Business proposal draft

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ExOMTPScaleandIdeas.pdf

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ExO = MTP + SCALE + IDEAS

ExO Attributes

A B U N D A N C E

S C A L E

Define your MTP

Exercise - Each team member answers the following questions on

their own, then team discusses & drafts MTP.

What do we really care about? Why?

What is our company’s purpose on this earth (and beyond)?

What does the world hunger for? Why?

What would we do if we could never fail? Why?

What would we do if we received a billion dollars today? Why?

Your MTP (DRAFT #__________ ):

Now copy your draft to the Testing Page

Massive Transformative Purpose (MTP) describes a better future for the world (or at least your industry or community).

It doesn’t specify how.

It’s not about you, your customers,

your organization, your products or services.

No ‘you’, ‘we’ or ‘us’. You are not in the picture.

It is not a marketing slogan.

It is your north star, but it doesn’t restrict

your organization from changing direction.

It might excite and scare you,

and catch in your throat,

it matters that much to you.

You might never fully achieve it,

yet it is still worth striving for.

A great MTP attracts the customers,

community, partners and resources you need

to make a dent in the universe…

Examples:

• To accelerate the world’s transition to sustainable energy. – Tesla

• To make sustainable living commonplace. – Unilever

• Organize the world’s information. – Google

“Never doubt that a small group of thoughtful,

committed citizens can change the world:

indeed, it’s the only thing that ever has.”

– Margaret Mead

*See Chapter 3 - What is a Massive Transformative Purpose? in Exponential Organizations:

Why new organizations are ten times better, faster, and cheaper than yours (and what to do about it)

by Salim Ismail, Michael S. Malone & Yuri van Geest.

The Exponential Organizations Master Business Course is a part of the

Growth Institute MBD Program. To learn more, visit www.growthinstitute.com/exo

Step 1: Draft an MTP (Massive Transformative Purpose*)

Work licensed under Creative Commons Attribution-ShareAlike 4.0 International License. By Growth Institute Inc. based on work by Salim Ismail, Michael S. Malone and Yuri van Geest. For a copy of this license, http://creativecommons.org/licenses/by-sa/4.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA. Rev 1.1 2018-05-15

Well-Structured Examples

• To accelerate the world’s transition to sustainable energy. – Tesla

• To make sustainable living commonplace. – Unilever

• Humans must become a multiplanetary species. – SpaceX

• Organize the world’s information. – Google

Step 2: Test Your Draft MTP

Your MTP (DRAFT #__________ ):

Check your MTP: Include these qualities...

 Does it describes a desired state for the world, your industry

or your community?

 Is it highly aspirational?

 Is it unique?

 Is it audaciously Massive, touching an industry,

an entire community or the entire planet?

 Is it Transformative?

 Is the Purpose - the “why” - clear and unmistakable?

 Is there a sense of Passion and Meaning?

Remove these qualities...

 Is it a Vision Statement and about the organization?

 Is it about Mission and how to achieve the outcome?

 Is it restrictive to future business models?

 Is it a Marketing Slogan for customers?

 Is it a sentence for customer (“you”)?

 Is it a sentence for us (“we”)?

 Is it about the business?

Create the next draft of your MTP

Your MTP (DRAFT #__________ ):

Quick Test - The MTP Cocktail Party (by kentlangley.com)

Will your MTP cause the right people to “lean in”?

A great MTP creates a gravity field, attracting customers, partners, employees

and whole communities out of the crowd to your cause.

How might you rapidly test your MTP’s gravity??

“What do you do?”

Imagine a cocktail party or mixer filled with people who might be

a great fit for your MTP. Introduce yourself to a stranger...

Once names are exchanged, the next question is: “what do you do?”.

This is the moment to share your MTP. How will they respond?

Will they “disengage”, or will they “lean in” to learn more?

Pat: So Chris, what do you do??

Chris: My company is working to end opioid addiction

and deaths, worldwide.

Pat: (taking a step back) Wow. Uh - did you see where

the restrooms are? (excuses self).

Sandy: Chris, I’m Sandy. Sorry for eavesdropping, but did you say you were

trying to end opioid addiction?? (leans in toward Chris)

That is incredible - how on earth are you going to do that?

Next, attend a networking event or Meetup and share your MTP. If most people

disengage (Pat), re-draft your MTP and try again. But if your MTP is pulling the

right people out of the crowd to lean in and find out more (Sandy), it’s time for

more rigorous large-scale testing.

Now get out of the building, identify relevant communities, and test

your MTP with them! (See ExO Attribute: Community and Crowd)

Share this form! info.growthinstitute.com/mtp-tool

Staff on Demand

Using external resources for core business processes

“It is better to create an ecosystem that gets all the

world’s smartest people toiling in your garden for your

goals.” - Bill Joy, Co-founder of Sun

Microsystems

• Staff on Demand (SoD) are people who work for you on an as needed basis.

