake….and Booze

As per usual, the event features the best teas and cakes in London, supplied by the British Academy.  it’s worth attending for these alone, plus of course the opportunity to hear the stories of the other people’s experience in a “Chatham House” rules environment for the day, to give you support and inspiration.

And after the event join us for a drink at the ICA (Instutute of Contemporary Arts) downstairs….

Go here for more information about the conference, and to book your ticket.

Or contact us

Share this:

  • Tweet

Filed Under: #EntDigi conference, change management, digital transformation strategy

November 3, 2016 By Alan Patrick

Blockchain and the Internet of Things – it’s not going to work as everyone thinks it will

Last week we had our September London Enterprise Digital meetup, Dinis Guarda from Ztudium spoke on the application of blockchain technology to the IoT. Although we had booked Dinis several weeks ago, the talk could not have come at a more useful time, given previous week’s DDoS attack using IoT devices.

Dinis’s slide are over here, but I have summarised his talk below.

In essence, the IOT is expanding very rapidly, a financial CAGR of c 32% from 2016 to 2022 (c $150m t0 c 850m total market size), and a jump from c 10 to 24 billion IoT devices by 2020, of a total of c 34 billion devices. The problem, as we saw last week, is the IoT system is fundamentally insecure. And the problem is a lot of the devices are just too dumb to have any ability to ensure their own security. In a recent Tripwire survey of 220 IT professionals, only 30% said they were happy with how their companies could handle IoT security.

Dinis sees 3 tyoes of security issue, where an attacker can do one or more of the following:

  • Take control
  • Steal Information
  • Disrupt Services

So, the question is – can blockchain help?

Blockchain technology is essentially a digital record keeping ledger, set up in such a way that it can ensure that each transaction in a long “chain” of transactions is genuine. It puts groups of these records into “blocks” whuch are then bound together cryptographically and chronologically into a “chain” using complex mathematical algorithms. The signing off of each block is ( known as “hashing”) is carried out by lots of different computers in a distributed network. If they all agree on the answer, each block receives a unique digital signature. In theory it can keep records to a very high level of security (but itself can be hacked) . In theory, al the blockchain system has to do is record every transaction in an IoT application using this hihly secure operation, and all will be well with IoT.

That is theory, there are a number of complications however – to implement blockchain is non trivial and requires a number of new considerations:

  1. Interpretation advanced HUB The IoT environment will need an ‘interpretation HUB’ (server-type) that can function as a knowledge base for connecting all diverse options.
  2. Advanced Encryption – The idea of an encryption security feature might frighten some in the IoT space, but a built in encryption system will help to keep the device’s data more secure and away from third parties
  3. Super Authentication Associated with encryption, authentication will play a vital role in the IoT space ensuring that only the right people access the device and that device’s data
  4. Backbone Firewall Since the late 1980s, when they were invented, firewalls have been the security backbone of devices like computers. Firewalls help to screen out hackers, viruses and worms that target the devices.
  5. Booting time One of the critical points during the lifetime of a secure system is at boot time. Many attackers attempt to break the software while the device is powered down, according to ARM. IOT – Security 6 areas to look
  6. IP, Legal set up, Education and training Most of the security issues in cyber security (that can be solved by Fully-Verified) start in house therefore education, training and wise use of data and tech access are critical.

This all comes at a massively increased processing overhead, potentially worse performance, and definitely extra cost (and as Bruce Schneier pointed out, most IoT systems are etremely cost sensitive, which is precisely why security today is so minimal). Getting there, therefore, will not be simple and will rqeuire a number of tradeoffs:

  1. Peer to peer IoT blockchain driven organisations are going to be more powerful than ever, but there will probably be concern about global regulation, IP and government controls
  2. Retail Vs. Institutional IoT blockchain media / infrastructure driven communities;
  3. Open versus close IoT blockchain infrastructures – who will control all the data (see 1 above);
  4. The advent of IoT blockchain digital identity ledgers – digital currencies and global decentralised organisation will need co-ordination ;
  5. Big data / Social Media / Blockchain tech hacking will happen, the iOt driven disruption, platforms and social – creating social identity / financial disruption:

Dinis believes therefore that blockchain in the IoT will not be implemented without significant platform development by companies with deep pockets – major IT companies, Telecoms companies, and potentially rich “Tech” giants with large networks like Google; and maybe a few startups that are raised to “Unicorn” status to get scale.

However, they are unlikely to implement the distributed, open model that blockchain uses today, and are more likely to adopt a centralised model where they own all the servers. Dinis therefore believes there will be a “race” in each industry segment (and maybe across them) as major players vie to be the Industry champion in their segment, and let network effects drive them to dominance. This will of course give these players major control, information asymmetry, and the ability to price as they see fit.

