Disruptive Thinking. Mark Layton September 28, 2016

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1 Disruptive Thinking Mark Layton September 28, 2016

2 Disruptive Thinking 2

3 Why Disruptive Thinking? Corporate Mortality is Accelerating: 1958= 61 years 2015= 18 years Reduction of.75 years each year Product development cycles must also accelerate Systematic experimentation Rapid execution of opportunities The goal isn t to live forever, the goal is to create something that will. Chuck Palahniuk 3 3 3

4 Disruptive Thinking is Survival In order to survive the problems presented by this new world, we need to think beyond what we can see. What we really need is disruptive thinking, going beyond our imagination. 4 4

5 Disruptive Thinking in History The Original AC DC Edison held 1,093 patents Tesla held 300 world-wide Edison heavily invested in DC Tesla saw the impracticality of transmission DC Edison s status quo attitude, had a built-in market Tesla's ideas were more disruptive, longer-term, anticoal, steel, etc. I don't care that they stole my idea. I care that they don't have any of their own Nikola Tesla 5 5

6 Disruptive Thinking in History The mass production techniques Henry Ford championed eventually allowed Ford Motor Company to turn out one Model T every 24 seconds. As a framework for understanding how markets evolve, disruption is a seductive idea. If I had asked people what they wanted, they would have said faster horses. Henry Ford 6 6

7 Disruptive Thinking Rich Rogers Big companies don t innovate because they need a whole hierarchy of people to agree that an idea is good in order to pursue it. Simon Baker The status quo demands that bold ideas be watered down, the corners cut off, and a safe decision be made that makes little difference William Pollard Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable

8 Disruption Business Model or Byproduct services and products that target the bottom end of an established market, then move their way up the chain until, eventually, they overtake the existing market leaders. True disruptors are creators and entrepreneurs first not the other way around

9 Reaction to Change The Kübler-Ross Grief Cycle 9

10 The Manager Command-and-control, poor communication structure, no reward to innovate 10 10

11 Performance Reviews: Old-School Tied to conforming to expectations Usually tactical and myopic in view Everything s perfect until it s not (you re fired!) Passive and often ill-informed My people know my door is always open. Encourages competition over collaboration 11 11

12 Leadership: There is No Substitute To win in the marketplace you must first win in the workplace. I m obsessed with keeping employee engagement front and center. - Doug Conant, CEO, Campbell s Soup 12 12

13 13 Social Media Activism Like it or not, employees are talking about you 50% post messages, pictures or videos 39% shared praise or positive comments 33% post messages, pictures or videos in social media without any encouragement from the employer 16% have shared criticism or negative comments 14% have posted something about their employer in social media that they regret Source - Weber Shandwick 13

14 Human Nature, Egos & Politics Unengaged Mostly Positive & Social All Negative Not Social Some Negative, not Socially Active Critical & Highly Social Wildcards Source - Weber Shandwick 14 14

15 It Begins & Ends with Culture Zappos, the kings of company culture... It s a simple example of a company that obviously gets it right

16 Zappos Molecular Model 16 16

17 Welcome to Flatland Imagine a company where everyone is equal and managers don't exist. A place where employees sit where they want, choose what to work on and decide each other's pay. Then, once a year, everyone goes on holiday together. "It's a community of respect and the best idea wins no matter who it comes from, whether they've been at Valve for a year or founded Valve." 17 17

18 Valve Software s Employee Manual What I like most about this is it privileges the idea of dialogue, the idea of collective engagement. DJ Powers, Valve Peer-pressure is a fantastic way of organizing a business. Think it. Build it. Ship it. Tweak it

19 Not a Small Company Thing Founded in 1958, W.L. Gore has operated under what it calls a "lattice" management structure, which relies on teams in place of bosses and traditional chains of command. Gore's 10,000 employees, work mainly in engineering and manufacturing, take on leadership roles based on their ability to gain the respect of peers and to attract followers. 19

20 Fortune 100 Best Companies to Work For These companies gained an average 10.8% a year since 1998, according to the Russell Investment: Whole Foods soared 31%, vs. 13% for the S&P 500 Marriott gained 28% American Express advanced 22% Zappos net sales were up almost 50% 20

21 Where to Start Trust is key & the biggest hurdle to overcome: Every individual in the company must be accountable Unblock your information flow Strengthen your culture with every new hire The bottom line is that innovation and information has trouble traveling through hierarchies and managers Let chaos reign, then rein in chaos. Andy Grove 21

22 22 Agile is an Inclusive Exposure Model

23 Agile Feedback Loops 23

24 Embrace Disruption Diversity Ø Embrace and celebrate diverse backgrounds and approaches for solving problems Safety Ø People must feel safe taking risks without fear of ridicule or retribution Challenge Ø Engage employees in varied work that is complex and requires problem solving Autonomy Ø Innovation requires a sense of empowerment to create solutions 24

25 Embrace Disruption Ambiguity Ø Uncertainty of answers must be tolerated Debate Ø Ideas need to be freely expressed and challenged in a constructive way Support Ø Invest in giving people the time to experiment with new ideas and celebrate discoveries Playfulness Ø Positive work environments create a frame for people to play with new ideas 25

26 26 This is What Winning Looks Like

27 Resources Websites: Innovation Excellence: Scrum Alliance: Books: Agile Project Management for Dummies and Scrum for Dummies Mark Layton Disrupt Yourself Whitney Johnson Slack: Getting past Burnout, Busywork and the Myth of Total Efficiency Tom DeMarco Organize for Complexity Niels Pflaeging The Great ScrumMaster Zuzana Sochova Holacracy Brian Robertson Stand Back and Deliver Pollyanna Pixton Agile Retrospectives Esther Derby 27

28 Thank you for attending Mark Layton September 28, 2016

10 RULES OF EMPLOYEE ENGAGEMENT. Thomas G. Cornillie, SPHR Director of Human Resources Cincinnati Incorporated April 24, 2013

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