• SoD is similar to the ExO attribute: Leveraged Assets but leveraging pools of talent rather than physical assets and resources.

• Contract a home-based knowledge worker with a personal computer and you benefit from both attributes!

• Infographic showing 150 apps and sites in the gig economy:

• https://www.visualcapitalist.com/150-apps-power- gig-economy/

https://www.visualcapitalist.com/150-apps-power-gig-economy/

Community and Crowd

The Engine of Exponential Growth

• Your Community is made up of people who are drawn to and aligned with your Massive Transformative Purpose (MTP)

• It can include employees, alumni, former team members, partners, and others in some actionable relationship with your MTP.

• Community in an ExO is more than a simple transaction. The community creates a center of gravity that attracts and engages stakeholders in a network of relationships, developing over time through peer-to-peer interactions.

Algorithms Leveraging Data for Exponential Growth

• Algorithms are a set of instructions that are designed to do a specific task. For example, making a cup of tea. The process is documentable, repeatable, shareable, and potentially, scalable.

• Algorithms are the building blocks for process improvement, software and automation, “Artificial intelligence” (machine learning and deep learning) and much more.

• Algorithms help companies make sense of massive amounts of data.

Leveraged Assets

Why Own When You Can SCALE?

• Leveraged Assets are assets you don’t own and don’t appear on your balance sheet, Instead, you rent, lease, license or borrow the asset

• Sounds simple - we’ve been sharing stuff since forever!

• But over the past four decades, the way we leverage assets has been repeatedly transformed by digitizing, information-enabling and connecting assets, adding value potential with each transformation

• Physical vs. Digital Assets:

• Physical Assets are material property (also Real Assets)

• Digital Assets are intellectual property (IP) in digital form

Engagement Make Exponential Growth

Stick

• Engagement captures, holds and deepens the interest and involvement of the customer, crowd, community, partners and your internal team through the use of • Gamification • Digital rating systems • Loyalty programs • Incentive competitions.

• It is driven from your Massive Transformative Purpose (MTP) or other powerful reason to be part of a community.

• Done well, it creates and reinforces connections between stakeholders and drives desired behaviors to help your Exponential Organization (ExO) scale.

Interfaces Removing Limits to Exponential Growth

Interface:

• A point of interaction between several systems (i.e. people, networks, software, services).

• User Interface (UI) - A person shopping on Amazon.com interacts with the Amazon systems through its User Interfaces (UI) - amazon.com, mobile apps, or through the Alexa voice assistant.

• Application Programming Interface (API) - Two applications interface with each other through APIs. Google Maps Platform APIs let third-party developers provide automated custom maps and directions within their own apps and websites.

The ‘ExO Interfaces Attribute’ is so much MORE than ‘Interfaces’

Interfaces Removing Limits to Exponential Growth

ExO Interface Attribute:

• Interfaces connect humans to systems (User Interface or UI), and systems to each other (Application Programming Interface or API)

• All the tools and disciplines of User Experience Design (UXD)

• Algorithms to filter, match, learn and curate, and automated workflows to direct the output.

Basic Application

The Interfaces Attribute is, in part, a toolkit for overcoming a host of limits to growth, creating super-scalable business processes, and connecting the other exponential attributes together.

Advanced Application

The Interfaces Attribute includes many of the building blocks for the Platform Business Models and Ecosystems at the heart of the world’s most successful ExOs.

Interfaces Removing Limits to Exponential Growth

Limits to Exponential Growth

Here’s an experiment: What happens when you give a mouse an abundance of food? What you don’t automatically get is an elephant!

So, too, for a conventional organization. It can create all the

demand in the world, but if it is not designed to fulfill that

fast-growing demand at 2x, 4x, 8x, 16x, 32x, 64x, it’s not an

Exponential Organization.

Organizations fail to scale because of limits to growth,

including:

By design, an Exponential Organization (ExO) must adequately

address all relevant limits to its growth and must continue to

do so as it moves through different stages of growth

• Insufficient market size

• Inability to generate demand

• Inadequate business models

• Process inefficiencies

• Production or quality issues

• Unscalable costs structures

• Labour shortages

• Long delays to add capacity

Dashboards Steer your ExO Rocketship

• Dashboards provide your Exponential Organization (ExO) a control framework to keep things on-track, and people aligned, even through growth so rapid, you can’t hold it all in your head!

• ExOs need this new way to measure and manage the organization: a real-time, adaptable dashboard with all essential company and employee metrics, accessible to everyone in the organization.

• Where Interfaces help automate transactions at-scale, Dashboards make visible key information to those who need it for decision-making..

Experiments Exponential Learning!