Thus the “secure” aspects will be traded for control – be careful what you wish for.

Share this:

  • Tweet

Filed Under: blockchain

Post Capitalist ways of working

October 14, 2016 By Alan Patrick

Post Capitalist ways of working

Readers of the blog will know that we have long proposed that the “Future of Work” appears to have 4 emerging trends:

  • Human Centric – Better organisation of human potential via collaboraion/co-operation/communication
  • Offshoring – moving to lower and lower cost labour pools, in low wage countries
  • Uberisation – using technology to organise low cost “gig economy” labour in-country
  • Automation – replacing labour with electro-mechanical and increasingly digital equipment

We have written about this in more detail on this blog over here, and will also be talking about this in or conference on the 24th November in London. We have argued that the economics of the various options means the Human Cenric approach is most likely to occur in complex, non mass-produced work with high added value – too variable to automate or offshore, to valuable to leave to gig economy mechanical Turks.

As input to this discussion, today Paul Mason published an interesting article on what he called Postcapitalist ways of working. In essence he argues that IT is having 3 main impacts on work:

  • Firstly, it dissolves the price mechanism. Information goods — if they can be copied and pasted infinitely, and used simultaneously without wear and tear — must fall in price under market conditions to a value close to zero. This is essentially the Automation issue at ts most broad case.
  • Secondly, IT automates work faster than new work can be invented. Around 47% of all jobs are susceptible to automation, say Frey and Osborne (2013). And information also makes it work modular, loosening the link between hours worked and wages; and it makes work possible to do outside the worplace — blurring the division between work and life.

Mason argues that the capitalist system copes with these twin shocks in two unfortunate ways:

a) to maximise capacity utilisation of low-skilled labour and of assets. So we get Uber, Deliveroo and AirBnB are effectively capacity utilisation businesses. [aka Uberisation and Offshoring]

b) to artificially inflate the price and profitability of labour inputs: so housing becomes the major thing wages are spent on — and healthcare and university education. [ie if labout cost is not a key input, make it pay its way in the broader capitalist system].  Things that in all previous eras of capitalism the elite desired to be as cheap as possible — to ease wage pressures — are now made as expensive as possible, and capital migrates away from production and from private-sector services towards public sector services.

He believes this, if taken to its logical endpoint, results in  a form of Gig-Economy based neo-feudalism.

He believes what we call Human Centric way of working is the way out of this, his a third impact of info-tech. It has begun to create organisational and business models where collaboration is more important than price or value. As he notes:

Networked busieness models create massive positive externalities — network effects –where the data, or the wellbeing, or the utility created by network interactions is capturable and exploitable. But as soon as technology allowed it, we started to create organisations where the postitive effects of networked collaboration were not captured by the market.

Wikipedia is the obvious example; or Linux; or increasingly the platform co-operatives where peopel are using networks and apps to fight back against the rent-seeking business models of firms like Uber and Airbnb.

He believes that the examples set by enterprises such as Wikepedia, Linux etc create a model for the Future of Work, and this is the way out of the inevitable Automation/Uberisation trap and calls for the transition to a non-capitalist form of economy which unleashes all the suppressed potential of information technology, for productivity, wellbeing and culture, by:

  • Moving as much as possible of human activity out of the market and state sectors into the collaborative sector; to produce more stuff for free.
  • Networked living (even physical) he believes cities are the ideal environment as they are “the closest the analog world comes to a network”.
  • Reduce the input costs to labour, so that we can survive on less wages and less work (this would need regulatory or other activity usch as mass house building to reduce prices)
  • Pushing forward rapidly the de-linking of work and wages

In essence moving production out of the paid economy, and replacing wages with some form of wage for living. (His last point by the way is the same argument as that Minimum Wage exponents use, arguing it is necessary to handle the displacement period from the old ways of working  to new ones without major strife).

 

 

Share this:

  • Tweet

Filed Under: Uncategorized

Gartner on the Future Digital Workplace

September 2, 2016 By Alan Patrick

Gartner on the Future Digital Workplace

Gartner has put forward its Top 10 trends driving the Future Digital Worlplace – the areas are nicely summarised in the graphic above.

To be honest. the “digital transformation” predictions are somewhat aggressive, even possibly hyped (surely not!) – a trend others have noticed with some of Gartner’s recent output in the space.

In the Agile Elephant view, based on the limited successes of Office Automation 1.0,  the Digital Workplace is more likely to resemble the graphics above rather than their tech automation predictions for quite some time.

But, all fuel to the debate.

 

Share this:

  • Tweet

Filed Under: Uncategorized

February 2, 2016 By Alan Patrick

The Limits to Collaboration

 

HBR on Collaborative Overload – High Collaboration people get burned out

Collaborative Overload

Evidence is emerging that too much Collaboration can be a bad thing – Economist:

…the current Harvard Business Review(HBR) has a cover story on “collaborative overload”; and Cal Newport of Georgetown University has just brought out a book called “Deep Work: Rules for Focused Success in a Distracted World”.

A growing body of academic evidence demonstrates just how serious the problem is. Gloria Mark of the University of California, Irvine, discovered that interruptions, even short ones, increase the total time required to complete a task by a significant amount. A succession of studies have shown that multitasking reduces the quality of work as well as dragging it out. Sophie Leroy, formerly of the University of Minnesota (now at the University of Washington Bothell) has added an interesting twist to this argument: jumping rapidly from one task to another also reduces efficiency because of something she calls “attention residue”. The mind continues to think about the old task even as it jumps to a new one.

On the “Information Residue” issue, there were studies done many years ago on the impact of telephone interruption. They showed that it took several minutes to mentally “set down” what you had been doing, and several minutes to “set up” the tasks the telephone call is about, (or re-set what you were doing) before effective work could again begin. The more complex the task, the more the set up / set down time. Too many phone calls and the worker was effectively spinning in air and could do only the most menial tasks, any real “knowledge work” was out the question.

Another issue The Economist notes is the poor understanding of the costs of Collaboration, which also plays to the above point:

A second objection is that, whereas managers may notice the benefits of collaboration, they fail to measure its costs. Rob Cross and Peter Gray of the University of Virginia’s business school estimate that knowledge workers spend 70-85% of their time attending meetings (virtual or face-to-face), dealing with e-mail, talking on the phone or otherwise dealing with an avalanche of requests for input or advice. Many employees are spending so much time interacting that they have to do much of their work when they get home at night.

Problems

The HBR article referred to above notes X main problems emerging from modern Collaboration systems – I have split the issues into teh 3 main issues:

  • Volume
  • Victims of Virtue
  • Vampires

Volume

How much time do people spend in meetings, on the phone, and responding to e-mails? At many companies the proportion hovers around 80%, leaving employees little time for all the critical work they must complete on their own. Performance suffers as they are buried under an avalanche of requests for input or advice, access to resources, or attendance at a meeting. They take assignments home, and soon, according to a large body of evidence on stress, burnout and turnover become real risks.

As one commenantor in The Economist points out, Collaboration kills itself by the Network Laws

“There is a simple reason why performance declines with collaboration. It is caused by an arithmetic progression: one person = 100% work (theoretically, and rounding the numbers for this example); two people = 90% work and 10% collaboration overhead; three people = 80% work and 20% overhead; four people 60% work and 40% overhead, and so on.
Why the sudden drop in work? Because when you have four people, you suddenly have six interactions to service (to prove it, draw a box with a person at each corner and draw all the lines between them). Above four, the number of interactions increase again.
By about 15 people, work has dropped to almost zero and collaboration overhead risen to almost 100% (all those meetings ‘the alternative to work”).

Victims of Virtue

What’s more, research done across more than 300 organizations shows that the distribution of collaborative work is often extremely lopsided. In most cases, 20% to 35% of value-added collaborations come from only 3% to 5% of employees. As people become known for being both capable and willing to help, they are drawn into projects and roles of growing importance. Their giving mindset and desire to help others quickly enhances their performance and reputation. As a recent study led by Ning Li, of the University of Iowa, shows, a single “extra miler”—an employee who frequently contributes beyond the scope of his or her role—can drive team performance more than all the other members combined.

But this “escalating citizenship,” as the University of Oklahoma professor Mark Bolino calls it, only further fuels the demands placed on top collaborators. We find that what starts as a virtuous cycle soon turns vicious. Soon helpful employees become institutional bottlenecks: Work doesn’t progress until they’ve weighed in. Worse, they are so overtaxed that they’re no longer personally effective. And more often than not, the volume and diversity of work they do to benefit others goes unnoticed, because the requests are coming from other units, varied offices, or even multiple companies. In fact, when we use network analysis to identify the strongest collaborators in organizations, leaders are typically surprised by at least half the names on their lists. Also see the Chart at the top of the post, these people start to burn out.

Vampires

Other people start to (ab)use highly collaborative people.

Instead of asking for specific informational or social resources—or better yet, searching in existing repositories such as reports or knowledge libraries—people ask for hands-on assistance they may not even need. An exchange that might have taken five minutes or less turns into a 30-minute calendar invite that strains personal resources on both sides of the request.