Start with The Customer

Who has the problem I am trying to solve? What are their Jobs, Pains and Gains?

Identifying your customer and learning about their world is critical to validating fit between their Problem and your Solution. (Problem-Solution Fit.)

Do this BEFORE you go to the trouble of building the product and validating your market! (Product-Market Fit.)

An experiment is a testing procedure conducted to validate or invalidate the hypotheses underlying an idea. It produces concrete evidence that an idea will work or not.

A HYPOTHESIS is simply a guess, assumption or theory, and can be written in the form: “We believe that __”

• e.g. “We believe that cost drives our customers’ buying decision for our offering.

Autonomy Self-Directed Teams for

Exponential Growth

Autonomy

Exponential Organizations (ExOs) harness the ExO attribute, Autonomy, to be more resilient, adaptive and scalable.

In the increasingly dynamic and complex environments of the 21st century, these qualities often make the difference between success and extinction. Self-organizing, multi- disciplinary teams are formed.

These teams have the authority and accountability to make decisions and choose how to accomplish their goals.

With the right frameworks, information and decisions travel more rapidly through the organization, speeding up the metabolism while eliminating the need for layers of hierarchy.

Autonomy is also highly attractive to the innovative, self- directed individuals' companies are courting.

See also: Social, Dashboards, Interfaces.

Autonomy Frederick Taylor’s

In the late 19th century Frederick Taylor’s fundamental idea was the strict hierarchical separation of thinking from action. Those on top controlled and directed, those on the bottom worked leaving thinking to those on the top. In our complex digital world, traditional management can no longer guarantee control. Businesses must be able to change direction quickly to respond to complex market mechanisms.

Autonomy Employment of the future is

changing - in all aspects.

All aspects of employment is changing: space, time, employment relationship, duration of activities, cooperation, information, communication, responsibility, etc., etc.

In the future, challenges will apply, such as dealing with permanent changes, unpredictability, openness, lifelong learning, cross-functional team cooperation, which require self-organization and meaningfulness.

Given the changed conditions in the world of work, companies need to enable employees to make a meaningful contribution in the context of their employment.

People want to see meaning in the performance of their work, identify with the values of their working world and take on responsibility.

Given the changed conditions in the world of work, the need arises in our companies to enable employees to organize their own responsibilities.

This means creating self-determined, responsible work in harmony with colleagues.

The imminent radical change in the world of work and the associated opportunities for meaningful and self-organized work are only just beginning.

Autonomy Use Case: Metafinanz 2018

https://www.youtube.com/watch?v=WwSnWL56hLE&feature=youtu.be

Prior to 2018, Metafinanz had 10 hierarchical business lines

Jan 2018, they created 40 business areas run by completely autonomous self- managed entities

Autonomy Executives and Managers had

to find new roles at Metafinanz.

Overnight, many executives became redundant and had to find new roles.

CEO Rainer Gottmann: “Eliminating management was a very, very painful process.”

Helped each employee undergo constructive self scrutiny.

Autonomy How to help all employees

become intrapreneurs?

Help employees become open to innovation and

learning.

Meta reporting enables every employee to be his/her own controller.

Each employee will focus on becoming

intrapreneurs.

Employees experience meaningful contribution creating excitement and

motivation.

Autonomy Self-Directed Teams for

Exponential Growth

Questions for Mattis?

How to find the leaders who will make this disruptive change?

How to help each employee undergo constructive self scrutiny to help them through this massive change?

I’d love to learn more about the Self-organization driving license

WHY - In order to live self-organization in practice, employees and managers need the necessary understanding of working together in a self-organized environment.

Vision - The self-organization driving license enables basic qualification for people who want to work successfully in a meaningful and self-organized environment.

HOW - 1 process, 5 modules, 3 elements, 4 steps, 6 weeks each

Our self-organization driver's license supports self-organized learning in an iterative process.

The participants of the self-organization driving license form self-organized teams over 6 weeks in order to develop the content of one of our 5 modules.

The practice-relevant content is developed in four steps.

Each team is accompanied by a coach from the community and the members of the community are available as experts .

WHAT - The practice-relevant content of our self-organization driving license is made up of 5 modules, each of which is worked out in 6 weeks.

Our 5 modules

• Self development

• Leadership

• Communication & collaboration

• Structure & processes

• Culture

• TealHive offers an answer to the question: If we, as an organization, want to evolve towards self-organization, how do you start?

• At tealhive.org , pioneers of new working galaxies can explore methodological knowledge and practical experience reports on working with self- organization. Is z. For example, if someone is interested in Holacracy, some elements of it are described and experimental units such as B. Siemens EHS tell about their application and reflect on what they have experienced. The website is a first prototype and everyone is welcome to log in and share.

http://www.tealhive.org/