Consider a case study from a blue-chip professional services firm. When we helped the organization map the demands facing a group of its key employees, we found that the top collaborator—let’s call him Vernell—had 95 connections based on incoming requests. But only 18% of the requesters said they needed more personal access to him to achieve their business goals; the rest were content with the informational and social resources he was providing. The second most connected person was Sharon, with 89 people in her network, but her situation was markedly different, and more dangerous, because 40% of them wanted more time with her—a significantly greater draw on her personal resources.

Solutions?

From the HBR article, we can see 3 practical approaches (there are some impractical ones that we discuss later):

Redistribute the work

Any effort to increase your organization’s collaborative efficiency should start with an understanding of the existing supply and demand. Employee surveys, electronic communications tracking, and internal systems such as 360-degree feedback and CRM programs can provide valuable data on the volume, type, origin, and destination of requests, as can more in-depth network analyses and tools.

Also, can one shift decision rights to more-appropriate people in the network? It may seem obvious that support staff or lower-level managers should be authorized to approve small capital expenditures, travel, and some HR activities, but in many organizations they aren’t. (Risk here though is too often responsibility is pushed down, but authority is not)

Structure for Collaboration Boundaries

Show the most active and overburdened helpers how to filter and prioritize requests; give them permission to say no (or to allocate only half the time requested); and encourage them to make an introduction to someone else when the request doesn’t draw on their own unique contributions. The latest version of the team-collaboration software Basecamp now offers a notification “snooze button” that encourages employees to set stronger boundaries around their incoming information flow. It’s also worth suggesting that when they do invest personal resources, it be in value-added activities that they find energizing rather than exhausting.

Also consider whether you can create a buffer against demands for collaboration. Many hospitals now assign each unit or floor a nurse preceptor, who has no patient care responsibilities and is therefore available to respond to requests as they emerge. The result, according to research that one of us (Adam Grant) conducted with David Hofmann and Zhike Lei, is fewer bottlenecks and quicker connections between nurses and the right experts. Other types of organizations might also benefit from designating “utility players”—which could lessen demand for the busiest employees

Measure and Reward the right things

We typically see an overlap of only about 50% between the top collaborative contributors in an organization and those employees deemed to be the top performers. As we’ve explained, many helpers underperform because they’re overwhelmed; that’s why managers should aim to redistribute work. But we also find that roughly 20% of organizational “stars” don’t help; they hit their numbers (and earn kudos for it) but don’t amplify the success of their colleagues. In these cases, as the former Goldman Sachs and GE chief learning officer Steve Kerr once wrote, leaders are hoping for A (collaboration) while rewarding B (individual achievement)

The Economist article is a bit more sceptical about how easy this is, however:

…collaboration is much easier to measure than “deep work”: any fool can record how many people post messages on Slack or speak up in meetings, whereas it can take years to discover whether somebody who is sitting alone in an office is producing a breakthrough or twiddling his thumbs.

Also, Managers “feel obliged to be seen to manage: left to their own devices they automatically fill everybody’s days with meetings and memos rather than letting them get on with their work”

The HBR article also mention two things which (to our minds at least) will not help a lot unless one is very careful:

(Don’t) Use more Collaboration Technology

HBR recommends using technology such as Slack and Salesforce.com’s Chatter, with their open discussion threads on various work topics; and Syndio and VoloMetrix , which help individuals assess networks and make informed decisions about collaborative activities. This seems like a retrograde step if the core problems noted above are not solved. Technologys is largely the reason for the problems to begin with.

(Don’t) Try new fangled Office Productivity schemes

As The Economist points out, the cult of collaboration has reached its apogee in the very arena where the value of uninterrupted concentration is at its height: knowledge work. Open-plan offices have become near-ubiquitous in knowledge-intensive companies. The HBR (and many organisational theorists) likes all this open plan, water cooler stuff. The Economist comments section punctures this however:

In my experience, open plan offices work well where there is a small team working on the same issue. Other than that they are a Dilbert zoo of oppression.

And….

[This] may explain another phenomena of the knowledge-intensive business: the rise of telecommuting. If you don’t go in to the open-plan office, you can actually concentrate on getting the job done.

And…

Well, the newest hype is flexible seating within open plan offices, assigning one working place to about 1.2 employees – strictly to foster collaboration, not as a cost cutting exercise. But indeed, this reduces the “collaboration curse” – because you do not know the people around you and thus have nothing to collaborate upon. So we are already further: we now combine the disadvantages of open plan offices without getting any of the promised benefits of collaboration…

And, cynically

“Collaborative” workspaces typically have a much higher density of employees per square meter. It’s cheaper to house employees and the company saves money. Collaboration is the cutesy label used to justify it to the employee base but the bottom line is that it’s cost driven.

 

What Works, What Doesn’t, What’s Next?

What works

  • Collaboration – in moderation
  • Careful curation of collaboration systems to optimise performance.
  • Performance measure that encourage effective collaboration. This does not mean pushing people to be “more collaborative” as so many metrics today do
  • Boundaries to protect the most collaborative people t keep their time sink to effective levels

What Doesn’t

  • Collaboration unbound (just reproduces the email inbox problem, without email’s search and file tools)
  • Use of new techniques and technologies without a lot of due care and thought about scale, scope and structure.
  • Design and Office/Company organisation “fads” to foster Collaboration (especially if the real reason is cost reduction etc)
  • Mathematically – too many people in the collaborative net, ensuring that so much tme is spent communicating rather than creating or working

What’s Next

  • Increasing focus on monitoring internal collaboration systems
  • Increased attempts at measuring and rewarding effective collaboration
  • Reducing size/scope of collaboration networks as better metrics winnow down ineffective collaboration approaches- silos are dead, all hail the new silos
  • Many collaboration system failures as the above optimisation requires restructuring to give people authority as well as responsibility, managers to cede control, and collaboration to be curated for impact (hard), not as a good in itself (easier)

 

 

 

 

 

Share this:

  • Tweet

Filed Under: Uncategorized

New Ways of Working and New Economies

November 20, 2015 By Alan Patrick

New Ways of Working and New Economies

A summary of a piece I did on Broadstuff on the emerging New Economy, this is germane to New Ways of Working:

I was prompted to write the post after reading Gideon Lichfield’s useful article on all the different types of systems jumbled up in the term “Digital Economy” and the muddy thinking about it that results. To summarise Gideon first, these are the different types of systems operating up in this new economy, and the reality behind the hype – the expurgation is mine:

Sharing economy – The name is apt for any service that allows a thing previously available only to its owner to be used by other people, thus making more efficient use of resources.

Peer (or peer-to-peer) economy – It’s meant to get at the more direct connection between the people on either side of a transaction, unmediated by a big faceless company, but “peers” economy” is very misleading as to the relationship between borrowers, lenders and intermediary

Gig economy – not a steady job but a series of gigs. But the gig economy could be short-lived: Legal disputes about gig workers’ rights, liability, and so forth could force the creation of a new category of worker that is neither freelancer nor employee.

On-demand economy – this is where the venture capital money is: services that offer cars, food, home-cleaning, and other services at the touch of an app button. [My note – and it relies on “Gig-economy” labour]

Platform economy – a digital platform that, whether through algorithms, a rating system, or some combination of the two, serves to connect customers with providers of goods or services.

Networked economy – See “Platform economy.”

Bottom-up economy – the newfound ability of small businesses and freelance workers to find customers or band together with other workers from all around the world.

Access (or Rental) economy – services that let you pay to use things like cars (Zipcar), movies (Netflix), or music (Pandora, Spotify) without owning them. Been going on since long before the Ubers of this world came into being,

Uber economy – “Uber for X” has become an easy shorthand, but it’s simplistic—the Uber model is only one of many.

The first takeaway is that these different “New Economies” will drive many different ways of working.

But what this summary also really made clear to me is that all these “Next Economies” (possibly with the exception of a Bottom Up collaborative system) is that they like to use the impressive (and more upmarket ) term “Economy” whereas in reality they are just good old Markets – either simple ones flogging something, or two sided markets matching a buyer and a seller via a mediator.

So it’s a lot more like the Old Economy than one is led to believe at first reading.

And this is hardly a new feature of the digital age (I am reminded that many “vertical markets” and “e-market” dotcoms were proto-Unicorns until the dotcom crash, and its hardly as if the last 15 years haven’t seen a lot of new digital markets emerge).

Some Implications..

The implications are that there is little “this time it will be different” New Economy in the next iteration – it’s the Old Economy, but mainly with added automation and more part time, low wage workers. New Ways of Working will have to obey Old Rules of Economics more than on would ideally like, so any new structures will be judges on old metrics, like:

  • Efficiency
  • Effectiveness
  • Dependability (predictability of output)
  • Reliability (uptime)
  • Mean times between failure/ faiure per unit output

As  Texas oilfield accidents lawyers has stated that it is the right of employee to claim compensation for the injury caused during the course of employment.There are some following implications – regardless of the ways of working or organisatio chosen, human centred work will need to be structured at all times to be better a than a low cost “gig” worker or automation.This implies the sort of thought into work structure that Toyota put into its systems, a point made by Professor of Operations Management Zeynep Ton at the O’Reilly #NextEconomy conference last week.

If the structure can’t do that, it won’t be part oaf any New Economy.

Share this:

  • Tweet

Filed Under: Uncategorized

Towards Future Organisation Structures

November 4, 2015 By Alan Patrick

Towards Future Organisation Structures

At the Enterprise Digital Summit I did a sort of Pecha-Kucha style talk on future organisation structures but I thought it may be worth going through the talk in more detail as a blog post as well. In essence, the formal part was to show the research behind 3 hypotheses we were going to discuss:

  • There are many options for effective organisations, from quite structured hierarchies to very open structures, there is no one “best” option. Some are more appropriate than others in certain situations
  • Forget Dunbar’s numbers in any organisation structure at your peril
  • Pure Hierarchies are inflexible, flexible Network & Heterarchical organisations have problems scaling and delivering, so the likely “future organisation” solutions are going to be around hybrid structures

Also, we have done a bit of research on long lasting alternative organisation structures, so in the spirit of our “what works, what doesn’t, what’s next” approach, we can make a few observations about modus operandii.

There have been many effective organisational structure options – the ecosystem decides which is “best” (aka “fittest”)

We have gone back into biology and anthropology as well as history to look at organisation structures that work. By this we mean structures that are resilient,  effective and flexible – the term we like to use (inspired from here)  is Responsive organisations – capable of adapting to new situations. One of the most interesting cases from nature is the difference in societal structure between Chimpanzees and Bonobos – genetically very similar apes to each other (and to humans…), yet one has a hierarchical, patriarchal society and the other is a flatter, matriarchal society. Both are resilient, both are effective (for example both species can use tools), and flexible. The reason for the difference is believed to be the different ecosystems they live in. Another interesting case study is  a troop of Baboons that changed from patriarchal to matriarchal society when the alpha males were killed off, and have remained stable in the new state for 3 generations so far.

Also, Jared Diamond’s* and others work on early human societies show that there has always been a wide variety of human ways of organising society. And again, the explanation for differences is usually the environment they are in. Human evolved a more flexible social structure than Chimpanzees or Bonobos, which ultimately has led to 9 billion of us.

As far as organisational structures go, we noted the extremely long lives of various hierarchies – the Catholic Church, Byzantine government, various flexible military organisations, to give a few examples. We also noted that modern corporate hierarchies were modelled on old 18/19th century military structures, but the modern military has in many ways moved farther away from that model than most organisations have, due to the pressures of combating asymmetric armies.

Forget Dunbar’s Numbers at your peril – scale drives hard choices

As we have explained before, there is more than one Dunbar’s number. Dunbar’s work shows that we can only hold a limited number of people at various levels of social closeness. Very close is about 5, close is about 15, general friendship group about 50, and casual friends/acquantances about 150. The amount of social transactions required to keep a person at a particular level rises as they become closer, and we have a limited capacity. To keep 150 people at the level of intimacy you keep 15 would take take all the spare time in a day. Larger groups become ever more distant.

In a social business context, this has a real impact. The level of extreme collaboration that a close team like a work cell requires tops out at the Dunbar number of c 5, it’s very difficult to run teams where everyone knows what is going on at sizes greater than c 15 people, and at c 50 people there is a transition from one person being able to run an organisation, and it has to be split between subordinate managers (this is a well known problem in startups, this is the point where the entrepreneur has to “let go” direct control and put processes in place. In many cases either entrepreneur or organisation don’t survive the transition).   At c 150 people up a company moves from being a place you vaguely know everyone to being an “organisation”, where formal structure replaces informal connections.

The reason for this is the amount of interactions required to keep a high level of trust and collaboration.  For 5 people, fully connected (networked) to each other, there are 10 links between the individuals in total (20 if you count each part of a link as a 2 x 1 way interactions). At 15 people it is 105 links, at 50 people 1225, at 150 people 11,175. This is a power law, every time the group size increases by 3x, the number of links increases by the square (The law is (N(N-1)/2 to be precise).  You can model this to show that fully linked groups rapidly become unsustainable as they scale.

To scale therefore, there are two options

(i) reduce the quality of the links, and as Dunbar explains, this already occurs as social groups scale – but so does their functionality, and therein lies the rub, for more co-ordinated activities (like business activities) to happen the links have to operate at a certain minimum level of functionality; or

(ii) reduce the number of links required. The way to do this is to introduce a structure where not everyone has to link to everyone else. The simplest way of doing this is to introduce a hierarchical structure, where everyone knows their place in it and who they link to. Arguably hierarchies also reduce the number of links which are fully bi-directional, further reducing the load.

This is why human enterprise in any form, when it scales, throughout history has moved to forms of hierarchical structures, almost irrespective of surrounding environment. That they are imperfect is not in doubt, but throughout history hierarchies have been, to paraphrase Winston Churchill, the worst form of organisation, except for all the others.  In fact, the only really notable thing about any alternative structures so far has been their relative rarity and short lifespans. (There are also a few interesting features of the ownership structure of such stable alternatives which we go into further down the page)

The argument today is that modern working conditions – a sped up business cycle, ability to work anywhere, anytime, increasing need to inovate to compete, plus new technology will force a shift from the hierarchy, and that technology will facilitate this shift to other structures, usually postulated to being more networked and heterarchical.

Hierarchies, Heterarchies….. and Hybrids

There are a number of proposed alternative structures around at the moment, mostly based around networked and/or heterarchical principles. Although these terms are often used interchageably, they are not quite the same.

Networks are the structures that connect people together, strictly speaking any connection structure is a network, including a hierarchy. But by “network” most proponents of new organisations mean a non ranked, non hierarchical structure that connects all to all, and argue that new technologies allow a more flexible way of linking people digitally.

Heterarchies are “a system of organization where the elements of the organization are unranked (non-hierarchical) or where they possess the potential to be ranked a number of different ways” – they differ from the above network definition in that “ranked in different ways” term. The idea is that any individual is differently connected to a variety of networks.

But given the limits of Dunbar numbers and link scaling power laws, how will this work? All the above comments about Dunbar numbers and scalability still apply to these networked structures – it’s not really a technology issue, its a human cognition issue. The flooded inbox problem is a symptom of being over-networked in a business sense, and newer technology doesn’t solve this – companies are finding that as email use declines, the social messaging overload grows – increasingly companies are asking how to filter business social messaging for relevance. In other words, how to impose a link-reducing structure on information flow.

Arguably a heterarchy is more scalable than a pure network, as it allows one to drop a lot of unnecessary links so in effect not everyone is connected to everyone else – in effect forming a scalable small world network structure. However, that starts to look suspiciously like a hierarchy if all links are equal, but some (those that link between the various sub networks – small worlds – for example) are more equal than others – which they tend to become.

Both these new models also require more energy to maintain than a hierarchy, the transaction costs required in maintaining these informal structures require higher time investment and personal skill levels, so at the minimum there usually needs to be a lot of education of people to work in them. There is some concern that not all people or jobs can work in this way, so they limit the labour they can use.

But Hierarchies have also adapted, implementing some features of network and heterarchical practice, and in watching this adaptation we believe the eventual endgame is taking shape – a hybrid structure. For quite a few decades Hierarchies have been trying a number of approaches to reduce their flaws:

  • Breaking up into smaller units within a large structure, wher each unit gets closer to a viable Dunbar number so can opearte withoit overwhelming process.
  • Increasing reporting lines across the organisations – “matrix” organisations.
  • Implementing hetearchies within the hierarchy – Quality Circles, Manufacturing Cells, Ad Hoc Project teams, “Agile” processes are all examples of this.
  • Giving authority to people further down the organisation.

 

What Works – Alternative Organisations that have scaled, succesfully and sustainably

There are a number of interesting case studies of larger companies that do use alternative approaches and have proven they are both scalable and systainable over time:

John Lewis Partnership

The UK department store retailer has been going for over 100 years, and is consistently seen as great for customers and great for staff. In structure its is at first glance hierachical, but with the major difference that every employee is in fact a aprtner, a shareholder in the company at a meaningful level, and this impacts it’s culture and approach. There are however 3 other features worth noting about John Lewis that are important:

  • It is privately held, i.e. can focus on long term company goals rather than short term pressures from rent seeking investors
  • Stores are “natural Dunbar structures” – they are essentially a large collection of c “150 person” elements, the ecosystem has been sympathetic to reproducing viable sized structures
  • It operates at the upmarket (aka higher margin end) of its business ecosystem, where a focus on service generates more benefit than possible higher costs of its approach

W L Gore

Gore has been going for c 60 years and pioneered an Open Allocation organisation (choose what you work on, within bounds) structure based on it’s founder’s experience with ad-hoc task teams in hierarchical structures. Gore has c 10,000 associates (employees) in operations spread across the world. It looks to be poles apart from John Lewis, but Gore has some interesting features that are similar:

  • Family, then privately owned
  • Gore Plants also have limits to size – In each factory they limit the number of employees to c 150 people (recegnise thet number?) so that “everyone knows everyone”.
  • At the high end of it’s business ecosytem, again a focus on customer service yields a larger benefit than on cost

Toyota

Toyota was founded just before WW2, but like most Japanese companies had to re-invent itself afterwards, and developed a system to optimise the conistions of austerity in post war Japan. It  became well known for this “Toyota Production System” as the exemplar of “just-in-time” production. The system focussed on minimising slack resources, and emphasized efficiency on the part of employees, and gave a lot of power to the employees on the front lines. They pioneered work cells, quality circles and modular structures. It was the go-to case study in the 1970’s & 80’s. During the 1990s, Toyota began to experience rapid growth and expansion, largely due to the culture.  Expansion strained resources across the organization and slowed response time, and the organization culture became more defensive and protective of information. Toyota’s CEO, Akio Toyoda, the grandson of its founder, noted that  “I fear the pace at which we have grown may have been too quick.” Note that it maps to Gore and John Lewis in that i:

  • Is Family owned
  • Although a mass market player, it strove to be at the “high value” end – quality and customer choive were built in from the design process
  • There is no direct linking to the 150 “Dunbar Number” but they certainly understood small team dynamics very well, and the “respect for people” philosophy echoes a lot of the thinking of the other two
  • Although it does not have the common ownership model of the other two, it does benefit from teh Japanese company corporate loyalty model, arguably an equivalent approach in terms of aligning interests

A number of new companies are often posited as being examplars of these new ways of working (Valve,  Medium etc) but as most are new we can’t tell whether they are sustainable. Also, most of these organisations are still relatively small, few are over 50 employees in size, never mind 150, so in Dunbar terms these organisations can work mainly because of human cognition capacity rather than any new structure per se. Also most are almost pure “knowledge busineses”, which have already shown over the last few decades that they are fairly easy to run in less hierarchical fashion . The interesting thing will be to see what happens when they scale, and if there are any ecosystem factors underlying the successes (or failures).

Of the current crop of new organisation experimemts, the one that interests us most is Zappos, as unlike many of the others held up as exemplars today, who are mainly too small and new for any conclusions to be drawn, Zappos is already a larger enterprise that is trying to re-engineer its culture, and it deals with physical materials and operational issues.

Zappos

Two years ago Zappos stated to implement holacracy, an approach originally based on Sociocracy, ostensibly a heterarchical system but one which has a very structured approach to the ranking of people in different ways (to the extent that sceptics observe that it looks very much like a hierarchy in all but name…).

Zappos differs from our sustainable case studies in a few ways:

  • It is not family/privately run, being acquired by Amazon
  • It is not clear if it has the common ownership model (at a level that makes alignment of interest top of mind), so it is up to the holacracy culture to deliver this.
  • It is not “upper end” of its market, however it is obsessive about service and was an early adopter of the online channel, and can offer a huge range of niche sizes and products that are hard to find in conventional stores

So far the results are unclear, reports lauding and lamenting it both appearing in the media to date, but it’s early days and major change is never quick – definitely a cse study in the making.

What Doesn’t?

We have written already of why many earlier structures failed (see here) and have noted that all succesful organisations tend to have in them the seeds of their own destruction, but the following amusing – and educational – concepts are also worth following up on, as they will kill any organisation, no matter how structured:

  • Peter Principle – every employee rises to their level of incompetence
  • Parkinson’s Law – make-work expands to fill the time available for its completion. There will be the maximum number of chiefs at the point the system collapses
  • Pournelle’s Iron Law – in essence that in any organisation, the people who will eventually rule it will optimise for its own survival, regardless of whether it is functional or not

What’s Next?

This was to be the rest of the workshop – publish a comment and damn the torpedoes!

 

 

*Some in the Anthropological establishment dislike Diamond’s work, its hard to tell whether its valid objection or noses out of joint, but what is unarguable is that he shows that various succesful early human societies can be organised very differently

Share this:

  • Tweet

Filed Under: Uncategorized

Next Page »

Sign up for our regular Agile Elephant Newsletter - news, posts, ideas and more.

My Tweets

From the Agile Elephant Blog

  • The Metaverse doesn’t exist yet, but…
  • Impossible Things get Disruptive
  • Clarity, Cloud, and Culture Change at IBM

What Next?
Take a look around our site, check out our approach, see how we can help, join the conversation on our blog or contact us to find out more.

About Us

Agile Elephant is a new kind of consultancy designed to help companies embrace the new digital culture of social collaboration, sharing and openness that is changing business models and the world of work.

Contact us to find out more!

Our founder's blogs:

broadstuff

@DT on Medium

Technotropolis

Our blog:

The Agile Elephant Blog

Site Log In | Site Log Out

Subscribe to Site RSS

Subscribe to our Blog via Email

Enter your email address to subscribe

Copyright © 2025 ·Streamline Pro Theme · Genesis Framework by StudioPress · WordPress · Log in